The 17,125 hectare Red Mountain Gold Project is located within northwestern British Columbia’s prolific ‘Golden Triangle’, 15 km northeast of the town of Stewart and within Nisa’a Nation traditional territory. A previous Feasibility Study announced by IDM in June 2017 confirmed the positive economics for a near-term, high-grade, bulk mineable underground gold operation at Red Mountain.
The Red Mountain Underground Gold Project is currently in the Application Review period under the BC Environmental Assessment Act. The EA review and subsequent Minister’s approvals are expected in Q3 2018 and will be a major milestone in the development of Red Mountain. Construction could potentially start on the Project within one year.
BC’s ‘Golden Triangle’ hosts multiple large and high-grade past-producing mines and deposits, several of which are approaching potential development. High-grade past-producing gold-silver mines include the Premier, Eskay Creek and Snip operations. Seabridge’s KSM Project and Pretivm’s currently producing Brucejack Mine host extensive metal deposits in the same belt of rocks as Red Mountain.
On June 19, 2018, IDM announced the results of an updated mineral resource estimate which incorporated information from previous drilling, plus results from 29,312 meters of drilling completed during 2017.
2018 Mineral Resource Update Highlights:
- 39.2% increase in measured gold ounces or 147,600 oz Au and measured tonnes increased by 581,900 or 46.7%, maintaining a high-grade of 8.92 g/t Au and 28.30 g/t Ag;
- 20.7% increase in measured and indicated (“M&I”) gold ounces or 120,900 oz Au to 704,600 ounces of gold plus 2,026,800 ounces of silver at an average grade of 7.91 g/t Au and 22.75 g/t Ag;
- Measured and indicated tonnes increased by 33.6% or 696,600 tonnes to 2,771,300 tonnes;
- Inferred Resources of 61,400 ounces of gold averaging 6.04 g/t Au, a slight decrease in ounces of 5.2% primarily due to strong resource conversion;
- Vast majority of inferred resources in the Marc, AV and JW converted to M&I;
- Initial resources reported for Smit, SF, Bray, Chicka and Cambria Zones; and,
- The updated mineral resource estimate, along with improved geological interpretation and engineering optimization work will support an updated feasibility study expected to be completed in the autumn of 2018.
*The 2018 resource highlights are as compared to the January 23, 2017 resource estimate on the Red Mountain Gold Project.
Summary of Estimated Resources as of June 15, 2018, reported at 3.0 g/t Au cut-off
|Classification||Tonnes||Au (g/t)||Ag (g/t)||Oz Au||Oz Ag|
|Measured + Indicated||2,771,300||7.91||22.75||704,600||2,026,800|
Updated Feasibility Study
IDM intends to update the 2017 Feasibility Study incorporating the updated M&I resources into the mine plan, as well as the multiple potential operating and capital efficiencies that were identified during the Value Engineering phase (see IDM News Releases November 30, 2017 and March 20, 2018).
History and Acquisition by IDM
Red Mountain was discovered in 1989 and explored extensively until 1996 by Lac Minerals Ltd. and Royal Oak Mines Ltd., with 466 diamond drill holes and over 2,000 meters of underground development completed, along with extensive engineering and environmental baseline work. Additional studies were completed over the past 12 years by Seabridge Gold, North American Metals Corp. and Banks Island Gold Ltd.
In April 2014, the Company entered into an Option Agreement to acquire the Red Mountain Project from Seabridge. The acquisition of the Red Mountain Project was completed in May 2017 and is owned 100%, subject to certain underlying agreements and royalties by IDM Mining.
- Issuance of 4,955,000 shares to Seabridge - completed
- $2 million cash payments in first 2 years - completed
- $7.5 million in property expenditures - completed
- Upon commencement of commercial production:
- $1.5 million cash payment to Seabridge on commencement of commercial production
Seabridge will have the right to acquire 10% of the annual production from Red Mountain at a cost of US$1,000/oz for up to a maximum of 50,000 ounces. They can elect to receive a one-time cash payment of $4 million at commencement of production in exchange for the buy-back of the gold metal stream interest.