Omineca Mining and Metals Ltd. (OMM:TSX.V; OMMSF:OTCMKTS) announced that placer gold recovery is now underway at its Wingdam project in British Columbia's historic Cariboo Mining District, reported Research Capital Corp. analyst Bill Newman in a July 4 research note.
"In the coming months, we expect Omineca to report the recovery of placer gold, which we believe could be a major catalyst for the stock," Newman wrote.
As for Omineca's stock, it is currently trading at around CA$0.12 per share. Given that Research Capital Corp.'s target price on the Saskatchewan-based company is CA$0.75 per share, returns from here for investors could be significant.
Also of note, according to Newman, Omineca transferred 50% ownership of Wingdam to Hamilton Gold Royalties, its joint venture partner, after Hamilton reached the milestone of completing mine preparation.
To ready the mine, Hamilton carried out numerous tasks, including dewatering and rehabilitating the 550-meter (500m) decline. The company also installed new ventilation and water management systems for the underground workings, and it commissioned a nearly $20 million gold trommel wash plant.
Moving forward, Hamilton's subsidiary Lightning Creek Mining will serve as Wingdam's operator, providing all of the workers, equipment, and other services needed to continue mining and processing gold there. The fixed, all-in cost to Omineca for this is CA$850 per ounce of produced gold.
In this first stage of placer gold extraction at Wingdam, Lightning Creek is conducting a series of side-by-side crosscuts and drifts over 300m of the paleochannel, downstream from the initial crosscut bulk sample.
"Omineca holds an additional 14 kilometers of claims, representing significant exploration upside potential," added Newman.
Research Capital rates Omineca Speculative Buy.
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1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures for Research Capital Corp., Omineca Mining and Metals Ltd., July 4, 2022
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