VANCOUVER, BRITISH COLUMBIA–(Marketwired – July 11, 2016) – IDM Mining Ltd. (TSX VENTURE:IDM) (“IDM” or the “Company”) is pleased to announce that ongoing rehabilitation of the underground equipment and workings at the Red Mountain gold project and the timely receipt of provincial permits has enabled the commencement of drilling. This work is another step in the steady advancement of the Red Mountain Project towards a Bankable Feasibility Study (BFS) and ultimate Final Investment Decision (FID) planned for 2017.
“We are fortunate to have access to the Red Mountain deposit with an existing production-sized underground decline, plus a fleet of mining and support equipment,” said Rob McLeod, President and CEO of IDM Mining. “The excellent ground conditions have enabled a straightforward dewatering and rehabilitation program to provide access for drilling.“
The Phase I drilling program utilizing two underground rigs includes 36 planned core holes for a minimum 5,000 meters targeting gold and silver mineralization in the Marc, AV and JW zones. This drilling will target inferred resources, primarily within the JW zone with the objective of upgrading to measured and indicated categories. Step out holes are also planned along strike and down-dip from the current resource. Additionally, multiple metallurgical holes are planned throughout the mineralizing system for detailed metal recovery, geotechnical and hydrological studies.
“The geologic, engineering and environmental baseline information collected during the 2016 program will be used for IDM’s planned feasibility study, to be completed in early 2017,” said Michael McPhie, Executive Chairman. “Additionally, our exploration work will further demonstrate the significant upside at Red Mountain.“
IDM has also initiated a comprehensive surface program of mapping and sampling, including targeting new areas of the 17,000 hectare property that have recently been exposed by rapid glacial melt. Assays from initial surface work on the Property are currently pending. The objective of this surface exploration work is to identify new drill targets within the widespread alteration and mineralizing system at Red Mountain.
Additionally, the Company is continuing with ongoing surface engineering work and environmental baseline studies in the project study area. This includes detailed surveys for the tailings management facility, mill, and ore stockpile at the proposed Bromley Humps location as well as the access road and proposed power line right-of-way, and planning for surface facilities. Ongoing hydrological and environmental studies are being performed in support of the environmental assessment process currently underway for the project by BC and Canada.
About Red Mountain
The 17,125 hectare Red Mountain Gold Project is located in northwestern BC, 15km northeast of the town of Stewart. Discovered in 1989, the property was explored extensively until 1996 by Lac Minerals Ltd. and Royal Oak Mines Inc., with 466 diamond drill holes and over 2,000 meters of underground development completed, along with extensive engineering and environmental baseline work. Additional studies were completed over the past 12 years by Seabridge Gold Inc., North American Metals Corp. and Banks Island Gold Ltd.
On April 4, 2016, the Company announced an updated mineral resource estimate reported at 3.0 g/t Au cut-off for the Red Mountain Project.
|Classification||Tonnage||Au||Ag||Oz Au||Oz Ag|
|Measured + Indicated||1,641,800||8.36||26||441,500||1,379,800|
Red Mountain is a porphyry-related hydrothermal gold system, located in the Stikine terrain. Gold mineralization is associated with, and partially hosted within an early to mid-Jurassic multi-phase intrusive complex, with associated volcanic and volcaniclastic rocks and sediments. Many gold mineralized zones occur on the Property, including five mineralized zones with established resource estimates. The five mineralized zones (Marc, AV, JW, 141 and 132) have been folded, and are often separated by dip-slip fault zones. The mineralized zones vary in orientation from shallow to steeply dipping and are generally tabular. The Marc, AV and JW zones vary in widths from one to forty meters, averaging about fifteen meters in thickness. Gold and silver mineralization is associated with stockworks, disseminations and patches of coarse grained pyrite, surrounded by a pyrrhotite/sphalerite halo. Alteration facies includes strong quartz-sericite alteration.
QA/QC AND QUALIFIED PERSON
Samples for the 2016 program are collected by experienced geologists and technicians, placed in sealed bags and shipped to ALS Labs Ltd in Terrace, BC for sample preparation, with pulps subsequently shipped to Vancouver, BC for gold and multi-element ICP analysis. A Quality Control/Quality Assurance program including the insertion of Standards and Blanks has been implemented. The 2016 Exploration Program is performed under the supervision of Rob McLeod, P.Geo, President and CEO of IDM Mining Ltd and a ‘Qualified Person’ under NI 43-10. Mr. McLeod has reviewed and approved the technical content of this release.
ABOUT IDM MINING LTD.
IDM Mining Ltd. is a mineral exploration and development company based in Vancouver, BC, Canada. The Company’s current exploration and development activities are focused on precious metals in British Columbia and Yukon with a primary focus on the high grade underground Red Mountain Project which has entered the BC and Canadian environmental assessment process. Further information can be found on the Company’s website at www.IDMmining.com.
ON BEHALF OF THE BOARD of IDM Mining Ltd.
Robert McLeod, President, CEO and Director
“Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”
Forward-Looking Statements: Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to the proposed exploration and development activities and their timing, resource estimates and potential mineralization, the Company’s plans to complete an Environmental Assessment Application, a feasibility study and ultimate investment decision. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others and in addition to those described elsewhere in this release, timing and success of future exploration and development activities, exploration and development risks, delays in obtaining or inability to obtain required government or other regulatory approvals, permits or financing, the risk of unexpected variations in mineral resources, grade or recovery rates, of failure of plant, equipment or processes to operate as anticipated, of accidents, labor disputes, and unanticipated delays in completing other development activities, the risk that estimated costs will be higher than anticipated and the risk that the proposed mine plan and recoveries will not be achieved, equipment breakdowns and bad weather, the timing and success of future exploration and development activities, exploration and development risks, mineral resources are not as estimated, title matters, third party consents, operating hazards, metal prices, political and economic factors, competitive factors and general economic conditions. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: required regulatory approval, permits and financing will be obtained; the proposed exploration and development will proceed as planned; with respect to mineral resource estimates, the key assumptions and parameters on which such estimates are based; that the proposed mine plan and recoveries will be achieved, that capital costs and sustaining costs will be as estimated, and that no unforeseen accident, fire, ground instability, flooding, labor disruption, equipment failure, metallurgical, environmental or other events that could delay or increase the cost of development will occur, and market fundamentals will result in sustained metals and minerals prices. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.