At Omineca Mining and Metals Ltd.'s (OMM:TSX.V; OMMSF:OTCMKTS) Wingdam project in British Columbia, recently engaged Fortis Mining Engineering and Manufacturing is helping stabilize the bedrock/paleochannel interface in the mine, reported Research Capital Corp. analyst Bill Newman in a September 29, 2022 research note.
Once this and reconfiguration of the wash plant is done, gold production, after having been delayed, should commence.
"In the coming months, we expect Omineca to report the recovery of placer gold, which we believe could be a major catalyst for the stock," Newman wrote.
The Canadian resource company's stock is currently trading at about CA$0.10 per share, and Research Capital's target price is more than seven times that, at CA$0.75 per share. This difference implies a significant potential return for Omineca investors.
"In the coming months, we expect Omineca to report the recovery of placer gold, which we believe could be a major catalyst for the stock," Newman wrote.
So far, relayed Newman, Fortis has moved several meters into Wingdam's paleochannel and is using grout, steel sets, and cement to reinforce the bedrock there to prevent the expected inflow of water. Once the mining services firm completes this area, it will "advance into the pay zone, feed the pay gravel to the wash plant, and continue across the channel."
Newman noted that Omineca's partner on the project, Lightning Creek Mining, is responsible for any additional cost to stabilize the mine, given Omineca's costs are fixed at CA$850 per produced gold ounce.
Research Capital rates Omineca Speculative Buy.
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