Omineca Mining and Metals Executes Option Agreement for The Wingdam Gold Project, Barkerville, British Columbia, Canada
Omineca Mining and Metals Executes Option Agreement for The Wingdam Gold Project,
Barkerville, British Columbia, Canada
Saskatoon, SK. June 7, 2019 – Omineca Mining and Metals Ltd. (TSXV: OMM) (“Omineca” or
the “Company”) announces that, fur ther to the Company’s news re lease dated March 1, 2019, it
has signed an Option Agreement (the “Agreement”) with KR Invest ments Corp. (“KR
Investments”) of Saskatoon, Saskat chewan, wherein KR Investment s is granted the sole and
exclusive option to acquire an undivided 50% interest in the Wi ngdam Project’s placer tenures
(the “Property”). KR Investments can exercise its option to ac quire the 50% interest by
completing, at its sole cost and expense, all the development work required to prepare the Property
for a bulk sampling program on or before December 31, 2019.
The required development work by KR Investments will be conside red complete when the first
mining room is ready to be opened for bulk sampling. Activities required to complete this include,
but are not limited to, the following:
Dewatering of existing mine workings
Obtaining permits, licenses and posting bonds required (not including mai ntenance of
existing permits)
Expanding drift wall access
Shaft sinking, crosscutting, drifting and ventilation raises
Initial freeze drilling
Setting up of freeze plant and freezing of the bulk sample zones
Providing work crews, supplies, f acilities, machinery and equip ment necessary for the
development work
Acquisition, construction and transportation of all facilities
Funding wages, fees, salaries and expenses including food and lodging
Upon the exercise of KR Investment’s option, the Agreement provides that the parties will operate
the Property as a joint venture pursuant to a formal joint venture agreement incorporating the joint
venture terms set out in the Ag reement. The Agreement is subjec t to TSX Venture Exchange
approval.
HCC Mining and Demolition Inc. ( “HCC”) a diversified contract m ining company based in
Saskatoon, Saskatchewan, has been contracted by KR Investments for the development work
described above. Omineca previously signed a mining services agreement (see news release April
3, 2019) with HCC to perform the mining services associated with the bulk sample program at the
Property.
Under the mining services agreement, HCC will supply all labour , equipment, material, supplies
and services necessary to carry out the bulk sample on the Prop erty at a fixed rate of CDN $850
per ounce of gold recovered. The mining services agreement and rate will cover the bulk sample
planned for 2019 and any subsequent sampling activities over the entire 2.4-kilometre underground
paleochannel comprising the Property.
Using Ground Freezing Technology to Recover Buried Placer Gold.
The Property encompasses 2.4 km of paleo channel buried 50 meters underneath Lightning Creek
“containing some of the highest p lacer gold concentrations hist orically reported in all of the
Cariboo mining district and perhaps British Columbia that remai ns un-mined” - Stephen Kocsis,
P.Geo. NI 43-101 Wingdam Property Report; Oct 2, 2012
Using the same operation and processes used by the company in 2 012, the proposed 2019 bulk
sample will involve a series of underground cross-cuts and usin g freeze mining technology to
stabilize the ground above the gold bearing paleochannel.
The 2.4-metre-by-2.4-metre-by-23-metre bulk sample cross-cut co mpleted in 2012 successfully
recovered 5.4 kilograms (173 troy ounces) of placer gold. The 2019 bulk sample will be following
a detailed bulk-sample mine plan developed by the Company in 20 16, based on the successful
techniques used in 2012. The 2019 bulk sample program is antici pated to take approximately 16
months to complete, including mobilization, dewatering, access drift expansion, ground freezing
and the completion of a series of cross-cuts and drifts running 300 meters down the length of the
channel.
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. via the Barkervi lle highway. The property incl udes both placer and hard-rock
tenures along the Lightning Creek valley, where topographic conditions created a thick overburden
which preserved a large portion of the channel from conventional surface placer mining activity.
Qualified person
Dr. Stewart A. Jackson, Professional Geoscientist, a Qualified Person within t he context of
National Instrument 43-101 , has prepared, read and approved the technical aspects of this news
release.
For further information, please contact:
Tom MacNeill
President and CEO
306-653-2692
www.ominecaminingandmetals.com
Forward Looking Statements
This release includes forward-looking statements reg arding 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-lo oking 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 ot her factors beyond the control of Omineca. No
forward-looking statement can be guaranteed. Forw ard-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 in dustry results, to be materially
different from any future results, performance or ac hievements 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 Servi ces Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts res ponsibility for the adequacy or accuracy of this
release.