Mining Explorers 2016: IDM Mining Ltd.
Last updated 2/3/2018 at 8:27pm
With the goal of finalizing a feasibility study for its Red Mountain project in northwestern British Columbia by early 2017, IDM Mining Ltd. completed roughly 5,300 meters of underground during an initial phase of 2016 drilling during aimed at upgrading and expanding the gold-silver deposit identified there.
In April, the company published an updated resource for the project located 15 kilometers (nine miles) northeast of Stewart that includes 1.64 million metric tons of measured and indicated resource averaging 8.36 grams-per-metric-ton (441,500 ounces) gold and 26 g/t (1.38 million oz.) silver.
An updated preliminary economic assessment published in July outlines plans for a 1,000 metric-tons-per-day mill producing 70,000 oz. of gold and 194,000 oz. of silver annually over an initial five-year mine-life. The study anticipates roughly US$89 million in initial capital costs, and direct mining costs of about US$418/oz. gold, after credits for silver recovered.
2016 drilling included infill and step-out drilling in four zones that encompass the Red Mountain resource – Marc, JW, AV and 141.
One hole, U16-1182, cut 6.3 meters averaging 9.91 g/t gold and 53.52 g/t silver to the south of Marc, an area previously thought to be closed to expansion.
In addition to drilling, IDM completed mapping and sampling across its 17,000-hectare (42,000 acres) property that included the investigation of areas of newly exposed mineralization due to rapidly melting glaciers. This surface work turned up a zone of high-grade gold-silver-molybdenum mineralization at Lost Valley, a prospect located about 4,000 meters southwest of the underground resource at Red Mountain.
Highlights from 66 rock samples collected at Lost Valley include: 38 g/t gold and 1,048 g/t silver; 49 g/t gold and 280 g/t silver; and 165 g/t gold and 371 g/t silver. The average grade of the 66 samples was 10.5 g/t gold, 81 g/t silver and 0.17 percent molybdenum.
Follow-up work at Lost Valley discovered a high-grade gold-silver zone called Anda‘adala’a Lo’op, or “money rock” in the language of the Nisga First Nation. As of late August, the Anda‘adala’a Lo’op structure has been traced for 78 meters on surface.
Seven lines of channel samples were cut across vein along 33 meters of the vein. These samples averaged 18.7 g/t gold and 61.4 g/t silver over an average width of 0.84 meters, with individual assays of up to 34.6 g/t gold and 183 g/t silver.
“This discovery, which appears to be part of a stacked set is an obvious new drill target at Red Mountain,” said IDM President and CEO Rob McLeod. “Recently exposed from the rapidly melting Cambria icefield, it emphasizes the stellar exploration potential at Red Mountain.”
Beyond its work at Red Mountain, IDM has been busy analyzing data on some 308,000 hectares (761,000 acres) of Yukon Territory mining claims that it acquired from Oban Mining Corp. late in 2015. This extensive portfolio consists of 51 properties previously held by Ryan Gold Corp. An estimated C$25 million of exploration has been carried out on these properties.
Upon an initial review of the data, IDM prioritized three properties for follow-up: Pluto, a large gold property in southwestern Yukon; Mahtin, a property with intrusive-related gold that lies 50 kilometers (30 miles) north of Mayo; and Golden-Oly, a property in eastern Yukon with the markers of an intrusive-related or sediment hosted gold system.
The company says the holding costs for the Yukon properties are low so it could leave them on care and maintenance, while it continues to work toward developing Red Mountain. Other options being considered include joint ventures; spin-outs into a Yukon-focused exploration company or selling the properties.