In a March 8 research note, Mackie Research Capital Corp. analyst Bill Newman reported that Omineca Mining and Metals Ltd. (OMM:TSX.V; OMMSF:OTCMKTS) completed the drill program at the Mouse Mountain project required to earn a 50% stake in it.
Newman explained that, according to the junior resource company's option agreement with CanAlaska Uranium, Omineca had to drill five holes over 2,000 meters (2,000m) and issue CanAlaska 300,000 shares to earn a 50% interest in CanAlaska's Mouse Mountain copper-gold project in British Columbia. Omineca fulfilled the drill requirement.
The significance of Mouse Mountain, Newman highlighted, is that it is located close to, about 15 kilometers to the west of, Omineca's flagship Wingdam gold project.
As for hard rock exploration at Wingdam, Omineca the initial maiden drill program there is underway, consisting of 27 holes over 8,000 meters, reported Newman. Drill results from the current campaign are anticipated in late Q1/21 or early Q2/21.
At the Wingdam Placer project, "operations are currently underway to restart and continue bulk sampling along the paleochannel, with placer gold recovery anticipated to begin in early Q2/21," Newman wrote. Omineca's partner will provide all of the equipment, labor and other services needed to mine in exchange for 50% of the recovered gold. "Mining operations are contracted at a fixed, all-in cost to OMM of C$850 per oz of gold produced."
"We believe Omineca is a compelling investment opportunity given that the company could be on the cusp of establishing placer gold production at Wingdam," Newman concluded the report. "Exploration is also underway for the lode gold source of the Wingdam placer gold, which provides substantial speculative upside appeal."
Mackie has a Speculative Buy recommendation on the Canadian resource company and a target price of CA$0.75 per share versus its current share price of about CA$0.25.
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Disclosures from Mackie Research, Omineca Mining and Metals Ltd., Update, March 8, 2021
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