Omineca Mining and Metals Ltd. (TSXV: OMM) (OTCQB: OMMSF) reported that its mining partner PSI Group has submitted the application for initial dewatering at 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. Once all preparation and permitting 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.
Following joint consultations and site visits, both the Lhtako and Nazko First Nations have addressed letters of full support for the project to the province of British Columbia. The leadership of the City of Quesnel has also voiced full support. PSI and Omineca are committed to responsible development to create ongoing benefits for these communities.
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 expedite processing year-round. PSI's completed activities include a mechanistic structural design and 3-D stress-strain model of the underground workings, advanced ground support material systems developed with HMI Company, and an archaeological assessment in conjunction with Tracker GPS Survey & Mapping Ltd. The archaeological protocol has been shared with First Nations.
Historically, the Fraser Canyon Property claims extend 11 kilometers along the Fraser River. Up to 1986, the Canyon and Tertiary Mines collectively produced 1,482 oz of raw placer gold. In 1986, a 772-foot main drift was advanced with 13 crosscuts, producing 10,804 loose cubic yards of pay gravel over 100 days, recovering 421.634 troy ounces of refined gold and 40.342 troy ounces of silver.
As Omineca's mining partner, PSI will fully fund all costs associated with exploration, development, engineering, mining, and operating capital in return for a 75% share of recovered metals, with Omineca retaining a 25% zero-cost carried interest. The historical placer recovery figures are derived from past operator records and pre-date NI 43-101. All scientific and technical information has been approved by Stephen Kocsis, P.Geo., an independent qualified person for NI 43-101.
