IDM Mining Announces Resource Update at the Red Mountain Gold Project and Reports Significant Increase in Measured and Indicated Resources

By Pia Rivera

IDM Mining Ltd. (TSXV: IDM) (OTCQB: IDMMF)(“IDM” or the “Company”) is pleased to announce the results of an updated mineral resource estimate for its 100%-owned Red Mountain Gold Project (“Red Mountain” or the “Project”), located in the Golden Triangle of northwestern British Columbia, near the town of Stewart, BC. The updated mineral resource estimate includes the results from additional drilling completed by IDM during 2017, primarily from the underground workings and incorporates a more robust geological model. The resource estimate is authored by Dr. Gilles Arseneau, P.Geo and Andrew Hamilton, P.Geo with input from IDM’s technical team.

Highlights at a 3.0 g/t Au cut-off are as follows, with changes relative to the 2017 mineral resource estimate:

• 39.2% increase in measured gold ounces or 147,600 oz Au and measured tonnes increased by 581,900 or 46.7%, maintaining a high-grade of 8.92 g/t Au and 28.30 g/t Ag;
• 20.7% increase in measured and indicated (“M&I”) gold ounces or 120,900 oz Au to 704,600 ounces of gold plus 2,026,800 ounces of silver at an average grade of 7.91 g/t Au and 22.75 g/t Ag;
• Measured and indicated tonnes increased by 33.6% or 696,600 tonnes to 2,771,300 tonnes;
• Inferred Resources of 61,400 ounces of gold averaging 6.04 g/t Au, a slight decrease in ounces of 5.2% primarily due to strong resource conversion;
• Vast majority of inferred resources in the Marc, AV and JW converted to M&I;
• Initial resources reported for Smit, SF, Bray, Chicka and Cambria Zones;
• This updated mineral resource estimate, along with improved geological interpretation and engineering optimization work will support an updated feasibility study expected to be completed in the autumn of 2018.

“Our 2017 underground drilling program successfully increased and upgraded high-grade, bulk-mineable resources at Red Mountain and demonstrated significant expansion potential with the addition of several new zones,” said Robert McLeod, President and CEO of IDM Mining. “Coupled with the advanced stage of the EA and EIS review, along with the ongoing and thorough consultations with the Nisga’a Lisims Government, we believe that Red Mountain will be the next underground gold mine in BC.”

“The increase in tonnage and contained metal in the measured and indicated categories is a material addition to the deposit,” said Ryan Weymark, VP Project Development. “These additional resources will be included within an update to the 2017 Feasibility Study, which will also incorporate an optimized underground mine plan incorporating opportunities identified through the Value Engineering phase.”

Mineral Resource Estimate

The updated mineral resources for the Red Mountain Project are reported at a 3.0 g/t Au cut-off with an effective date of June 15, 2018.

The resource update incorporates information from previous drilling, plus results from 29,312 meters of drilling completed during 2017 (104 additional underground, eight surface and three geotechnical core holes), and local trenching/channel sampling. Mineralization was primarily modelled at approximately 2.5 g/t gold grade based on the underground, bulk-mineable nature of the orebody, primarily amendable to long hole stoping for main mineralized areas including: Marc, AV, JW and peripheral zones, with consideration for sulphide mineralization (primarily pyrite, with local pyrrhotite and sphalerite) and alteration zonation (primarily sericite and silica). Mineralized zones generally follow brecciated contacts between host intrusive (Hillside porphyry) with sediments and volcanic rocks. The mineralized horizon folded by large amplitude (>150 meter) folds and separated into different blocks and zones by post-mineralization faults.

The current mineral resource estimate, effective date June 15^th 2018, was prepared by Dr. Gilles Arseneau, P.Geo, and Andrew Hamilton, P.Geo, using 3D GEMS block modeling software. Resources were estimated from 415 surface and underground core holes with 622 intercepts within 20 different solids into 4 x 4 x 4 meter blocks. Interpolation was by ordinary kriging, or inverse-distance squared methods on smaller or dispersed data sets, with anisotropic search ellipsoids designed to fit the strike and dips of the zones. An extensive quality control and quality assurance (“QA/QC”) review was completed on all 2017 and previous exploration work and a comparative analysis was performed on drill hole data, underground bulk sampling and geology. Bulk density was interpolated using inverse-distance squared method where there was sufficient data populations. For zones with sparse data, average values from the data available for a given zone were applied. Comprehensive metallurgical studies have indicated gold recoveries for the main resource zones (Marc, AV, JW, 141) range from 88.1% to 92.8% and average 90.9% (tonnage weighted).

Mineral Resource Statement by zone for the Red Mountain Project at a 3.0 g/t Au cut-off Grade*

*Note: …read more

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