VANCOUVER, May 14, 2018 /CNW/ - IDM Mining Ltd.
(TSX.V:IDM) (OTCQB:IDMMF) ("IDM" or the "Company") is pleased to
provide a status update for the Red Mountain Underground Gold
Project ("Red Mountain" or the "Project") located 15 km east of
Stewart, B.C., which is within the
B.C. Provincial Environmental Assessment ("EA") and Federal
Environmental Impact Statement ("EIS") Review Process.
Over the past several months, the Company has continued to
advance the Red Mountain Project as one of the few high-grade,
underground gold development projects located in a politically
stable, and pro-mining jurisdiction. Anticipated near-term
milestones include:
- 2018 Resource Estimate to be released by mid-June
- Updated Feasibility Study to be completed in H2 2018,
incorporating the updated resource estimate and an optimized mine
plan, as well as capital and operating efficiencies
- EA and EIS review ongoing; provincial ministerial decision
expected in Q3 2018
- Benefits Agreement with Nisga'a Nation is expected to be
finalized in Q3 2018
- Crews are currently opening Red Mountain underground workings
to commence exploration work
"We are pleased that the 2018 resource estimate is nearing
completion and to be included in an update to the 2017 Feasibility
Study. Additional updates to the feasibility study will
include an optimized underground mine plan and capital and
operating efficiencies identified during the value engineering
phase. We also look forward to finalizing the EA and
EIS review process and the Benefits Agreement with the Nisga'a
Nation," said Robert McLeod,
President and CEO of IDM. "These are all key milestones in
de-risking the Red Mountain Project."
Resource Estimate Update
Geologic and Resource modelling which includes drilling from the
2017 program is nearing completion. Initial resource estimates
are expected for multiple newly identified and interpreted zones,
including: Smit, SF, Bray, Chicka
and Cambria Zones. Additionally, successful infill drilling
that targeted the conversion of inferred resources to measured and
indicated category, primarily within the JW and AV zones, will be
included. Finally, the updated estimate will include
2017 step-out holes that were completed on minimum 25-meter centers
that targeted up and down-dip extensions to current reserves and
resources hosted in the Marc, AV, JW and NK zones.
The Company's revised geologic interpretation for Red Mountain
(See IDM News Release February 13,
2018), which suggests high-amplitude, repeating folds that
have deformed the favourable gold mineralization horizon, has
guided the updated resource modelling. Revised interpretations
of dip and dip direction, primarily in the 141 and NK zones has
improved continuity of the gold mineralization that is usually
hosted within brecciated sediment-intrusive contacts.
A plan view describing the location of the mineralized zones at
Red Mountain, as well as the geological interpretation are
available at www.idmmining.com.
Feasibility Study Update
It is expected that the updated resource estimate will trigger a
revised NI 43-101 Technical Report for the Red Mountain
deposit. To incorporate the updated resource estimate, the
Company expects to commence work on an updated Feasibility Study
during the summer of 2018.
Multiple potential operating and capital efficiencies that were
identified during the Value Engineering phase will be
incorporated. (See IDM News Releases November 20, 2017 and March 20, 2018). The Company will announce
further details on the proposed updated Feasibility Study during
the next few months.
Benefits Agreement Progress with Nisga'a Nation
During 2018, IDM has had ongoing and respectful discussions with
the Executive Officers of Nisga'a Lisims Government ("NLG") on
behalf of Nisga'a Nation. The Company's objective is to finalize a
mutually beneficial, definitive agreement with NLG during Q3 of
2018.
The Nisga'a Final Agreement was the first modern Treaty in
British Columbia; Red Mountain is
within the Nass Wildlife Area, as defined in the Nisga'a Final
Agreement. During 2017, IDM and its contractors are proud to
have provided over 1,600 person-days of employment and on-the-job
training to Nisga'a citizens, including mechanics, miners,
drillers, administrative and support service providers.
Provincial Environmental Assessment Certificate
The Project commenced the 180-day legislated application review
period under the British Columbia
Environmental Assessment Act on November 1, 2017. Currently, IDM has
received and responded to review comments from the technical
working group co-led by the BC Environmental Assessment Agency
("EAO") and the Canadian Environmental Assessment Agency ("CEAA"),
which includes the participation of Nisga'a Nation (as represented
by Nisga'a Lisims Government) and regulatory agencies. IDM has
also responded to feedback from community members and stakeholders
during the public consultation period (Nov
14 to Dec 14, 2017).
