The province of B.C. announced today it has initiated an environmental assessment of IDM Mining’s Red Mountain underground gold project near Stewart in northwestern B.C.
IDM submitted the project description to provincial and federal goverment agencies in the summer, following two years of environmental baseline studies covering areas including surface and groundwater quality, hydrology, archeological assessments, and fish and wildlife. The submission was reviewed in advance by First Nations.
“Our vision for a proposed high-grade underground gold mine with potential low operating and capital costs, within a daily commute of my hometown of Stewart, would have a significant, positive impact on northwestern British Columbia,” said IDM president and CEO Rob McLeod. “Advancing the permitting process puts us closer to realizing that opportunity.”
Rob is well-known to CEO Chat regulars who have come to appreciate his insights into geology and junior mining plays, particularly in the Golden Triangle where Red Mountain is located. The project carries special significance to the exploration geologist – it’s where he began his career. Rob’s father Ian was a longtime mayor of Stewart, and the “IDM” stands for his dad and uncle, Don McLeod, both of them well-known mining pioneers.
When I interviewed Rob for the Vancouver Sun, he talked about how cool it would be to open a mine that would provide jobs for people in his hometown.
IDM is concurrently advancing engineering studies and plans to release a prefeasibility study by the middle of 2016, after updating the existing NI 43-101 resource estimate. Red Mountain has an existing measured and indicated resource of 380,900 oz at average grades of 8.15 g/t, as well as inferred resources of 82,300 oz at grades of 7.69 g/t.
The company is working to secure funds to make a near-term option payment and pay for feasibility/permitting ahead of a potential construction decision in late 2016. As part of its agreement with Seabridge Gold to option the Red Mountain project, IDM must pay a second $1 million cash payment to Seabridge by December 15, 2015. A further $1.5 million payment to Seabridge will be due upon commencement of commercial production.
More than $40 million has been spent on the project since its discovery in 1989, including construction of a production-sized underground ramp. Based on a 9 cent share price, the company’s market cap is approximately $6.628 million.
Here is a link to the news release: Province of B.C. Initiates Environmental Assessment of IDM Mining’s Red Mountain Underground Gold Project
Follow Rob McLeod on Twitter here.
IDM Mining is a highly speculative security that is not suitable for most investors. Read the company’s profile on www.sedar.com for a full description of the business and its key risks. This is not intended to be investment advice of any kind. Always do your own due diligence and consult a licensed investment advisor prior to making any investment decisions. You are responsible for your own trades.
Cautionary Note Regarding the PEA: The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Furthermore, there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Readers are encouraged to read the technical report filed on www.sedar.com.
Forward-Looking Statements: Some statements in this article contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to proposed exploration and development activities and their timing, resource estimates and potential mineralization, the PEA, including estimates of capital and sustaining costs, anticipated internal rates of return, mine production, estimated recoveries, mine life, estimated payback period and net present values, opportunities to enhance the value of the Red Mountain Project and other plans and objectives of IDM. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others and in addition to those described elsewhere in this release, delays in obtaining or inability to obtain required government or other regulatory approvals, permits or financing, the risk of unexpected variations in mineral resources, grade or recovery rates, of failure of plant, equipment or processes to operate as anticipated, of accidents, labor disputes, and unanticipated delays in completing other development activities, the risk that estimated costs will be higher than anticipated and the risk that the proposed mine plan and recoveries will not be achieved, equipment breakdowns and bad weather, the timing and success of future exploration and development activities, exploration and development risks, mineral resources are not as estimated, title matters, third party consents, operating hazards, metal prices, political and economic factors, competitive factors and general economic conditions. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: required approvals, permits and financing will be obtained; the proposed exploration and development will proceed as planned; with respect to mineral resource estimates, the key assumptions and parameters on which such estimates are based; that the proposed mine plan and recoveries will be achieved, that capital costs and sustaining costs will be as estimated, and that no unforeseen accident, fire, ground instability, flooding, labor disruption, equipment failure, metallurgical, environmental or other events that could delay or increase the cost of development will occur, and market fundamentals will result in sustained metals and minerals prices. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.