SASKATOON, SK, June 7, 2019 /CNW/ - Omineca Mining and Metals
Ltd. (TSXV: OMM) ("Omineca" or the "Company") announces that,
further to the Company's news release dated March 1, 2019, it has signed an Option Agreement
(the "Agreement") with KR Investments Corp. ("KR Investments") of
Saskatoon, Saskatchewan, wherein
KR Investments is granted the sole and exclusive option to acquire
an undivided 50% interest in the Wingdam Project's placer tenures
(the "Property"). KR Investments can exercise its option to
acquire the 50% interest by completing, at its sole cost and
expense, all the development work required to prepare the Property
for a bulk sampling program on or before December 31, 2019.
The required development work by KR Investments will be
considered complete when the first mining room is ready to be
opened for bulk sampling. Activities required to complete
this include, but are not limited to, the following:
- Dewatering of existing mine workings
- Obtaining permits, licenses and posting bonds required (not
including maintenance of existing permits)
- Expanding drift wall access
- Shaft sinking, crosscutting, drifting and ventilation
raises
- Initial freeze drilling
- Setting up of freeze plant and freezing of the bulk sample
zones
- Providing work crews, supplies, facilities, machinery and
equipment necessary for the development work
- Acquisition, construction and transportation of all
facilities
- Funding wages, fees, salaries and expenses including food and
lodging
Upon the exercise of KR Investment's option, the Agreement
provides that the parties will operate the Property as a joint
venture pursuant to a formal joint venture agreement incorporating
the joint venture terms set out in the Agreement. The Agreement is
subject to TSX Venture Exchange approval.
HCC Mining and Demolition Inc. ("HCC") a diversified contract
mining company based in Saskatoon,
Saskatchewan, has been contracted by KR Investments for the
development work described above. Omineca previously signed a
mining services agreement (see news release April 3, 2019) with HCC to perform the mining
services associated with the bulk sample program at the
Property.
Under the mining services agreement, HCC will supply all labour,
equipment, material, supplies and services necessary to carry out
the bulk sample on the Property at a fixed rate of CDN $850 per ounce of gold recovered. The mining
services agreement and rate will cover the bulk sample planned for
2019 and any subsequent sampling activities over the entire
2.4-kilometre underground paleochannel comprising the Property.
Using Ground Freezing Technology to Recover Buried Placer
Gold.
The Property encompasses 2.4 km of paleo channel buried 50
meters underneath Lightning Creek "containing some of the highest
placer gold concentrations historically reported in all of the
Cariboo mining district and perhaps British Columbia that remains un-mined" -
Stephen Kocsis, P.Geo. NI 43-101
Wingdam Property Report; Oct 2,
2012
Using the same operation and processes used by the company in
2012, the proposed 2019 bulk sample will involve a series of
underground cross-cuts and using freeze mining technology to
stabilize the ground above the gold bearing paleochannel.
The 2.4-metre-by-2.4-metre-by-23-metre bulk sample cross-cut
completed in 2012 successfully recovered 5.4 kilograms (173 troy
ounces) of placer gold. The 2019 bulk sample will be following a
detailed bulk-sample mine plan developed by the Company in 2016,
based on the successful techniques used in 2012. The 2019 bulk
sample program is anticipated to take approximately 16 months to
complete, including mobilization, dewatering, access drift
expansion, ground freezing and the completion of a series of
cross-cuts and drifts running 300 meters down the length of the
channel.
About Omineca Mining and Metals Ltd.
Omineca Mining and Metals Ltd. controls a 100% interest in the
Wingdam Project through its wholly owned subsidiary CVG Mining
Ltd. The 2700 ha Wingdam Project is located 45 km east of
Quesnel B.C. via the Barkerville
highway. The property includes both placer and hard-rock
tenures along the Lightning Creek valley, where topographic
conditions created a thick overburden which preserved a large
portion of the channel from conventional surface placer mining
activity.
Qualified person
Dr. Stewart A. Jackson,
Professional Geoscientist, a Qualified Person within the context of
National Instrument 43-101, has prepared, read and approved the
technical aspects of this news release.
Forward Looking Statements
This release includes forward-looking statements regarding
Omineca and its business. Such statements are based on the
current expectations and views of future events of Omineca's
management. In some cases, the forward-looking statements can
be identified by words or phrases such as "may", "will", "expect",
"plan", "anticipate", "intend", "potential", "estimate", "believe"
or the negative of these terms, or other similar expressions
intended to identify forward-looking statements. The
forward-looking events and circumstances discussed in this release
may not occur and could differ materially as a result of the
failure to consummate the project financing, the economic
feasibility of the Wingdam Project, known and unknown risk factors
and uncertainties affecting Omineca, including risks regarding the
resource industry, economic factors and the equity markets
generally and many other factors beyond the control of
Omineca. No forward-looking statement can be
guaranteed. Forward-looking statements and information by
their nature are based on assumptions and involve known and unknown
risks, uncertainties and other factors which may cause our actual
results, performance or achievements, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statement
or information. Accordingly, readers should not place undue
reliance on any forward-looking statements or information.
Forward-looking statements speak only as of the date on which they
are made and Omineca undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events, or otherwise, except as required by
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Omineca Mining and Metals Ltd