Omineca Secures Full Funding for Fraser Canyon Gold Project Through Strategic Partnership

Omineca Mining and Metals Ltd. has signed a memorandum of understanding with PSI Group that establishes a fully funded framework for the Fraser Canyon Project, a placer gold recovery and exploration initiative located northwest of Quesnel, British Columbia. Under the agreement, PSI will assume all capital and operating expenses for engineering, development, mining operations, and site reclamation in exchange for a 75% share of recovered metals, while Omineca retains a 25% zero-cost carried interest. This partnership enables the recommencement of operations at a site where historical mines collectively produced 1,482 ounces of raw placer gold, with plans to apply modern technologies to enhance efficiency and recovery rates.

The Fraser Canyon Project encompasses claims extending 11 kilometers along the Fraser River, covering a buried paleochannel known to contain gold-enriched Miocene fluvial conglomerates. Historical operations at the Canyon Mine in 1986 involved underground development using conventional methods, producing 421.634 troy ounces of refined gold from processed pay gravels. PSI intends to implement advanced technologies, including multiple roadheaders—self-propelled rock cutting machines designed to excavate faster than traditional drill-and-blast methods—and an underground pre-sorting and gold recovery system to enable continuous, year-round operations. These innovations aim to shorten excavation time and expedite processing, potentially increasing the project's economic viability.

The strategic partnership includes a phased approach, beginning with data review, engineering, and submission of a Notice of Work for permitting site preparation and a 300-meter test mining bulk sample operation at the South Placer area. Subsequent phases will develop methodology for the North Placer operations based on insights from the trial mining program, establish a framework for concurrent mining of both areas, and investigate underlying mineral claims for potential lode gold occurrences through groundwork, sampling, geophysics, and exploration drilling. Timelines target a NOW submission in the first quarter of 2026, with trial mining anticipated to begin by the fourth quarter, subject to regulatory approvals. The MOU also includes provisions for PSI to earn up to a 50% ownership interest in project components through performance-based milestones, with both parties working toward a definitive agreement.

This announcement is significant as it removes financial barriers for Omineca, allowing the company to advance a historically productive asset without upfront capital expenditure. The partnership leverages PSI's expertise in advanced mining engineering and ground support technologies, reuniting the original team from the 1986 bulk sample operation while incorporating contemporary systems. For investors and the mining sector, the deal demonstrates a model for de-risking exploration projects through strategic alliances, potentially accelerating development timelines and improving resource recovery. The focus on modern, efficient technologies also aligns with industry trends toward lower-carbon operations and enhanced operational sustainability, positioning the Fraser Canyon Project as a case study in revitalizing historic mining sites with innovative approaches.