Toronto, Ontario–(Newsfile Corp. – October 20, 2022) – Omai Gold Mines Corp. (TSXV: OMG) (OTCQB: OMGGF) (“Omai Gold” or the “Company”) is pleased to report an updated Mineral Resource Estimate on its 100%-owned Omai gold property in Guyana. The property hosts two gold deposits, the shear-hosted Wenot deposit and the adjacent intrusive-hosted Gilt Creek Deposit (Figure 1). This updated Mineral Resource Estimate includes an expansion to the Wenot Mineral Resource which was announced January 20221 and incorporates the Gilt Creek Deposit that lies below a former pit that produced 2.4 million ounces of gold (Figure 2). Together, these deposits contribute to a more than doubling of the Company’s Mineral Resource Estimate on the Omai Property.
OMAI MINERAL RESOURCE ESTIMATE UPDATE HIGHLIGHTS:
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1,907,600 ounces of gold (Indicated) Mineral Resource Estimate (“MRE”), a 171% increase over the January MRE of 703,300 ounces
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1,777,600 ounces of gold (Inferred), an 89% increase over the January MRE of 940,000 ounces
The MRE includes:
1) Gilt Creek Deposit
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Newly introduced into the Company’s Mineral Resource Estimate, hosted within a 500 m by 300 m quartz diorite intrusive stock
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Located 500 metres (“m”) north of the Wenot Deposit and below the past-producing Fennell Pit
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1,151,000 ounces of gold (Indicated) at a grade of 3.22 g/t Au
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665,000 ounces of gold (Inferred) at a grade of 3.35 g/t Au
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For the purposes of this MRE, an underground mining approach is applied
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Open to depth and holds potential for lateral expansion
2) Wenot Deposit
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Updates the initial MRE for Wenot, announced only nine months ago in January 20221
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756,600 ounces of gold (Indicated), an 8% increase over the initial Jan 2022 MRE
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1,112,600 ounces of gold (Inferred), an 18% increase
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1.34 g/t Au grade of Indicated MRE, a 2% increase
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1.72 g/t Au grade of Inferred MRE, a 15% increase
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For the purposes of this MRE, a constrained pit approach is applied
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Excellent exploration potential along the Wenot shear corridor that hosts this deposit
Elaine Ellingham, President & CEO commented, “We are extremely pleased with the results of this updated 2022 Mineral Resource Estimate. In addition to more than doubling our NI 43-101 Mineral Resource Estimate in nine months, we were able to accelerate and exceed our goal of bringing the Gilt Creek Gold Deposit and a Wenot Deposit expansion into the Company’s MRE before year end 2022.”
1 The Company filed an NI43-101 technical report titled “TECHNICAL REPORT AND INITIAL MINERAL RESOURCE ESTIMATE OF THE WENOT GOLD DEPOSIT, OMAI PROPERTY, POTARO MINING DISTRICT NO. 2, GUYANA”, prepared by P&E Mining Consultants Inc dated February 18, 2022 on the SEDAR website www.sedar.com in support of the Wenot Mineral Resource Estimate announced January 4, 2022.
Table 1. 2022 (Oct) Mineral Resource Estimates (Please review “Notes to Accompany the 2022 MRE” below the tables for assumptions and additional information)
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Table 2. Comparison between 2022 (Oct) MRE and 2022 (Jan) MRE1
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Notes to Accompany the 2022 Mineral Resource Estimate:
1. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
2. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
3. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could potentially be upgraded to an Indicated Mineral Resource with continued exploration.
4. The Mineral Resources were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions (2014) and Best Practices Guidelines (2019) prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
5. Wenot wireframe constrained gold assays were composited to 1.5 metre lengths and subsequently capped between 6 to 25 g/t. Gilt Creek Wireframe constrained gold assays were composited to 1.0 metre lengths and subsequently capped between 12 to 40 g/t.
6. The Wenot Mineral Resource Estimate incorporates 10,647 assay results from 579 diamond drill holes totalling 81,991 m within the mineralized wireframes.
The Gilt Creek Mineral Resource Estimate incorporates 7,056 assay results from 46 diamond drill holes totalling 27,997 m within the mineralized wireframes
7. Grade estimation was undertaken with ID3interpolation.
8. Wenot wireframe constrained bulk density was determined from 30 site visit samples.
Gilt wireframe constrained bulk density was determined from 28 site visit samples.
