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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 Jun 02, 2017 2:26pm
225 Views
Post# 26318058

New outlook for OMM

New outlook for OMM

Today the price of gold is $US1276 ($CDN1721) per ounce.

 

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 are there to be placer-mined in place (no transportation, chemicals, tailings ponds and such).

At $C1721 per oz, the potential value of Wingdam gold is 1721 x 173,500 = $C298,935,000

The projected mining costs are unknown but the following publication suggests that “all in sustaining cash costs” could be as high as $US1000 ($CDN 1346) per ounce.  

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

Wingdam’s cost would total 173,500 x $1346 = $C233,531,000.  OMM’s net return would be:  $C298,935,000 - 233,531,000 = $C65,404,000

With 73 million shares outstanding, this computes to an OMM value of $C 0.89 per share from the existing Wingdam gold channel - as its parameters are currently defined.  But there's more!

“The abundance and physical nature of the placer gold recovered in the bulk-sample... indicates that it is in part, locally derived. Little or no systematic exploration work has been carried out on the property to test for the occurrence of lode gold, leaving excellent potential for the exploration and possible discovery of in-situ (hard-rock) gold mineralization in addition to the presence of a proven placer deposit.”  (OMM Technical Report, Aug 24, 2016)

 

It is reasonable to expect a double digit share price as soon as Wingdam moves forward with its new corporate structure and mining technology this summer, IMHO.

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