In an April 29 research note, Research Capital Corporation analyst Bill Newman reported on Omineca Mining and Metals Ltd.'s (OMM:TSX.V; OMMSF:OTCMKTS) operational update on Wingdam.
"Operations on both the Wingdam hard rock drilling and placer gold projects are proceeding, however, at a slower pace than originally anticipated," Newman wrote. "New environmental regulations established since the initial 2012 bulk sample created some delays, which have been addressed by OMM." Delays are also due to a backlog at the assaying laboratory.
As for Omineca's placer gold bulk sampling, Newman relayed, the company achieved the desired water level for dewatering and is now working on underground rehabilitation.
Regarding the Canadian resource company's hard-rock project, Newman noted, Omineca recently completed a triaxial magnetic gradiometer survey over 209 square kilometers of the Wingdam property, or about 40% of the hard-rock permitted area. The surveyed expanse included a 25-kilometer, northwestľsoutheast (NWľSE) trending zone about 8 kilometers northwest of the 2012 bulk sample site.
The survey "identified several more NW striking fault features that appear to intersect [northeast] trending faults," Newman wrote. The work "has helped to better define [Omineca's] existing targets, and has expanded the company's inventory of exploration prospects."
In other news, Newman noted, the British Columbia government allowed Omineca to expand its Wingdam drill permit to include 60 drill pads, and to extend it over five years.
As for drilling, the most recent update, in February, indicated that the company completed 13 holes of its 27-hole, 8,000-meter campaign started last fall, Newman noted. Results are still pending. Once they become available and Omineca analyzes them, it plans to then commence a second Wingdam drill program.
Research Capital has a Speculative Buy rating and a CA$0.75 per share target price on Omineca, the stock of which is trading at about CA$0.185 per share.
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Disclosures from Mackie Research, Omineca Mining and Metals Ltd., Operation Update, April 29, 2021
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