Canadian company eyes $300B investment, 6.3M ounces of gold, 2,000 jobs

…pursues large-scale mining operations at Omai

With a projected production of over 6 million ounces of gold, Avalon Gold Exploration Inc is touting a large-scale operation at the OMAI Gold Project in Region Seven (Cuyuni-Mazaruni) – a potential $300 billion investment that would create of thousands of jobs for Guyanese.
This is according to a Preliminary Economic Assessment (PEA) announced on Wednesday by Avalon – the wholly owned Guyanese subsidiary of Canada-based Omai Gold Mines Corp.
Dubbing it as long-life, large scale gold mining operation, Avalon said the milestone PEA maps the path forward by outlining the scale of investment, employment and business opportunities that could accompany the project if it advances.
“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,” it said.
This assessment, Avalon noted, builds on approximately five years of exploration and investment at Omai that involved an extensive drilling and technical programme conducted by a team that includes Guyanese geologists, geo-technicians and other local personnel working alongside international specialists.
Omai is a past-producing gold mine that was opened in 1992, and had produced approximately 3.7 million ounces of gold, making it the largest gold mine in South America at the time. The project closed in 2006 due to financial constraints and low gold prices, but the operator returned in 2020 when the price for gold was significantly high.
According to Avalon, the proposed project currently hosts approximately 8.0 million ounces of gold resources, positioning OMAI among Guyana’s significant emerging gold developments. In fact, 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 with potential for extension.
The project’s principal deposits, Wenot and Gilt, have both 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,” Avalon stated.
The company went onto add that the development of OMAI would also create procurement opportunities for Guyanese businesses across transportation, construction, equipment services, engineering, accommodation, catering, maintenance and other support services.
In fact, it noted that Linden and Mile 58 in Region 10 (Upper Demerara-Berbice), 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.
Avalon’s Director of Government and Community Relations, Jake Thomas, 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.”

2030 production objective
Alongside technical development, Avalon has already submitted its application for an Environmental Impact Assessment to the Environmental Protection Agency (EPA), and public consultations have been held in Linden, Mile 58, Georgetown and Mahdia, Region Eight (Potaro-Siparuni). The company said it 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.
According to Avalon, it is working towards a 2030 production objective, subject to further technical studies, environmental and regulatory approvals, financing and a future construction decision.
“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 stated.
This announcement by the company comes after years of the Guyana Government calling for Omai, which has been in the developmental stage for an extended period, to move on to production.
“Omai Gold Mines has been in the development stage for a very, very long time, and we would like to see people moving from proving reserves to actually producing gold,” Vice President Dr Bharrat Jagdeo had stated back July 2024, pointing out that only after a company begins production that the Government begins to collect royalties and taxes.
“Some people actually sit on companies forever, and they raise funds to prove reserves and they keep announcing how many ounces of gold are in reserve there without getting into the real production, and it is only in the production stage that the Government gets its share of royalty and taxes, because the large-scale mines got to pay both the royalty and taxes,” the VP had previously noted.