Omai Gold Mines Corp V.OMG

Email from Elaine in response to Mill question 16-3-24

[cassius15]

"Omai is a great project and everyone working on it is very enthusiastic.  We have achieved a lot in a short period.  Markets have not been kind to junior equities over the past couple years, but we do seem to be getting some recognition for this large gold project in a good jurisdiction. 
 
We believe the Wenot deposit has a lot of room to grow much larger but given the markets we felt a PEA may differentiate us from the pack of exploration companies and also demonstrate a path towards production.  Also, a PEA may allow us to move forward towards an environmental permit and also a mining licence – these would be big steps to further de-risking the project for potential acquirers.   We expect to see a greater valuation in the near future as the markets return for gold equities --- given the gold price, it is hard to believe the gold stocks are barely responding. 
 
You are correct that the old mill was relocated to another project in 2006 and was one of the reasons the mine at Omai closed. The company that operated the mine were constructing a new mine in Suriname and decided to relocated the mill as they had some credit issues.  There is no mill currently on the property.   With the 4.3 million ounce resource, we expect to build quite a large mill…likely in the order of 8000-10000 tonnes per day.  There may be ways to build a slightly smaller mill and work towards earlier mining and a ramp up.  I have a very experienced team so we are considering all alternatives.