IDM Mining Ltd. is pleased to announce that ongoing rehabilitation of the underground equipment and workings at the Red Mountain gold project and the timely receipt of provincial permits has enabled the commencement of drilling.
This work is another step in the steady advancement of the Red Mountain Project towards a Bankable Feasibility Study (BFS) and ultimate Final Investment Decision (FID) planned for 2017.
"We are fortunate to have access to the Red Mountain deposit with an existing production-sized underground decline, plus a fleet of mining and support equipment," said Rob McLeod, President and CEO of IDM Mining. "The excellent ground conditions have enabled a straightforward dewatering and rehabilitation program to provide access for drilling."
The Phase I drilling program utilizing two underground rigs includes 36 planned core holes for a minimum 5,000 meters targeting gold and silver mineralization in the Marc, AV and JW zones. This drilling will target inferred resources, primarily within the JW zone with the objective of upgrading to measured and indicated categories. Step out holes are also planned along strike and down-dip from the current resource. Additionally, multiple metallurgical holes are planned throughout the mineralizing system for detailed metal recovery, geotechnical and hydrological studies.
"The geologic, engineering and environmental baseline information collected during the 2016 program will be used for IDM's planned feasibility study, to be completed in early 2017," said Michael McPhie, Executive Chairman. "Additionally, our exploration work will further demonstrate the significant upside at Red Mountain."
IDM has also initiated a comprehensive surface program of mapping and sampling, including targeting new areas of the 17,000 hectare property that have recently been exposed by rapid glacial melt. Assays from initial surface work on the Property are currently pending. The objective of this surface exploration work is to identify new drill targets within the widespread alteration and mineralizing system at Red Mountain.
Additionally, the Company is continuing with ongoing surface engineering work and environmental baseline studies in the project study area. This includes detailed surveys for the tailings management facility, mill, and ore stockpile at the proposed Bromley Humps location as well as the access road and proposed power line right-of-way, and planning for surface facilities. Ongoing hydrological and environmental studies are being performed in support of the environmental assessment process currently underway for the project by BC and Canada.