Omega Minerals Plc
9995
Hectares
9,750,000
Ounces of Gold*
19,500,000,000
Potential Value of Unmined Gold (USD)**
About Omega
We do things differently
Innovative and forward thinking, not just another run-of-the-mill mining exploration company. Sitting on a vast untapped resource in British Colombia Canada, our mission is to leverage the Directors decades of experience and knowledge in the region, leading to sustainable growth in the provable value of the company’s assets and business.
The experienced team, directors and management are united in their objectives and possess the critical components necessary to take the company to IPO and beyond. Considerable years of mining and corporate structuring experience, decades of local knowledge in the region and an established global capital raising infrastructure coupled with the current trajectory for gold in the medium to long term and we believe the timing is now perfect to capitalize on an asset that is potentially worth many Billions US$.
The directors main objective is to undertake the necessary work to prove independently the quality and quantity of the gold resource and produce independent, exchange compliant NI 43-101 reports on its key properties. Achieving this initial objective will position the company for an exit, either via an IPO/RTO or other M&A scenario that will provide a profitable early exit for seed investors.
* * Theoretical Illustrative value of unmined gold in the ground based on an estimated 9.75 million ounces and a gold spot price of $2,000. This is NOT referencing the valuation of the company; it simply illustrates the vast potential resource under the company’s ownership as defined in various independent technical reports and NI 43-101. The quantity and value of gold stated is subject to updating and in practice could be a greater or lesser amount.
Demand for New Gold Reserves
The last decade has seen periods of decline in new investment into exploration projects and this has resulted in the discovery of few, if any, significant new gold reserves in recent years. One of the consequences of this underinvestment is that many of the bigger mining companies are now facing a potential future shortage of reserves. In recent years, in line with the rising price of gold, we are seeing an uptick in investment into the gold exploration sector and expect that this will continue in line with the increasing demand for gold.
A post Covid economic recovery could see further increases in demand for gold, especially from the technology and medical sectors and, as general wealth increases, greater demand from such markets as India and China for gold jewelry. Additionally, following recent political tensions and uncertainty, gold is again coming to the fore as a reliable safe haven asset.
Demand for Gold as an Investment
Of all the precious metals, gold is generally perceived to be the most popular as a secure investment. It’s longevity and virtually indestructible nature is a big part of the attraction. It has been said that every ounce of gold ever mined out of the ground still exists in some form or another. Gold does not corrode or decay and cannot be destroyed by fire. This is why all of the gold extracted from the earth can still be melted, re-melted and used over and over again. The only way to truly destroy gold at the molecular level is by thermonuclear reaction.
Gold is a time tested currency that is universally trusted. It will ALWAYS exist, gold is quite literally, here to stay.
Aside from being indestructible, gold has unique and irreplaceable uses in, for example, the medical, dentistry, electronics and the tech industry. It is immensely strong and yet malleable. Gold is non toxic, environmentally friendly and sustainable.
Gold is universally held in the highest regard and is arguably the most desirable investment of all time.
Hedge against Inflation, Safe Haven Asset
Investors buy gold as a way of diversifying risk, especially through the use of futures contracts and derivatives.
Like most commodities, the price of gold is driven fundamentally by supply and demand, including speculative demand. However, unlike most other commodities, saving and disposal play larger roles in affecting its price than its consumption. The price of gold is mainly affected by changes in sentiment, which affects market supply and demand equally, rather than on changes in annual production.
In 2020 we witnessed record prices for both gold and silver. Gold reached above $2,000 per ounce, while silver has risen nearly one-third, its fastest upward trend since 1987. Mining companies around the world are benefiting from this rising investment tide, as they work to strengthen their positions, increase their holdings and ultimately provide the raw material for investors looking for more stable options. In 2022 we have seen the price again heading north, with some commentators predicting $2,500 per ounce in the not too distant future.
Location
British Columbia, Canada
The Omega project covers a vast land area in the historically famous Cariboo gold mining region with potentially a multi-million ounce gold resource in British Columbia, Canada. British Columbia is one of Canada’s most prolific and most promising regions for gold production.
The Project is approximately 37.8km east of Quesnel, a town of 10,000 people located in the Cariboo Mining District in east-central British Columbia, Canada. Travel from Vancouver to Quesnel is via the Trans-Canadian Highway Number 1 to Kamloops and then onto the Cariboo Highway Number 97, with a journey time of eight hours, Figure 2-1. Alternatively, Quesnel has daily flights to/from Vancouver and is also serviced by the tourist train “The Rocky Mountaineer”.
