Omai Gold Mines has outlined an ambitious plan to redevelop its Guyana property through an integrated mining operation capable of producing more than six million ounces of gold over 18 years.
In a preliminary economic assessment, Omai envisages an initial capital investment of US$1.427 billion. Additional expansion and sustaining expenditure would lift total capital requirements over the mine’s life to approximately US$2.4 billion.
Annual production would average about 351,500 ounces, with output reaching a projected peak of nearly 435,700 ounces. The plan combines the Wenot open-pit deposit with the neighbouring Gilt underground deposit, creating a considerably larger operation than the project assessed in earlier studies.
At an assumed gold price of US$3,600 an ounce, the company calculated an after-tax net present value of almost US$4 billion, an internal rate of return of 24 per cent and a capital-payback period of 4.1 years. At US$4,200 an ounce, the estimated value rises to US$5.5 billion and the payback period falls to 3.4 years.
Those figures make the project appear financially attractive, but they are particularly sensitive to gold prices. The assessment assumes an average all-in sustaining cost of US$1,608 an ounce, creating a substantial projected margin at its base-case price.
The proposed development would include a processing plant capable of handling 25,000 tonnes daily. The plant would use grinding, gravity separation and carbon-in-leach processing to produce gold doré, with an estimated average recovery rate of 93 per cent.
Omai expects the operation to require as many as 1,500 to 2,000 workers during construction. Its direct workforce could subsequently peak at approximately 900 employees during operations, covering surface and underground mining, processing and supporting facilities. The company said it expects to recruit primarily from within Guyana.
The investment could also generate business for construction companies, equipment suppliers, transportation providers, engineering firms, fuel distributors, security services and local food and accommodation operators. Linden, which is approximately 85 kilometres from the property and has an established mining workforce, could become an important service centre.
Existing infrastructure may provide Omai with an advantage over completely undeveloped projects. The property is accessible from Georgetown and Linden, an airstrip already exists on site, and a previously used tailings facility remains available for initial operations.
Power, however, will be an important cost and infrastructure consideration. The initial operation would require approximately 60 megawatts of installed capacity, increasing by another 14 megawatts as underground production expands. The assessment assumes that heavy-fuel-oil generators would supply the electricity, although Omai said it would continue to examine other options as Guyana develops new gas and hydropower infrastructure.
The project is not yet ready for construction. A preliminary economic assessment is an early-stage study and is not equivalent to a feasibility study, financing decision or construction approval. It also includes inferred mineral resources that are not classified as reserves and have not demonstrated economic viability.
Omai must complete additional drilling, engineering, environmental studies, permitting and financing before making a production decision. The company is carrying out a 50,000-metre drilling programme and plans to update its mineral-resource estimate before the end of 2026.
