IDM Mining president and CEO Robert McLeod stands outside the Red Mountain workshop. Photo by Matthew Keevil.
IDM Mining Ltd. is pleased to announce the results of a Feasibility Study for the Red Mountain Gold Project, located in northwestern British Columbia near the town of Stewart, BC. The 2017 FS, confirms the positive economics for a near term, high-grade, bulk mineable underground gold operation at Red Mountain.
“This study demonstrates a high-margin, low-capex underground gold mine with a short development timeline, producing over 90,000 ounces of gold per year over the first two years of operation, with a life of mine average annual production of 78,000 ounces,” said Robert McLeod, President and CEO of IDM Mining. “With these positive results now in place, our highest priority is the ongoing exploration and resource expansion drilling adjacent to current reserves, with the objective of extending the potential mine life for Red Mountain. These zones remain open for expansion both along strike and down-dip. Importantly, this Project would be a tremendous economic benefit to my hometown of Stewart BC, and to the citizens of the Nisga’a Nation.”
“With the feasibility work now complete, IDM will be filing its Project Application Report for the Project imminently with BC and Canadian regulatory agencies,” said Michael McPhie, Executive Chairman of IDM Mining. “The Project enjoys significant support locally and regionally and our goal remains to have approvals in place for a shovel-ready project by mid 2018. We believe that Red Mountain is one of the few development-stage precious metal projects in Canada that could see near term commercial operations.”
At a gold price of US$1,250/oz and an exchange rate of C$1.00 to US$0.76, the Project base case estimate generates a pre-tax net present value at a 5% discount rate of C$155 million and an internal rate of return of 40%. The proposed mine will operate year-round over an initial period of approximately six years. The first two years of gold production averages 91,000 ounces per year, with life of mine average annual gold production of 78,000 ounces. Initial capital expenditure to fund construction and commissioning is estimated at C$135.7 million, with a life-of-mine cost of C$202.4 million (including an average of 10 percent contingency and C$8.6 million in closure costs). The average operating cost is estimated to be C$140.02 per tonne processed.
All the highlights of the study can be found at www.IDMmining.com.