Mining to restart at Omai mines

Mining is set to recommence at the Omai gold mines and machinery is currently being assembled and is scheduled to be operational this month.

The Canada-based Mahdia Gold Corp (MGC) on Wednesday said that its joint venture partner began moving mining equipment from Georgetown to Omai shortly after the beginning of 2014. “The equipment is currently being assembled and is scheduled to be operational this month. There is expected to be a short period wherein the machinery goes through its initial break-in period and operators familiarise themselves with the operating methods and new equipment,” a statement from the company said.

The company also announced the appointment of Ray Irwin as Vice President of Exploration and Development, and Fred Mason as Vice President of Operations and Chief Operating Officer, for the Omai Project.

“Mahdia is finally beginning its journey to becoming a major mining operation and I couldn’t be more pleased than to have Ray and Fred on the team,” Andre Douchane, President and Chief Executive Officer, was quoted as saying.

“Given the recent market attitude toward small start-up resource companies, I am proud of the advancements we have made. Management and insiders have continued to believe in the merit of the Omai Project and have been the major source of the recent financings that have kept the company advancing operations in Guyana,” he said.

Last January, the company entered into an agreement with Roraima Investment & Consulting Services (Guyana) Inc. to facilitate the expeditious process of alluvial gold recovery.

In November, the company said that Roraima was scheduled to begin alluvial mining operations this January with an initial rate of production targeting 300 ounces for the first month. “January’s operation will be restricted to daylight hours as the miners familiarize themselves with the equipment and mining sequence. Once everyone is comfortable with all operations, Roraima is planning to operate 20 hours per day using portable light plants to enable safe operations a night,” the company had said.

In June, MGC said that Roraima had executed a term sheet with Republic Bank for the equivalent of US$3 million in gold-mining equipment to be used at its Omai site. The term sheet was expected to see the purchase, delivery and commissioning of equipment to be used in the mining of alluvial gold at Omai.

“Processing the alluvial gold is the first step toward the company’s longer term goal of placing a large gold recovery plant back on the existing foundations at the Omai mine site,” Douchane said at the time. The company said preliminary engineering work is underway on a 250 tonnes per hour alluvial gold recovery plant.

Mahdia is a Canadian-based gold exploration company with active gold prospects in Guyana. In 2011, the company acquired the Omai gold mine for US$11.5 million to be paid over two years to the government.

The Omai mine was most recently held by IAMGOLD who acquired it from Cambior Resources. At the time it was built, in the early 90s, Omai was the largest goldmine in South America. In a period spanning 13 years, Omai produced some 3.7 million ounces of gold.

Latest in Local News

default placeholder

Guyana Goldfields in deal to expand production

Gold production at the Canadian-owned Guyana Goldfields Inc (GGI) for the first half of this year has been estimated at 75,000 ounces and the company has entered an agreement to expand the capacity of its Aurora mine in Cuyuni/Mazaruni.

default placeholder

Stealth flight plane grounded in Anguilla

One of two planes that left Guyana illegally under the cover of darkness on Saturday has been given clearance to leave Anguilla and the other was grounded in the British overseas territory, Minister of Public Infrastructure David Patterson has said.

The remains of the home Satesh Jagmohan was occupying when tragedy struck

De Willem teen burns to death in house fire

A 19-year-old labourer perished in a mysterious fire which destroyed a two-bedroom house in the De Willem, West Coast Demerara (WCD) squatting area on Saturday night.

default placeholder

ExxonMobil set to drill more oil wells

American oil firm ExxonMobil will be drilling more wells after an appraisal well confirmed the presence of a significant deposit of oil in the location close to where the first well was drilled.

default placeholder

Implement anti-discrimination laws quickly – outgoing US Embassy Deputy

It is important that Guyana move quickly to enact anti-discrimination laws as discrimination and homophobia “is a very real problem” for the Lesbian, Gay, Bisexual and Transgender (LBGT) community here, outgoing Deputy Chief of Mission at the US Embassy here, Bryan Hunt has said.

Ishaan Caines

Coverden cop dies in Bamia accident

A police rank died on Saturday afternoon after he lost control of the car he was driving and it flipped over in the vicinity of the Bamia Creek on the Linden/Soesdyke highway.

A section of the gathering (Ministry of the Presidency photo)

Protected zones to be set up in all 10 regions

President David Granger on Friday said that protected areas will be established in all 10 regions of the country. The Ministry of the Presidency said in a release on Saturday that he was speaking at the Tourism and Hospitality Association of Guyana’s (THAG) President’s Awards Ceremony 2016.

default placeholder

GPL invites bids for 11 MW Anna Regina plant

The Guyana Power and Light is inviting bids for the construction of an 11 MW plant at Anna Regina on the Essequibo Coast and one for 5.5 MW at Canefield on the East Berbice.

Comments

About these comments

The comments section is intended to provide a forum for reasoned and reasonable debate on the newspaper's content and is an extension of the newspaper and what it has become well known for over its history: accuracy, balance and fairness. We reserve the right to edit or delete comments which contain attacks on other users, slander, coarse language and profanity, and gratuitous and incendiary references to race and ethnicity.

Stay updated! Follow Stabroek News on Facebook or Twitter.

Get the day's headlines from SN in your inbox every morning: