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. The move signals a significant step toward restarting production at the historically productive site, which last operated in 1986.
PSI is also preparing a Notice of Work submission that includes a long-term mine plan and an engineered ground support management program. Once all permits and preparations are in place, PSI plans to re-enter the underground workings and immediately begin mining unrecovered placer gold-bearing material remaining between historic crosscuts within the paleochannel.
The project has received letters of full support from both the Lhtako and Nazko First Nations, as well as from the City of Quesnel. PSI and Omineca have committed to responsible development that will create ongoing benefits for these communities and the province.
PSI has already begun preparatory work, including mine engineering, planning, and equipment procurement. The operation will employ modern mining methods such as self-propelled roadheaders for continuous excavation and loading, and an underground pre-sorting and gold recovery system to enable year-round mining and processing. These technologies are expected to dramatically increase output compared to the drill-and-blast methods used historically.
Key completed activities include a mechanistic structural design and full 3-D stress-strain model of the underground workings, development of advanced ground support systems with HMI Company, and an archaeological assessment in conjunction with Tracker GPS Survey & Mapping Ltd. The archaeological protocol has been shared with and well received by First Nations.
Historically, the Canyon and Tertiary Mines on the property collectively produced 1,482 ounces of raw placer gold. In 1986, the Canyon Mine operated for 100 days, processing 9,932 loose cubic yards of pay gravel and recovering 421.634 troy ounces of refined gold and 40.342 troy ounces of silver. The project area covers claims extending 11 kilometers along the Fraser River, encompassing a known buried paleochannel.
Under the partnership, PSI will fully fund all exploration, development, engineering, mining, and operating costs in return for a 75% share of recovered metals, with Omineca retaining a 25% carried interest.
The news is important because it signals the potential revival of a historic gold-producing region using modern, more efficient, and environmentally conscious methods. The project could bring economic benefits to the local communities and First Nations, while also demonstrating a model for responsible resource development. The use of advanced ground support and backfilling techniques aims to reduce surface impact and carbon footprint.
All scientific and technical information in this news release has been prepared or approved by Stephen Kocsis, P.Geo., an independent qualified person under NI 43-101.
For further information, contact Tom MacNeill, President and CEO, at 306-653-2692.
This release includes forward-looking statements subject to risks and uncertainties. Omineca undertakes no obligation to update them except as required by law.
