Benzinga - by The Gold Report, Benzinga Contributor.
Source: Bill Newman 05/13/2024
The firm encountered this nuggety gold, of 90.9% purity, while advancing toward the central portion of the paleochannel, noted a Research Capital Corp. report.
Omineca Mining and Metals Ltd. (OTC: OMMSF) began recovering gold from the gravels at its Wingdam project in southcentral British Columbia, reported Research Capital Corp. analyst Bill Newman in a May 10 research note.
"Positive news" Newman commented. "The gold is coarse (nuggety), exhibiting characteristics of a very low transport distance from the lode source."
323% Return Implied
Omineca, headquartered in Saskatchewan, Canada, was trading at about CA$0.13 per share, noted Newman at the time of the report."We expect additional gold recovery results could be a near-term catalyst for the stock" he added.
Research Capital's target price on the mining firm is CA$0.55 per share, which reflects a potential return for investors of 323%.
Omineca remains a Speculative Buy.
Specific Results, Location
The analyst reported that the junior mining company specifically recovered 10.25 ounces (10.25 oz) of gold, with a 90.9% purity, at Wingdam, through Crosscut 3, about 2.5 meters (2.5m) into the paleochannel.Crosscut 3 is notable, Newman explained, because it is about 30m downstream of the 2012 Crosscut 1 bulk sample area from which 173 oz of gold were recovered in an enriched zone of gold-bearing gravels, averaging 1.2m in thickness. Crosscut 1 extended 23.5m across the paleochannel.
Crosscut 3 cut directly through a depression in the paleochannel, an excavation measuring 3.5m by 3.5m. Another Crosscut, 4, is 20m downstream of Crosscut 3.
Short-Term Plan
Through Crosscuts 3 and 4, Omineca plans to continue moving deeper into the paleochannel, to reach its central portion and the expected higher gold grades there.As the work advances, the company will provide regular updates, it said.
Strong Project Economics
Newman pointed out that with the gold price now at about US$2,340 per ounce, Wingdam's economics are "attractive."The analyst also noted that Omineca pays a fixed price of CA$850 per ounce of gold for its 50% share of the Wingdam. Its partner, the operator, in exchange for the other 50% interest, is responsible for all equipment, labor, and services needed to complete this initial 300-meter bulk sample.
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