On March 12, 2018, IDM requested a
temporary suspension of the application review period from EAO to
allow for final resolution of outstanding technical comments and
information requests.
On March 13, 2018, EAO granted the
temporary suspension, effective on day 134 of the 180-day
application review period. Over the past several weeks the Company,
agencies and reviewers have worked diligently to resolve all
outstanding issues, and it is expected that the temporary
suspension will be lifted soon.
Following the recommencement of the application review period,
EAO will finalize their assessment report and submit
recommendations to the Minister of Environment & Climate Change
Strategy and the Minister of Energy, Mines & Petroleum
Resources. IDM anticipates receiving the Environmental Assessment
Certificate ("EAC") in Q3 2018.
Federal Environmental Impact Statement
The Project is also subject to a coordinated review by the CEAA
under the Canadian Environmental Assessment Act, 2012 (CEAA
2012). On December 22, 2018, IDM
received supplementary information requests on the EIS, pausing the
federal timeline on day 122 of the federal legislated timeline. IDM
is working with CEAA to finalize remaining information requests and
align on responses in advance of recommencing the federal review
timeline. IDM anticipates receiving federal approval in Q4
2018.
The EA and EIS review includes respectful, thorough and ongoing
consultation with the Nisga'a Nation, as well as over 50 group
members.
Information pertaining to the Environmental Assessment for the
Red Mountain Underground Project can viewed on the BC Environmental
Assessment Office website at
https://projects.eao.gov.bc.ca/p/red-mountain-underground-gold/detail
Spring 2018 Exploration Plans
With a late spring and higher than average snow packs, initial
work at Red Mountain will include field work in the Lost Valley
area, located at lower elevations approximately four kilometers to
the south of the Marc Zone Portal. The objective of this
program is to identify new targets, expand known zones and refine
surface drilling targets. This will include trenching to better
expose and sample multiple high-grade, gold-silver bearing
structures.
Previous exploration by IDM at Lost Valley identified numerous
veins and structures hosting high-grade gold and silver,
overprinting a molybdenite-rich porphyry. Widespread,
high-grade gold mineralization has been identified from surface
sampling in 2016 and previous years. Of 589 samples collected
at Lost Valley (including: grab, channel and subcrop samples), 96
samples returned over 5.0 g/t Au. These 96 samples range from
5.18 to 165 g/t Au, averaging 31.8 g/t Au and 139.9 g/t
Ag. These samples were collected over an approximate 1,200 by
1,500-meter area. (See IDM News Release November 17, 2016).
Mining crews based in Stewart
have commenced opening the underground workings at Red Mountain, to
allow for ongoing dewatering and for drilling potentially later in
the 2018 season.
About IDM and Red Mountain
IDM Mining Ltd. is an exploration and development company based
in Vancouver, BC, Canada focused on advancing the Red Mountain
Gold Project towards production. The 17,125 hectare Red
Mountain Gold Project is located in northwestern BC, 15 km
northeast of the mining town of Stewart. In 2017, IDM
announced the results of a Feasibility Study for a high-grade,
underground gold mine, which includes primarily bulk underground
mining methods and the production of gold doré on site. The
Project is advancing through the provincial and federal
environmental assessment processes, with comprehensive, thorough,
and ongoing consultation with Nisga'a Nation. The Project is
currently in the formal review phase of the BC Environmental
Assessment Office and the Canadian Environmental Assessment
Agency.
Additional information, including the Company's NI 43-101
Technical Reports for the Red Mountain gold project, is available
at www.idmmining.com and at www.sedar.com.
QA/QC AND QUALIFIED PERSONS
Rob McLeod, P. Geo, President and
CEO of IDM Mining Ltd. and Ryan
Weymark, P.Eng., Vice-President of Project Development have
reviewed and approved the technical content of this release.
Both are 'Qualified Persons' under NI 43-101.
ON BEHALF OF THE BOARD
of IDM Mining Ltd.
"Robert McLeod"
President, CEO and Director
"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.
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.
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SOURCE IDM Mining Ltd.