Omai Gold Mines (TSXV:OMG) - Heavy Newsflow Coming to Support Updated PEA in 2026

Key Concepts

• 43-101 Mineral Resource: A technical report prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, used to disclose mineral resource and mineral reserve estimates.
• Preliminary Economic Assessment (PEA): An early-stage economic study that provides a conceptual understanding of the potential economic viability of a project.
• Open Pit Deposit: A mineral deposit that can be mined from the surface using open-pit mining methods.
• Shear Hosted Deposit: A mineral deposit that is formed within a shear zone, which is a zone of rock that has been deformed by faulting.
• Assays: Laboratory tests that determine the concentration of a specific element (e.g., gold) in a sample.
• Intercepts: The length and grade of mineralization encountered in a drill hole.
• Capex: Capital expenditure, the money spent by a company to acquire or upgrade physical assets.
• Oreshoot Geometry: The shape and orientation of a high-grade zone within a larger mineral deposit.
• Lithologies: The physical characteristics of a rock unit, including its composition, texture, and structure.
• Metallurgical Test Work: Laboratory tests to determine the amenability of a mineral deposit to processing and recovery of valuable minerals.
• Tailings: The waste material that remains after the valuable minerals have been extracted from ore.
• NPV: Net Present Value, a measure of the profitability of an investment.
• Inferred Resource: A part of a mineral resource for which quantity and grade or quality can be estimated on the basis of limited geological evidence and sampling.
• Indicated Resource: A part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the application of technical, economic and other relevant factors in the evaluation of economic viability.
• Measured Resource: A part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the application of technical, economic and other relevant factors in the evaluation of economic viability.

Oh My Gold Mines (OMG) Project Update: Guyana

This summary details the recent advancements and future plans for Oh My Gold Mines' (OMG) significant gold project in Guyana, South America, as presented by CEO Elaine Ellingham. The company has experienced substantial growth in its mineral resource and is strategically positioning itself for large-scale development.

1. Project Overview and Recent Achievements

• Company: Oh My Gold Mines (OMG), listed on the TSX Venture Exchange under the ticker OMG.
• Project Location: Guyana, South America.
• Key Achievement: Publication of the fourth 43-101 mineral resource, which is significantly larger than previous estimates.
• Share Price Performance: The company's share price performance is noted as indicative of its successful execution and delivery.

2. Strategic Pivot and Resource Expansion

• Initial Plan (Early 2024): The year began with the completion of the first Preliminary Economic Assessment (PEA) based on approximately 43% of the project's resources, excluding the second deposit.
• Discovery at Wenot Deposit: Drilling at the Wenot deposit, an open-pittable, shear-hosted deposit extending 2.5 kilometers, revealed exceptionally wide and high-grade intercepts.
  • Key Intercepts: Assays received in early January 2024 included 4.5 g/t over 57 meters and 3.2 g/t over 68 meters, described as the widest and best intercepts ever for Wenot.
• Strategic Pivot: Recognizing the potential to rapidly add ounces, OMG pivoted its drilling strategy to focus on these deeper, higher-grade zones at Wenot.
• Resource Update (August 2024): The company published an updated 43-101 mineral resource, increasing the total ounces for the OMI project from 4.3 million to 6.5 million ounces, exceeding internal expectations and positioning it as one of the largest undeveloped gold projects.

3. Integrated Mine Plan and Economic Assessment

• New PEA Focus: The current focus is on developing a new, integrated PEA that combines the expanded Wenot deposit with the underground potential of the nearby Guilt Creek deposit (450 meters away).
• Scale of Operation: The integrated mine plan is projected to support a mill of approximately 12,000-15,000 tons per day, a significant increase from the previous PEA's 9,000 tons per day.
• Gold Price Environment: The decision to pursue scale is supported by the current strong gold price environment, although the project is considered robust enough to be economically viable at lower gold prices.
• Capex Sequencing and Mining Method Trade-offs: The company is evaluating changes to capital expenditure (capex) sequencing and mining method trade-offs to optimize the project's economics.

4. Pit Sequencing and Underground Development

• Starter Pit: The logical starter pit is identified as the Wenot West area, which outcrops and has not been previously mined. This will evolve into the main Wenot deposit.
• Wenot Expansion: Drilling continues on the eastern end of Wenot, indicating ongoing expansion.
• Guilt Creek Underground: The decline for the Guilt Creek underground operation is anticipated to commence six to eight months to a year after the start of open-pit operations.
• Underground Production Timing: Production from the Guilt Creek underground is expected to begin two to three years after open-pit production.
• Underground Grade Strategy: While underground mining typically requires higher grades, OMG believes it can selectively mine higher-grade intervals (4-6 g/t and above) from the upper parts of Wenot and potentially from the deeper zones.
• Staggered Underground Development: The staggered approach to underground development is common due to logistical reasons, including the need for final drilling from underground once the decline is established.

