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. PSI is also preparing a Notice of Work submission that includes a long-term mine plan and engineered ground support management program. The companies aim to re-enter underground workings and start mining unrecovered placer gold-bearing material later this year, once all permitting and preparation are complete.
The project has received letters of full support from the Lhtako and Nazko First Nations, as well as from the City of Quesnel, following joint consultations and site visits. PSI and Omineca are committed to responsible development and creating ongoing benefits for these communities and the province. PSI is already undertaking preparatory work, including mine engineering, planning, and equipment procurement, to re-initiate placer gold recovery using modern methods that will dramatically increase output compared to the drill-and-blast technology used historically. Specifically, PSI plans to use multiple self-propelled roadheaders for continuous excavation and loading, along with an underground pre-sorting and gold recovery operation to enable year-round processing.
PSI has completed several key activities: a mechanistic structural design and full 3-D stress-strain model of the underground workings, establishing mechanical mining systems to enhance safety and efficiency. After dewatering, PSI will conduct a 3-D laser survey for accurate ground support design. Advanced ground support materials have been developed with HMI Company to allow 100% extraction and real-time backfilling using mine tailings, reducing surface impact and carbon footprint. An archaeological assessment was completed with Tracker GPS Survey & Mapping Ltd, and the protocol was well received by First Nations.
The Fraser Canyon property claims extend 11 kilometers along the Fraser River, encompassing a buried paleochannel. Historically, up to 1986, the Canyon and Tertiary Mines produced 1,482 ounces of raw placer gold. In 1986, underground development at the Canyon Mine used conventional drill-and-blast methods, advancing a 772-foot main drift with 13 alternating crosscuts. That operation produced 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. PSI will fully fund all exploration, development, and operating costs in return for a 75% share of recovered metals, with Omineca retaining a 25% carried interest.
The implications of this announcement are significant for the mining industry and local communities. The use of modern roadheaders and underground pre-sorting could set a precedent for more efficient and environmentally responsible placer gold recovery. The strong support from First Nations and local government indicates a collaborative approach to resource development that prioritizes community benefits and environmental stewardship. For investors, the project represents a low-cost entry for Omineca, as PSI bears all funding costs, while the potential for year-round operations could lead to consistent production.
