Omai Gold Commences Diamond Drilling on Gilt Creek Deposit in Guyana

Rhea-AI Summary

Omai Gold Mines (TSXV: OMG) (OTCQB: OMGGF) has initiated diamond drilling at the Gilt Creek gold deposit in Guyana. Two initial holes are planned to expand the current Mineral Resource Estimate and advance engineering studies for inclusion in a mid-2025 economic study.

The Gilt Creek deposit features Indicated resources of 1,151,000 ounces gold averaging 3.22 g/t and Inferred resources of 665,000 ounces averaging 3.35 g/t Au. Located 500m north of the Wenot deposit, Gilt Creek previously produced 2.4 million ounces at 1.5 g/t Au between 1993-2005.

The company aims to incorporate Gilt Creek into an expanded mine plan with the Wenot open pit to potentially increase production rates and mine life. One drill hole is expected to be completed by year-end, with metallurgical testing and mine design work starting in early 2025.

Positive

• Current Gilt Creek resource: 1,151,000 oz gold (Indicated) at 3.22 g/t and 665,000 oz (Inferred) at 3.35 g/t
• Historical production of 2.4M oz gold at Gilt Creek demonstrates proven mineralization
• Potential to significantly increase production rates and mine life by combining Wenot and Gilt Creek deposits
• Favorable infrastructure with deposits only 500m apart

Negative

• Gilt Creek deposit starts at 300m below surface, requiring more complex underground mining
• Updated economic study not expected until mid-2025

Toronto, Ontario--(Newsfile Corp. - December 11, 2024) - Omai Gold Mines Corp. (TSXV: OMG) (OTCQB: OMGGF) ("Omai Gold" or the "Company") is pleased to announce that it has commenced drilling on the Gilt Creek gold deposit, one of two orogenic gold deposits located on its 100% held Omai gold project in Guyana. Two initial holes are planned to potentially expand the current Gilt Creek Mineral Resource Estimate, while advancing engineering and metallurgical studies that will facilitate inclusion of this underground deposit into a next phase economic study for the Omai property, anticipated in mid-2025.

The Company's April 2024 Preliminary Economic Study¹ included only the Wenot open pit deposit (and only 45% of the Wenot Mineral Resource Estimate¹). Wenot has been the focus of the 2024 drill program to date, with over 13,000m completed. Incorporating the Gilt Creek underground deposit into an expanded mine plan with the Wenot open pit deposit has the potential to significantly increase projected annual production rates and life of mine for the Omai project.

Elaine Ellingham, President & CEO, commented, "We are very pleased with the baseline Preliminary Economic Assessment for Wenot, completed in April of this year. However, we see Omai as having potential to be a much larger operation. A mine plan incorporating the Gilt Creek underground deposit with an expanded Wenot open pit is the path to a longer life mine with higher annual production and enhanced economics. To this end, we remain on track with our ongoing drilling to expand the large 2.5km long Wenot deposit, and are excited to accelerate work on the Gilt Creek deposit in parallel. The deposits are only 500 metres apart and will benefit from common infrastructure. We are confident that our 2024 drilling at Wenot and work at Gilt Creek will unlock significant value for our shareholders in the near-term."

The Gilt Creek gold deposit is a large 500m by 275m compact, intrusion-hosted orogenic gold deposit with the shallowest part being only 300m below surface. It is located approximately 500m north of the Wenot gold deposit on the Omai property (Figures 1 and 2). In October 2022, Omai announced a maiden Mineral Resource Estimate¹ ("MRE") for Gilt Creek with Indicated of 1,151,000 ounces gold averaging 3.22 grams per tonne and Inferred of 665,000 ounces gold averaging 3.35 g/t Au, using a 1.5 g/t Au cutoff and a US$1700/oz gold price. Sensitivity to the cut-off grade (Figure 4) shows that even at a much higher cut-off grade, the size of the Mineral Resource Estimate is not significantly reduced and the average gold grade increases significantly. Initial engineering studies anticipate a ramp or decline from surface to access this deposit for mining. The very wide mineralized zones (Figure 3) are likely amenable to sub-level open stoping with follow-up cut-and-fill mining, although bulk mining methods will be considered as well. Figure 3 shows the numerous wide composites contributing to the MRE including 3.29 g/t Au over 71m, 2.93 g/t over 101m and 3.48 g/t over 65m. A full table of drill hole composites is available on the Company's website.

The upper portion of this Gilt Creek gold deposit was mined between 1993 and 2005 when it produced 2.4 million ounces at an average grade of 1.5 g/t Au. Continuation of this deposit at depth was confirmed in drilling by Iamgold in 2006 and 2007 with 46 drill holes totalling approximately 27,000m. This drilling showed gold mineralization down to a depth of 967m below surface, although only sparse drilling was completed to that depth. Notably, all core drilled from the Gilt Creek deposit was sampled with 41% of samples assaying >0.5 g/t Au. It is likely that the gold mineralization within this "Omai stock" continues to greater depths.

