New Gold Zones Found Beneath Wenot Pit, Beyond Expectations
Omai Gold Mines (OMG:TSXV; OMGGF:OTC) reported new drill results from its Wenot deposit in Guyana, including 10.40 g/t gold over 10.5 meters and 2.13 g/t over 48.5 meters. Read more about how these findings could reshape upcoming resource estimates and development plans.
Omai Gold Mines (OMG:TSXV; OMGGF:OTC) has released new assay results from its ongoing 2025 drill program at the 100%-owned Omai gold project in Guyana. The results come from four holes totaling 2,157 meters, including two at the Wenot deposit and two at the nearby Camp zone. The program aims to expand the Wenot resource and test targets beyond the limits defined in the company's 2024 mineral resource estimate and preliminary economic assessment (PEA).
Hole 25ODD-101 returned multiple high-grade gold intercepts at depth, including 10.40 grams per tonne (g/t) gold over 10.5 meters (capped at 70 g/t), 3.83 g/t over 18.8 meters, and 2.13 g/t over 48.5 meters, including 10.34 g/t over 3.3 meters. These intercepts were encountered below the 2024 PEA pit shell and are located within the historically productive dike corridor and the central quartz feldspar porphyry unit. According to president and CEO Elaine Ellingham, "Hole 101 alone intersected three separate standout intervals of gold mineralization all of which effectively extend both the 2024 resource limits and the 2024 PEA pit shell."
Hole 25ODD-099, drilled 200 meters west of Hole 101, intersected multiple mineralized zones, including 3.58 g/t gold over 7.0 meters and 0.97 g/t over 26.0 meters, including 2.92 g/t over 5.0 meters. Several of these intercepts were located within the southern sedimentary sequence, an area management views as underexplored and potentially amenable to near-surface development.
Drilling at the Camp zone, one kilometer west of Wenot, yielded near-surface results such as 0.59 g/t gold over 10.5 meters and 0.42 g/t over 18.41 meters in Hole 25ODD-098. While lower in grade compared to Wenot, these results are geologically significant and suggest the potential for satellite pit development, particularly as they lie along the same shear corridor.
In response to ongoing success, Omai has expanded its 2025 drill campaign from 10,000 meters to at least 15,000 meters. The company reported a strong cash position of approximately CA$30 million, following a financing completed in February. An updated mineral resource estimate is anticipated in Q2 2025, with a revised PEA targeted for Q3 2025.
The Wenot deposit is part of a 2.5-kilometer-long shear system that includes multiple near-vertical mineralized zones. Historically mined from 1995 to 2002, Wenot produced 1.4 million ounces of gold at grades averaging 1.45 g/t. The deposit remains open along strike and at depth, with recent drilling indicating increasing grade profiles at depth.
Gold Prices Reached Historic Highs Amid Strong Demand, Market Shifts, and Resource Revaluation
As of late March, the gold sector operated in a historically high pricing environment, with spot and futures prices surpassing significant milestones. Industry commentary also reflected strong institutional outlooks. On March 14, 2025, GoldFix reported that Bank of America had raised its price forecast for gold to US$3,500 per ounce, stating, "We believe gold could rally to $3,500/oz if investment demand increases by 10%." Goldman Sachs also adjusted its projections, increasing its year-end 2025 target to US$3,300 per ounce with a potential trading range between US$3,250 and US$3,520. In scenarios of extreme market stress, Goldman suggested gold could "plausibly trade above $4,200/oz" and potentially exceed US$4,500 within twelve months.
On March 5, Atrium Research analysts Ben Pirie and Nicholas Cortellucci maintained a Buy rating on Omai Gold Mines Corp. and reiterated a target price of CA$0.80 per share.Sector momentum was further reflected in equity performance. On March 26, Barry Dawes of Martin Place Securities observed that "gold stocks made a new rally high . . . and are just breaking out." He described the market as showing signs of renewed investor interest and corporate activity, stating that "the capital markets are freeing up in the resources sector." Dawes noted a structural change in valuations, with transactions moving from pricing based on operational cash flows to valuations focused on gold resources in the ground.
Commentary on long-term structural changes in the gold market continued to emerge. Egon von Greyerz, in a March 27 article titled Bonfire of the Paper Asset Vanities & The Rebirth of Gold, argued that gold's recent movement past US$3,000 was not a ceiling but a step in an ongoing trend. "US$3,000 is certainly not a target - it is not even a price where gold will consolidate," von Greyerz wrote. He described this price level as "an obvious magnet" and positioned gold as a key component of wealth preservation amid systemic financial risks. He also noted that the Dow-to-Gold ratio had declined significantly over the last 25 years, falling from 45 in 2000 to 14 in 2025, reflecting a shift in long-term relative value.
