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Vice President Jagdeo supports push to start gold production in Omai
Elaine Ellingham, president and CEO of Omai Gold Mines.
Kaieteur News– Vice President Bharrat Jagdeo said on Thursday he would “wholeheartedly support” any steps the government takes to get Canadian gold miner Omai back into production.
The comments come after Kaieteur News reported on Thursday that Omai President and CEO Elaine Ellingham said the Guyanese government has been pushing the company to move into gold production. She reportedly made the comments in an interview with Crux Investor in March this year, which was broadcast on its YouTube channel.
Bharat Jagdeo Vice President
On Thursday, Kaieteur News asked the vice president whether the OMAI CEO’s statement was accurate. He responded, “I don’t like to comment when Kaieteur News publishes people’s statements. But if there is any move to push production, it’s because the Omai gold mine has been in the development stage for a long, long time and we want to see people move from proven reserves to actually producing gold.”
Jagdeo explained that some companies would raise money to prove reserves and keep announcing the amount of gold in the reserves, but not engage in actual production.
“Only when the mines enter production can the government get the royalties and taxes it deserves, because large mines have to pay both royalties and taxes,” Jagdeo said. “So if any part of the government takes any steps to get the mines into production, I will support it wholeheartedly because they have been in the development stage for a long time.”
In an interview with Crux Investor, an analytics platform that provides insights into mining stocks and investments, Ellingham highlighted a meeting with Guyana’s President Irfaan Ali, highlighting the government’s enthusiastic support for mining initiatives.
“He (President Ali) has a lot on his plate and as you can imagine Guyana’s offshore oil business has attracted so much foreign interest and foreign investment,” Ellingham said.
However, Omai’s CEO said Guyana’s head of state still finds time to follow the company’s progress. “But you know, they take mining very seriously and they remember Omai’s mining history… so Omai has a special place in people’s hearts,” Ellingham said.
“They always want to know how Omai is progressing and how soon it will be ready for production, so we need to keep moving forward,” she added.
The CEO noted that the Ministry of Natural Resources and the Guyana Geology and Mines Commission (GGMC) are equally eager to see the Omai mine resume production as soon as possible, and stressed Guyana’s unique position among global jurisdictions, noting that the government has played an active role in promoting mining activities. “There are very few jurisdictions in the world where you know that your government is rooting for you and wants to see you progress,” she commented.
The publication reported that its first preliminary economic assessment (PEA) for the Wenot project showed that the project is expected to produce more than 142,000 ounces of gold per year over a 13-year mine life. At peak, production is expected to soar to 184,000 ounces a year, with total production estimated at 1,840,000 ounces of recoverable gold.
On February 8, 2024, the Company announced an updated Mineral Resource Estimate (MRE) for the Omai property. The combined estimate for the Wenot and Gilt Creek deposits is 2.0 million ounces of gold at 2.15 g/t in the Indicated category and 2.3 million ounces of gold at 2.26 g/t in the Inferred category. This is a significant increase from the previous resource estimate in October 2022, with an increase of 4% in Indicated ounces and a substantial increase of 28% in Inferred ounces.
In 2020, Omai re-entered the Guyana mining industry. The company said that the work they have completed so far puts them on track to become Guyana’s next big gold mine. Notably, by 2026, Omai and three other Canadian mining companies are expected to begin gold production at their respective mining projects in Guyana. This was revealed by Dr. Ashni Singh, Senior Minister in the President’s Office for Finance, during a presentation on the 2024 Budget Estimates.
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