In a May 20 research note, Research Capital Corp. analyst Bill Newman reported the recent drill results from Omineca Mining and Metals Ltd.'s (OMM:TSX.V; OMMSF:OTCMKTS) Mouse Mountain and Wingdam projects.
At Mouse Mountain, Newman relayed, Omineca completed 2,000 meters (2,000m) of drilling. This is significant for two reasons. One, with this work, the resource company earned a 50% interest in the project. (CanAlaska Uranium owns the other half.)
Two, drill results are "encouraging," wrote Newman, and Omineca is now planning follow-up drilling there. Drilling showed mineralization about 1 kilometer (1km) south of the Valentine zone and 2km south of the Rainbow zone. The highlight intercepts are 12m of 0.156% copper followed by 28m of 0.104% copper, as well as 3.2m of 0.428% copper.
As for Wingdam, its flagship project, the explorer completed phase 1 of its drill program, placing 21 of the planned 27 holes, over 5,615m.
"Considerable indicator mineralization was confirmed, as well as favourable lithology and structure needed to produce replacement-style mineralization," Newman wrote.
Omineca will drill the six outstanding holes during phase 2, which it intends to commence next month, in June 2021. This event is one of two upcoming catalysts. The other is release of initial results of the bulk sampling of the Wingdam placer paleochannel.
Newman pointed out that Omineca's share price has experienced a recent pullback and posited it could be due to the company advancing its exploration programs at Wingdam more slowly than expected.
Thus, regarding Omineca, "we view this as a buying opportunity as we see first Wingdam placer gold recovery as a potential near-term catalyst for the stock," Newman added.
Research Capital has a Speculative Buy rating and a CA$0.75 per share target price on Omineca. The stock is currently trading at about CA$0.21 per share.
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Disclosures from Mackie Research, Omineca Mining and Metals Ltd., May 20, 2021
RELEVANT DISCLOSURES APPLICABLE TO COMPANIES UNDER COVERAGE
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