IDM Mining Trenches Average 7.2 g/t Au and 56.6 g/t Ag at Randell Vein, Red Mountain Project
VANCOUVER, Feb. 6, 2019 /CNW/ - IDM Mining Ltd. (TSX-V:IDM) (OTCQB: IDMMF)("IDM" or the "Company") is pleased to announce that final assays have been received from 2018 trenching of the Randell Vein area located in the Lost Valley area, four kilometers south of the Red Mountain Resource area. Additionally, surface sampling assays from the Meg, Cambria and Dave's Trench areas on the Red Mountain Property, located in the Golden Triangle of northwest BC, 15 kilometers northeast of the mining town of Stewart, BC.
Money Rock/Randell Structure, Lost Valley
Located in an area of recent glacial retreat, trenching during 2018 exposed a high-grade structure at Lost Valley and traced over 300 meters of strike through systematic panel sampling, channel sampling and trenching. The final round of sampling includes 1.0 to 1.5-meter-long panel samples from multiple trenches in a 9.0 by 7.3 meter area. 21 samples were collected averaging 7.17 g/t Au and 56.64 g/t Ag. Good continuity was exhibited in adjacent samples, with assays ranging from 1.65 to 15.38 g/t Au and 8.69 to 203 g/t Ag. Sample material is primarily quartz/pyrite colluvium, overlain by granite-dominated talus suggesting that the mineralization is deteriorating in place by weathering and glacial unloading. The shallow-dipping Money Rock zone hosts banded quartz with strong sulphide mineralization, primarily coarse pyrite, with accessory molybdenite, chalcopyrite, sphalerite and bismuthinite. The structure ranges from 0.5 to over 9.0 meters in thickness, where exposed. High-grade silver samples in local panels within the Money Rock structure (previously reported) include: 2,617, 2,059 and 846 g/t Ag.
The Lost Valley area has received extensive prospecting and sampling by IDM. Since 2014, 713 samples have been collected, including panel, channel, grab and float samples. The average of all samples is 6.05 g/t Au and 38. 67 g/t Ag, with samples ranging from trace to 165 g/t Au and trace to 2059 g/t Ag. A total of 237 samples assayed over 1.0 g/t Au, 117 over 5.0 g/t Au and 44 over 30 g/t Au.
Trenching completed during 2018 connected the high-grade Money Rock and Randell Zones which originally were interpreted to be separate structures since discovery in 2016. Gold mineralization at Lost Valley occurs within broad stockworks of gold-silver-molybdenum mineralization within an early-Tertiary granite, similar to the late-Cretaceous age Tintina Gold belt intrusive-related deposits located within Alaska and Yukon, such as Fort Knox and Eagle Gold (Dublin Gulch). The high-grade gold-silver vein-hosted mineralization that was the focus of the 2018 trenching program is similar in structure and geochemistry to the Pogo Deposit, an underground gold mine in Alaska.
The Money Rock structure occurs at the base of a cliff, which can be traced for at least another 250 meters to the west; the Randell structure can be traced for another 75 meters to the east through intermittent sampling, along the base of a separate cliff face.
During 2016, three drill holes from a single drill pad were completed at the Money Rock zone, where across strike channel sampling averaged 18.7 g/t Au and 61.4 g/t Ag over 0.84 meters along a 33-meters of strike. These samples locally overlap the 2018 sampling. Drill hole LV16-01 intersected 1.0 meters of 3.0 g/t Au and 23.80 g/t Ag, and LV16-02 intersected 1.2 meters averaging 4.63 g/t Au and 90.90 g/t Ag. All three holes intersected a post-mineralization dyke where the zone was projected to occur from surface trenching (see IDM NR November 17, 2016). Future drilling will target areas to the west and east of this dyke.
Meg, Dave's Trench & Cambria Zone
1,200 meters southwest of the Marc Zone Resource, the Meg Zone returned 5.67 g/t Au and 12.64 g/t Ag in a 0.50 meter channel, 3.88 g/t Au and 56.75 g/t Ag in a 1.0 by 1.0 meter panel and 4.09 g/t Au and 140 g/t Ag in a grab sample, within an area of strong sulphide mineralization and alteration. This area has not been drill tested.
Over the past two years, a large new area of prospective rocks was exposed by the rapidly melting Cambria icefield and measures approximately 1,000 by 500 meters. Located immediately northeast of the Marc Zone and north of the initial resource at the Cambria Zone, gold mineralization has been discovered through reconnaissance mapping and sampling. Assays have been received for 54 samples to-date, averaging 1.44 g/t Au for all samples, including grab, panel and channel sampling. Mineralization is associated with pyrite mineralization, similar to the Red Mountain resources; individual assays range from trace to 18.74 g/t Au and 193 g/t Ag. The Company is encouraged by the prospectivity of this new area of new exposure at Red Mountain.
Exposed within the access road from the Red Mountain camp to the underground portal, strong pyrite/magnetite mineralization, with intense propylitic altered Goldslide intrusive, was trenched during 2018. Results from this area included 14 channel and grab samples averaging 0.17% Cu and 0.02% Mo, with individual samples ranging up to 0.55% Cu and 0.15% Mo, along with anomalous gold and silver. Jurassic gold deposits in the Golden Triangle are commonly associated with copper and molybdenum systems.
QA/QC and Qualified Person
Samples from the 2018 program were collected by experienced geologists and technicians, placed in sealed bags and shipped to MS Analytical Labs in Terrace, BC for sample preparation, with pulps subsequently shipped to Langley, BC for gold and multi-element ICP analysis. A Quality Control/Quality Assurance program including the insertion of Standards and Blanks was implemented. The 2018 Exploration Program was performed under the supervision of Andrew Hamilton, P.Geo, Senior Geologist for IDM Mining Ltd. and Robert McLeod, P.Geo, President and CEO of IDM Mining Ltd; both are 'Qualified Persons' under NI 43-101. Mr. McLeod has reviewed and approved the technical content of this release.
Bridge Loan with Ascot Resources
The Company also announces that it closed the previously announced $3.35 million secured convertible bridge loan (the "Loan') from Ascot Resources Ltd ("Ascot") and has drawn down the full amount.
The Loan has an interest rate of CDOR plus 9% per annum and is convertible into IDM common shares at C$0.0857 per share. If the definitive arrangement agreement between IDM and Ascot is terminated, the Loan will become payable within 30 days or six months of termination, depending on the circumstances. If Ascot converts the Loan into IDM common shares it will not vote its IDM common shares at the IDM shareholder meeting to approve the transaction.
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.
Recently, IDM and Ascot Resources entered into a definitive arrangement agreement whereby Ascot will acquire all outstanding common shares of IDM. This transaction would result in the consolidation of Ascot's Premier Gold project and IDM's Red Mountain project to create the leading high-grade gold development and exploration company in BC's Golden Triangle. For more information on the transaction, please view IDM's press release dated January 7, 2019.
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. There can be no assurance that the Company will complete the proposed transaction with Ascot Resources Ltd. on the proposed terms or at all.