{kanada_flagge}Canadian gold company Omai Gold Mines (WKN A2QJC4 / TSXV OMG) holds a 100% interest in the Omai license in Guyana, which includes the former producing Omai mine and the adjacent Eastern Flats areas. The Omai mine has historically been the largest gold producer in South America, producing more than 3.7 million ounces of gold between 1992 and 2005!
Omai Gold Mines earlier this year published an initial, official resource estimate for the new Wenot gold deposit, one of two deposits in the license area, of approximately 1.6 million ounces of gold and is now working to expand this resource – successfully as is becoming apparent, now!
As the company announced at the end of last week, significant gold mineralization was encountered with the first diamond core drilling to the west of the Wenot resource, and drilling to test the new Blueberry Hill target also encountered high-grade gold mineralization.
Highlights, according to Omai Gold, were 5.01 g/t gold over 8.5 meters and 2.32 g/t gold over 17.1 meters at the West Wenot target and 41.73 g/t gold over 0.9 meters at the Blueberry Hill target!
This means Omai Gold has extended the Wenot deposit to the west and further drilling, pending results, could repeat this. This is at least as important as the high gold grades! The intersection of 2.32 g/t gold over 17.1 meters is also down-dip of a zone where shallow drilling in the 1990s detected 21 meters of 1.5 g/t gold, 15.0 meters of 1.7 g/t gold and 6.0 meters of 1.88 g/t gold. Which suggests continuity of this zone from surface to a depth of at least 140 meters. These results open up a significant new area for exploration and in unmined areas near the Wenot resource area!
No wonder, then, that Omai Gold CEO Elaine Ellingham is extremely pleased. She points out that gold mineralization in the new drill holes is similar to the main Wenot zones. According to Ellingham, the company has also recently deployed a second drill rig to conduct extension drilling on the eastern extensions of the Wenot deposit, located about two kilometers to the east. The goal is to produce a new resource estimate for Wenot – assuming, of course, that the positive drill results on both the western and eastern targets continue. Extending the Wenot resource into these unmined areas would be significant for a final mine plan, Omai’s CEO added, as they could contribute to starter pits with lower strip ratios for the larger Wenot deposit.
Omai has already drilled five holes on the western extent of the Wenot Gold Zone, with one more hole in progress. To date, however, results have only been received from the first two holes.
Holes 22ODD-038 and 22ODD-039 are located on the same east-west intersection and extend approximately 100 metres west of all 2012 drilling and approximately 400 metres west of all historical mining below the saprolite. Hole 22ODD-038, drilled in a northerly direction to test mineralization within sediments, confirmed a significant zone of 8.5 metres grading 5.01 g/t gold on the southern side of the Wenot shear at a vertical depth of approximately 110 metres in fresh rock. Hole 22ODD-039 was drilled to the south and intersected 17.1 metres grading 2.32 g/t gold within volcanic rocks at a vertical depth of approximately 140 metres in fresh rock and down dip of gold mineralized zones drilled in the 1990s.
Fennell Exploration
In addition, Omai Gold has continued exploration on targets west of the Fennell pit and southwest of the Wenot pit with trenching and sampling following eight holes drilled between February and early April.
At Blueberry Hill, high-grade gold values were reported from six trenches. An additional trench completed on the eastern side of Blueberry Hill contained limited fresh rock, but here a channel sample returned 5.13 g/t gold over 1 metre. The extent to which trenching exposed “fresh” rock exceeded the Company’s expectations in this regard and contributed significantly to exposing prospective quartz veins and stockworks for sampling. However, at the large Broccoli Hill target area, located east of Fennell, attempts to conduct similar trenching were unsuccessful, even with the large excavator, as a hard armour or silicate layer within the saprolite could not be penetrated.
Omai Gold drilled three holes at Blueberry Hill testing the high-grade structures discovered in the trenches. The Company encountered 41.73 grams per tonne over 0.9 metres, 1 metre at 0.81 g/t gold, 1.2 metres at 1.8 g/t gold and two intercepts of 1.5 metres each at 1.71 and 1.91 g/t gold, among others! The drill holes intersected several intervals of Fennell-style diorite intrusion and areas of quartz veining, as well as several intervals of favorable alteration and sulphidation with only anomalous gold grades. Omai Gold is now planning additional trenching to clarify the orientation and extent of the gold-bearing structures prior to further drilling.
In the Snake Pond area, trenching and subsequent drilling followed significant gold intercepts from 1990s drill holes. Trenching completed in March failed to reach fresh rock in many areas; however, a channel sample returned a grade of 5.21 g/t gold over 1 meter. Trench OTR-011 exposed a 26 metre zone of quartz veins with various orientations and stockworks. Selective grab sampling of quartz veins within the saprolite returned the following results from north to south: 1.49 g/t gold over 5 metres, 4.51 g/t gold over 5 metres, 6.12 g/t gold over 5 metres, 0.08 g/t over 5 metres, 0.01 g/t over 5 metres and 7.68 g/t gold over 5 metres. Two drill holes 22ODD-040 and -042 were completed to test this northeast trending Snake Pond zone with results pending.
In addition, Omai Gold tested two geophysical targets south of the east-west trending Wenot Shear as part of this program. Gold was encountered in the second geophysical target, located approximately 220 metres south of the main Wenot shear trend and defined by a magnetic anomaly, where a single drill hole in the 1990s intersected 15 metres of 1.2 g/t gold. However, some core loss occurred in this hole (22ODD-037), particularly in the intercepts with quartz veins. The few anomalous intercepts include 6.0 metres of 0.67 g/t gold, 1.0 metre of 0.77 g/t gold and 1.0 metre of 0.96 g/t gold.
CONCLUSION: Omai Gold, with the strong results from recent drilling to the west of the Wenot pit, has demonstrated in our view that there is great potential to significantly expand this deposit – beyond the approximately 1.6 million ounces of gold already in place. Exploration and drilling in relation to the Fennell area is also looking positive, as far as we can tell. Here, however, Omai is still at an earlier stage. Overall, we believe that CEO Elain Ellingham’s company, or the company’s development and assets, have not been adequately appreciated by the market to date. This may also be due to the fact that gold juniors in general have received little love from investors recently. However, if the results from Guyana continue to be good – there are still some results to come in – this could change. In any case, we will stay tuned!
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