Avalon Gold Exploration Inc. (Avalon) today announced its Preliminary Economic Assessment (PEA), outlining potential for a long-life, large scale gold mining operation in Guyana.
The PEA represents a significant advancement for the OMAI Gold Project, outlining a development pathway for a long-life, large-scale mining operation and outlining the scale of investment, employment and business opportunities that could accompany the project if advanced.
The PEA indicates that if the project advances it could result in an investment of approximately GUY$300 billion, with between 1,500 and 2,000 workers expected during construction and approximately 900 direct long-term jobs during operations. The proposed mine would have an initial operating life of 18-20 years, creating sustained demand for Guyanese labour, skills, goods and services, both as direct and indirect opportunities.
The assessment builds on approximately five years of exploration and investment by Avalon at Omai. During this period, the company has maintained a permanent camp, completed an extensive drilling and technical programme, and developed a team that includes Guyanese geologists, geotechnicians and other local personnel working alongside international specialists.
The project currently hosts approximately 8.0 million ounces of gold resources, positioning OMAI among Guyana’s significant emerging gold developments. The PEA projects production of 6.3 million ounces of gold over the life of the mine or an average of 351,000 ounces per year once the proposed mine is operational. Continued exploration also indicates potential to extend the mine life beyond the initial period outlined in the study.
The project’s principal deposits are Wenot and Gilt, both have been shown to extend to depths of at least 1200m below surface. The current development concept envisages open-pit mining at Wenot, with underground mining at Gilt to commence a few years later as the project advances. Development is subject to additional drilling, a final feasibility study, environmental permitting and issuance of a mining licence.
Development of OMAI would also create procurement opportunities for Guyanese businesses across transportation, construction, equipment services, engineering, accommodation, catering, maintenance and other support services. Linden and Mile 58, which have supported Avalon’s exploration activities, are expected to be among the communities well positioned to participate as the project advances, alongside businesses and workers across Guyana.
Jake Thomas, Avalon’s Director of Government and Community Relations said: “After five years of exploration, this Economic Study gives us a clearer picture of what a new OMAI could become. Our focus is on building a long-life operation that creates dependable skills development and career opportunities for Guyanese workers and businesses while contributing to the country’s broader economic development.”
“We also recognise that scale brings responsibility. As the project advances, we will continue to work with regulators, communities and other stakeholders to ensure that environmental stewardship, safety and meaningful local participation are built into the development process.”
Alongside technical development, Avalon is progressing through the environmental review process. An application for an Environmental Impact Assessment has been submitted to Guyana’s Environmental Protection Agency, and public consultations have been held in Linden, Mile 58, Georgetown and Mahdia. The company is working with the EPA to determine the Terms and Scope for the next phase of baseline and environmental studies, with further stakeholder engagement expected as the process advances.
Avalon is working towards a 2030 production objective, subject to further technical studies, environmental and regulatory approvals, financing and a future construction decision. Project planning will address areas including water management, tailings safety, biodiversity, waste management, monitoring, rehabilitation and mine closure, alongside occupational health and safety systems appropriate for a modern mechanised operation.
If developed, OMAI is expected to contribute to Guyana’s economic diversification through wages, local procurement and investment and, once in production, applicable taxes and royalties. The company’s stated objective is to build on OMAI’s long legacy in Guyana by creating sustained value for all stakeholders, including workers, communities, businesses and the wider economy.
Avalon Gold Exploration Inc. is the wholly owned Guyanese subsidiary of a new Canadian exploration and development company Omai Gold Mines Corp. Avalon holds a 100% interest in the Omai Gold Project in Region Seven, Guyana, where it is advancing exploration, technical studies and environmental work toward the potential redevelopment of the Omai mine. The project encompasses the Wenot and Gilt gold deposits and benefits from established site infrastructure and road access. Avalon is committed to responsible mineral development, constructive stakeholder engagement and generating employment, procurement and other long-term economic opportunities for Guyana.
Discover more from INews Guyana
Subscribe to get the latest posts sent to your email.
