SASKATOON, March 1, 2019 /CNW/ - Omineca Mining and Metals Ltd. (TSXV: OMM) ("Omineca" or the "Company") announces that it has executed a binding letter agreement (the "Agreement") with an arms length private company based in Saskatchewan ("Privco") to commence a bulk sample program (the "Bulk Sample") running 300 meters down the length of the paleochannel, as a follow-on to the initial smaller scale bulk sample completed in 2012 at the Company's Wingdam gold project, 45 km east of Quesnel, British Columbia. Under the terms of the agreement, Privco will incur 100% of the costs associated with the preparation work required to commence operations, inclusive of all equipment and consumables required, as well as the development of the access drift and the establishment of the freeze cap. In exchange for completing the preparatory work, Privco will earn a 50% interest in the Wingdam project.
OMM is pleased to execute this Agreement and looks forward to the rapid advancement of the project. Omineca has a detailed understanding and plan for completing the Bulk Sample at Wingdam using modern freeze mining technology, as is evidenced by the completion of the 2.4m x 2.4m x 23m bulk sample cross cut completed in 2012, successfully recovering 5.4 kilograms (173 troy ounces) of placer gold.
OMM and Privco will enter into a definitive joint venture agreement in due course, which shall incorporate the basic terms outlined in the Agreement. OMM further anticipates that preparatory work at Wingdam will commence in the second quarter of 2019. This Agreement and subsequent joint venture or option is subject to regulatory and TSXV Exchange review and acceptance.
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. 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.
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.
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.
SOURCE Omineca Mining and Metals Ltd
For further information: Omineca Mining and Metals Ltd., Tom MacNeill, President and Chief Executive Officer, 306-653-2692