Omineca Mining and Metals Ltd. (TSXV: OMM) (OTCQB: OMMSF) reported that its mining partner, PSI Group, has submitted an application to dewater 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 engineered ground support management program. The goal is to re-enter the underground workings and begin mining unrecovered placer gold bearing material remaining between historic crosscuts within the paleochannel, with operations slated to start later this year.
The announcement marks a significant step forward for the project, which has secured letters of full support from both the Lhtako and Nazko First Nations, as well as from the City of Quesnel. According to the press release, PSI and Omineca are committed to responsible development that creates meaningful, ongoing benefits for Indigenous communities, the city, and the province.
PSI has already begun preparatory work, including mine engineering, planning, and equipment procurement. The project will employ modern mining methods such as self-propelled roadheaders for continuous excavation and loading, replacing the drill-and-blast technology used historically. A pre-sorting and gold recovery operation underground is also planned to expedite processing and enable year-round mining.
Key activities completed by PSI include a mechanistic structural design and full 3-D stress-strain model of the underground workings, development of advanced ground support material systems with partner HMI Company, and an archaeological assessment conducted with Tracker GPS Survey & Mapping Ltd. The assessment protocol has been shared with First Nations and received positively.
Historically, the Canyon and Tertiary Mines on the property collectively produced 1,482 oz of raw placer gold up to 1986. In 1986, the Canyon Mine produced 421.634 troy ounces of refined gold and 40.342 troy ounces of silver from processing 9,932 loose cubic yards of pay gravel over 51 days. The Fraser Canyon Property claims extend 11 kilometers along the Fraser River, encompassing a known buried paleochannel.
Under the partnership, PSI will fully fund all exploration, development, mining, and operating costs in return for a 75% share of recovered metals, with Omineca retaining a 25% carried interest. The company noted that historical recovery figures are derived from past operator records and pre-date NI 43-101 standards.
Stephen Kocsis, P.Geo., an independent qualified person under NI 43-101, has reviewed and approved the scientific and technical information in the release. Omineca also holds the Wingdam hard rock exploration and placer gold recovery projects near Quesnel, encompassing 61,392 hectares along Lightning Creek.
For further details, visit the original release on NewMediaWire.
