Omega Pacific Resources: New Kid On The Block In The Golden Horseshoe

Every year, exploration companies plan their summer drill programs, raise capital to fund those programs, and then mobilize to camp in May and June. This predictable seasonality often results in stocks bottoming in March/April and then rising into the summer, peaking sometime in September just as results begin to trickle in. 

Given that we are in early April, it makes sense to begin looking for under-the-radar Golden Triangle explorers that will be conducting summer drill programs. Sprinkle in some high-impact drill targets, maybe even a tight share structure, and the recent breakout in metals like gold and silver could help send a number of under-the-radar junior miners to new highs. 

Omega Pacific Resources (CSE: OMGA) recently announced their intention to acquire the Williams Property (option agreement with Copaur Minerals to acquire 100% of Williams)  in what is now referred to as the “Golden Horseshoe”, a region that connects two of BC’s most prolific mining districts, the Golden Triangle and the Todoggone Region.

The Williams Property has had over 11,000 meters & roughly $6,000,000 worth of historical drilling by previous operators. The historical exploration work at Williams has clearly established potential for a major high-grade gold & copper discovery on the property. 

In fact, the last operators on the project made a new discovery and delineated a mineralized zone, called the GIC prospect. A number of drill collars showed strong hits, but it was hole WM22-02 that yielded 2.2 g/t gold over 50 meters. But what really excites the Omega team about this hole is it ended in 4.2 g/t over 10.5 meters, meaning the drills stopped in high-grade gold mineralization (Image below). 

Visualization and Geological Interpretation of WM22-02

This discovery has allowed the Omega technical team to be very targeted in its upcoming 4,000-meter drill campaign this summer. As they plan to drill deeper alongside WM22-02 with the intention to expand and extend mineralization beyond its previous interval.

Technicals aside, Omega’s share structure seems to be responding well to any sort of buy side volume, since announcing the Williams Property option. Omega currently has 20.48 million shares and 9 million warrants outstanding, with much of the free trading float closely held by supportive shareholders. Investors waiting for a pullback, are yet to be rewarded and any selling continues to be absorbed by a steady stream of buying.

Omega acquired the Williams Project from Copaur Minerals (TSX-V:CPAU), a Metals Group company. The Metals Group has strong technical expertise and a deep knowledge of the Golden Horseshoe District of British Columbia. The group is also responsible for the development and discoveries for Founders Metals (TSXV:FDR) and Thesis Gold (TSXV:TAU), both of which are trading at $100M market cap. If there is one question mark for me, it is Omega’s current bench strength on the technical side. They would certainly benefit from some support from a seasoned team of veterans like Metals Group. 

With a recently completed C$3 million oversubscribed financing, interested parties are going to have to go into the open market for allocations, as Omega is well funded with drilling set to commence in June. Investors can expect steady news flow and exploration updates from the company throughout the summer and well into the fall. 

The opportunity available today is to get positioned before Omega lands on other investors’ radars as summer drilling begins at Williams. I like the potential for Omega to deliver multiple significant gold drill intercepts at GIC. I have taken a long position in Omega Pacific shares.

Disclosure: Author did not receive compensation for writing this article and has no business relationship with Omega Pacific Resources Inc. Author owns shares of Omega Pacific Resources at the time of publishing this article.

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Disclaimer

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