Gold Co. Makes Major Find in South America

Omai Gold Mines Corp. (TSXV:OMG) has announced in a press release that it has the drill results from the Wenot deposit of the company's Omai Gold Project. The drill holes on the project, which is located in Guyana, are 23ODD-066, 23ODD-067, and 23ODD-068, and the company reported in the press release that the results from these drill holes will extend the estimated mineralization on the Wenot deposit.

The president and CEO of Omai Gold Mines, Elaine Ellingham, commented on the results, "These results from the Wenot drilling, together with the string of recent strong results, give an indication of the scope of untapped potential of the Omai gold project. The grades and widths are very favorable for developing an open-pit operation, particularly considering the benefits of a brownfields project such as Omai."

According to the report,  the drilling returned 5.89 grams per tonne (g/t) of gold (Au) over 12m from the 23ODD-067 drill hole, 8.70 g/t Au over 4.6m from the 23ODD-066 drill hole, 2.45 g/t Au over 8.6m from the 23ODD-066 drill hole, 1.99 g/t Au over 8.1m from the 23ODD-067 drill hole, and 1.33 g/t Au over 8.5m from the 23ODD-068 drill hole.

Rob Badman with Stockhead also released a report on the gold market at the end of October, where it predicts that gold will get a boost from artificial intelligence as a result of its applications in electronics. 

Ellingham went on to say, "Based on our work completed over the past two and a half years, we believe that the Omai project is likely to be the next large-scale gold mine to open in Guyana.

Brownfields projects can generally expect accelerated timelines and lower capital costs, and Omai will benefit from existing road access (soon to be fully paved), an existing tailings facility (that can be refurbished), and known metallurgy and recoveries from past production."

Gold grades, as reported by Investopedia, are usually considered high grade if they are 8.00 g/t or more.

In October, the company released the news that it had completed its drilling program, involving a total of 16 drill holes, and had intersected gold.

Gold Prices Holding Steady

Reuters, in an article written by Anushree Ashish Mukherjee, recently reported that gold prices seem to have steadied and that the actions of the Federal Reserve have "put a floor under prices."

Ben Pirie and Nicholas Cortellucci with Atrium Research reviewed Omai Gold Mines Corp. on November 13, 2023, where they rated the company as a "Buy" for investors and gave the company a target price of CA$0.30, representing a potential 750% return on investment.

The Wall Street Journal's Hardika Singh reports that gold seems to be going steady as a result of the Federal Reserve's choice not to raise interest rates again.

As a result, it reports that gold futures contracts rose to US$1,971.70, representing a 1.1% increase.

Rob Badman with Stockhead also released a report on the gold market at the end of October, where it predicts that gold will get a boost from artificial intelligence as a result of its applications in electronics. 

According to Badman, "The thesis there is that a boom in demand for AI applications creates a boom in demand for the chips and components that help power the tech."

750% Return on Investment

Ben Pirie and Nicholas Cortellucci with Atrium Research reviewed Omai Gold Mines Corp. on November 13, 2023, where they rated the company as a "Buy" for investors and gave the company a target price of CA$0.30, representing a potential 750% return on investment.

Pirie and Cortellucci cited the company's plan to release both an updated MRE and P.E.A. and the estimated extension of mineralization on the company's West Wenot project.

Omai Gold has a number of catalysts to report, according to its investor presentation, including an updated PEA that it expects to come out in Q4 of 2023 or Q1 of 2024, and a 20,000m drill program on Wenot, a 5,000m exploration program, and advanced engineering studies for 2024.

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 3.62% of the company.

According to Reuters, former Chairman Renaud Adams owns 1.82% of the company with 5.34 million shares, President and CEO Elaine Ellingham owns 0.93% of the company with 3.52 million shares, Chairman Don Dudek owns 0.71% of the company with 2.67 million shares, CFO Dwight Walker owns 0.08% of the company with 0.30 million shares, and Vice President of Business Development Greg Ferron owns 0.08% of the company with 0.30 million shares.

Reuters reports that institutions own approximately 8.3% of the company, as Mackenzie Financial Corporation owns 5.50% of the company with 20.77 million shares, Orrell Capital Management Inc. owns 1.32% of the company with 5.00 million shares, US Global Investors, Inc. owns 0.79% of the company with 3.00 million shares, Palos Management Inc. owns 0.60% of the company with 2.26 million shares, and IG Wealth Management owns 0.09% of the company with 0.33 million shares.

There are 377.85 million shares outstanding and 331.09 million free float traded shares, while the company has a market cap of CA$11.04 million and trades in the 52-week period between CA$0.04 and CA$0.10.

Important Disclosures:

1. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
2. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

For additional disclosures, please click here.