SASKATOON , April 3, 2019 /CNW/ - Omineca Mining and Metals Ltd. (OMM.V) ("Omineca" or the "Company") announces that further to the new release of March 1, 2019 "Omineca Executes Binding Letter Agreement to Commence Bulk Sample Operations at the Wingdam Project", it has signed a Mining Services Agreement (the "Agreement") with HCC Mining and Demolition Inc. ("HCC"), a diversified, contract mining company based in Saskatoon, SK to perform all mining services associated with the bulk sample program at the Company's Wingdam placer gold recovery project located 45 kilometers east of Quesnel, BC .
Under the Agreement, HCC will supply all labour, equipment, material, supplies and services necessary to carry out the bulk sample on the Wingdam property at a fixed rate of CAD $850 per ounce of gold recovered. The Agreement and rate will cover the bulk sample planned for 2019 and any subsequent sampling activities over the entire 2.4 kilometer underground paleochannel on the Wingdam property. Under the terms of the binding letter agreement announced on March 1, 2019 these costs will be born proportionately by Omineca and its partner, with all preparatory costs to be borne by the partner. Omineca anticipates that HCC will also be contracted for the preparatory work necessary to begin the sampling program.
The proposed 2019 bulk sample will involve a series of cross-cuts and drifts running 300 meters down the length of the underground paleochannel, as a follow-on to the smaller scale, cross-cut bulk sample completed in 2012, and will use modern freeze mining technology. The 2.4m x 2.4m x 23m bulk sample cross cut completed in 2012, successfully recovered 5.4 kilograms (173 troy ounces) of placer gold. HCC 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 300 meter bulk sample.
Omineca is pleased to partner with HCC. HCC is a Saskatchewan based mining and civil infrastructure company that includes an aboriginal equity ownership interest held by Mistawasis Nehiyawak. In addition to 20 years of extensive potash experience, HCC brings project accomplishments in gold, uranium, and oil and gas, both domestically and internationally. A division of HCC operated in Africa and Asia for over 10 years including the mining of an alluvial gold operation in eastern Congo . HCC's experience, specialized equipment, innovative mining techniques and an excellent safety record (recipient of the Saskatchewan Mining Association's 2018 Safety Achievement Award) are ideally suited for the Wingdam project.
Omineca anticipates that it will have an executed joint venture agreement in place in the second quarter of 2019 and that preparatory work at Wingdam will commence shortly thereafter. The joint venture agreement will be subject to regulatory and TSXV Exchange review and acceptance.
About Omineca Mining and Metals Ltd.
Omineca Mining and Metals Ltd.'s primary property is the 2700 ha Wingdam Project located 45 km east of Quesnel B.C. on the Barkerville highway. The property overlies both placer and hard-rock tenures along the Lightning Creek valley, where topographic conditions have created a deep overburden accumulation which effectively resulted in a large portion of the channel being excluded from conventional surface placer mining activity. Further information can be found at www.ominecaminingandmetals.com
Dr. Stewart A. Jackson , PGeo, is a qualified person (QP) within the context of National Instrument 43-101, and 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
View original content: http://www.newswire.ca/en/releases/archive/April2019/03/c0285.html