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Prep Work In Progress to Start Mining at Placer Gold Project

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Source: Bill Newman 03/03/2025

“Given the strong gold price environment, the economics remain highly favorable,” noted a Research Capital Corp. report.

Underground operations resumed at Omineca Mining and Metals Ltd.’s (OMM:TSX.V; OMMSF:OTCQB) Wingdam placer gold project in British Columbia, reported Research Capital Corp. Analyst Bill Newman in a Feb. 26 research note.

With two recent financings now complete, Research Capital lowered its target price on Omineca to account for the resulting dilution.

“With equipment, supplies, and personnel now fully mobilized, the company expects gold-bearing gravel recovery to commence in the near term,” Newman wrote.

833% Projected Return

Research Capital’s new target price on Omineca is CA$0.42 per share, down from CA$0.55, reported Newman. In comparison, the company is trading now at about CA$0.04 per share.

The new target implies a return for investors of 833%.

Omineca remains a Speculative Buy.

Preparations Underway

Newman reported that Omineca’s joint venture partner, D&L Mining, now is preparing the underground workings so the gold-bearing paleochannel may be re-entered.

This includes rehabilitating the haulage/access drift, upgrading the dewatering sumps, improving ventilation, reinforcing existing bulkheads if needed, and installing new bulkheads.

Mining Approach and Plan

At Wingdam, mining will start at the established crosscut heading #3 because there is dry gravel at the breakthrough into gold-bearing deposits, making the conditions favorable. As operations progress, the plan is to first tunnel across the channel’s full width then excavate upstream and downstream in the middle of the paleo-riverbed. In this central portion is where concentrations of the highest-grade placer gold are expected.

For additional structural support and ground stabilization, either shotcrete will be applied after excavation or tunnel liner plates used, depending on the conditions.

Newman noted that along with ground instability, other potential challenges of mining in unconsolidated paleochannel gravels include water ingress and variable gold distribution. Each has the potential to negatively affect project timelines and recovery rates.

Potential Value of Project

Newman discussed the potential resource, production,n and value of the Wingdam project, highlighting its attractive economics.

Omineca could define a resource of 175,000 ounces of gold (175 Koz Au) if it can “reproduce the results of its 2012 bulk sample test across the 2.4 kilometers of the paleochannel studied,” the analyst wrote. With this resource, estimated gross production could be 35 Koz Au per year.

The project potentially could generate about CA$32 million (CA$32M) of cash flow per year, Newman pointed out. This calculation assumes a US$2,000 per ounce (US$2,000/oz) gold price (previously US$1,850), a fixed operating cost of CA$1,000/oz (previously CA$850) and net gold production of 17.5 Koz per year.

Using these figures, Wingdam’s net present value discounted at 10% would be CA$121M, or CA$0.46 per share. The project’s value would be even more compelling were today’s gold price, about US$2,925/oz (or CA$4,120/oz), used instead.

Further, noted Newman, Omineca “benefits from a low-risk structure while securing its 50% share of gold production at a fixed price of CA$1,000/oz. This is because Omineca’s partner D&L Mining is to cover all operational costs in exchange for a 50% interest in the Wingdam placer claims.

Regular Updates To Come

Once mining at Wingdam starts, Omineca will provide regular updates throughout the process, from efforts at crosscut heading #3 and beyond into the paleochannel.

“Continued updates on gold recovery rates and production efficiency will be key catalysts,” Newman wrote.

Latest Corporate Data

Omineca Mining has 261 million shares outstanding.

Its market cap is CA$11.8M. Its 52-week trading range CA$0.04−0.14 per share.

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Important Disclosures:

  1. Omineca Mining and Metals Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Omineca Mining and Metals Ltd.
  3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
  4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

For additional disclosures, please click here.

Disclosures for Research Capital Corp., Omineca Mining and Metals Ltd., February 26, 2025

Analyst Certification I, Bill Newman, CFA, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

Relevant Disclosures Applicable to Companies Under Coverage Relevant disclosures required under IIROC Rule 3400 applicable to companies under coverage discussed in this research report are available on our website at www.researchcapital.ca General Disclosures The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation (“RCC”) are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions. Distribution Policy Through www.researchcapital.com, our institutional and corporate clients can access our research as soon as it becomes available, 24-7. New reports are continually uploaded to the site as they become available throughout the day. Clients may also receive our research via Reuters, Bloomberg, FactSet, and Capital IQ. All of our research is made widely available at the same time to all Research Capital client groups entitled to our research. In addition, research reports are sent directly to our clients based on their delivery preference (mail, fax, e-mail). Fair Dissemination of Research Reports and Ratings To the extent reasonably practicable, Research Reports will be disseminated contemporaneously to all of Research Capital Corporation (“RCC”) customers who are entitled to receive the firm’s research. Until such time, Research Analysts will not discuss the contents of their reports with Sales and Trading or Investment Banking employees. RCC equity research is posted to our proprietary website to ensure eligible clients receive coverage initiations and changes in rating, targets and opinions in a timely manner. Additional distribution may be done by the sales personnel via email, fax or regular mail. Please contact your investment advisor for more information regarding RCC research. Percentage Distribution of Research Ratings As required by the Investment Industry Regulatory Organization of Canada, Research Capital provides a summary of the percentage of its recommendations that fall into each category of our ratings. Please click this link Our Research – Research Capital Corporation to see our distribution of ratings. Potential Conflicts of Interest All Research Capital Corporation (“RCC”) Analysts are compensated based in part on the overall revenues of RCC, a portion of which are generated by investment banking activities. RCC may have had, or seek to have, an investment banking relationship with companies mentioned in this report. RCC and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned in our Research Reports as principal or agent. RCC makes every effort possible to avoid conflicts of interest, however readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies. RC USA INC. Information about Research Capital Corporation’s Rating System, the distribution of our research to clients and the percentage of recommendations which are in each of our rating categories is available on our website at www.researchcapital.com. The information contained in this report has been drawn from sources believed to be reliable but its accuracy or completeness is not guaranteed, nor in providing it does Research Capital Corporation assume any responsibility or liability. Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein. Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report subject to the terms and limitations set out above. US firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital USA Inc., a Broker – Dealer registered with the Financial Industry Regulatory Authority (FINRA). Member – Canadian Investor Protection Fund / membre – fonds canadien de protection des épargnants

( Companies Mentioned: OMM:TSX.V; OMMSF:OTCQB, )


Source: https://www.streetwisereports.com/article/2025/03/03/prep-work-in-progress-to-start-mining-at-placer-gold-project.html


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