Omineca Mining and Metals Ltd. (TSXV: OMM) (OTCQB: OMMSF) announced that its mining partner, PSI Group, has submitted an application to initiate dewatering at the Fraser Canyon underground paleoplacer gold recovery project, located 12 kilometers northwest of Quesnel, British Columbia. The move marks a significant step toward re-starting operations at the historically productive site, which last operated in 1986.
PSI is concurrently preparing a Notice of Work submission that includes a long-term mine plan and an engineered ground support management program. Once permitting is complete, 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 will benefit from modern mining methods, including multiple self-propelled roadheaders for continuous excavation and loading, and an underground pre-sorting and gold recovery system designed to expedite processing and enable year-round operations.
In a development that underscores the project's social license, both the Lhtako and Nazko First Nations have submitted letters of full support to the province of British Columbia following joint consultations and site visits. The City of Quesnel has also voiced its full backing. PSI and Omineca have committed to responsible development that creates meaningful, ongoing benefits for Indigenous communities and the region.
PSI has completed a mechanistic structural design and a full 3-D stress-strain model of the existing underground workings, establishing mechanical mining systems to enhance safety, materials handling efficiency, and environmental performance. Once dewatering is complete, a 3-D laser survey will inform accurate ground support design. In partnership with HMI Company, PSI has developed advanced ground support systems that enable 100% extraction and real-time backfilling using mine tailings underground, reducing surface impact and carbon footprint. An archaeological assessment conducted with Tracker GPS Survey & Mapping Ltd has been shared with First Nations and received positively.
Historically, the Fraser Canyon claims extend 11 kilometers along the Fraser River, encompassing a buried paleochannel. Between 1986 and earlier operations, the Canyon and Tertiary Mines produced 1,482 ounces of raw placer gold. In 1986, a 772-foot main drift with 13 crosscuts yielded 10,804 loose cubic yards of pay gravel over 100 days, with a surface washplant recovering 421.634 troy ounces of refined gold and 40.342 troy ounces of silver over 51 operating days.
Under the partnership agreement, 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 company noted that historical recovery figures are derived from pre-NI 43-101 records. Stephen Kocsis, P.Geo., an independent qualified person, has reviewed and approved the scientific and technical content of this release.
Omineca's flagship Wingdam property, also in the Cariboo region, covers 61,392 hectares and includes placer claims along Lightning Creek. The company is exploring hard rock sources of placer gold while advancing the Fraser Canyon project.