The Company expects to complete one of the two planned drill holes into the Gilt Creek deposit by year end. Metallurgical test work will be initiated early in the new year. Ramp and mine stope design and proposed scheduling will commence early in the new year in anticipation of including the Gilt Creek deposit in a 2025 updated PEA.

The most recent NI 43-101 Mineral Resource Estimate for the Omai property, dated May 21, 2024¹ includes a Wenot Mineral Resource Estimate of 834,000 indicated ounces of gold grading 1.48 g/t Au and 1,614,000 inferred ounces of gold grading 1.99 g/t Au. For the adjacent Gilt Creek deposit, the NI 43-101 Mineral Resource Estimate is 1,151,000 indicated ounces of gold grading 3.22 g/t Au and 665,000 inferred ounces of gold grading 3.35 g/t Au. The report was prepared by P&E Mining Consultants Inc. as follows:

¹The NI43-101 Technical Report dated May 21, 2024 "UPDATED MINERAL RESOURCE ESTIMATE AND PRELIMINARY ECONOMIC ASSESSMENT OF THE OMAI GOLD PROPERTY, POTARO MINING DISTRICT NO.2, GUYANA" prepared by P&E Mining Consultants Inc is available on www.sedarplus.ca or on the Company's website at www.omaigoldmines.com.

Qualified Person

Elaine Ellingham is a Qualified Person (QP) under National Instrument 43-101 "Standards of Disclosure for Mineral Projects" and has approved the technical information contained in this news release. Ms. Ellingham is not considered to be independent for the purposes of National Instrument 43-101.

ABOUT OMAI GOLD

Omai Gold Mines Corp. holds a 100% interest in the Omai Prospecting License that includes the past producing Omai Gold Mine in Guyana, and a 100% interest in the adjoining Eastern Flats Mining Permits. The Company announced a Preliminary Economic Assessment ("PEA") on its Wenot Deposit at Omai in April 2024, showing an open pit operation to produce 1.84 million ounces of gold over a 13-year period, with an NPV5% of US$556 million at a US$1950/oz gold price. This baseline PEA incorporates only 45% of the property's MRE and management believes that with additional work the mine plan can be significantly expanded, the economics enhanced, and the open pit resources further increased. An updated NI 43-101 Mineral Resource Estimate ("MRE") of 2.0 million ounces of gold (Indicated) and 2.3 million ounces (Inferred) reflects a notable increase as a result of 2023's successful drilling. Once South America's largest producing gold mine, Omai produced over 3.7 million ounces of gold between 1993 and 2005. Mining ceased at a time when the average gold price was less than US$400 per ounce. As a brownfields project, Omai benefits from good road access and a wealth of historical data that provides knowledge of the geology and gold mineralization on the Property, as well as metallurgy, historical process recoveries and many other relevant mining parameters.

For further information, please see our website www.omaigoldmines.com or contact:

Elaine Ellingham P.Geo.
President & CEO
elaine@omaigoldmines.com
Phone: +1 416-473-5351

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This presentation contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, copper and other minerals and metals, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". . Further, the Mineral Resource Estimate and Preliminary Economic Assessments and related data set out in this news release are estimates, and no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Omai Gold Mines Corp. to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to international operations; actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold, copper and other minerals and metals; general market conditions; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; uncertainty of access to additional capital; delays in obtaining governmental approvals or in the completion of development or construction activities. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Figure 1. Plan Map showing Gilt Creek and Wenot gold deposits at the Omai property

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https://images.newsfilecorp.com/files/8712/233308_e250db0c84f44b98_001full.jpg

Figure 2. Omai Gold Deposits - Wenot Shear-Hosted Deposit and Gilt Creek Intrusion-Hosted Deposit

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https://images.newsfilecorp.com/files/8712/233308_e250db0c84f44b98_002full.jpg

Figure 3 Cross Section through the Gilt Creek Gold Deposit Showing Mineral Resource Model¹

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https://images.newsfilecorp.com/files/8712/233308_e250db0c84f44b98_003full.jpg

Figure 4. Gilt Creek Deposit Sensitivity to Cut-Off Grade

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/233308

FAQ

What are the current gold resources at Omai Gold's Gilt Creek deposit (OMGGF)?

Gilt Creek has Indicated resources of 1,151,000 ounces gold averaging 3.22 g/t and Inferred resources of 665,000 ounces averaging 3.35 g/t Au, using a 1.5 g/t Au cutoff.

How much gold did the Gilt Creek deposit historically produce?

The Gilt Creek deposit historically produced 2.4 million ounces of gold at an average grade of 1.5 g/t Au between 1993 and 2005.

When will Omai Gold (OMGGF) complete the updated economic study including Gilt Creek?

Omai Gold plans to complete the updated economic study incorporating the Gilt Creek deposit by mid-2025.

What is the distance between the Gilt Creek and Wenot deposits at Omai Gold (OMGGF)?

The Gilt Creek deposit is located approximately 500 meters north of the Wenot deposit.

How deep is the Gilt Creek gold deposit of Omai Gold (OMGGF)?

The Gilt Creek deposit starts at 300m below surface and gold mineralization has been confirmed down to a depth of 967m below surface.