Fully Funded Gold Project Targets Historic Fraser Canyon Paleochannel

Omineca Mining and Metals Ltd. (OMM:TSX.V; OMMSF:OTCQB) announced that it has entered into a memorandum of understanding with PSI Group to fully finance exploration, development, engineering, mining, and operating activities at the Fraser Canyon placer gold project near Quesnel, British Columbia. Under the terms of the agreement, PSI will fund all capital expenditures and operating costs associated with the project in exchange for a 75% share of recovered metals from placer mining operations. Omineca will retain a 25% carried interest at zero cost.

The Fraser Canyon project consists of a group of placer and mineral claims extending approximately 11 kilometers along the Fraser River about 12 kilometers northwest of Quesnel in the Cariboo mining district. A placer deposit refers to concentrations of valuable minerals, such as gold, that accumulate in sediments through natural weathering and water transport. The project is situated along a buried paleochannel, which is an ancient river channel filled with sediment that can host gold-bearing gravels.

Historically, two underground operations at the site, the Tertiary mine active from 1907 to 1917 and the Canyon mine operating in 1986, produced a combined 1,482 ounces of raw placer gold. According to historical records referenced by the company, underground development at the Canyon mine included a 772-foot main drift following the center of the paleochannel and multiple crosscuts extending between 50 and 100 feet. Over a 100-day mining period, 10,804 loose cubic yards of pay gravels were produced. A surface wash plant processed 9,932 cubic yards of material over 51 days, recovering 421.634 troy ounces of refined gold and 40.342 troy ounces of silver.

Omineca stated that the new partnership framework establishes a fully financed approach for advancing the project. PSI will assume responsibility for engineering, exploration, development, mining operations, and site reclamation while also managing interactions with the provincial Ministry of Mining and Critical Minerals. Omineca will maintain oversight as the registered landowner.

The companies indicated that timelines currently target submission of a Notice of Work permit application in the first quarter of 2026, with a trial mining program planned for the fourth quarter of 2026, subject to regulatory approvals.

"PSI Mining is pleased to have partnered with Omineca to recommence mining operations at Omineca's historic Fraser Canyon property," said Dr. Curtis Bertholet, president and chief executive officer of PSI Mining, in a company news release.

PSI Group, headquartered in Saskatoon, Saskatchewan, provides mining engineering and ground support technologies and has worked on projects across North America and Europe for more than two decades. The agreement also includes provisions that could allow PSI to earn up to a 50% ownership interest in each of the project's three components, South Placer, North Placer, and the associated mineral exploration claims, based on performance milestones.

The scientific and technical information for the project was prepared or approved by Stephen Kocsis, PGeo, an independent qualified person under National Instrument 43-101, which governs disclosure standards for mineral projects in Canada.

Gold Market Dynamics: Currency Strength, Geopolitics, and Inflation Pressures Shape Precious Metals Activity

Reuters reported on March 8 that gold prices declined as the U.S. dollar strengthened and expectations for higher interest rates increased amid inflation concerns linked to the Middle East conflict. Spot gold was reported at U.S.$5,091.62 per ounce during the session, while U.S. gold futures for April delivery settled at U.S.$5,103.70.

According to Kitco Metals senior analyst Jim Wyckoff, "inflation worries and expectations of higher interest rates driven by uncertainty over the war weighed on gold," though he added that "a prolonged conflict is also expected to sustain safe-haven demand and provide a floor for gold prices." Wyckoff also noted that gold is commonly viewed as a hedge against inflation, but that "low rates boost its appeal as a zero-yield asset."

A March 9 analysis from Heraeus, cited by Kitco News, discussed how gold initially responded to the outbreak of hostilities in the Middle East. According to precious metals analysts at Heraeus, "the gold price is still suffering from the fallout from the rapid rally to its record high, with safe-haven purchases amid geopolitical concerns being offset by profit-taking as investors reassess the outlook for further gains." The analysts also observed that "the markets' response to the conflict in the Middle East has been less extreme than might have been thought, possibly implying that the consensus judgement is that the conflict will be short-lived."

