IDM agrees to assist high-grade gold Clone

IDM Mining Ltd. June 4 said it has signed a letter of intent with Sunvest Minerals to provide technical and geological consultation work, as well as logistical and community guidance for Sunvest's Clone Gold property, which lies about six kilometers (3.7 miles) south of IDM's Red Mountain gold-silver property.

"Our technical understanding of mineralization in this area of the Golden Triangle, particularly with IDM's recent interpretations of post-mineralization folding will contribute to advancing and further exploring the Clone Project," said Robert McLeod, President and CEO of IDM Mining. "I personally worked on the Clone project in 1995 as a geologist for Homestake Mining, in joint venture with Teuton Resources, and am a believer in its exploration potential."

Since its discovery in 1995, nearly C$6 million has been invested into exploring a series of gold occurrences lying along a 2,000-meter-long package of volcanic and sedimentary rocks. This includes drilling from 2006 through 2011 and again in 2016.

Highlights include 7.92 meters of 30.37 grams per metric ton gold (2009); 12.8 meters of 44.75 g/t gold (2009); 2.5 meters of 66.58 g/t gold (2010); and 6.43 meters of 17.83 g/t gold (2016).

In addition to high-grade gold mineralization, significant cobalt has been observed on surface, at a facies transition between hematite and magnetite.

Surface exploration is proposed to start within the next few weeks at Clone and permitting for drilling is currently underway.

Surface exploration and drilling proposed for this year would be staged out of IDM's exploration camp at Red Mountain.

In the meantime, a B.C. environmental assessment and federal environmental impact statement review process for a high-grade underground gold mine at IDM Mining's Red Mountain project is currently underway.

An updated resource estimate for this project is expected in the coming weeks, which will be incorporated into an updated feasibility study in the second half of the year.

"Additional updates to the feasibility study will include an optimized underground mine plan and capital and operating efficiencies identified during the value engineering phase," said McLeod.

The IDM Mining CEO is a longtime resident of Stewart, which is a few miles west of Red Mountain and northwest of Clone, and is working to finalize an agreement with the Nisga'a Nation later this year.

This relationship with the local community and First Nation, coupled with McLeod's geological history at Clone, IDM is expected to be valuable to advancing the earlier staged gold exploration project.

"This is extremely positive for Sunvest Minerals given the IDM team's geological expertise and excellent relationships with the Nisga'a Nation and the Community of Stewart, as they advance the Red Mountain project towards production," said Sunvest Minerals CEO Mike England.

A definitive agreement for IDM to provide Sunvest with geological, technical and other services, including use of its camp at Red Mountain or facilities in Stewart, is underway. This agreement is expected to included provisions for Sunvest to pay IDM a monthly retainer fee and the agreed upon fees in connection with each scope of work and services requested. In addition, Sunvest will grant to IDM certain rights of first refusal.

"We look forward to an active field season to begin shortly, with beneficial contributions and exploration efficiencies through this agreement with IDM," England added.

–SHANE LASLEY