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IDM Mining (IDM-T) April 4, '16 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.”
Resource Estimate
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
847,200
9.38
34
255,400
920,700
Indicated
794,600
7.29
18
186,100
459,100
Measured + Indicated
1,641,800
8.36
26
441,500
1,379,800
Inferred
548,100
6.10
9
107,500
153,700
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*
Deposit
Class Measured
Tonnage
Au g/t
Ag g/t
Ounces Au
Ounces Ag
MARC
642,800
9.84
38
203,400
784,500
AV
204,500
7.91
21
52,000
136,100
Measured Total
847,200
9.38
34
255,400
920,700
Indicated
MARC
17,100
10.14
25
5,600
13,500
AV
505,000
7.45
21
120,900
333,500
JW
114,100
9.57
13
35,100
48,300
141
158,400
4.82
13
24,500
63,900
Indicated Total
794,600
7.29
18
186,100
459,100
Measured & Indicated Total
1,641,800
8.36
26
441,500
1,379,800
Inferred
MARC
2,600
12.44
28
1,100
2,300
AV
35,100
10.18
19
11,500
21,600
JW
176,100
7.38
10
41,800
59,300
MARC FW
44,200
6.29
6
8,900
8,700
AV Lower
44,900
5.11
6
7,400
9,100
JW Lower
120,600
4.40
4
17,100
14,200
141
55,000
5.12
6
9,100
9,800
132
69,600
4.81
13
10,700
28,600
Inferred Total
548,100
6.10
9
107,500
153,700
*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.
TECHNICAL REPORT
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-V: 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.
“Robert McLeod”
President, CEO and Director
For more information, contact:
Robert McLeod 604-681-5672 direct 604-617-0616 cell rm@idmmining.com
