IDM Mining Advances Permitting and Field Work at the Red Mountain Gold Project, Northwest BC
July 7, 2015, Vancouver, BC – IDM Mining Ltd. (TSX:IDM) (“IDM” or the “Company”) is pleased to announce that the Company continues to advance permitting of a proposed 1,000 tonne per day underground gold mine at the Red Mountain Underground Gold Project (the “Project”), located 15 km northeast of Stewart BC and has commenced its 2015 Field Program. “IDM’s focus for 2015 is to advance the necessary environmental baseline work, permitting and engineering of the Red Mountain Project to facilitate full regulatory approvals, and support a potential positive investment decision in 2016,” said Rob McLeod, President and CEO. “We look forward to continuing to build a positive working relationship with the Nisga’a Nation, local community members, our partner consultants and regulatory agencies, in realizing the potential of developing our high-grade gold deposit into an underground bulk-tonnage mine.” “The robust economics for a potential five year mine life outlined in our Preliminary Economic Assessment is augmented by significant exploration upside on the Property, particularly along strike and down-dip from the current resource and within the parallel striking 141 Zone,” said Michael McPhie, Executive Chairman of IDM Mining. “Our priorities remain focused on achieving development permits in a timely manner, ensuring the company has a social license to operate, with subsequent resource expansion drilling programs that may significantly extend the potential mine life within the prolific Red Mountain Property.” 2015 PROGRAM Since the agreement to acquire the Red Mountain Property was announced in April 2014, the Company has continued to advance the project towards development as a potential high-value underground gold mine. Work slated for the summer and fall of 2015 includes:
- Environmental baseline work, including: surface and groundwater sampling and analysis, geo-hazard assessment, wildlife and fisheries studies and archaeological assessments;
- Socioeconomic studies, First Nation and community engagement;
- Road and power-line right-of-way surveying and engineering; and,
- Metallurgical and tailings management optimization studies.
In July 2014, the Company announced positive results from a NI 43-101 compliant Preliminary Economic Assessment (PEA) and revised Resource Estimate completed by JDS Energy & Mining Ltd. (see IDM news release dated July 23, 2014). The study demonstrates potential robust economics for a high-grade underground mine, with low capital ($76 million) and operating costs ($456/ounce net of silver by-product) and a post-tax payback period of 1.5 years. The recent decline in the Canadian dollar would potentially result in even better economics, with the PEA base-case foreign exchange at $0.95 CAD:USD.
Commencing in the spring of 2014, IDM initiated environmental baseline work, additional Project engineering, as well as First Nation and stakeholder engagement. In the fall of 2014, the Company submitted a draft Project Description (the “Project Description”) to the British Columbia Environment Assessment Office (“BC EAO”) for the Project. Comments have been received on the Project Description from BC EAO, other provincial and federal agencies and First Nations. The Company intends to submit a final Project Description shortly to formally initiate the environmental assessment review of the Project. Finally, management continues to advance discussions with a number of banking and mining finance firms in preparation for securing the debt and equity capital required to support the potential development of Red Mountain in 2016. ABOUT RED MOUNTAIN IDM Mining is currently earning an option to acquire a 100% interest in the 17,125 hectare Red Mountain property, located 15 kilometers northeast of Stewart, BC. Numerous precious and base metal targets have been identified by IDM and previous operators over a 15 km by 4 km trend of strong alteration and mineralized prospects. Since discovery in 1989, in excess of $40 million has been spent on the Project including a production sized underground ramp. IDM announced positive results from a NI 43-101 PEA and revised Resource Estimate completed by JDS Energy & Mining Ltd. for Red Mountain (see IDM news release dated July 23, 2014 and the technical report entitled “Red Mountain Underground Gold Project” dated September 3, 2014 which is available on SEDAR and the Company’s website). At a 3.0 g/t Au cutoff, Measured and Indicated Resources from the Marc and AV Zones at Red Mountain are 1,454,300 tonnes averaging 8.15 g/t Au and 29.57 g/t Ag totaling 380,900 oz Au and 1,382,800 oz Ag. Inferred Resources from the Marc, AV and JW Zones are 332,900 tonnes averaging 7.69 g/t Au and 12.72 g/t Ag totaling 82,300 oz Au and 136,200 oz Ag. There is significant exploration upside for additional gold and silver mineralization at Red Mountain:
- Resource Expansion: mineralized horizon traced through drilling for an additional 800 meters from Marc/AV/JW resource area, as well as the parallel, high-grade 141 Zone trend
- Proximal Exploration Targets: follow up high-grade drill intercepts and surface samples, including at gold mineralization at Cambria, Brad, McAdam, Marc Zone extension, Singh, Meg and Rio Blanco Zones
- District Potential: 16 km long trend of mineralization and alteration, bound on the southeast by the rapidly melting Cambria ice-field, and historic producing mines, nine kilometers northwest of Red Mountain. Numerous geologic similarities to prolific KSM/Brucejack/Valley of the Kings trend.
The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the PEA will be realized. Robert McLeod, P.Geo, President and CEO of IDM Mining Ltd. and a Qualified 3 Person as defined by NI 43-101, has reviewed and approved the technical information contained within this release.
QA/QC AND QUALIFIED PERSON
Technical work at Red Mountain including rigorous Quality Control/Quality Assurance programs, are overseen by Rob McLeod, P.Geo, President and CEO of IDM Mining, and a Qualified Person as defined by NI 43-101. Mr. McLeod prepared and approved the technical information contained within this release.
ABOUT IDM MINING LTD.
IDM Mining Ltd. is a mineral exploration company (TSX: IDM) based in Vancouver, BC, Canada. The Company’s current exploration activities are focused on precious metals in British Columbia. 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 For more information, contact: Robert McLeod 604-681-5672 direct 604-617-0616 cell email@example.com
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 proposed exploration and development activities and their timing, resource estimates and potential mineralization, the PEA, including estimates of capital and sustaining costs, anticipated internal rates of return, mine production, estimated recoveries, mine life, estimated payback period and net present values, opportunities to enhance the value of the Red Mountain Project and other plans and objectives of IDM. 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, 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 4 limited to, the assumptions that: required approvals, 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