I recently had a long and very interesting call with Mario Stifano , who is CEO & Director of Omai Gold Mines, where we discussed many different subjects. I was familiar with Omai Gold Mines already but was keen to hear how the CEO thought about things. I was positively surprised since the impression I got was that Mario is a very driven person as well as a highly strategic thinker. Therefore I am happy to report that Omai Gold Mines will come on as a sponsor of The Hedgeless Horseman.
The company’s flagship asset is the past producing Omai Gold Mine in Guyana. The mine produced 3.8 Moz of gold from two open pits but the previous operator (IAMGOLD) decommissioned the plant and moved it to its (then) new Rosabel deposit… And seems to have left a lot of gold behind. You can check the company’s presentation which makes it pretty obvious that there is a lot of gold still left within the property, below the mined pits and then there is the exploration potential outside the pits on top of that.
Except for the fact that Guyana is not a tier #1 jurisdiction I don’t see any obvious, potential issues and since the MCAP is C$40 M I would argue that the risk/reward is very good. I mean there is no doubt that the company has gold. The question is just how much. Given that Sandstorm and Silvercorp Metals are significant shareholders in the company I would argue that both of these entities believe there is a real shot of Omai Gold Mines proving up “another” mine here.
Be on the lookout for a more extensive piece where I discuss my case for Omai Gold Mines in a few weeks or so.
(Note: This is not investment or trading advice. Always do your own due diligence.)
Erik Wetterling / The Hedgeless Horseman
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