Avalon Gold Exploration Inc. has completed a Preliminary Economic Assessment (PEA) for the Omai Gold Project in Guyana, outlining a potential GY$300 billion (US$1.44 billion) investment and a large-scale mining operation that could directly employ about 900 people over an initial 18-20-year mine life.
The company announced the assessment on August 19, saying the project could also employ between 1,500 and 2,000 workers during construction if it advances to development.
The PEA represents a significant step towards the potential redevelopment of the Omai mine and outlines the scale of investment, employment and business opportunities that could accompany the project.
The proposed operation would create sustained demand for Guyanese labour, skills, goods and services through both direct and indirect opportunities, according to Avalon.
The assessment follows approximately five years of exploration and investment by the company at Omai. During that period, Avalon has maintained a permanent camp, carried out an extensive drilling and technical program and developed a team that includes Guyanese geologists, geotechnicians and other local personnel working alongside international specialists.
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The project currently hosts approximately 8 million ounces of gold resources.
According to the PEA, the proposed mine could produce 6.3 million ounces of gold over its life, averaging approximately 351,000 ounces annually once operational. Avalon said continued exploration also indicates potential to extend the mine’s life beyond the initial period covered by the assessment.
The project’s principal deposits are called Wenot and Gilt, both of which have been shown to extend to depths of at least 1,200 meters below the surface.
Under the current development concept, Wenot would be mined as an open pit, while underground mining at Gilt would begin a few years later as the project advances.
Development remains subject to additional drilling, completion of a final feasibility study, environmental permitting and the issuance of a mining licence.
The project could also generate procurement opportunities for Guyanese businesses in transportation, construction, equipment services, engineering, accommodation, catering, maintenance and other support services.
Avalon said Linden and Mile 58, which have supported its exploration activities, are expected to be among the communities well positioned to participate as the project advances, alongside businesses and workers elsewhere in Guyana.
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“After five years of exploration, this Economic Study gives us a clearer picture of what a new OMAI could become,” Avalon Director of Government and Community Relations Jake Thomas said.
“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.”
Thomas said the company also recognizes the responsibilities associated with developing an operation of the proposed scale.
“We also recognize 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,” he said.
Alongside the project’s 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 (EPA), Avalon said, while public consultations have been held in Linden, Mile 58, Georgetown and Mahdia.
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The company is working with the EPA to determine the Terms and Scope for the next phase of baseline and environmental studies. Further stakeholder engagement is expected as that process advances.
Avalon is targeting production by 2030, although this remains subject to further technical studies, environmental and regulatory approvals, financing and a future decision to proceed with construction.
Project planning is expected to address water management, tailings safety, biodiversity, waste management, monitoring, rehabilitation and mine closure. It will also include occupational health and safety systems appropriate for a modern mechanized mining operation.
If developed, Avalon said Omai is expected to contribute to Guyana’s economic diversification through wages, local procurement and investment. Once production begins, the operation would also generate applicable taxes and royalties.
The company said its objective is to build on Omai’s long history in Guyana by creating sustained value for workers, communities, businesses and the wider economy.
Avalon Gold Exploration Inc. is the wholly owned Guyanese subsidiary of Canadian exploration and development company Omai Gold Mines Corp.
Avalon holds a 100% interest in the Omai Gold Project in Region Seven, where it is carrying out exploration, technical studies and environmental work towards the potential redevelopment of the mine.
The project encompasses the Wenot and Gilt gold deposits and benefits from existing site infrastructure and road access. Avalon said it is committed to responsible mineral development, stakeholder engagement and generating employment, procurement and other long-term economic opportunities for Guyana.
