Omineca Mining and Metals Ltd. (TSXV: OMM) (OTCQB: OMMSF) announced that its mining partner, PSI Group, has submitted an application to begin dewatering at the Fraser Canyon underground paleoplacer gold recovery project, located 12 kilometers northwest of Quesnel, British Columbia. This step marks a significant milestone toward re-initiating gold recovery operations that have been dormant since the 1980s.
The Fraser Canyon Project is situated along a known buried paleochannel that trends south-southeast for 11 kilometers along the Fraser River. Historically, the Canyon and Tertiary Mines produced 1,482 ounces of raw placer gold up to 1986. In 1986, underground development using conventional drill-and-blast methods recovered 421.634 troy ounces of refined gold and 40.342 troy ounces of silver from 9,932 loose cubic yards of pay gravel over 51 operating days. PSI plans to modernize these operations by employing multiple self-propelled roadheaders for continuous excavation and loading, along with underground pre-sorting and gold recovery to enable year-round processing.
PSI is also preparing a Notice of Work submission that includes a long-term mine plan and engineered ground support management program. The company has completed a mechanistic structural design and full 3-D stress-strain model of the underground workings, establishing mechanical mining systems to enhance safety, materials handling efficiency, and reduce environmental impact. Once dewatering is complete, PSI will conduct a 3-D laser survey of existing workings to inform ground support design. Advanced ground support material systems, developed with HMI Company, will enable 100% extraction with real-time backfilling using mine tailings, reducing surface impact and carbon footprint.
Importantly, the project has secured letters of full support from the Lhtako and Nazko First Nations, as well as from the City of Quesnel. An archaeological assessment conducted with Tracker GPS Survey & Mapping Ltd has been shared with First Nations and received positively, ensuring respect and consultation throughout project development.
Under the partnership, PSI will fully fund all costs for exploration, development, engineering, mining, and operating capital in return for a 75% share of recovered metals, while Omineca retains a 25% zero-cost carried interest. The project is expected to benefit from modern mining methods, dramatically increasing output compared to historical drill-and-blast technology.
The dewatering application is a critical step toward accessing the unrecovered placer gold bearing material remaining between historic crosscuts within the paleochannel. PSI plans to re-enter underground workings immediately once all preparation and permitting are in place, aiming to start mining later this year. Further updates will be provided as progress continues.
