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Atrium Research Maintains Buy Rating on Gold Co. Following Strong Drill Results
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Omai Gold Mines (TSXV:OMG) recently reported its second batch of assay results from its ongoing 10,000m drill program, according to an Atrium Research note.

Atrium Research analysts Ben Pirie and Nicholas Cortellucci, in a research report published on October 24, 2024, maintained a Buy rating on Omai Gold Mines (TSXV:OMG) with a target price of CA$0.40. The report follows Omai's announcement of its second batch of assay results from its ongoing 10,000m drill program and plans to include the Gilt Creek deposit in its upcoming PEA.

The analysts highlighted significant drill results, stating, "Assays from six holes were reported today, mostly continuing to target previously untested gap zones, yielding strong gold mineralization in the majority of holes." Notable intercepts included "Hole 24ODD-086: 2.96 grams per tonne gold (g/t Au) over 19.4m and 3.78 g/t Au over 10.5m" and "Hole 24ODD-083: 10.93 g/t Au over 7.5m and 2.33 g/t Au over 17.7m."

The analysts emphasized the potential impact of these results, noting, "Filling in the large untested gaps within the PEA pit and proving these areas to be mineralized could result in a substantial boost to the PEA economics. This is because these gaps are currently treated as uneconomic waste, therefore positive results would not only grow the resource but reduce the strip ratio of the operation."

Regarding Omai's growth potential, the analysts stated, "Since 2022 and the most recent resource update, Omai added 578Koz of new gold to the Wenot deposit by spending just CA$3M, equating to a very low cost of discovery of ~CA$5.2/oz."

The report highlighted several reasons to like Omai Gold Mines, including:
- Past mining camp proven profitable with 3.8 Moz historical production
- 4.2 Moz of economic material
- Highly profitable PEA on Wenot Open Pit deposit
- Significant discount to peers, trading at only 0.1x NAV

The analysts' valuation methodology combines multiple approaches. They explained, "Using the CA$769M NPV (5%, US$1,950/oz) from the PEA, we apply a 0.2x multiple to arrive at our Wenot valuation of CA$154M or CA$0.27/share. For Gilt Creek, we apply a $20 EV/Oz valuation to its total resource, arriving at a valuation of CA$36M or CA$0.07/share."

In conclusion, Atrium Research's maintenance of a Buy rating and CA$0.40 price target reflects confidence in Omai Gold Mines' potential to expand its resource base and improve project economics. The share price at the time of the report represents a potential return of 122% to the analysts' target price, highlighting the significant upside potential as the company advances its exploration and development programs.


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  1. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Atrium Research, Omai Gold Mines, October 24, 2024

Analyst Certification Each authoring analyst of Atrium Research on this report certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated securities discussed (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the research, (iii) to the best of the authoring analyst’s knowledge, she/he is not in receipt of material non-public information about the issuer, (iv) the analyst does not own common shares, options, or warrants in the company under coverage, and (v) the analysts adhere to the CFA Institute guidelines for analyst independence.

About Atrium Research Atrium Research provides institutional quality issuer paid research on public equities in North America. Our investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Our research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, unit economics, and an in-depth valuation analysis. For further information on our team, please visit https://www.atriumresearch.ca/team. General Information Atrium Research Corporation (ARC) has created and distributed this report. This report is based on information we considered reliable; we have not been provided with any material non-public information by the company (or companies) discussed in this report. We do not represent that this report is accurate or complete and it should not be relied upon as such; further any information in this report is subject to change without any formal or type of notice provided. Investors should consider this report as only one factor in their investment decisions; this report is not intended as a replacement for investor’s independent judgment. ARC is not an IIROC registered dealer and does not offer investment-banking services to its clients. ARC (and its employees) do not own, trade or have a beneficial interest in the securities of the companies we provide research services for and does not serve as an officer or Director of the companies discussed in this report. ARC does not make a market in any securities. This report is not disseminated in connection with any distribution of securities and is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. ARC does not make any warranties, expressed or implied, as to the results to be obtained from using this information and makes no express of implied warranties for particular use. Anyone using this report assumes full responsibility for whatever results they obtain. This does not constitute a personal recommendation or take into account any financial or investment objectives, financial situations or needs of individuals. This report has not been prepared for any particular individual or institution. Recipients should consider whether any information in this report is suitable for their particular circumstances and should seek professional advice. Past performance is not a guide for future results, future returns are not guaranteed, and loss of original capital may occur. Neither ARC nor any person employed by ARC accepts any liability whatsoever for any direct or indirect loss resulting from any use of its research or the information it contains. This report contains "forward looking" statements. Forward-looking statements regarding the Company and/or stock’s performance inherently involve risks and uncertainties that could cause actual results to differ from such forward-looking statements. Such statements involve a number of risks and uncertainties such as competition, technology shifts, market demand and the company’s (and management’s) ability to correctly forecast financial estimates; please see the company’s MD&A “Risk Factors” Section for a more complete discussion of company specific risks for the company discussed in this report. ARC is receiving a cash compensation from Omai Gold Mines Corp. for 12-months of research coverage. ARC retains full editorial control over its research content. ARC does not have investment banking relationships and does not expect to receive any investment banking driven income. ARC reports are primarily disseminated electronically and, in some cases, printed form. Electronic reports are simultaneously available to all recipients in any form. Reprints of ARC reports are prohibited without permission. To receive future reports on covered companies please visit https://www.atriumresearch.ca/research or subscribe on our website. The information contained in this report is intended to be viewed only in jurisdictions where it may be legally viewed and is not intended for use by any person or entity in any jurisdiction where such use would be contrary to local regulations or which would require any registration requirement within such jurisdiction.





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