Omai Gold Mines Corp. announces that it has acquired 100% interest along with prospecting and mining rights in the Eastern Flats property. The acquisition was completed through the payment of a residual amount of USD$1, without any royalty or further obligations.
The Eastern Flats property encompasses an area of 1,519 acres and is situated immediately to the east of and adjacent to Omai’s 4,590-acre prospecting license, including the previously producing Omai Mine.
Omai Gold signed an exclusivity agreement on July 13th, 2020, as well as a subsequent prospecting and license management agreement on April 16th, 2021, with a non-arm’s length party—Guyana Sunrise Mining Inc.
As per the terms of both the agreements, Omai Gold (i) issued 6,000,000 common shares to the Vendor in July 2020 while signing the Exclusivity Agreement, and (ii) will pay the Vendor USD$1 in cash. The transaction is contingent subject to approval from TSX Venture Exchange, which has already been granted.
The Eastern Flats property is situated strategically along strike of the Wenot shear corridor extending 1.7 km along the previously producing Wenot pit axis. This pit generated more than 1.4 million ounces of gold at an average grade of 1.5 g/t before operations were terminated in 2003.
Latest airborne geophysics surveys, including magnetics and radiometrics over the Eastern Flats licenses, showed many potential targets having geophysical signatures similar to those related to gold deposits on the contiguous Omai property.
Moreover, several of these geophysical targets are synchronous with anomalous gold values in auger soil samples gathered at shallow depths of less than 1 m, along 13 N-S lines spaced 400 m apart. Although the findings show various intriguing and occasionally extensive gold-in-soil geochemical anomalies, there has been no additional exploration on the Eastern Flats.
The broad gold-in-soil geochemical anomalies at Eastern Flats, impressive as they are, saw little follow up investigations during the 1990’s mine era, even though at greater than 100 ppb gold and in some instances up to 500 ppb. Some of these areas appear large enough to conceal another deposit the size of Fennell or Wenot.
John Spurney, Chief Geologist, Omai Gold Mines Corp.
Spurney continues, "Our technical team is currently compiling data and developing a plan to evaluate Eastern Flats as part of our 2022 exploration program."