5. Government Relations and Permitting

• Current Location: Elaine Ellingham is currently in Guyana at the OMI site.
• Environmental Permit: The company received its environmental permit in November of the previous year, based on the earlier PEA.
• EIA Application: An Environmental Impact Assessment (EIA) application has been submitted, and the next step involves community consultation meetings.
• Presidential Election: The recent re-election of President Ali with a strong mandate provides a stable five-year runway for government policy and development.
• Government Enthusiasm: There is strong government enthusiasm for OMI and other large-scale gold mine developments in the interior of Guyana.
• Infrastructure: Existing infrastructure, including a 30 km pipeline approval, is beneficial. Road development is also a factor.

6. Recent Drilling Results and Geological Interpretation

• Wenot Deep Drilling: Recent deeper holes at Wenot have intersected higher grades, confirming the company's drilling strategy.
• Guilt Creek Hole: A long drill hole initiated in the Guilt Creek deposit was extended through Wenot, reaching 700 meters below the lowest identified mineralization at Wenot.
  • Shear Structure Intersection: This hole intersected approximately 260 meters of the shear structure, confirming its presence at depth.
  • Gold Zones: Seven gold zones were encountered within this intersection.
• Potential for Deposit Doubling: The 2.5 km strike length of the Wenot deposit, if it continues at depth, has the potential to double the deposit's size.
• Mineralization Types: Mineralization is associated with multiple lithologies, including felsic dikes, quartz-feldspar porphyry, and quartz veins within sediments. This diversity contributes to the deposit's broad nature.
• Plunging Shoots: The company analyzes plunging shoots to understand the deposit's geometry, with each zone requiring individual assessment due to the deposit's complexity.
• End-of-Hole Intercept: A significant intercept of 5.5 g/t and 7.5 g/t gold was found near the end of a deep hole, indicating potential for further mineralization. The hole had to be stopped due to its flattened angle, preventing full intersection of the shear.

7. Growth Strategy and Future Outlook

• Execution of Plan: The company feels it has executed its plan for the year, with a focus on delivering an updated resource and PEA.
• Financing: A $40 million financing was completed approximately one month after the August resource update, ensuring the company is well-funded for subsequent milestones. This financing was at four times the price of the previous early-year financing, with less than 5% dilution.
• Metallurgical Work: Metallurgical test work is being finalized, focusing on zones that may differ from historical data. Historical recoveries are known, and experts are assessing the tailings facility.
• Tailings Facility: The existing tailings facility has capacity for two dam raises, indicating significant storage potential.
• Accelerated Permitting Elements: OMG is accelerating elements typically addressed in a Pre-Feasibility Study (PFS), such as biodiversity and water studies, to advance the PEA.
• Infill Drilling: Significant infill drilling is underway at Wenot to upgrade inferred resources to indicated and measured categories and to drill undrilled areas.
  • South Side Drilling: Focus on the south side aims to reduce the strip ratio and expand the resource.
  • North Side Drilling: Infill drilling on the north side targets large, wide zones.
• Satellite Targets: The company is also exploring satellite targets, which could significantly impact the Net Present Value (NPV).
  • BDH Target: Drilling at the BDH target has intersected 20.3 g/t over 5.3 meters, approximately 50 meters below surface, in an area with ladder veins. Follow-up holes are planned.
  • Camp Zone: Located about half a kilometer from Wenot, the Camp Zone has yielded results such as 2.7 g/t over 12 meters within 50 meters of surface, presenting potential for satellite pits.
• Upcoming Results: A backlog of drill results is expected from the lab, with significant updates anticipated between now and January due to five active drills.

8. Conclusion and Synthesis

Oh My Gold Mines has had a highly successful year, marked by a significant expansion of its gold resource in Guyana. The company's strategic pivot to explore deeper, higher-grade zones at Wenot has paid off, leading to a substantial increase in its overall resource. With a well-funded position and a clear roadmap towards an integrated PEA, OMG is advancing its project towards large-scale development. The company is actively engaging with the Guyanese government, progressing through the permitting process, and exploring promising satellite targets that offer additional upside potential. The ongoing drilling program and the anticipated release of numerous assay results are expected to further de-risk and enhance the project's economic outlook.