HCC Mining and Demolition, a Saskatoon-based diversified contract mining company has been contracted by KR Investments for the development work of the property
Omineca Mining and Metals has signed an option agreement with KR Investments of Saskatoon, Saskatchewan, which provides KR Investments with sole and exclusive option to acquire an undivided 50% interest in the Wingdam Project’s placer tenures.
Under the option agreement, KR Investments is entitled to exercise its option to acquire 50% interest by completing, all the development work required for a bulk sampling program at its sole cost and expense on or before December 31, 2019.
KR Investments is expected to carry out the required development work before the first mining room is ready for bulk sampling, and works required to complete includes dewatering of existing mine workings, obtaining permits, licenses and posting bonds required, expanding drift wall access, shaft sinking, crosscutting, drifting and ventilation raises, and initial freeze drilling.
In addition, the works includes setting up of freeze plant and freezing of the bulk sample zones; providing work crews, supplies, facilities, machinery and equipment necessary for the development work; acquisition, construction and transportation of all facilities; and funding wages, fees, salaries and expenses including food and lodging.
Once KR Investment exercises the option, the agreement enables the parties to operate the property as a joint venture.
KR Investments contracts HCC for the development work of the property
HCC Mining and Demolition, a Saskatoon-based diversified contract mining company was contracted by KR Investments for the development work on the property. HCC had previously signed an agreement with Omineca on mining services associated with the bulk sample program at the same property.
Under the agreement, HCC would supply all labour, equipment, material, supplies and services necessary to carry out the bulk sample on the property at a fixed rate of £505 per ounce of gold recovered.
The mining services agreement and rate are planned to cover the bulk sample planned for 2019 along with other sampling works over the entire 2.4km underground paleochannel of the property.
The 2019 bulk sample program is expected to take approximately 16 months to complete, including mobilization, dewatering, access drift expansion, ground freezing and the completion of a series of cross-cuts and drifts running 300m down the length of the channel.