Gold Miner Resumes High-Grade Placer Production in British Columbia

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Omineca Mining and Metals Ltd. (OMM:TSX.V; OMMSF:OTCQB) shared an operational update from the Wingdam underground paleoplacer project in the Cariboo Mining District of south-central British Columbia in a February 19 release.

The company's mining contractor, D&L Mining, reported that after the year-end holiday break, tunneling and placer recovery operations have resumed at crosscut 3A. Extra time was allocated to navigate through a fault zone at the edge of the channel. Modified grout formulations and spiling patterns were successfully implemented, allowing operations to return to standard tunneling and excavation procedures.

Having safely managed the faulted ground conditions, D&L said it expects tunneling and excavation to proceed at a faster pace within the more stable compacted sand and gravel of the channel interior.

As anticipated, the pay gravels excavated from the initial advance into the channel interior have yielded increasing amounts of placer gold and nuggets compared to the earlier bedrock contact zone, Omineca noted in the release.

Placer gold recoveries will be fully tabulated, subject to quality assurance and quality control by a Qualified Person, and reported as the crosscut progresses through the central main placer gold target and reaches the opposite side of the channel, the company said.

Separate from the underground placer project, approximately 3,500 meters of core from six holes drilled during the 2025 winter drill program have been logged, split, and samples sent for assay. Results will be reported once they are received, and a drill program will be designed to follow up on these findings.

Share Price Surges

In December 2025, Omineca's share price surged by 73% in about 26 hours following recent news that it resumed gold recovery at Wingdam after a delay of several months.

"[This marks] the first underground placer gold production since the 2012 bulk test," wrote Bill Newman, an analyst at Research Capital Corp., in a December 8 research report. "Early results [are] in line with expectations."

On December 5, the day Omineca announced the update, the share price rose to CA$0.095 from CA$0.055 on December 4.

Before mining could commence, equipment upgrades were necessary, and the ground needed to be optimally stabilized, which involved using various grout formulations with different spiling sizes and patterns, the analyst noted. Once this work was completed, D&L Mining entered the paleochannel and began processing placer gold-bearing gravels from crosscut 3A. The operator is recovering the placer gold using Omineca's water wash plant and gold shaker table. The size, shape, and amount of initial recoveries are similar to those during Omineca's 2012 test crosscut, when 173.4 ounces of placer gold were recovered from a single 2.4-meter-wide x 2.4-meter-high x 24-meter-long tunnel cut across the channel.

Wingdam is a placer gold project with "highly attractive" potential economics, especially given today's spot gold prices.

"While operations began later than we anticipated, the silver — more appropriately, gold — lining is that gold prices have moved to near record highs, materially improving expected cash flow margins," Newman said.

Research Capital now forecasts about CA$32 million in potential annual cash flow from the Wingdam gold placer project, based on US$3,000 per ounce gold, a fixed operating cost of CA$1,000 per ounce, and net gold production of 10,000 ounces per year. Additionally, the investment firm estimates a CA$122 million, or CA$0.47 per share, net present value discounted at 10%. This is based on annual production of 20,000 ounces per year (10,000 ounces per year net) and US$3,000 per ounce gold.

Dual Focus at Flagship Project

Based in Saskatoon, Saskatchewan, Omineca Mining and Metals is a Canadian junior gold miner actively pursuing two initiatives: the continuation of an underground placer gold bulk sampling program and a diamond drilling campaign aimed at uncovering the potential multiple bedrock sources of that placer gold, as detailed on the company's website.

The flagship Wingdam projects cover approximately 500 square kilometers of hardrock tenures and 15 linear kilometers of placer claims along the Lightning Creek valley. The rich, gold-bearing placer channel stretches 2.4 kilometers and lies buried 50 meters beneath Lightning Creek. Geologist Stephen Kocsis describes the channel as containing "some of the highest placer gold concentrations historically reported in all of the Cariboo Mining District and perhaps British Columbia that remains unmined."

Under Omineca's joint venture agreement with D&L Mining, D&L is responsible for providing all equipment, labor, and services necessary to complete the initial 300-meter bulk sample at Wingdam in exchange for a 50% interest in the placer claims there, as explained by Newman. Omineca will purchase its 50% share of the recovered gold at a fixed price of CA$1,000 per ounce.

The Catalyst: Gold Finds Its Legs Again

Gold and silver prices were significantly higher by midday Wednesday, experiencing corrective rebounds from Tuesday's losses and some perceived bargain hunting, according to a report by Jim Wyckoff for Kitco News on February 18. April gold has risen by US$116.10 to US$5,022.50, while March silver has increased by US$4.30 to US$77.81.

Traders and investors were keenly awaiting the release of the Federal Reserve’s Open Market Committee (FOMC) meeting minutes Wednesday afternoon. During the January meeting, Fed policymakers decided to keep U.S. interest rates unchanged. A move towards cutting rates could benefit raw commodity markets by potentially increasing demand. Fed Governor Michael Barr stated on Tuesday that rates should remain steady "for some time" until there is more evidence that inflation is moving towards the central bank’s 2% target. Meanwhile, Fed Bank of Chicago President Austan Goolsbee mentioned that there might be room for more rate cuts this year if inflation continues its trajectory towards that goal.

The price of gold has been quite a spectacle since the beginning of 2026, reported Shelby Fishman for MarketWatch on February 18. After breaking through the US$5,000 barrier and reaching nearly US$5,600 in late January, the precious metal experienced a short-term decline, followed by a swift recovery.

"Gold’s price began its current uptrend with the advent of U.S. policy to employ a weaponized U.S. dollar in foreign relations," said Thomas Winmill, portfolio manager at Midas Funds, according to MarketWatch. "In response, central banks around the world began viewing U.S. dollar-denominated assets, such as U.S. Treasury securities, as increasingly risky, and available reports show that those foreign banks have been buying gold as an alternative store of value for reserves."

Experts suggest that commodities can be a smart addition to your portfolio if they align with your overall strategy and time horizon.

"Rather than trying to predict short-term moves in gold, I believe it’s more important to focus on maintaining a well-diversified portfolio aligned with your goals and risk tolerance," Ryan Haiss, CFP at Flynn Zito Capital, told Fishman.

Ownership and Share Structure¹

Canadian resource investment and advisory firm, 49 North Resources Inc., owns 17.41% of Omineca. Three insiders own 4.48%: President/CEO MacNeill with 2.99%, Chief Financial Officer and Director Andrew Davidson with 1.37% and Director Sylvain Laberge with 0.12%.

Omineca has 266.3 million shares outstanding. Its market cap is CA$26 million. Its 52-week range is CA$0.04–CA$0.14/share.