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Mining Explorers 2017: IDM Mining Ltd.

 

Last updated 1/24/2018 at 12:03pm

IDM Mining Ltd.

Underground drilling at IDM Mining's Red Mountain gold-silver project near Stewart, B. C.

With the completion of a feasibility study that demonstrates the viability of developing a high-grade underground gold mine at Red Mountain, IDM Mining Ltd. is focusing its exploration on expanding the reserves at this project near Stewart, British Columbia.

The 2017 feasibility study outlines plans for a 1,000-metric-ton-per-day operation that is expected to average roughly 78,000 ounces of gold per year over an initial six-year mine-life.

Life-of-project direct cash cost is estimated at US$492/oz per ounce of gold recovered; when you include the silver that also will be recovered.

At a gold price of US$1,250/oz, Red Mountain is calculated to generate a post-tax net present value (5 percent discount) of C$104 million; an internal rate of return of 32 percent; and is expected to pay back the estimated C$135.7 of initial capital to develop the mine in 1.9 years.

This operation is based on 1.95 million metric tons of reserves, averaging 7.53 grams per metric ton (473,000 oz) gold and 21.86 g/t (1.37 million oz) silver.

The study identified a number of areas to enhance the proposed Red Mountain Mine, including resource expansion.

In late summer, IDM Mining completed a C$6 million financing, money the company is applying to an expanded drill program that is slated to include at least 23,000 meters of drilling in 2017.

"The primary objective of our expanded drilling program is to add additional years to the potential mine life by targeting near-mine mineralization from underground, as well as diamond drilling from surface, primarily testing the surface exposure of the 141 Zone," said IDM Mining President and CEO Rob McLeod.

Highlighted intercepts from drilling through September include: 4.88 meters of 149.2 g/t gold and 59.88 g/t silver; 6.89 meters of 26.62 g/t gold and 88.19 g/t silver; 6.23 meters of 12.95 g/t gold and 48.33 g/t silver; 25 meters of 6.15 g/t gold and 37.69 g/t silver; 97 meters of 1.24 g/t gold; and 14 meters of 10.65 g/t gold and 17.37 g/t silver.

-SHANE LASLEY

 

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