The Cardinal Channel
The Cardinal Channel in British Columbia is a noteworthy gold prospecting zone, boasting a rich geological history ideal for gold deposits. Nestled in an area where ancient volcanic activity was rampant, this zone features an abundance of quartz veins, a common gold host rock.
Over time, glaciers in the region have eroded these gold-hosting rocks, dispersing gold particles throughout the channel. As these glaciers retreated, they left behind gold-laden gravels and sediments, making the Cardinal Channel an alluring destination for prospectors.
This geologically dynamic area underwent several transformation phases millions of years ago, including the accretion of exotic terranes and complex tectonic activities. The amalgamation of terranes resulted in a diverse geological setting, making the Channel a strategic location for gold prospecting. Tectonic forces, magma, and volcanic activities enriched the area’s metallogenic profile, ultimately paving the way for significant gold mineralization.
Volcaniclastic rocks dominate the Channel, which are crucial for gold deposit formation. These rocks underwent alterations, causing the precipitation of minerals including gold, within the rock’s porous sections. Gold is typically found associated with quartz veins, providing prospectors with clear targets for exploration. The Cardinal Channel also lies within a broader geological setting known for its gold-bearing potential, the Eureka Thrust. This geological feature represents a significant fault zone where the immense pressures and fluids associated with tectonic activity have mobilized and concentrated gold.
Property Acquisition
In our previous Investor Update (Dec. 2023), we reported on the outstanding results of last season’s exploration program, the headline story being the summer drilling program and the expansion of the alluvial gold resource, which increased from approximately 2 million ounces of gold in 2022 to more than 9.75 million ounces in 2023 (combined indicated, inferred resource and extrapolated estimates).
The company has an impressive track record, having expanded its alluvial gold resource from 60,000 ounces in 2020 to 2 million ounces in 2022 and to more than 9.75 million ounces of gold in 2023. The extracted value of the unmined gold would be worth almost US$20 billion at today’s gold price ($2,000 Oz.).
In addition to the alluvial resource, Omega owns the rights to mineral deposits (hard rock) covering about the same area as the alluvial properties. The Hard Rock mining potential of the Mineral rights is in addition to the estimated alluvial resource and could also be millions of ounces. The potential gold resource buried deep in the hard rock is not included in the estimates at this time until we have conducted further drilling and surveying, but works carried out so far indicate promising potential.
Omega’s alluvial resource is currently estimated at close to 10 million ounces of gold, on 9,995 hectares of gold properties.
Process
Independent surveys and reporting
The Company will carry extensive geophysics, boots on ground geographical and 2D resistivity surveys, drilling, trenching and pit testing monitored and evaluated by world renowned independent surveyors, including Roma and SRK, to enable valuation based on NI43-101 reporting standards. The Company works with specialist geologists and survey experts, principally with SRK, a U.K. headquartered global leader in the field and Roma Group headquartered in Hong Kong. They are ideal to implement the Company’s model, based on exploration, proving reserves and enhancing valuations.
The geologist teams will be conducting extensive work and produce surveying, sampling, geological reports and all other technical due diligence that is necessary to verify the presence, location and quantum of gold and mineral resources.
Environmental Standards
Mining companies must satisfy environmental regulations and address community expectations at all stages of the mining life cycle. Our specialist providers comply with internationally recognized practices and reporting requirements and independent technical reports produced for worldwide stock exchanges, banks and private investors.
NI 43-101 (National Instrument)
National Instrument 43-101 (the “NI 43-101” or the “NI”) is a national instrument for the Standards of Disclosure for Mineral Projects within Canada. The Instrument is a codified set of rules and guidelines for reporting and displaying information related to mineral properties owned by, or explored by, companies which report these results on stock exchanges within Canada. This includes foreign-owned mining entities who trade on stock exchanges overseen by the Canadian Securities Administrators, even if they only trade on Over The Counter (OTC) derivatives or other instrumented securities.
The purpose of National Instrument 43-101 is to ensure that misleading, erroneous or fraudulent information relating to mineral properties is not published and promoted to investors on the stock exchanges overseen by the Canadian Securities Authority. NI 43-101 stipulates and codifies the form and content of a compliant report (i.e. a report that complies with the Reporting Standard).
Prescribed disclosure within the National Instrument relates to:
❖All disclosure of scientific or technical information, including disclosure of a mineral resource or mineral reserve, concerning a mineral project on a property material to the issuer must be based upon information prepared by or under the supervision of a qualified person.
❖What the National Instrument is to be used for, such as which types of mineral properties must be covered by a compliant report.
❖Prescribes the terminology to be used to describe various features, both geologically and financially, within the report.
❖Stipulates the type of information to be discussed and the technical data which must be portrayed, for various levels of reporting.
