Omai Gold Mines (TSXV:OMG) - Restarting a High-Grade Gold Mine in Guayana

• Omai Gold Mines is focused on restarting the 3.7Moz past-producing Omai gold mine in Guyana from both open pit and underground operations.
• Flagship project benefits from extensive existing infrastructure with feasibility studies underway and government tailwinds.
• Recently released resource shows 1.9Moz grading 1.48 g/t gold indicated, and 0.5Moz grading 1.99 g/t gold inferred resources.
• PEA study upcoming focused on open pit development first to fast-track cash flows.
• Experienced leadership team with operational expertise to systematically de-risks and drive the project forward.

Company Overview and Leadership

Omai Gold Mines is led by President and CEO Elaine Ellingham, a seasoned geologist and mining executive and has assembled an experienced technical team focused on exploration and resource definition. Ellingham aims to bring on board additional specialists with hands-on operational experience to guide Omai through feasibility studies, mine design, permitting, and ultimately production. This underscores a disciplined, staged approach to advancing the project.

Interview with President & CEO Elaine Ellingham

Flagship Omai Gold Project

Omai’s flagship asset is the past-producing Omai gold mine located in Guyana. Between 1993-2005, Omai produced over 3.7 million ounces of gold from both open pit and underground operations.

The project benefits from established infrastructure, including a camp, roads, and power. It also holds tremendous exploration upside, with several zones still open along a 2.5 km shear zone.

Omai currently hosts an indicated resource of 1.9 million ounces grading 1.48 g/t gold and an inferred resource of 0.5 million ounces grading 1.99 g/t gold. The resource is focused on the near-surface Wenot deposit, which Ellingham describes as an ideal open pit target.

Advancing Towards a PEA

Omai is working towards completing a Preliminary Economic Assessment (PEA) on Wenot in the coming weeks. The study will provide investors with a baseline valuation and conceptual mine plan.

As Ellingham explained, the PEA will focus solely on open pit mining at Wenot to outline a simpler, lower-cost restart scenario before incorporating underground mining of the past-producing Fennell deposit in future studies. Starting with open pit production allows Omai to generate early cash flows before expanding the project.

Exploration Upside

Beyond the current resource, Omai sees substantial upside through additional drilling and testing new targets along the prolific shear zone. As Ellingham stated:

"This deposit is only about half drilled...I'm going to be pulling that pan of brownies out of the oven and the center's not cooked yet, there's a lot more to it."

Omai is starting a new drill program this month targeting resource expansion as well as better delineating zones for upgraded classification. Recent geophysics work also generated compelling anomalies that will be drill-tested.

Country Risk and Government Support

Omai operates in the relatively mining-friendly jurisdiction of Guyana in South America. The government has welcomed foreign investment into mining and understands the benefits resource development can bring.

Importantly, Omai has strong government support to restart the former mine, which was an economic boon for local communities. Ellingham recently met with Guyana's President, who wants to stay updated on Omai's progress and path to re-production.

The Investment Thesis for Omai Gold Mines

• Asset located in a proven gold district with exploration upside and district consolidation potential
• Flagship project benefits from extensive existing infrastructure and feasibility-level studies
• Clear path to production restart outlined via low-cost, open-pit development
• Opportunity to generate early cash flows before expanding underground
• Government support provides advantage and ability to fast-track permitting/development
• Seasoned leadership team with operational experience to drive the project forward
• Tight share structure limits dilution

With its past-producing project, existing infrastructure, exploration potential, feasibility studies underway, and government tailwinds, Omai Gold Mines presents investors with an attractive opportunity among junior developers. While some risks exist around execution and restarting a formerly producing mine, Omai's plan to initially focus on open pit production should provide a simpler, lower-cost path to unlocking value. For investors with a risk appetite, Omai offers upside potential as it systematically de-risks and advances the project.

Macro Analysis

As central banks tighten monetary policy to combat inflation, concerns over slowing global growth and recessionary risks are mounting. This is spurring a renewed investor focus on gold as a hedge against market volatility. While sentiment towards precious metals cooled in 2021-2022 amid rising rates and a strong U.S. dollar, today's macro backdrop of high inflation, geopolitical tensions, and economic uncertainty appears supportive of gold.

“There’s a little more liveliness in the air. I think maybe the gold price...it was a good week in the markets, maybe there’s a turn coming.” - Elaine Ellingham, President & CEO

With real yields low to negative across much of the yield curve, gold stands to regain its appeal as an inflation hedge and store of value. Private investors and central banks are expected to continue building positions. This shifting preference towards hard assets and gold's status as a safe-haven asset class could catalyze a new bull market for gold mining equities. Juniors with advanced assets like Omai Gold are well-positioned to attract investor attention. The project's clear path to near-term production and experienced leadership team give Omai strategic leverage as the market turns.