Also, on March 27, the June gold futures contract reached US$3,113.52 intraday, closing at US$3,090.90 both all-time highs. According to Shad Marquitz of Excelsior Prosperity, "the June gold futures contract pierced the US$3,100 level," noting that this figure marked "another all-time daily closing high." He pointed out that this rally was occurring despite some confusion among investors due to different price benchmarks being used across platforms. Marquitz emphasized that the wider market continued to rely on forward-month futures contracts for pricing rather than spot rates.
Resource Growth and Economic Enhancements in 2025
Omai Gold's exploration strategy is centered on expanding both the scale and economic robustness of the Wenot deposit. The current focus includes testing undrilled areas within the PEA pit, extending subparallel mineralized zones to depths of 400-450 meters, and increasing shallow drilling at West Wenot, where mineralized sedimentary rocks present potential for starter pits.
According to the company's investor presentation, 87% of Wenot's 2.4-million-ounce resource lies above 330 meters depth, with very limited drilling below that level. Deeper intercepts, including 4.57 g/t gold over 45.5 meters (hole 87) and 4.48 g/t over 57.0 meters (hole 92), have increased confidence in the project's vertical potential.
Gilt Creek, the adjacent underground deposit, further strengthens the development case. With 1.8 million ounces in indicated and inferred resources averaging over 3.2 g/t gold, it provides a potential second source of feed. An updated PEA is expected to incorporate both Wenot and Gilt Creek, which were modeled independently in 2024.
The project's brownfields setting offers logistical and regulatory advantages. It features road access within 10 kilometers of site, an on-site airstrip, existing tailings infrastructure, and a mining-friendly jurisdiction. The Guyanese government has publicly supported the redevelopment of Omai, which historically employed over 1,000 people and produced 3.8 million ounces of gold between 1993 and 2005.
Atrium Research Reaffirmed Buy Rating and CA$0.80 Target Citing Strong Drill Results and Development Upside
On March 5, Atrium Research analysts Ben Pirie and Nicholas Cortellucci maintained a Buy rating on Omai Gold Mines Corp. and reiterated a target price of CA$0.80 per share. The analysts cited ongoing strong drill results as the basis for their continued positive outlook. According to Atrium, the Wenot deposit in Guyana "continues to demonstrate the robust nature" of its mineralization, as evidenced by final assay results from the 2024 drill campaign.
These results included a standout intercept from hole 24ODD-097, which returned 5.21 grams per tonne gold (g/t Au) over 19.3 meters, including 11.44 g/t Au over 4.6 meters and 11.75 g/t Au over 3.6 meters. Atrium also noted encouraging assays from hole 24ODD-096, with 0.98 g/t Au over 26.2 meters, and from hole 24ODD-093, which yielded 1.89 g/t Au over 6.7 meters and 2.51 g/t Au over 4.9 meters.
The analysts emphasized that Omai's 2025 drill program had already completed eight holes totaling 4,880 meters, with results pending at the time of publication. They expressed optimism about the upcoming mineral resource estimate expected in Q2 2025 and the updated Preliminary Economic Assessment (PEA) planned for Q3 2025. Atrium stated they anticipated "a material increase in the size of the deposit beyond the already large 2.45Moz at Wenot," which they believed could result in a "step change to the economics in the updated PEA."
In their valuation, Atrium incorporated assumptions for the Gilt Creek deposit and projected an increase in the project's NPV5% from US$777 million to US$1.233 billion at a gold price of US$2,200 per ounce. They applied a conservative 0.25x multiple to their modeled NPV of CA$1.8 billion to derive the CA$0.80 price target, representing a 135% upside from Omai's share price at the time of the report.
Streetwise Ownership Overview*
Omai Gold Mines (OMG:TSXV;OMGGF:OTC)
*Share Structureas of 3/28/2025Source: RefinitivThe firm also highlighted Omai's logistical advantages as a brownfields site, including existing road and runway access, proximity to a developing hydropower project, and historical metallurgical recoveries of approximately 92%. These factors were seen as important strengths supporting continued development at the project.
Ownership and Share Structure
According to Refinitiv, management and insiders hold 1.63% of Omai Gold Mines while institutions own 8.91%. Of them, Mackenzie Investments owns 4.08%, Schroder Investment Managment owns 1.6%, and Franklin Advisers Inc holds 1.23%. The rest is retail.
Omai has a market cap of CA$174.98 million, 610.45 million outstanding shares, and a 52 week range of CA$0.10 - 0.47.
Sign up for our FREE newsletter
Important Disclosures:
1) James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
2) This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
For additional disclosures, please click here.