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 for a long-term mine plan and engineered ground support management program. The companies aim to re-enter underground workings later this year to recover placer gold bearing material remaining between historic crosscuts within the paleochannel.
PSI and Omineca reported that following joint consultations and site visits, the Lhtako and Nazko First Nations have issued letters of full support for the project to the province of British Columbia. The City of Quesnel has also voiced its full support. PSI and Omineca emphasize 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 self-propelled roadheaders for continuous excavation, and an underground pre-sorting and gold recovery operation to expedite processing year-round. PSI has completed a mechanistic structural design and 3-D stress-strain model of the underground workings, and once dewatering is complete, will conduct a 3-D laser survey for ground support design. Advanced ground support systems have been developed with HMI Company to enable 100% extraction and real-time backfilling using mine tailings. An archaeological assessment was completed with Tracker GPS Survey & Mapping Ltd, and the protocol was shared with First Nations.
Historically, the Fraser Canyon property produced 1,482 oz of raw placer gold up to 1986. In 1986, the Canyon Mine used drill-and-blast methods to advance a 772-foot main drift and 13 crosscuts, recovering 421.634 troy ounces of gold and 40.342 troy ounces of silver from 9,932 loose cubic yards of pay gravel. PSI will fully fund all costs for a 75% share of recovered metals, with Omineca retaining a 25% carried interest. The historical figures pre-date NI 43-101, and the qualified person for the news release is Stephen Kocsis, P.Geo.
For further information, contact Tom MacNeill, President and CEO, at 306-653-2692. Forward-looking statements are based on current expectations and subject to risks and uncertainties. Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy of this release.
