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 Click Here
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.
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.
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.