The same report noted that disruptions tied to the conflict affected the global precious metals trade. Heraeus analysts wrote that "Dubai is a trading hub for gold that imports material for refining and has significant gold exports, particularly to India," adding that "gold is often transported on commercial passenger flights, but these have been effectively stopped by the conflict, with thousands being cancelled."

Also on March 9, Couloir Capital published a weekly market review stating that gold prices ended the week lower amid currency strength and rising energy prices. The firm wrote that "gold prices ended lower by 2.0% during the week as the escalation of the Iran conflict triggered a strong rally in the U.S. dollar and oil prices, which pressured the precious metal." Couloir added that "investors moved into the dollar as a safe-haven currency, making gold more expensive for holders of other currencies and reducing demand." The report also noted that higher oil prices raised inflation concerns, which "dampened expectations for near-term Federal Reserve rate cuts and pushed Treasury yields higher, which reduces the appeal of non-yielding assets such as gold."

A New Uptrend Has Been Born

¹Stewart Thomson wrote on February 24 that Omineca Mining and Metals Ltd. is "a Canadian junior gold company with dual-track programs underway with a flagship Wingdam gold exploration and placer recovery project."

He stated that the company was "preparing to resume bulk sample operations, where the first bulk sample in 2012 recovered 173.4 oz of placer gold from a single 2.4m wide by 2.4m high by 24m long crosscut."

Thomson described the company's strategy as pursuing both placer recovery and exploration for bedrock sources of gold, noting that the firm was "focused on both the resumption of an underground placer gold bulk sample program and a diamond drill program focused on the discovery of the potential multiple bedrock sources of that placer gold."

Discussing the geology of the project area, Thomson wrote that "this channel could contain some of the highest unmined placer gold concentrations historically reported in all of the Cariboo Mining District… and perhaps throughout all of British Columbia."

In the same February 2026 analysis, Thomson also outlined technical indicators and price targets. He wrote that "for the year 2026, a new uptrend has been born, and the trading volume suggests much higher prices lie ahead."

The report listed a technical rating of "Speculative Buy" with short-term technical price targets of CA$0.30 and CA$0.50 and a long-term technical price target of CA$0.75.

Technology and Project Development Plans

Omineca stated that the Fraser Canyon project development plan includes a phased approach beginning with engineering review and permitting work, followed by underground test mining at the South Placer area through a 300-meter bulk sample operation. A bulk sample refers to the extraction and processing of a large volume of mineralized material to evaluate grade, recovery, and mining methods under operating conditions.

PSI plans to apply modern underground mining equipment, including roadheaders. A roadheader is a self-propelled mechanical cutting machine designed to excavate rock continuously without the need for conventional drill-and-blast techniques. According to the company, the use of these machines could reduce excavation time and enable continuous tunneling along the paleochannel.

The planned mining process also includes underground presorting and gold recovery systems intended to accelerate processing and allow for year-round mining operations. Data gathered from the South Placer trial program is expected to guide the design of mining methods for the North Placer portion of the project and support the preparation of a formal mine plan submission.

Beyond placer recovery, the companies also outlined plans to evaluate the underlying mineral claims for potential lode gold occurrences. Lode deposits refer to gold contained in solid bedrock rather than loose sediments. Exploration activities could include groundwork, geophysical surveys, sampling, and drilling programs designed to investigate potential hard rock sources of the placer gold found in the paleochannel.

Omineca operates two primary project areas in British Columbia. Its flagship Wingdam project includes more than 61,392 hectares of mineral tenures and over 15 kilometers of placer claims along Lightning Creek. At Wingdam, the company has been preparing to resume underground bulk sampling after completing dewatering and rehabilitation of existing underground workings. In addition to placer recovery, Omineca is conducting diamond drilling programs aimed at identifying potential bedrock sources of the placer gold found within the district.