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Stewart leaders support Red Mountain Mine

North of 60 Mining News – October 12, 2018

IDM Mining Ltd. Oct. 8 announced that it has been issued the provincial environmental assessment for its proposed Red Mountain gold-silver mine, a milestone that was heralded by First Nations, municipal and provincial leaders from the area of northwestern British Columbia where the underground mine is to be developed.

"Responsible natural resource development is an important part of our government's plan to develop sustainable economies in rural B.C, with mining a cornerstone industry in the Northwest. We applaud the hard work by IDM and all stakeholders that contributed to this decision to advance the Red Mountain gold project," said Hon. Doug Donaldson, MLA (member of the legislative assembly) for Stikine.

In 2017, IDM submitted the application for an underground gold mine at Red Mountain; mill and tailings site in the adjacent Bitter Creek Valley; water treatment facilities; access road from Highway 37 just north of Stewart, BC; and powerline interconnection from BC Hydro grid. The application review phase included environmental and socioeconomic reviews with dozens of technical working group members and stakeholders, with respectful and thorough consultation with the Nisga'a Nation, the First Nations people of this region of northwestern British Columbia.

This consultation resulted in 38 conditions that are part of the Red Mountain EA certificate and other legally binding design requirements developed following the input from local stakeholders.

"Nisga'a Treaty lands are rich with natural resources. We are confident that this decision and conditions will provide significant opportunities for our citizens, with strong protection of the land, water and wildlife," said Nisga'a Lisims Government President Eva Clayton.

A lifelong resident of Stewart, a mining town about 15 kilometers (nine miles) southwest of Red Mountain, IDM Mining President and CEO Rob McLeod's roots run deep in this region. This connection was obvious in the outpouring of support from leaders that reflected on his father's influence in and around Stewart..

"Over 50 years ago, IDM's President and CEO, Rob McLeod's father and former mayor of Stewart, Ian McLeod, campaigned for Nisga'a politician Frank Calder, helping to elect the first Native to any legislature in Canada. The Nisga'a Nation looks forward to working together with Rob and IDM Mining for the benefit of all northerners," said Nisga'a Lisims Government Chairperson Brian Tait.

The incoming mayor Stewart reflected on Ian and the town's rich mining history.

"I am happy with this decision, which will see significant jobs and business opportunities along with appropriate safeguards to protect and support our community," said Gina McKay, mayor-elect of Stewart. "Stewart is a mining town supported by deep family roots; Rob's dad is looking down on us and smiling, knowing that underground miners and their families will be back in town and going to work every day at Red Mountain."

These workers will be going to 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, according to a feasibility study completed for the project in 2017.

With continued expansion of the gold-silver resource since the completion of the feasibility study, this initial life span is expected to expand with the next reserve calculation.

According to a calculation completed in June, Red Mountain now hosts 2.77 million metric tons of measured and indicated resource averaging 7.91 g/t (704,600 oz) gold and 22.75 g/t (2.77 million oz) silver. This is a 20.7 percent increase in the amount of gold contained in measured and indicated resources.

"We are grateful for our shareholders, particularly those who have supported and invested for several years through difficult markets and have shared our vision of a high-margin gold mine with significant exploration upside. Also, we are grateful for the effort of regulators and stakeholders, particularly the community of Stewart and the Nisga'a Nation that has led to this decision," said Rob McLeod. "Finally, I am grateful for the inspiration of my late father Ian and late uncle Don, two dropouts turned underground miners then eventual elders and leaders in the Golden Triangle and for whom IDM is named."

With the British Columbia environmental assessment in hand, IDM Mining is focused on completion of the requisite operations permitting and final stage of Canadian Environmental Assessment process, which will give the company the federal go-ahead to develop an underground gold-silver mine at Red Mountain.

IDM anticipates receiving federal approval in late 2018 or early 2019.



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