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More than two decades after gold production ended at the historic Omai mine, the site could once again become the centre of a large-scale mining operation, with Avalon Gold Exploration Inc. outlining a potential investment of approximately GUY$300 billion and thousands of jobs if its proposed redevelopment advances.
Omai produced more than 3.7 million ounces of gold between 1993 and 2005, making it one of Guyana’s major gold-producing operations. The mine ceased operations when the price of gold was below US$400 an ounce.
The current Omai Gold Project is located on that historic mining property. Avalon Gold Exploration (Guyana) Inc., a subsidiary of Omai Gold Mines, holds the prospecting licence covering the property, which includes the site of the past-producing Omai Gold Mine.
On August 19, Avalon announced a Preliminary Economic Assessment (PEA) outlining a potential development pathway for a new mining operation at Omai.
According to the assessment, if the project is ultimately developed, construction could require between 1,500 and 2,000 workers, while approximately 900 direct, long-term jobs could be created during operations.
The proposed operation has an initial projected mine life of between 18 and 20 years.
Avalon says the project could also generate opportunities for Guyanese companies involved in transportation, construction, equipment services, engineering, accommodation, catering, maintenance and other support services.
A new mine on an old mining property
The proposed development is based on gold deposits that remain on the historic Omai property, particularly the Wenot and Gilt deposits.
The company says both deposits extend to depths of at least 1,200 metres below surface.
The current development concept envisages open-pit mining at Wenot, with underground mining at Gilt expected to begin several years later as the project advances.
Avalon says the project currently hosts approximately 8.0 million ounces of gold resources.
The PEA projects approximately 6.3 million ounces of gold production over the life of the proposed mine, representing average production of about 351,000 ounces per year once operational.
The company says continued exploration also indicates potential to extend the mine life beyond the initial period assessed.
The current resource base has grown substantially through exploration conducted since the property was acquired. Omai Gold Mines says more than 70,000 metres of drilling had been completed at the project by the end of 2025.
Jobs and business opportunities
Avalon says the proposed redevelopment could create opportunities for Guyanese workers and businesses throughout the construction and operating phases.
Linden and Mile 58, which have supported the company's exploration activities, are expected to be among the communities positioned to benefit from increased economic activity if the project advances.
The opportunities, however, would not be limited to those communities, with Avalon identifying potential demand for goods, services and labour from businesses and workers across Guyana.
Jake Thomas, Avalon’s Director of Government and Public Relations, said the economic assessment provides a clearer picture of what a new Omai operation could become after several years of exploration.
“After five years of exploration, this Economic Study gives us a clearer picture of what a new OMAI could become,” Thomas said.
He said Avalon’s focus is on building a long-life operation capable of creating skills development and career opportunities for Guyanese workers and businesses while contributing to wider economic development.
Thomas also said the company recognises the environmental and social responsibilities associated with a project of this scale.
Environmental and regulatory process
The proposed mine is not yet approved for construction or production.
Avalon says an application for an Environmental Impact Assessment has been submitted to Guyana's Environmental Protection Agency, with public consultations held in Linden, Mile 58, Georgetown and Mahdia.
The company is working with the EPA on the terms and scope for the next phase of baseline and environmental studies.
Any eventual development would also require further technical work, environmental and regulatory approvals, financing and a future decision to construct the mine.
Avalon says project planning will address water management, tailings safety, biodiversity, waste management, environmental monitoring, rehabilitation and mine closure, alongside occupational health and safety.
The company is working towards a 2030 production target, but that target remains subject to those technical, environmental, regulatory and financing requirements.
If developed, the proposed operation would represent a return of large-scale gold mining to the historic Omai property, with Avalon positioning the project as a potential source of long-term employment, local procurement, investment and government revenues through applicable taxes and royalties.
For now, the PEA represents an economic assessment of the potential project and a pathway for further development — not a final decision to reopen the mine.
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