Mining News: Northern Neighbors: More gold, greater potential for Red Mountain project

IDM Mining Ltd. April 4 provided an updated resource estimate for its Red Mountain gold project located in northwestern British Columbia about 15 kilometers (nine miles) northeast of Stewart. Red Mountain now hosts 1.64 million metric tons of measured and indicated resource averaging 8.36 grams per metric ton (441,500 ounces) gold and 26 g/t (1.38 million oz.) silver. “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,” said IDM President and CEO Rob McLeod. “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.” Discovered in 1989, Red Mountain 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. A 2014 preliminary economic assessment authored by JDS Energy and Mining Ltd. outlines plans for a 1,000-metric-ton-per-day mill producing 55,000 ounces of gold and 171,000 oz. of silver per year over a five-year mine life. The measured and indicated gold ounces have increased by 16 percent compared to the estimate used for the PEA. A two-year environmental baseline program in support of the environmental assessment process is expected to be completed in early summer, and the data will be incorporated into the provincial and federal environmental assessment applications. Engineering studies, including tailings and water management design, are progressing in conjunction with the EA process, with an aim to publish a feasibility study by the end of 2016.

- Shane Lasley