IDM explores Red Mountain's Lost Valley

IDM Mining Ltd. July 24 reported high-grade gold and silver results from trenching at the Money Rock zone at the Lost Valley target, which is about 4,000 meters south of the resource at the company's Red Mountain gold project near Stewart in British Columbia's Golden Triangle.

IDM first sampled the Money Rock prospect area in 2016.

"This discovery, which appears to be part of a stacked set is an obvious new drill target at Red Mountain," IDM President and CEO Rob McLeod said at the time. "Recently exposed from the rapidly melting Cambria icefield, it emphasizes the stellar exploration potential at Red Mountain."

The 2016 discovery work sampled Money Rock along about 78 meters of strike. This year, the company has extended that coverage to more than 100 meters.

The most recent results are from 51 panel samples collected on one-meter intervals from the Money Rock structure at Lost Valley. These samples average 9.81 grams per metric ton gold and 101.4 g/t silver over 51 meters of strike, including 2 meters averaging 13.41 g/t Au and 1,531 g/t Ag. The highest grade one-meter samples returned 49.43 g/t gold and 2,617 g/t silver.

During 2016, three drill holes from a single drill pad were completed at the Money Rock zone.

Hole LV16-01 cut one meter 3 g/t gold and 23.8 g/t silver and LV16-02 intersected 1.2 meters averaging 4.63 g/t gold and 90.90 g/t silver. All three holes intersected a post-mineralization dyke where the zone was projected to occur from surface.

IDM said future drilling will target areas to the west and east of this dyke.

IDM Mining said the Money Rock structure potentially connects with the Randell Vein, about 35 meters to the south. A series of continuous samples collected over 9.25 meters of a 2016 hand trench at Randell Vein averaged 22.4 g/t gold and 81.7 g/t silver. The company drilled two vertical holes at Randall Vein that year, but the lack of any faulting or veining suggests that the target structure was not drilled with correct orientation.

The Randell vein is currently being explored, with assays pending.

Surface exploration work is ongoing at Red Mountain, including targets at Lost Valley.

"Mapping, trenching and sampling is increasing our understanding of the mineralized structures at Lost Valley," said McLeod.

In the meantime, federal and provincial agencies are in the final stages of permitting IDM Mining's Red Mountain mine project.

A feasibility study completed in 2017 outlines plans for a 1,000-metric-ton-per-day operation that is expected to average roughly 78,000 ounces of gold per year over an initial six-year mine-life.

The study identified a number of areas to enhance the proposed Red Mountain Mine.

Optimization studies since the completion of the feasibility study have focused on metallurgy and processing, road design, geohazards, and powerline interconnection with BC Hydro.

Results from the optimization work, along with an updated mineral resource estimate completed earlier this year, will inform an updated feasibility study expected to be completed in the autumn of 2018.

IDM anticipates the BC Environmental Assessment Act and Canadian Environmental Assessment Act review periods should be complete before the end of the year.

–SHANE LASLEY