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TICKERS: OMM; OMMSF

B.C. Mine on Verge of Producing Gold
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Placer gold recovery at this project is expected to start in the coming months after mine stabilization is completed, noted a Research Capital Corp. report.

At Omineca Mining and Metals Ltd.'s (OMM:TSX.V; OMMSF:OTCMKTS) Wingdam project in British Columbia, recently engaged Fortis Mining Engineering and Manufacturing is helping stabilize the bedrock/paleochannel interface in the mine, reported Research Capital Corp. analyst Bill Newman in a September 29, 2022 research note.

Once this and reconfiguration of the wash plant is done, gold production, after having been delayed, should commence.

"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.

 

 

 

 

The Canadian resource company's stock is currently trading at about CA$0.10 per share, and Research Capital's target price is more than seven times that, at CA$0.75 per share. This difference implies a significant potential return for Omineca investors.

"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.

So far, relayed Newman, Fortis has moved several meters into Wingdam's paleochannel and is using grout, steel sets, and cement to reinforce the bedrock there to prevent the expected inflow of water. Once the mining services firm completes this area, it will "advance into the pay zone, feed the pay gravel to the wash plant, and continue across the channel."

Newman noted that Omineca's partner on the project, Lightning Creek Mining, is responsible for any additional cost to stabilize the mine, given Omineca's costs are fixed at CA$850 per produced gold ounce.

Research Capital rates Omineca Speculative Buy.


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Disclosures:

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.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Omineca Mining and Metals Ltd. Click here for important disclosures about sponsor fees. 

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

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Disclosures for Research Capital Corp., Omineca Mining and Metals Ltd.,  September 29, 2022

Analyst Certification: I, Bill Newman, CFA, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst.

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Contents of this report cannot be reproduced in whole or in part without the express permission of Research Capital Corporation. US Institutional Clients – Research Capital USA Inc., a wholly owned subsidiary of Research Capital Corporation, accepts responsibility for the contents of this report subject to the terms and limitations set out above. US firms or institutions receiving this report should effect transactions in securities discussed in the report through Research Capital USA Inc., a Broker – Dealer registered with the Financial Industry Regulatory Authority (FINRA).




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