9. Wenot gold process recoveries used were 92% for Alluvium/Saprolite and 92% for Transition/Fresh Rock.
Gilt Creek gold process recovery used was 92%
10. The gold price used was US$1,700/oz.
11. Wenot US$ open pit operating costs used were $2.50/t for mineralized material mining, $1.75/t for waste mining, $10/t for Alluvium/Saprolite processing, $13/t for Transition/Fresh Rock processing and $3/t G&A.
Gilt Creek US$ underground operating costs used were $60/t for mining, $15/t for processing and $5/t G&A.
12. At Gilt Creek, MRE blocks were reviewed for grade and geometric continuity. Isolated/orphaned and single block width strings of blocks were removed in order to only report Mineral Resources with a reasonable prospect of economic extraction.
13. Wenot pit slopes were 45o.
“While modelling and evaluating the historical data on the Gilt Creek Gold Deposit earlier this year, we were impressed by the extent of the gold-bearing quartz stockwork and disseminated mineralization within this lower part of the Omai quartz-diorite stock. We are pleased that the higher density of drilling within the upper part of this deposit allowed two-thirds of the Gilt Creek Deposit MRE to be classified as Indicated, and at the 1.5 g/t Au cut-off grade, the 1,151,000 Indicated ounces are at an average grade of 3.22 g/t Au. It is significant that mining of the upper 250m of this intrusive produced 2.4 million ounces of gold, illustrating the robust potential of this deposit. The Gilt Creek Deposit holds potential to expand both laterally, where there has been limited drilling, and to significant depths, providing the potential for expanding the Gilt Creek Deposit through future drilling,” continued Elaine Ellingham, CEO.
“Our initial plan was to complete further drilling on the Wenot Deposit prior to this MRE, however the opportunity to accelerate the inclusion of Gilt Creek into our MRE drove our decision to proceed with the updated MRE rather than continuing with Wenot drilling at that time. The Wenot Inferred Mineral Resource Estimate increased by 18% to 1,112,600 ounces, with the grade estimate increasing by 15% to 1.72 g/t Au. When drilling resumes later this year, additional drilling at Wenot will be included as part of the program and is expected to contribute to future Mineral Resource updates.”
“The Wenot shear corridor can be traced 8 km across the Omai Property. Wenot’s past production of 1.37 million ounces of gold plus our current Wenot Mineral Resource Estimate are both hosted within about 2.5 km of strike along this shear corridor. Much of the corridor has seen little exploration and it is one of our priority areas for both our current and 2023 exploration programs.”
Mineral Resource Estimate – October 2022
Gilt Creek – Estimation Methodology
Mineralization models were developed by P&E Mining Consultants Inc. in consultation with Linda Heesterman, the Company’s consulting geologist. A total of 11 individual mineralized domains have been identified based on combined historical drilling of this lower zone and production data from the overlying pit. The Gilt Creek MRE incorporates 7,056 assay results from 46 diamond drill holes totalling 27,997 m within the mineralized wireframes. Figure 3 presents a 3-D model of the Gilt Creek Deposit.
Gold grades were interpolated into 5m x 5m x 2.5m three-dimensional model blocks from capped composites within wireframes constrained by a 1.50 g/t Au cut-off grade. Indicated Mineral Resources were interpolated from a minimum of two drill holes over a 50m search ellipse and Inferred Mineral Resources were interpolated from a minimum of one drill hole over 150m search ellipse parameters. Block model gold grades were validated against raw assays, composites, and Nearest Neighbour grade interpolation. Operating costs utilized in the cut-off grade calculations were taken from a comparable project. Process recovery was taken from documented historical production data. The US$1,700/oz gold price was sourced from the Consensus Economics long term nominal forecast.
Figure 3. 3-D Model of Gilt Creek Deposit
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The sensitivity of the Gilt Creek Mineral Resource Estimate to various cut-off grades is shown in Figure 4 below and on Table 3. Increasing the cut-off grade from 1.5 g/t Au to 2.0 g/t Au increases the estimated average grade of both the Indicated and Inferred MRE by about 22% to 3.90 g/t Au (Indicated) and 4.14 g/t Au (Inferred), while reducing the estimated contained ounces by 17% for both the Indicated and Inferred Mineral Resource, to 955,000 ounces and 552,000 ounces respectively. Further details on the sensitivities to higher cut-off grades are provided in Table 3.
Figure 4. Chart Showing Gilt Creek MRE Sensitivity to Cut-Off Grade (data provided in Table 3)
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Wenot -…
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2022-10-20 14:58:00
