Omineca Mining and Metals Ltd. has signed a Memorandum of Understanding with PSI Group that establishes a fully funded framework for the Fraser Canyon Project, a placer gold recovery and exploration initiative located northwest of Quesnel, British Columbia. Under the agreement, PSI will assume all capital and operating expenses for engineering, development, mining, and reclamation in return for a 75% share of recovered metals, while Omineca retains a 25% zero-cost carried interest.
The Fraser Canyon Property encompasses an 11-kilometer stretch along the Fraser River containing a buried paleochannel with documented historical production. Between 1907 and 1986, the Canyon Mine and Tertiary Mine collectively produced 1,482 ounces of raw placer gold. The 1986 operation at the Canyon Mine alone processed 9,932 cubic yards of pay gravels over 51 days, recovering 421.634 troy ounces of refined gold and 40.342 troy ounces of silver, as detailed in historical operator records available at https://www.newmediawire.com.
The strategic partnership aims to implement modern technologies to significantly accelerate operations compared to historical methods. PSI plans to utilize multiple roadheaders—advanced rock cutting machines designed for faster excavation than conventional drill-and-blast techniques. The company also intends to establish a pre-sorting and gold recovery operation underground to enable continuous, year-round mining and processing. This technological approach represents a substantial evolution from the methods used in previous operations.
Project timelines target a Notice of Work submission in the first quarter of 2026, with trial mining potentially beginning by the fourth quarter of 2026, subject to regulatory approvals. The program will initially focus on a 300-meter test mining bulk sample operation at the South Placer site, with methodology for the North Placer operations to be developed based on knowledge gained from the initial trial. The MOU also includes provisions for PSI to earn up to a 50% ownership interest in each project component—South Placer, North Placer, and Mineral Exploration—through performance-based milestones.
For business and technology leaders in the mining sector, this partnership demonstrates a model for de-risking exploration projects through strategic funding arrangements while leveraging contemporary engineering solutions. The collaboration reunites the original team responsible for the 1986 bulk sample and subsequent geological surveys, now enhanced with PSI's expertise in mine ground control, real-time backfill, and low-carbon footprint operational services. This combination of historical knowledge and modern technology could establish a template for revitalizing other dormant mineral properties with proven historical resources.
The Fraser Canyon Project represents Omineca's second major placer gold initiative alongside its flagship Wingdam project. The company's technical information has been prepared by qualified person Stephen Kocsis, P.Geo., in accordance with National Instrument 43-101 standards. While historical production figures provide context for the property's potential, they predate current disclosure standards and should be interpreted accordingly. The definitive agreement between Omineca and PSI, based on the MOU terms, will be announced once finalized, marking a significant step toward renewed production at a historically productive Canadian gold property.
