Omineca Mining and Metals Ltd. has signed a Memorandum of Understanding with PSI Group that establishes a strategic partnership to fully fund the Fraser Canyon Project, the company's second placer gold recovery and exploration initiative. Under the agreement, PSI will assume all capital and operating expenses for the project in return for a 75% share of recovered metals, while Omineca retains a 25% zero-cost carried interest.
The Fraser Canyon Project consists of placer and mineral claims extending 11 kilometers along the Fraser River, approximately 12 kilometers northwest of Quesnel, British Columbia. The property encompasses a known, buried paleochannel containing gold-enriched Miocene fluvial conglomerates of the Fraser Bend Formation. Historical mining operations at the site, specifically the Canyon Mine and Tertiary Mine, collectively produced 1,482 ounces of raw placer gold between 1907 and 1986.
PSI's involvement brings modern mining technologies to the project, including plans to use multiple roadheaders instead of conventional drill-and-blast methods. These advanced rock cutting machines are designed to significantly shorten excavation time. The partnership also plans to implement a pre-sorting and gold recovery operation underground to expedite processing and enable continuous mining and processing throughout the year.
The strategic partnership framework includes several planned initiatives that will be announced as they are finalized. These include data review, engineering, and submission of a Notice of Work for permitting site preparation at both the South Placer and North Placer properties. The partnership also plans a 300-meter test mining bulk sample operation at South Placer, with methodology for North Placer operations to be based on knowledge gained from the South Placer trial program.
According to the MOU, PSI assumes full responsibility for all aspects of the project, including engineering, exploration, development, mining operations, and site reclamation. PSI will also lead interactions with the Ministry of Mining and Critical Minerals, while Omineca maintains oversight as the registered landowner. The timeline aims for a Notice of Work submission in the first quarter of 2026, with trial mining potentially beginning by the fourth quarter of 2026, subject to permitting and regulatory approvals.
The partnership reunites the original team responsible for the 1986 bulk sample at the Fraser Canyon Project and the geological and geophysical surveys that followed. PSI brings contemporary experience in mine ground control, real-time backfill, and low carbon footprint mine operational services to the project. The MOU also includes provisions for PSI to earn up to a 50% ownership interest in each of the three project components through performance-based milestones and timelines.
Historical data from the 1986 operation provides context for the project's potential. During that period, underground development at the Canyon Mine produced 10,804 loose cubic yards of pay gravels over 100 days. The surface wash plant operated for 51 of those days, processing 9,932 loose cubic yards of pay gravels and recovering 421.634 troy ounces of refined gold and 40.342 troy ounces of silver. The current partnership aims to build on this historical production using more efficient modern methods.
For the mining industry, this partnership represents a model for accelerating project development through strategic funding arrangements that minimize financial risk for the property owner. The focus on modern excavation and processing technologies could set new standards for efficiency in placer gold recovery operations. The project's location in British Columbia's established mining region adds to its significance within the broader context of North American gold production and exploration activities.
