Gold Jr. Mobilizes Second Drill in Historic Cariboo District

Source: Streetwise Reports 12/06/2024

Omineca Mining and Metals Ltd. (OMM:TSX.V; OMMSF:OTCMKTS) announced it has mobilized a second drill to accelerate its gold exploration program underway in the historical Cariboo Mining District in south-central British Columbia. Read why one analyst likes the economics of the company’s exploration.

Omineca Mining and Metals Ltd. (OMM:TSX.V; OMMSF:OTCMKTS) announced it has mobilized a second drill to accelerate its gold exploration program underway in the historic Cariboo Mining District in south central British Columbia.

The first three diamond drill holes were extended in length with the third hole currently underway at 550 meters, the company said. The second drill rig has started drilling a fourth hole across the Lightning Creek valley to the north.

“It is expected that given the encouraging sulfide mineralization evident in the first three holes that the entire program may be expanded in length with more targets added,” the company said in a release. “Drill core is being logged and cut with some samples already prepared to ship for assay. Results will be reported as they are received and interpreted.”

TerraLogic Exploration Services originally designed a 10-hole, 4,000-meter hard rock exploration program “in close proximity, but importantly downstream of the Wingdam underground placer gold recovery project,” Omineca has said.

The Saskatchewan-based junior exploration company is pursuing 2.4 kilometers of a rich, placer gold-bearing channel buried 50 meters underneath Lightning Creek in Cariboo. Geologist Stephen Kocsis has described the channel as “containing some of the highest placer gold concentrations historically reported in all of the Cariboo mining district and perhaps British Columbia that remains unmined.”

In a September research report, Research Capital Corp. Analyst Bill Newman wrote that the use of conventional mining and tunneling methods will provide “cost, safety, and execution time advantage” over the “previous grouted spilling method.”

“This positive development reinforces our Speculative Buy recommendation,” wrote the analyst, who put a target price of CA$0.55 on the stock. “Success in this exploration could position OMM as both a placer and hard rock gold producer, significantly enhancing the project’s value.”

Favorable Geology Appears to Continue at Depth

Omineca said the dominant rock type logged in the first drill hole was “comprised of metamorphosed siltstone (phyllite) with banded fracture-fill quartz/calcite veining, in part brecciated and sheared, containing varying concentrations of localized semi-massive to massive sulfide mineralization.”

The favorable geology appears to continue at depth according to early observations, the company said.

“The host rock and mineralization resemble the gold-bearing vein type mineralization at the neighboring Cariboo Gold Project operated by Osisko Development Corp.,” the company said.

The original drill pads for the program are situated on or to the west of the Eureka Thrust Fault where several orogenic gold systems have been found along the western side of this geological trend, Omineca has said.

In addition to Osisko’s project, Spanish Mountain Gold Ltd.’s (SPA:TSX.V) 2.34 (Moz) deposit is 50 kilometers to the south of Wingdam, and Karus Gold Corp.’s high-grade FG discovery is 125 kilometers south of the project. Both are located just west of the Eureka Thrust Fault.

“More recently, Golden Cariboo Resources Ltd. (GCC:CSE; GCCFF:OTC; A0RLEP:WKN; 3TZ:FSE) has encountered visible gold in four holes at its Quesnelle Gold Quartz project 50 kilometers north of Wingdam, also located along and to the west of the Eureka Thrust Fault,” the company said.

In May, the company announced it had recovered gold-bearing gravels from the project: 10.25 ounces of placer gold (Au) with 90.9% Au purity from the first 2.5 meters of advance into a paleochannel.

The Catalyst: Gold Stalled, But Not Done

According to the website BullionVault, “gold slipped on Thursday alongside bond prices but held in a tight trading range amid mixed U.S. economic news ahead of tomorrow’s non-farm jobs and wages data for November.”

The yellow metal was trading at US$2,645 per Troy ounce in London despite political turmoil in France and South Korea, making its smallest weekly change so far since the start of October, slipping by US$11, the site said.

Gold has gained 28.8% in 2024, and BullionVault reported that Wells Fargo is forecasting gold will end 2025 at U$2,900, Goldman Sachs is predicting US$3,000, and Canada’s CIBC is saying gold will trade at US$2,800 by the end of next year.[OWNERSHIP_CHART-5600]

Experts agree gold is in a bull market that isn’t going anywhere for now. Ian Salisbury wrote for Barron’s that “most of the arguments gold bulls make — and have been making throughout 2024 — look stronger after Trump’s win.”

“We are still relatively constructive on gold,” said Taylor Krystkowiak, investment strategist at Themes ETFs, according to Salisbury’s report. “Why does gold go up? It’s geopolitical uncertainty, it’s deficit spending, and it’s inflation. Right now, all those stars are aligned.”

Ownership and Share Structure

The company is 31% owned by insiders and management, according to the company. The rest is retail.

Top shareholders include 49 North Resources Inc. with 25.31%, Sprott Asset Management LP with 5.05%, President and CEO Thomas MacNeill with 4.34% and Chief Financial Officer/Director Andrew Davidson with 2%, according to Reuters.

Omineca has 218 million shares outstanding.

The company’s market cap is CA$8.1 million, and its 52-week price range is CA$0.04−0.14 per share.

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Important Disclosures:

1. Omineca Mining and Metals Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Golden Cariboo Resources has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Omineca Mining and Metals Ltd. and Golden Cariboo Resources.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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( Companies Mentioned: OMM:TSX.V; OMMSF:OTCMKTS, )

Source: https://www.streetwisereports.com/article/2024/12/06/gold-jr-mobilizes-second-drill-in-historic-cariboo-district.html