Omineca Mining and Metals Ltd. (TSXV: OMM) (OTCQB: OMMSF) announced that its mining partner, PSI Group, has submitted an application to dewater the Fraser Canyon underground paleoplacer gold recovery project, located 12 kilometers northwest of Quesnel, British Columbia. PSI is also preparing a Notice of Work submission for a long-term mine plan and engineered ground support management program. The companies aim to re-enter the underground workings later this year to begin mining unrecovered placer gold-bearing material remaining between historic crosscuts within the paleochannel.
The project has received letters of full support from the Lhtako and Nazko First Nations, as well as the City of Quesnel, following joint consultations and site visits. PSI and Omineca are committed to responsible development that creates ongoing benefits for these communities and the province. This backing is crucial for the project's social license and regulatory approvals.
PSI has begun preparatory work, including mine engineering, planning, and equipment procurement. The project will use modern mining methods such as multiple self-propelled roadheaders for continuous excavation and loading, replacing older drill-and-blast technology. A pre-sorting and gold recovery operation underground is also planned to expedite processing and enable year-round mining.
Completed activities include a mechanistic structural design and 3-D stress-strain model of the underground workings to enhance safety and efficiency. Once dewatering is complete, PSI will conduct a 3-D laser survey for ground support design. Advanced ground support material systems developed with HMI Company will allow 100% extraction and real-time backfilling using mine tailings, reducing surface impact and carbon footprint. An archaeological assessment has been completed, with protocols shared with First Nations.
Historically, the Fraser Canyon Property claims extend 11 kilometers along the Fraser River, encompassing a buried paleochannel. Up to 1986, the Canyon and Tertiary Mines collectively produced 1,482 ounces of raw placer gold. In 1986, the Canyon Mine used conventional drill-and-blast methods, producing 10,804 loose cubic yards of pay gravel over 100 days, recovering 421.634 troy ounces of refined gold and 40.342 troy ounces of silver. The modern approach is expected to dramatically increase output.
PSI will fully fund all exploration, development, engineering, mining, and operating costs in return for a 75% share of recovered metals, with Omineca retaining a 25% zero-cost carried interest. The news matters as it signals a resurgence in Canadian placer gold mining using advanced technology, potentially boosting local economies and demonstrating sustainable mining practices. For industry leaders, it highlights the viability of modernizing legacy operations to improve safety, efficiency, and environmental performance.
All scientific and technical information has been prepared by Stephen Kocsis, P.Geo., an independent qualified person under NI 43-101. For more details, refer to the original release on NewMediaWire.
