BRITISH COLUMBIA – Vancouver-based IDM Mining has closed a $10.85 million private placement with proceeds earmarked for the Red Mountain gold project 15 km east of Stewart. IDM issued 75.0 million common units at a price of $0.09 per unit and 37.3 million flow-through common units at a price of $0.11 per unit.
IDM will use the proceeds from the private placement to execute a 5,000-metre drill program to expand and upgrade the resources. Permitting, field studies and environmental assessment of the project will be advanced in the hope of securing project approval in 2017. Engineering, field studies and a feasibility study will also be completed.
In 2014 a preliminary economic assessment was completed for an underground mine using bulk longhole mining methods at a rate of 1,000 t/d. The mine would have a life of five years with average annual production of 55,500 oz of gold and 171,000 oz of silver based on measured and indicated resources of 1.64 million tonnes grading 8.36 g/t Au and 26.0 g/t Ag. There is also an inferred resource of 548,100 tonnes at 6.1 g/t Au and 9.0 g/t Ag. The initial capital cost is estimated to be US$76 million.
The Red Mountain property belongs to Seabridge Gold and was optioned to IDM in April 2014. Please visit www.IDMmining.com.