Omineca Mining and Metals (OMM-V) postpones AGM
May 2nd, 2013 - News Release
Omineca Mining and Metals Ltd.'s annual and special shareholder meeting originally scheduled for May 29, 2013, has been postponed. Omineca has entered into a letter of intent whereby Omineca has the exclusive right to acquire all issued and outstanding shares of CVG Mining Ltd., a private British Columbia corporation which controls a 100-per-cent interest in the Wingdam and Fraser Canyon projects (see OMM news release Dec. 4, 2012). This reverse takeover (RTO) transaction requires approval at the shareholder meeting, which is being postponed pending completion of additional due diligence and documentation, including receipt of audited financial statements from CVG for its recently completed 2012 year-end.
Omineca management remains fully committed to developing the Wingdam project and is confident that the proposed RTO transaction will receive TSX Venture Exchange and shareholder approval. Notice of the new meeting date will be announced once it has been determined. Omineca still intends to utilize the notice and access provisions of National Instrument 54-101 and National Instrument 51-102 for the meeting, as initially reported in the notice dated March 25, 2013.
Omineca is continuing to advance the Wingdam and Fraser Canyon projects. As well as completing exploration work on the two projects (see OMM news release April 3, 2013), Omineca is working on a revised mine plan that will be implemented upon resumption of production at the Wingdam. As operator of the project, Omineca has established an interim arrangement with CVG to facilitate the continuing work at the Wingdam project.
About the Wingdam/Lightning Creek project
The Wingdam project provides a unique opportunity for Omineca to acquire near-term gold production in a proven district. The property overlies both placer and hard-rock tenures along the deep lead channel of Lightning Creek, where topographic conditions have created a deep overburden accumulation which effectively resulted in a large portion of the channel being excluded from conventional surface placer mining activity. On the Wingdam property, drilling and geophysical surveys indicate that the deep lead channel may occur throughout the entire 2.4-kilometre length of the Wingdam placer tenures, extending upstream and downstream an undetermined distance. Numerous attempts have been made to mine the deep lead channel in the Wingdam area since the late 1880s, but all were hampered by an influx of water and unstable ground conditions and were ultimately abandoned.
In 2012 CVG successfully completed a crosscut drift 23.5 metres across the deep lead channel along the bedrock/gravel interface, using the Australian deep-lead mining method combined with a ground-freeze method. This effort not only proved the applicability of the freeze method, but also provided a bulk sample whereby "the gold recovered from the 23.5-metre drift advance across the paleochannel true width amounted to 173.495 ounces of raw placer gold (900 fineness) from 140 bank cubic metres. The refined-equivalent gold grade across this width amounted to 34.55 grams per cubic metre or 0.453 ounce per ton ton. The grade across a central portion of the paleochannel totalling 14.8 m (3.8 to 18.6 m) averaged 46.30 g/m3 or 0.608 ounce per ton."
The abundance and physical nature of the placer gold recovered during the 2012 test mining operation indicate 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 good potential for the exploration and possible discovery of in-situ (hard-rock) gold mineralization in addition to the presence of a proven placer deposit.
The Wingdam project is currently permitted under a B.C. Ministry of Natural Resource operations permit and a B.C. Ministry of Environment effluent discharge permit, and has been under care and maintenance since Sept. 25, 2012.
About the Fraser Canyon project
The Fraser Canyon property is located 12 kilometres north of the city of Quesnel. The property consists of 2,221 hectares of placer claims and leases, and 1,221 hectares of mineral claims. The tenures are strategically located along 15.8 kilometres of deeply buried gold-enriched Miocene fluvial conglomerates of the Fraser Bend formation. The gold-enriched zone along the paleochannel floor averages 2.13 m thick and reaches up to 38 m wide.
The paleochannel was explored and partially mined underground at two locations on the north and south sides of the Fraser Canyon called the Tertiary (1907-1917) and Canyon (1986) mines. The two mines collectively produced 1,482 ounces of raw placer gold (892 fineness) or 1,322 refined ounces. There has been very little exploration and development work in the area since the Canyon mine closed in 1986.
In 2009 CVG dewatered the Canyon mine and rehabilitated the underground workings. The workings consist of a 160-metre-long decline, a 235-metre-long exploration drift that follows the length of the paleochannel floor, and a series of 13 crosscuts. The development work was carried out by All Star Resources in 1986, which reported a total of 421.6 ounces of refined gold recovered from 5,625 cubic metres of conglomerate and bedrock material extracted from the drift and crosscuts. The average amount of gold along the paleochannel length in the Canyon mine area is estimated to contain 8.561 ounces per linear metre.
Technical aspects of this news release have been reviewed and approved by Charles C. Downie, PGeo, hereby identified as the qualified person in accordance with National Instrument 43-101.
We seek Safe Harbor. |