❖Prescribes a list of approved Competent Persons, and the definition of Groups and Associations which may qualify to certify such a person as “Qualified”.
❖Prescribes that a Qualified Person vouches for the accuracy and completeness of the contained information and the manner in which it is presented.
❖Provides guidance on reporting Historical mineral resource estimates
Proscribed disclosure within the National Instrument precludes a Company from reporting:
❖Quantity, grade, or metal or mineral content of a deposit that has not been categorized as an inferred mineral resource, an indicated mineral resource, a measured mineral resource, a probable mineral reserve or a proven mineral reserve.
❖Results of an economic analysis that includes inferred mineral resources.
❖Allows for the potential grade, quantity and metal or mineral content of an exploration property, provided that a qualifying statement is made as to this being conceptual in nature.
❖The term preliminary feasibility study, pre-feasibility study or feasibility study when referring to a study unless the study satisfies the criteria set out in the National Instrument.
❖The promulgation of a codified reporting scheme makes it more difficult for fraud to occur and reassures investors that the projects have been assessed in a scientific and professional manner. However, even properly and professionally investigated mineral deposits are not necessarily economic, nor does the presence of a NI43-101-, JORC- or SAMREC and SAMVAL-compliant CPR or QPR necessarily mean that it is a good investment.
On Tuesday, gold hit a new all-time high of $2,670 an ounce, continuing a remarkable rally that’s seen the precious metal gain over 27% since the start of the year. If 2024 ended today, it would mark the best year for gold since 2010, when the asset finished up nearly 30%.
Despite the momentum, many investors still aren’t paying attention to what I consider to be one of the most obvious opportunities in the market today: gold stocks.
Canada’s increased government funding and protectionism are boosting outlooks compared with rising geopolitical risks in foreign countries, according to a new KPMG survey of industry executives.
Nearly 80% of mining executives are optimistic about the wider industry’s five-year growth prospects, up sharply from 62% in KPMG’s last global survey in 2022, the business consultancy said on Thursday. The risk of operating in foreign countries is increasing, 78% said.
The milestone was reached Friday, when the precious metal’s spot price surpassed $2,500 per troy ounce, an all-time high. With gold bars typically weighing about 400 ounces, that would make each one worth more than $1 million. There are some nuances to the figure. While gold bars in the London market — the global center for trading the precious metal — normally weigh about 400 troy ounces, they can contain 350 to 430 ounces of pure gold, according to the London Bullion Market Association. It’s also possible for individuals to buy much smaller, more affordable bars such as those sold by Costco.
10 September ’24
- Financial Updates including audited accounts
- Progress with supervised drilling and testing program on key target sites, with high gold content seen at depths of just 5 to 28 meters.
- Discussions with various hedge funds, VC funds and other potential investors to explore the potential sale of some of Omega’s gold properties.
- Onboarding process with the UK Share Trading Platform is nearing completion.
IPO Exit
Omega has focused on the exploration and demonstration of alluvial and hard rock potential, increasing the company’s gold resources to multi-billion dollar values. As stated at the beginning of Omega’s journey, the goal is to increase value through acquisitions, targeted low-cost exploration and the production of supporting independent valuation/technical reports leading to NI 43-101 status. All of this leading to an expanded gold resource/valuation and ultimately an exit in the most profitable way possible.
The outstanding events of the 2023 mining season, which more than quadrupled Omega’s gold resource, have strengthened Omega’s negotiating position and set in motion a series of M&A discussions with serious interest from potential buyers including Dubai, South Africa and Hong Kong, among others. A partial exit/sale in 2024 is now a realistic possibility.
We are working on a series of M&A and other exit events. The company has developed and grown significant asset value organically without incurring any major debt. In the near term, the company will continue on its path of stable growth and value creation, and have positioned the company for a partial sale of assets in 2024, along with other initiatives to create liquidity for shareholders. The directors continue with various negotiations and discussions with the aim to create a meaningful exit as soon as possible, maximising value, and creating liquidity for shareholders and providing a stable foundation for further mining exploration and development.
Omega Minerals PLC
Incorporated in England (reg. number 11073509)
85 Great Portland Street, Floor 1,
London, England, W1W 7LT
Tel: 020 3883 5845
Omega Minerals (Clearing) PTY LTD
ACN 625 107 726
13 Regency Terrace , Lysterfield,
VIC 3156 Australia
Bankers: ANZ (Australia)
Omega Minerals Clearing Pty Ltd., (Aus) is a 100% wholly owned subsidiary of Omega Minerals Plc (UK) and is the duly appointed receiving entity of Omega Minerals Plc. acting on behalf of Omega Minerals Plc. pursuant to the Company’s exclusive express order for the Canada Mining Operations Project.