Omineca Mining and Metals Ltd. (OMM:TSX.V; OMMSF:OTCQB) began recovering placer gold via the underground paleochannel and commenced a diamond drill program, both at its Wingdam project in British Columbia, reported Bill Newman, analyst at Research Capital Corp., in a Dec. 8 research note.
"Omineca expects to provide initial gold recovery rates in the coming weeks, which could serve as a catalyst for the stock," Newman wrote.
367% Uplift Implied
Research Capital maintained its CA$0.42 per share (CA$0.42/share) target price on the junior gold miner, trading at about CA$0.09/share at the time of Newman's report, the analyst noted. The difference between these prices implies a potential return of 367%.
Omineca remains a Speculative Buy.
The company has 262.1 million shares outstanding. Its market cap is CA$23.6 million (CA$23.6M). Its 52-week range is CA$0.04–0.09/share.
Placer Gold Recovery at Last
Newman highlighted that this reported placer gold recovery at Wingdam is the first since the bulk test was done in 2012. Omineca's joint venture partner D&L Mining, having entered the paleochannel, is processing gold-bearing gravels from Crosscut 3A and recovering the gold through Omineca's water wash plant and shaker table.
"Early recoveries are visually and texturally consistent with the 2012 test, matching the size, shape, and expected grades found along the outer edge of the channel," Newman noted.
The analyst pointed out that the start of this mining had been delayed because the ground needed further stabilizing, and the equipment needed upgrading. This work has been done, but operational execution still is a key risk, Newman pointed out. This is due to the challenges inherent in mining in unconsolidated paleochannel gravels, including ground instability, water ingress, and variable gold distribution, any of which could hinder timelines and recovery rates.
"While mining operations began later than we anticipated, the silver — more appropriately, gold — lining is that gold prices have moved to near record highs, materially improving expected cash flow margins," Newman commented. "With spot gold prices around US$4,200 per ounce (CA$5,900/oz), project economics remain highly attractive."
Potential Project Valuation
For Wingdam, Research Capital calculates a potential net present value discounted at 10% of CA$122M, or CA$0.47/share. This is based on 20,000 ounces of gold per year (20 Koz/year) of production, 10 Koz/year net, and US$3,000/oz gold.
The investment firm forecasts possible cash flow from Wingdam of CA$32M per year. This is based on a US$3,000/oz gold price, a fixed CA$1,000/oz operating cost, and 10 Koz of net annual gold production.
Under Omineca and D&L Mining's joint venture agreement, the latter is to supply all equipment, labor, and services needed to complete the initial 300-meter (300m) bulk sample in exchange for a 50% interest in the Wingdam placer claims. The former is to purchase its 50% share of recovered gold at a fixed price of CA$1,000/oz.
Follow-up Drilling Started
Newman discussed Omineca's second piece of important news, the launch of a 4,000m hardrock diamond drill program. The program, designed by TerraLogic Exploration, intends to follow up on the highly anomalous gold, copper, lead, and zinc values encountered during the 2024 drill campaign west and downstream of the underground placer workings.
"The objective is to build on the 2024 results, improve geological continuity and narrow in on potential lode-gold targets that could represent the source of the placer system," wrote Newman.
Drilling, to continue throughout the rest of 2025, will include new stepout holes WD24-36, WD24-37, and WD24-33 along structural corridors associated with the Eureka Thrust and adjacent quartz vein and ultramafic contacts. Several other holes will test deeper elevations beneath the 2024 mineralization, including extensions below the underground workings.
Catalysts on Horizon
Newman reported that Omineca will announce this quarter the results of the initial placer gold recovery, then release additional data on an ongoing basis.
"As mining advances through Crosscut 3A, continued updates on gold recovery rates and production efficiency will be important catalysts," Newman wrote.
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- As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Omineca Mining and Metals Ltd.
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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Disclosures for Research Capital Corp., Omineca Mining and Metals Ltd., December 8, 2025
Analyst Certification I, Bill Newman, CFA, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.
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