Omai Gold Mines (TSXV:OMG) announced additional positive drill results from its Omai gold project, including high-grade intercepts at the SP exploration target, noted Atrium Research analysts Ben Pirie and Nicholas Cortellucci in a December 5 report.
In the report, the analysts reaffirmed their Buy rating and CA$0.30 price target.
Expanding High-Grade Zones
Hole 23ODD-069 at the SP target intersected 7.69 grams per tonne (g/t gold) over 9.5 meters and 3.42 g/t over 15 meters, confirming the potential for new high-grade zones outside the main deposit.
Open pit resources currently total 1.9 million ounces.
Updated Resource Estimate Imminent
The analysts expect Omai's updated 43-101 resource by year-end or early 2024. An initial PEA mine study will follow in H1 2024. Additional targets have been identified for further expansion potential.
Significantly Undervalued Relative to Peers
With the stock trading around CA$7 per ounce of gold in the ground versus CA$12 for South American developer peers, Atrium sees over 300% upside for Omai shares based on its 3.7 million ounce deposit.
The analysts believe Omai carries lower risk than comparable peers given its past production history and extensive existing infrastructure. Recent insider buying by the CEO and Chairman supports the attractive valuation.
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Disclosures for Atrium Research, Omai Gold Mines Corp., December 5, 2023
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