Omineca Mining and Metals Ltd. (OMM:TSX.V; OMMSF:OTCMKTS) is expected to announce "in the coming weeks/months," it has recovered its first placer gold at the Wingdam underground project, and this event could catalyze the company's share price, reported Research Capital Corp. analyst Bill Newman in a March 3 research note.
Potential Gains Compelling
Currently, Omineca's stock is a Speculative Buy and trading at about CA$0.16 per share. Research Capital's price target on it is multiples higher, at CA$0.75 per share. This price gap implies a significant, or 369%, return for investors.
Paleochannel Nearly Ready
Newman reported the expectation of near-term production comes on the heels of Omineca announcing the paleochannel was entered successfully by Hamilton Gold Royalties, its joint venture partner, and Fortis Mining Engineering and Manufacturing, the mining contractor.
"The company observed visible placer gold upon entering the paleochannel in bedrock faults and the nearside extremity of the paleochannel gravels which have been stockpiled and will be processed through the wash plant shortly," wrote Newman.
Now, Fortis is making another crosscut through the bedrock about 20 meters downstream, parallel to the paleochannel, Newman added. This is so gravel may be excavated, going forward, from more than one location.
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Disclosures for Research Capital Corp., Omineca Mining and Metals Ltd., March 3, 2023
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