Omineca Mining and Metals Ltd. (TSXV: OMM) (OTCQB: OMMSF) announced that its mining partner PSI Group has submitted an application to begin dewatering the Fraser Canyon underground paleoplacer gold recovery project, located 12 kilometers northwest of Quesnel, British Columbia. PSI is also preparing a Notice of Work submission that includes a long-term mine plan and an engineered ground support management program. The goal is to re-enter the underground workings and start mining unrecovered placer gold-bearing material later this year.
In a significant development, PSI and Omineca reported that both the Lhtako and Nazko First Nations have issued letters of full support for the project to the province of British Columbia, following joint consultations and site visits. The City of Quesnel has also voiced its full support. The companies emphasized their commitment to responsible development that creates ongoing benefits for the First Nations, the city, and the province.
PSI has begun preparatory work, including mine engineering, planning, and equipment procurement. The project will utilize modern mining methods, such as multiple self-propelled roadheaders for continuous excavation and loading, and an underground pre-sorting and gold recovery operation to enable year-round processing. This approach is expected to dramatically increase output compared to the drill-and-blast technology used historically.
Key activities completed or in progress include a mechanistic structural design and 3-D stress-strain model of the underground workings, development of mechanical mining systems for enhanced safety and efficiency, and advanced ground support material systems developed with HMI Company. These systems will allow 100% extraction and real-time backfilling using mine tailings, reducing surface impact and carbon footprint. Additionally, an archaeological assessment has been completed in conjunction with Tracker GPS Survey & Mapping Ltd, with protocols shared and well-received by First Nations.
The Fraser Canyon Property claims extend 11 kilometers along the Fraser River, encompassing a buried paleochannel. Historically, the Canyon and Tertiary Mines produced 1,482 ounces of raw placer gold up to 1986. In 1986, a 772-foot main drift was advanced with 13 alternating crosscuts, producing 10,804 loose cubic yards of pay gravel over 100 days. The surface washplant processed 9,932 loose cubic yards, recovering 421.634 troy ounces of refined gold and 40.342 troy ounces of silver.
Under the partnership, PSI will fully fund all exploration, development, and operating costs in return for a 75% share of recovered metals from placer operations, with Omineca retaining a 25% zero-cost carried interest. The historical placer recovery figures are derived from past operator records and government filings pre-dating NI 43-101.
Stephen Kocsis, P.Geo., an independent qualified person under NI 43-101, has prepared or approved the scientific and technical information in this release. Omineca's flagship Wingdam hard rock exploration and placer gold recovery projects are located east of Quesnel, while the Fraser Canyon Project is part of its original acquisitions in the Cariboo Mining District.
