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Omineca Mining and Metals Ltd V.OMM

Alternate Symbol(s):  OMMSF

Omineca Mining and Metals Ltd. is a Canada-based junior resource company. The Company's flagship Wingdam gold exploration and placer recovery project is located along the Barkerville Highway 45 kilometers (kms) east of the City of Quesnel. The Wingdam Property includes mineral tenures totaling over 61,392 hectares (613 square kms) and in excess of 15 linear kms of placer claims, both encompassing the Lightning Creek valley where topographic conditions created thick layers of overburden, which preserved a large portion of a buried paleochannel containing placer gold-bearing gravels. It has exploration and evaluation properties into two geographical locations: British Columbia and the Yukon. In British Columbia, its properties include Abo, Fraser Canyon, Mouse Mountain and Wingdam. In Yukon, its property is Kiwi. The Fraser Canyon consists of around 2,221 hectares of placer claims and leases and 1,221 hectares of mineral claims. It has around 50% interest in the Mouse Mountain project.


TSXV:OMM - Post by User

Post by Grassyknollon Feb 15, 2015 1:15pm
133 Views
Post# 23431822

Wingdam Bonanza for OMM?

Wingdam Bonanza for OMM?

Some calculations (for vibrant discussion) regarding the value of Wingdam to OMM shareholders (of which I am one). 

173.5 ounces of gold were obtained from 2.4 m across the gold- bearing channel. Numbers are from OMM website:  https://www.ominecamining.com/ 

If this grade is maintained over the 2400m length of the channel, then 1000 x 173.5 = 173,500 oz of gold is there to be placer-mined in place (no transportation, chemicals, tailings ponds and such).

At US$1500 per oz, the potential value of Wingdam gold is 1500 x 173,500 = US$260,250,000

I have no idea of projected mining costs, but the following publication suggests that “all in sustaining cash costs” could be as high as  US$1000 per ounce.

https://www.visualcapitalist.com/what-is-the-cost-of-mining-gold/

In Wingdam’s scenario that cost would total 173,500 x $1000 = US$173,500,000.

OMM’s net return would be $260,250,000 - 173,500,000 =  US$86,750,000

When mining commences (late this summer?) OMM could have about 70 million shares outstanding. This computes to an increase in OMM’s value by US$1.24  (C$1.54) per share from Wingdam gold - as its parameters are currently defined.

Acquiring OMM shares now, as Bob Moriarty (321gold.com) once famously said of Eagle Plains’ Copper Canyon spinoff, “is like taking candy from a baby.”

That's MHO also.

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