SASKATOON, SK, June 7, 2019 /CNW/ - Omineca Mining and Metals Ltd. (TSXV: OMM) ("Omineca" or the "Company") announces that, further to the Company's news release dated March 1, 2019, it has signed an Option Agreement (the "Agreement") with KR Investments Corp. ("KR Investments") of Saskatoon, Saskatchewan, wherein KR Investments is granted the sole and exclusive option to acquire an undivided 50% interest in the Wingdam Project's placer tenures (the "Property"). KR Investments can exercise its option to acquire the 50% interest by completing, at its sole cost and expense, all the development work required to prepare the Property for a bulk sampling program on or before December 31, 2019.
The required development work by KR Investments will be considered complete when the first mining room is ready to be opened for bulk sampling. Activities required to complete this include, but are not limited to, the following:
- Dewatering of existing mine workings
- Obtaining permits, licenses and posting bonds required (not including maintenance of existing permits)
- Expanding drift wall access
- Shaft sinking, crosscutting, drifting and ventilation raises
- Initial freeze drilling
- Setting up of freeze plant and freezing of the bulk sample zones
- Providing work crews, supplies, facilities, machinery and equipment necessary for the development work
- Acquisition, construction and transportation of all facilities
- Funding wages, fees, salaries and expenses including food and lodging
Upon the exercise of KR Investment's option, the Agreement provides that the parties will operate the Property as a joint venture pursuant to a formal joint venture agreement incorporating the joint venture terms set out in the Agreement. The Agreement is subject to TSX Venture Exchange approval.
HCC Mining and Demolition Inc. ("HCC") a diversified contract mining company based in Saskatoon, Saskatchewan, has been contracted by KR Investments for the development work described above. Omineca previously signed a mining services agreement (see news release April 3, 2019) with HCC to perform the mining services associated with the bulk sample program at the Property.
Under the mining services agreement, HCC will supply all labour, equipment, material, supplies and services necessary to carry out the bulk sample on the Property at a fixed rate of CDN $850 per ounce of gold recovered. The mining services agreement and rate will cover the bulk sample planned for 2019 and any subsequent sampling activities over the entire 2.4-kilometre underground paleochannel comprising the Property.
Using Ground Freezing Technology to Recover Buried Placer Gold.
The Property encompasses 2.4 km of paleo channel buried 50 meters underneath Lightning Creek "containing some of the highest placer gold concentrations historically reported in all of the Cariboo mining district and perhaps British Columbia that remains un-mined" - Stephen Kocsis, P.Geo. NI 43-101 Wingdam Property Report; Oct 2, 2012
Using the same operation and processes used by the company in 2012, the proposed 2019 bulk sample will involve a series of underground cross-cuts and using freeze mining technology to stabilize the ground above the gold bearing paleochannel.
The 2.4-metre-by-2.4-metre-by-23-metre bulk sample cross-cut completed in 2012 successfully recovered 5.4 kilograms (173 troy ounces) of placer gold. The 2019 bulk sample will be following a detailed bulk-sample mine plan developed by the Company in 2016, based on the successful techniques used in 2012. The 2019 bulk sample program is anticipated to take approximately 16 months to complete, including mobilization, dewatering, access drift expansion, ground freezing and the completion of a series of cross-cuts and drifts running 300 meters down the length of the channel.
About Omineca Mining and Metals Ltd.
Omineca Mining and Metals Ltd. controls a 100% interest in the Wingdam Project through its wholly owned subsidiary CVG Mining Ltd. The 2700 ha Wingdam Project is located 45 km east of Quesnel B.C. via the Barkerville highway. The property includes both placer and hard-rock tenures along the Lightning Creek valley, where topographic conditions created a thick overburden which preserved a large portion of the channel from conventional surface placer mining activity.
Dr. Stewart A. Jackson, Professional Geoscientist, a Qualified Person within the context of National Instrument 43-101, has prepared, read and approved the technical aspects of this news release.
Forward Looking Statements
This release includes forward-looking statements regarding Omineca and its business. Such statements are based on the current expectations and views of future events of Omineca's management. In some cases, the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of the failure to consummate the project financing, the economic feasibility of the Wingdam Project, known and unknown risk factors and uncertainties affecting Omineca, including risks regarding the resource industry, economic factors and the equity markets generally and many other factors beyond the control of Omineca. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Forward-looking statements speak only as of the date on which they are made and Omineca undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Omineca Mining and Metals Ltd
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