Omineca Mining and Metals Ltd. (TSXV: OMM) (OTCQB: OMMSF) reported that its mining partner, PSI Group, has submitted an application to begin dewatering the Fraser Canyon underground paleoplacer gold recovery project, located 12 kilometers northwest of Quesnel, British Columbia. The submission marks a key step toward re-initiating gold recovery operations, with PSI also preparing a Notice of Work for a long-term mine plan and ground support management program.
The project, which targets placer gold in a buried paleochannel, has secured letters of full support from the Lhtako and Nazko First Nations, as well as the City of Quesnel. PSI and Omineca emphasized their commitment to responsible development that creates lasting benefits for these communities and the province.
PSI has begun preparatory work, including mine engineering and equipment procurement, and plans to use modern mining methods such as self-propelled roadheaders for continuous excavation. A pre-sorting and gold recovery system underground is also planned to enable year-round operations. Additionally, PSI has completed a 3-D stress-strain model of the underground workings, developed advanced ground support systems with HMI Company, and conducted an archaeological assessment with Tracker GPS Survey & Mapping Ltd.
Historically, the Fraser Canyon area produced 1,482 ounces of raw placer gold up to 1986. The Canyon Mine, which operated in 1986, processed 9,932 loose cubic yards of pay gravel and recovered 421.634 troy ounces of refined gold and 40.342 troy ounces of silver over 51 days. PSI will fully fund all exploration, development, and operating costs in exchange for a 75% share of recovered metals, with Omineca retaining a 25% carried interest.
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