VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 4, 2016) - IDM Mining Ltd. (TSX VENTURE:IDM) ("IDM" or the "Company") is pleased to announce the results of an updated resource estimate for the Red Mountain Gold Project ("Red Mountain" or the "Project"), located in northwestern British Columbia near the town of Stewart, BC. The updated resource includes the results of additional drilling completed by IDM in 2014 and a revised geologic interpretation which resulted in extensions of multiple previously defined zones as well as the inclusion of mineral resources in two new zones. This estimate has yielded a 16% increase in contained Measured & Indicated ("M&I") gold ounces, and a 31% increase in contained Inferred gold ounces. The resource estimate is authored by Dr. Gilles Arseneau, P.Geo and Andrew Hamilton, P.Geo with input from the IDM technical team.
Rob McLeod, President and CEO, stated "With the release of today's updated resource estimate for the Red Mountain project, another milestone has been reached, and the potential value of the Project continues to improve. The next step is to incorporate this estimate into an updated PEA which we expect to release shortly. These results suggest a meaningful increase in the potential mine life, higher average grades and total ounces potentially recoverable at Red Mountain," said McLeod. "Also, the additional indicated resources from the 141 zone suggest a potential second working area for underground mining."
The updated mineral resources for the Red Mountain Project are reported at a 3.0 g/t Au cut-off effective April 4, 2016.
|Classification||Tonnage||Au (g/t)||Ag (g/t)||Oz Au||Oz Ag|
|Measured + Indicated||1,641,800||8.36||26||441,500||1,379,800|
The 2016 updated resource estimate at a 3.0 g/t Au cut-off represents an increase from the 2014 estimate by 60,600 oz Au and a decrease of 3,100 oz Ag in the M&I categories. Resources in the Inferred category increased by 25,200 oz Au and 17,400 oz Ag.
The resource update incorporates information from five IDM core holes drilled in 2014 as well as information gathered by North American Metal Corp. in 2000 that included a detailed review of all data, the re-logging of all core within a 20 meter envelope of the mineralized material within the Marc, AV and JW zones and all exploration holes for potential inclusion into the resource. An extensive quality control and quality assurance ("QA/QC") review was completed on all exploration work and a comparative analysis was performed on drill hole data, underground bulk sampling and geology.
The current mineral resource estimate, effective date April 4, 2016, was prepared by Dr. Gilles Arseneau, P.Geo, and Andrew Hamilton, P.Geo, using 3D GEMS block modeling software. Resources were estimated from 480 surface and underground drill holes in 4 x 4 x 4 meter blocks by ordinary kriging and anisotropic search ellipsoids designed to fit the geology. Grade estimates were based on capped 1.5 meter composited assay data. Gold values were top cut to 55 g/t and silver was top cut to 220 g/t.
Mineral Resource Statement for the Red Mountain Gold Project at a 3.0 g/t Au Cut-off Grade*
Measured & Indicated Total
*Note: 3.0 g/t Au is used as the cut-off grade for underground long hole stoping. Totals may not add due to rounding.
The updated resource estimate includes a reclassification of resources in the JW zone from inferred to indicated category, based on criteria including drill density as well as continuity of alteration and associated pyrite mineralization. Resources were added for the 141 Zone, a parallel mineralized zone approximately 200 meters southwest of the Marc and AV zones. The 141 zone has similar mineralization and alteration style to the other resource areas, and includes historic holes drilled in 1993 and 1994, as well as three holes completed by IDM in 2014. The 141 zone is wide open for expansion, with a surface and drilled trace extending from surface trenches on the east side which have never been drilled, to outcroppings in the Rio Blanco Valley, over 1,500 meters to the west.
Additionally, resources were added to lower and down dip areas of the Marc, AV and JW zones, as well as the 132 zone, down dip from the larger resource areas.
The Red Mountain Gold Project
The 17,125 hectare Red Mountain Gold Project is located in northwestern BC, 15km northeast of the town of Stewart. Discovered in 1989, the property was explored extensively until 1996 by Lac Minerals Ltd. and Royal Oak Mines Inc., with 466 diamond drill holes and over 2,000 meters of underground development completed, along with extensive engineering and environmental baseline work. Additional studies were completed over the past 12 years by Seabridge Gold Inc., North American Metals Corp. and Banks Island Gold Ltd.
Red Mountain is a porphyry-related hydrothermal gold system, located in the Stikine terrain. Gold mineralization is associated with, and partially hosted within an early to mid-Jurassic multi-phase intrusive complex, with associated volcanic and volcaniclastic rocks and sediments. Many gold mineralized zones occur on the Property, including five mineralized zones with established resource estimates. The five mineralized zones (Marc, AV, JW, 141 and 132) have been folded, and are often separated by dip-slip fault zones. The mineralized zones vary in orientation from shallow to steeply dipping and are generally tabular. The Marc, AV and JW zones vary in widths from one to forty meters, averaging about fifteen meters in thickness. Gold and silver mineralization is associated with stockworks, disseminations and patches of coarse grained pyrite, surrounded by a pyrrhotite/sphalerite halo. Alteration facies includes strong quartz-sericite alteration.
JDS Energy & Mining Inc., a full service, BC-based, engineering, procurement, construction & management firm and principal consultant for Red Mountain, is currently working on an updated Preliminary Economic Assessment (PEA). It is anticipated that the PEA will be completed within the next several weeks. A technical report, which will include this resource estimate as well as the updated PEA, will be posted on the company website at www.IDMmining.com and filed on SEDAR at www.sedar.com within 45 days.
Dr. Gilles Arseneau, P.Geo, a 'Qualified Person' for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian securities administrators ("NI 43-101") has approved the disclosure of, and is the qualified person responsible for, the scientific and technical information in this news release inclusive of the resource estimate information. He has verified the data disclosed.
Rob McLeod, P.Geo, President and CEO of IDM Mining Ltd. and a 'Qualified Person' under NI 43-101 has reviewed and approved the technical content of this release.
ABOUT IDM MINING LTD.
IDM Mining Ltd. is mineral exploration and development company (TSX VENTURE:IDM) based in Vancouver, BC, Canada. The Company's current exploration and development activities are focused on precious metals in British Columbia and the Yukon Territory, with a primary focus on the high grade underground Red Mountain project. Further information can be found on the Company's website at www.IDMmining.com.
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, and the timing to complete an updated PEA. 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.