Avalon Gold Exploration Inc. says a new economic study has outlined a possible path to redeveloping the historic Omai gold mine into a large-scale, long-life mining operation that could create major employment, procurement and investment opportunities in Guyana.
The company announced on Wednesday that it had completed a Preliminary Economic Assessment, or PEA, for the Omai Gold Project in Region Seven. The assessment represents a major step forward for the project, setting out a development concept for a potential mining operation and the scale of benefits that could follow if the project advances.
According to Avalon, the proposed development could require an investment of about GUY$300 billion. The company said construction could create between 1,500 and 2,000 jobs, while the operation phase could support approximately 900 direct long-term jobs.
The proposed mine would have an initial operating life of 18 to 20 years, creating sustained demand for Guyanese workers, technical skills, goods and services.
Avalon said the assessment follows about five years of exploration and investment at Omai. During that period, the company maintained a permanent camp, carried out extensive drilling and technical work, and built a team that includes Guyanese geologists, geotechnicians and other local workers alongside international specialists.
The project currently hosts approximately eight million ounces of gold resources, placing Omai among Guyana’s major emerging gold developments.
The PEA projects production of 6.3 million ounces of gold over the life of the proposed mine, averaging about 351,000 ounces annually once the operation is up and running. Avalon said ongoing exploration also points to the possibility of extending the mine life beyond the period outlined in the study.
The project’s main deposits are Wenot and Gilt, both of which have been shown to extend to depths of at least 1,200 metres below surface.
Under the current development concept, open-pit mining would begin at Wenot, while underground mining at Gilt would start a few years later as the project progresses.
However, Avalon said development remains subject to additional drilling, completion of a final feasibility study, environmental permitting and the granting of a mining licence.
The company said the project could also open business opportunities for Guyanese companies in transportation, construction, equipment services, engineering, accommodation, catering, maintenance and other support areas.
Linden and Mile 58, which have supported Avalon’s exploration work, are expected to be among the communities well positioned to benefit as the project moves forward. The company said workers and businesses across Guyana could also participate in the opportunities created by the development.
Jake Thomas, Avalon’s Director of Government and Community Relations, said the study gives the company a clearer view of what a new Omai operation could become.
“After five years of exploration, this Economic Study gives us a clearer picture of what a new OMAI could become,” 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 Avalon also recognises the responsibility that comes with a project of this scale.
“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.
Avalon said it is also moving 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 already been held in Linden, Mile 58, Georgetown and Mahdia.
The company said it 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 the process continues.
Avalon is targeting a 2030 production objective, subject to further technical studies, regulatory and environmental approvals, financing and a future construction decision.
Project planning is expected to cover water management, tailings safety, biodiversity, waste management, monitoring, rehabilitation, mine closure and occupational health and safety systems for a modern mechanised operation.
If developed, Avalon said Omai could support Guyana’s economic diversification through wages, local procurement, investment, taxes and royalties.
The company said its aim is to build on Omai’s long history in Guyana while creating lasting value for workers, communities, businesses and the wider economy.
Avalon Gold Exploration Inc. is the wholly owned Guyanese subsidiary of Omai Gold Mines Corp., a Canadian exploration and development company. Avalon holds a 100% interest in the Omai Gold Project in Region Seven, where it is advancing exploration, technical studies and environmental work toward the potential redevelopment of the mine.
