Omai Gold Mines’ project in Guyana holds an estimated value of $4 billion, according to a new economic study. The preliminary economic assessment (PEA) released Wednesday positions it among South America’s largest undeveloped gold projects.
The PEA assumes a gold price of $3,600 per ounce. It outlines $1.42 billion in initial capital costs and a 24% internal rate of return. The project could produce 6.3 million ounces of gold over an 18-year mine life.
National Bank of Canada analyst Rabi Nizami called the study “globally relevant.” He expects Omai to become an acquisition target for larger producers. Omai shares, however, fell 1% to $2.96 in Toronto trading Wednesday.
The project is a past gold producer, yielding over 3.7 million ounces between 1993 and 2005. It benefits from existing infrastructure, including highway access and an airstrip. Guyana has emerged as a key gold exploration region.
Current resources include 38.1 million indicated tonnes grading 2.04 grams gold per tonne, holding 2.5 million ounces of metal. Another 106.6 million inferred tonnes grade 1.59 grams, totaling 5.5 million ounces.