Omai Gold Mines Limited (OMGL) has opened talks with Wayne Vieira for an arrangement to explore his concessions in Tassawini, North West.

Norman McLean, Human Resource Manager of OMGL, confirms the firm's interest in Tassawini, saying if agreement is reached, it will lengthen the life of Omai gold operations in Guyana.

But Vieira was reluctant to comment on the talks saying no agreement has been reached and it is too early to speak on the issue.

Omai is expected to wrap up its operation in Guyana by mid 2005 unless it can find deposits which make it worthwhile to stay. It has been spending almost US$1 million every year in the last few years on exploration activities but has not been able to come up with any solid finds.

Sources say that Tassawini may not be the only project Omai is eyeing, given that an arrangement of any kind in areas of known deposits of gold will realise a good return for Omai.

Tassawini has alluvium deposits estimated at 12,870 ounces of gold; tailings deposits of 18,216 ounces and oxidised deposits of 141,471 ounces. The hard rock resources have not been evaluated. Paranapanema had done the other evaluation in 1984 before it gave up that concession.

Several Canadian companies and Vieira had vied for the area with Vieira winning it in a lottery. Vieira has three claims for areas between 150-1200 acres each in the Tassawini.

Omai's current operation is some distance from Tassawini but sources say with its existing gold operation for hard rock, the firm can do pre-concentration and truck from one site to another at very little cost.

With gold prices back at US$400 plus per ounce, there are a number of companies scouting out Guyana.

Cambior, Omai's parent company, has also returned to profitability.