North of 60 Mining News - The mining newspaper for Alaska and Canada's North

IDM Mining Ltd. Dec. 13 said it has engaged JDS Energy and Mining to lead the engineering and consulting firms completing a feasibility study for the Red Mountain gold-silver project near Stewart, British Columbia.

"We are pleased to work with JDS on the Red Mountain feasibility study," said IDM Mining President and CEO Rob McLeod. "Their recent experience in authoring a number of successful feasibility studies for mines in Canada and internationally, the construction and commissioning of the Silvertip Mine in northwest BC in less than one year and their expertise in cost control and innovative design for mine development in challenging northern environments makes JDS an ideal partner for the Red Mountain project."

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.

The PEA identified a number of potential opportunities to improve the underground project, including: reduction of capital costs through the purchase of used mining and processing equipment; expanding the resource base and the life of the mine; and sharing capital costs, where possible. These opportunities will continue to be explored through the FS phase and appropriate cost savings will be identified, where possible.

"Incorporation of the 2016 drilling results, coupled with potential engineering improvements, may further enhance Red Mountain's robust economics," explained McLeod.

In addition to feasibility study oversight, JDS will handle underground mine design, metallurgy and project economics.

Allnorth Consultants Ltd. has been contracted for site infrastructure planning and design.

Access road design and engineering is being completed by Onsite Engineering Ltd. SRK Consulting is managing hydrology, geochemistry and underground geotechnical work.

Knight Piésold Consulting is leading the design of the tailings management facility and water management systems.

An updated resource estimate will be authored by Gilles Arseneau and Andrew Hamilton.

"This team is working closely with our environmental assessment and permitting team, in transparent and mutually respectful consultation with Nisga'a Nation, to design a project that is both economically attractive and incorporates our commitments to environmental protection and stewardship as well as maximizing the benefits of the Project for local and regional communities," said IDM Mining Executive Chairman Michael McPhie.

Release of the finalized feasibility study is expected by spring.

-SHANE LASLEY