IDM Mining Announces Resource Update at Red Mountain and Reports Significant Increase in Measured and Indicated Resources and Boosts Gold Grade
January 23rd, 2016, Vancouver, BC – IDM Mining Ltd. (TSX-V:IDM) (“IDM” or the “Company”) is pleased to announce the results of an updated resource estimate for the Red Mountain Gold Project (“Red Mountain” or the “Project”), located in northwestern British Columbia near the town of Stewart, BC. The updated resource includes the results from additional drilling completed by IDM during 2016 which expanded mineralization along strike to the north, south, and down-dip, as well as additionally upgrading previous inferred resources. This estimate has yielded a 32% increase in contained Measured & Indicated (“M&I”) gold ounces, and an increase in average grade from 8.36 g/t to 8.75 g/t Au. The resource estimate is authored by Dr. Gilles Arseneau, P.Geo and Andrew Hamilton, P.Geo with input from IDM’s technical team.
The 2017 updated resource estimate at a 3.0 g/t Au cut-off represents an increase from the 2016 estimate by 142,200 oz Au and 275,900 oz Ag in the M&I categories. Resources in the Inferred category decreased by 42,700 oz Au and 48,200 oz Ag.
Rob McLeod, President and CEO, stated “Our 2016 drilling program was successful in expanding mineralization in all of the major mineralized zones, as well as demonstrating excellent continuity of wide zones of high-grade gold mineralization. Future underground drilling from the production-sized decline will continue to step-out in all directions, including targeting the northern extension of the mineralized trend, which can be traced a further 800 meters to the north of the current resources.”
“This updated resource model will now be handed over to our Feasibility Study team to be incorporated into a revised and expanded mine design,” said Michael McPhie, Executive Chairman of IDM Mining. “What is important to recognize about this revised and expanded resource update is it was made possible through a modest resource expansion drilling program during 2016.”
The updated mineral resources for the Red Mountain Project are reported at a 3.0 g/t Au cut-off effective January 23, 2017.
|Classification||Tonnage||Au (g/t)||Ag (g/t)||Oz Au||Oz Ag|
|Measured + Indicated||2,074,700||8.75||25||583,700||1,655,700|
The resource update incorporates information from previous drilling, as well as infill and step-out holes completed during 2016. Mineralization was primarily modelled using an approximate minimum 2.5 g/t gold grade, with consideration for sulphide type and abundance. An extensive quality control and quality assurance (“QA/QC”) review was completed on all 2016 and previous exploration work and a comparative analysis was performed on drill hole data, underground bulk sampling and geology.
The current mineral resource estimate, effective date January 23, 2017, was prepared by Dr. Gilles Arseneau, P.Geo, and Andrew Hamilton, P.Geo, using 3D GEMS block modeling software. Resources were estimated from 538 surface and underground drill holes in 4 x 4 x 4 meter blocks by ordinary kriging and anisotropic search ellipsoids designed to fit the geology. Grade estimates were based on capped 1.5 meter composited assay data. Gold values were top cut to 55 g/t and silver was top cut to 220 g/t.
Mineral Resource Statement for the Red Mountain Gold Project at a 3.0 g/t Au Cut-off Grade*
|Zone||Class||Tonnage||Au||Ag||Ounces Au||Ounces Ag|
|M & I Total||2,074,700||8.75||24.82||583,700||1,655,700|
*Note: 3.0 g/t Au is used as the cut-off grade for underground long hole stoping. Totals may not add due to rounding.
During 2016, underground drilling was completed on all major zones to gather metallurgical, geotechnical and hydrological data for inclusion within IDM’s ongoing feasibility study, as well as targeting areas of inferred or indicated resource classification with the objective of upgrading class. Additionally, step-out holes at 25 meter spacing, the minimum criteria for indicated resource classification were completed at all major zones. This was successful in expanding the known resources.
The Red Mountain Gold Project
The 17,125 hectare Red Mountain Gold Project is located in northwestern BC, 15km northeast of the town of Stewart. Discovered in 1989, the property was explored extensively until 1996 by Lac Minerals Ltd. and Royal Oak Mines Inc., 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 Inc., North American Metals Corp. and Banks Island Gold Ltd.
Red Mountain is a porphyry-related hydrothermal gold system, located in the Stikine terrain. Gold mineralization is associated with, and partially hosted within an early to mid-Jurassic multi-phase intrusive complex, with associated volcanic and volcaniclastic rocks and sediments. Many gold mineralized zones occur on the Property, including five mineralized zones with established resource estimates. The mineralized zones have been folded, and are often separated by dip-slip fault zones. They vary in orientation from shallow to steeply dipping and are generally tabular. The Marc, AV and JW zones vary in widths from one to forty meters, averaging about sixteen meters in thickness. Gold and silver mineralization is associated with stockworks, disseminations and patches of coarse grained pyrite, surrounded by a pyrrhotite/sphalerite halo. Alteration facies includes strong quartz-sericite alteration.
Dr. Gilles Arseneau, P.Geo, a 'Qualified Person' for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian securities administrators ("NI 43-101") has approved the disclosure of, and is the qualified person responsible for, the scientific and technical information in this news release inclusive of the resource estimate information. He has verified the data disclosed.
Rob McLeod, P.Geo, President and CEO of IDM Mining Ltd. and a ‘Qualified Person’ under NI 43-101 has reviewed and approved the technical content of this release.
About IDM Mining Ltd.
IDM Mining Ltd. is mineral exploration and development company (TSX-V: IDM) based in Vancouver, BC, Canada. The Company's current exploration and development activities are focused on precious metals in British Columbia, with a primary focus on the high grade underground Red Mountain project. Further information can be found on the Company’s website at www.IDMmining.com.
ON BEHALF OF THE BOARD
of IDM Mining Ltd.
President, CEO and Director
For more information, contact:
Shobana Thaya Alex Horsley
416-807-1009 604 618-3058
“Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”
Forward-Looking Statements: Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to the proposed exploration and development activities and their timing, resource estimates and potential mineralization, the Company’s plan to complete a feasibility study, These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others and in addition to those described elsewhere in this release, timing and success of future exploration and development activities, exploration and development risks, delays in obtaining or inability to obtain required government or other regulatory approvals, permits or financing, the risk of unexpected variations in mineral resources, grade or recovery rates, of failure of plant, equipment or processes to operate as anticipated, of accidents, labor disputes, and unanticipated delays in completing other development activities, the risk that estimated costs will be higher than anticipated and the risk that the proposed mine plan and recoveries will not be achieved, equipment breakdowns and bad weather, the timing and success of future exploration and development activities, exploration and development risks, mineral resources are not as estimated, title matters, third party consents, operating hazards, metal prices, political and economic factors, competitive factors and general economic conditions. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: required regulatory approval, permits and financing will be obtained; the proposed exploration and development will proceed as planned; with respect to mineral resource estimates, the key assumptions and parameters on which such estimates are based; that the proposed mine plan and recoveries will be achieved, that capital costs and sustaining costs will be as estimated, and that no unforeseen accident, fire, ground instability, flooding, labor disruption, equipment failure, metallurgical, environmental or other events that could delay or increase the cost of development will occur, and market fundamentals will result in sustained metals and minerals prices. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.