BRITISH COLUMBIA – IDM Mining of Vancouver continues to rehabilitate the underground equipment and workings at the Red Mountain gold-silver project that it has optioned from Seabridge Gold. The property, 15 km east of Stewart, will be the site of infill drilling to upgrade and expand the resources.
The first phase includes two underground drills for a minimum 5,000 meters targeting gold and silver mineralization in the Marc, AV and JW zones. Step out holes are also planned along strike and down dip from the current inferred JW resource. Additionally, multiple metallurgical holes are planned throughout the mineralizing system for detailed metal recovery, geotechnical and hydrological studies.
IDM has also initiated a comprehensive surface program of mapping and sampling, including new areas of the property recently exposed by rapid glacial melt.
A preliminary economic assessment was prepared for the Red Mountain project in 2014 that said most of the mineralization is can be mined using bulk longhole methods. With a US$1,250/oz gold and US$20/oz silver price, the base case gave the project a pre-tax net present value of $90 million (5% discount) and an internal rate of return of 43.3% with a 1.3-year payback.
IDM puts the measured and indicated resources at 1.64 million tonnes grading 8.36 g/t Au and 26 g/t Ag, containing 441,500 oz of gold and 1.38 million oz of silver. In the inferred category there are 548,100 tonnes grading 6.1 g/t Au (107,500 oz) and 9 g/t Ag (153,700 oz).
IDM has posted maps, photos and technical reports at www.IDMmining.com.