IDM Mining Ltd. (“IDM” or the “Company”) is happy to announce considerable and encouraging developments from the geologic compilation of drill results from the 2017 exploration program conducted at the Red Mountain Gold Project (“Red Mountain” or the “Project”), situated 15 km east of Stewart, British Columbia. The work is presently developing towards an updated resource estimate in spring 2018, which will include the 2017 drilling results, the revised geological model¸ and the historic gold intercepts that were not earlier included in the present resource estimate.
Our new interpretation, which has identified significant near-mine resource potential, represents an important turning point for the Company. The recognition of high-amplitude, post-mineralization repeating folds has opened up multiple areas to resource expansion that were previously thought closed off or having lower exploration potential. Tracing the folded pattern of the brecciated contact zone, which hosts high-grade, bulk mineable gold mineralization has connected most of our reserves along a continuous horizon. We look forward to both underground and surface drilling in 2018 to demonstrate the increased potential at Red Mountain.
Robert McLeod, President and CEO of IDM Mining
The complicated range of robustly altered rocks, such as sediment and volcanic units encroached by numerous co-magmatic pre- and syn-mineralization intrusive phases, has led to many types and degrees of brecciation. Gently plunging, high-amplitude folds (greater than 200 vertical meters) have been detected by streamlining the classification of and by tracing the primary lithologic units on working sets of cross sections and plans. These high-amplitude folds coincide with multiple folds traced by surfacing mapping and are then softly folded by a subsequent deformation event. Recommendations by consulting geologists, including Terence Harbort and Ruben Padilla with Talisker Exploration Services Inc., considerably contributed to the revised interpretive method.
Before the correlation of gold intercepts, structures and host lithologies are correlated manually on multiple scales and working sections and plans. Interpretive work comprises of using historic and current surface and underground geological mapping, geochemistry, core photography, and drill logs. This systematic technique has been important, considering the intricate geologic history of the Red Mountain Deposit.
Reserves within the outcropping, high-grade Marc Zone are always gently folded and related to a sediment intrusive contact. This contact, in turn, is traced via a synform to the 141 Zone, situated 50 meters to the west. Within the 141 Zone, resources were earlier believed to be gently dipping to the west; this latest interpretation indicates that while mineralization dips mainly moderate to steeply to the east, it is folded to the west across a north-plunging antiform hinge. This latest interpretation indicates that mineralization is open for expansion within the breccia zone between the 141 Zone and the Marc Zone, and to the north, west, and south of the 141 Zone.
The Smit Zone, which was traced during the 2017 drilling program, is connected with the east limb of the 141 Zone antiform. Located down-dip of the JW and AV Zones reserves, the Smit Zone is now interpreted to be deformed in a wide synform, folded towards the west of the projected 141 zone antiform. To the west and north of this area, gold mineralization continues to be wide open for expansion and is an important target for 2018
The company’s website contains Accompanying Plan view and Cross Sections.
An additional priority is the expansion potential to the north of the highest and widest grade reserves of the JW Zone; 3.78 meters averaging 59.39 g/t Ag and 38.27 g/t Au (24.83 g/t Au capped), including 28.50 g/t Ag and 1.23 meters averaging 96.30 g/t Au (55.00 g/t Au capped) were intersected by drill hole U17-1324. This intercept is now interpreted to be north of the JW Zone inside the SF Zone block, isolated to the south by a right-lateral fault (Mardy Fault). The intercept and hosts rock orientation also indicates that the zone is subhorizontal, taking place at the crest of the same antiform folding the Marc Zone. This intercept remains wide open for expansion to both the east and north.
The interpretation of broad-spaced holes at the SF and Bray Zone, located north of current resources and reserves is underway; preliminary interpretation also indicates continued high-amplitude, wide-spaced folds, with 2017 and historic high-grade gold intercepts possibly dipping steeply to the east in regions which were earlier interpreted to be dipping to the west.
Owing to close-spaced drill holes, the revised geological interpretation has no impact on the validity and continuity of resources and reserves within the JW, AV and Marc Zones which host most of the gold defined till date at Red Mountain and form the basis of the IDM’s feasibility study.
Updated Resource Estimate
A total of 29,312 meters of core drilling was concluded during 2017. This consists of three geotechnical, eight surface, and 104 underground holes. This drilling, combined with historic gold intercepts which are not included in the present resource estimate, will be considered in a revised resource estimate depending on the updated geological model. It has been estimated that the revised resource estimate will be completed by the spring of 2018.
IDM’s website includes example cross sections and plans of the revised geologic interpretation, including new and previous mineralized zone interpretations.