BRITISH COLUMBIA – IDM Mining of Vancouver has released a preliminary economic assessment of its Red Mountain gold project that outlines both low capital and low operating costs. The project is located near Stewart.
The PEA outlines a 1,000-t/d bulk underground operation with direct operating costs of US$516/oz of gold over its five-year life, and that number drops to US$455/oz of gold net of a silver by-product. Initial capital costs are estimated at US$76 million, including a 15% contingency. The mine would close for three months during the winter due to high anticipated snow fall. Annual production would be 55,000 oz of gold and 171,000 oz of silver. The report assumes a gold price of US$1,250 and a silver prices of US$20 per ounce.
IDM expects the pre-tax base case net present value will be $90 million at a 5% discount rate with an Internal rate of return of 43.3% and a 1.3 year payback period. The after-tax base NPV will be $58 million at a 5% discount rate with an IRR of 32.8% and a 1.5 year payback period.
The Red Mountain deposit contains 1.45 million measured and indicated tonnes grading 8.15 g/t Au and 29.57 g/t Ag plus 332,900 inferred tonnes at 7.69 g/t Au and 12.72 g/t Ag.
Additional information is available at IDMMining.com.
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