IDM Mining Provides Corporate Update
May 22, 2015, Vancouver, BC – IDM Mining Ltd. (TSX:IDM) (“IDM” or the “Company”) is pleased to provide an update on the design, development, permitting and further exploration at the Red Mountain underground gold project, located 15 km east of Stewart in northwestern BC.
Since the agreement to acquire the Red Mountain Property was announced in May 2014, the Company has completed a number of key activities that have advanced the project towards development as a high-value underground gold mine and addressed several key corporate related issues. A summary of these include:
- In July 2014, the Company announced positive results from a NI 43-101 compliant Preliminary Economic Assessment (PEA) and revised Resource Estimate completed by JDS Energy & Mining Ltd. (see IDM news release dated July 23, 2014). The study demonstrates potential robust economics for a high-grade underground mine, with low capital ($76 million) and operating costs ($456 US dollars/ounce net of silver byproduct) and a post-tax payback period of 1.5 years. The recent decline in the Canadian dollar would potentially result in even better economics, with the PEA base-case foreign exchange at $0.95 CAD:USD.
- Completed a successful property-wide surface exploration and drilling program, discovering new gold mineralization at the 141 Zone, Marc Zone extension and Cambria Zone, all located outside the resource area.
- Completed sampling of historic drill core at the 141 Zone; combined with 2014 drilling, suggests an extensive, high-grade gold system running parallel to the resource area and wide open for expansion.
- In the fall of 2014, the Company submitted a Project Description (the “Project Description”) report to the British Columbia Environment Assessment Office (“BC EAO”) for the Red Mountain Underground Gold Project (the “Project”), located 15 kilometers northeast of Stewart, British Columbia. Comments have been received on the report from BC EAO, other provincial and federal agencies and First Nations. The Company intends to submit a final Project Description by July 2015 and this will formally initiate the environmental assessment review of the Project.
- Initiated discussions with the Nisga’a Nation in regards to the Red Mountain project and have actively engaged with their leadership with a view to building a long term, positive relationship between the Company, our employees and the Nisga’a community.
- Made first of two $1 million pre-development option payments to Seabridge Gold and have exceeded first year spending commitments towards securing ownership of the Red Mountain asset
- In regards to IDM corporately, management and the Board of Directors have been engaged in a prudent and strategic process to significantly lower overhead costs, sell or release properties that are not core to the company’s future (primarily properties located in Mexico) and tightly manage project budgets in order to position the company for long term success.
PLANS FOR 2015 FIELD SEASON AND BEYOND
The focus of the Company is to secure project financing with proceeds to advance the permitting and engineering of the Red Mountain Project, to support a potential positive investment decision; the Company aims to potentially proceed to development in early 2016. On May 19th, 2015, the Company announced a non-brokered private placement offering to raise gross proceeds of up to $2 million, with use of proceeds intended to continue this process.
In regards to permitting, pursuant to section 10 of the BC Environmental Assessment Act, the BC EAO reviewed the Project Description and concluded that the Project requires an Environmental Assessment. Commencing in the spring of 2014, IDM commenced environmental baseline sampling and hydrological studies, additional project engineering, as well as First Nation and stakeholder engagement. This work is being done in preparation for the filing of a Project Application report in late 2015. The filing of the report will initiate the 180-day legislated maximum time limit for review. The Company notes that Seabridge Gold (KSM Project), Pretvium Resources (Brucejack), and Alloycorp (Kitsault Moly) have all received Provincial permits and signed impact-benefit Agreements with the Nisga’a First Nation since 2014.
In support of the application and in preparation for potential feasibility assessment of project engineering, key areas of the project development plan will be assessed through the summer and fall of 2015. This will specifically include: access road engineering, project metallurgy, tailings disposal and design and water management design.
Finally, management continues to advance discussions with a number of respected banking and mining finance firms in preparation for securing the debt and equity capital required to potentially build Red Mountain in 2016.
ANNUAL GENERAL MEETING
The Company announces that it will be holding an Annual General Meeting (“Meeting”) on Tuesday, the 30th day of June, 2015 at 10:00am (Vancouver time). The Meeting will be held on the 10th Floor at 595 Howe Street in Vancouver, British Columbia.
The Information Circular (to be mailed on or about June 3, 2015) will provide additional information relating to the matters to be dealt with at the Meeting. Only holders of common shares of record at the close of business on May 29, 2015 will be entitled to receive notice of and to vote at the Meeting.
ABOUT RED MOUNTAIN
IDM Mining is currently earning an option to acquire a 100% interest in the 17,125 hectare Red Mountain property, located 15 kilometers northeast of Stewart, BC. Numerous precious and base metal targets have been identified by IDM and previous operators over a 15 km by 4 km trend of strong alteration and mineralized prospects. Since discovery in 1989, in excess of $40 million has been spent on the Project including a production sized underground ramp.
Technical work at Red Mountain including rigorous Quality Control/Quality Assurance programs, are overseen by Rob McLeod, P.Geo, President and CEO of IDM Mining, and a Qualified Person as defined by NI 43-101. Mr. McLeod prepared and approved the technical information contained within this release.
ABOUT IDM MINING LTD.
IDM Mining Ltd. is a mineral exploration company (TSX: IDM) based in Vancouver, BC, Canada. The Company’s current exploration activities are focused on precious metals in British Columbia. 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
For more information, contact:
Robert McLeod 604-681-5672 direct 604-617-0616 cell [email protected]