Advancing towards Production in BC’s Golden Triangle
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IDM Mining (TSXV:IDM, OTCQB:IDMMF) is a Canadian advanced exploration and development company based in Vancouver, British Columbia. Their 17,125-hectare Red Mountain Gold Project is located 15 kilometers east of the mining town of Stewart, British Columbia, within the Nisga’a Nation’s treaty territory. The project also falls within British Columbia’s prolific Golden Triangle, an area that has faced a recent resurgence in exploration due to significant new discoveries, new mines, increased infrastructure and receding glaciers revealing new mineral occurrences. Since 2015, two projects within the Golden Triangle have gone into commercial production, Imperial Metals’ Red Chris copper/gold mine and Pretivm’s Brucejack high-grade gold mine. IDM Mining is set to become one of the Golden Triangle’s next high-grade, low-cost gold producer.
In 2014, IDM acquired the Red Mountain project from Seabridge Gold (TSX:SEA). Since then, the Company has been conducting extensive exploration work on the property. The project hosts a 2018 NI 43-101 measured and indicated resource of 704,600 ounces of gold averaging 7.91 g/t gold and 2,026,800 ounces of silver averaging 22.75 g/t silver. This is complemented by an inferred resource of 61,400 ounces of gold averaging 6.04 g/t gold and 77,200 ounces of silver averaging 7.60 g/t silver.
In 2017, IDM released a feasibility study for the Red Mountain project which confirmed the positive economics for a near-term, low Capex, high-grade, bulk mineable underground gold operation. IDM intends to update the 2017 feasibility study incorporating the 2018 updated resource estimate into the mine plan, as well as the engineering optimization work expected to completed in the autumn of 2018. The project is currently in the 180-day review period of the BC Environmental Assessment Act and Federal Environmental Impact Statement. IDM expects a decision on its Environmental Certificate in Q3 2018, which will be a significant milestone for the Company.
Working within the Nisga’a Nation, IDM has been closely engaging with their government with the objective of a definitive Benefits Agreement. Since 2017, the Company and its contractors have provided over 1,600 person days and on-the-job training for Nisga’a citizens. They are being trained in all areas of mining—both in the field, including: miners, drillers and diesel mechanics, and in the Company’s head office in Vancouver.
IDM’s management team has experience in discovery, exploration, development, operations and M&A. McLeod, for instance, is a third-generation miner who grew up in Stewart and worked on Red Mountain when he first started his career. Management team members Michael McPhie, Susan Neale and Ryan Weymark collectively bring a vast amount of experience in permit applications, small and large-scale project development and a commitment to ensuring that the project is successful. The Red Mountain mine manager, Dave Green, is also a provincially respected and experienced development miner, and he contributes to the project’s success by running an efficient and effective operation.
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- Flagship Red Mountain Gold Project located in British Columbia’s Golden Triangle.
- High-grade, low-cost project with potential for additional deposits to be discovered due to receding glaciers.
- Expected start of production in 2021.
- Measured and indicated resource estimate of 704,600 ounces of gold averaging 7.91g/t gold and 2.0 million ounces of silver averaging 22.75 g/t silver; inferred resource of 61,400 ounces of gold averaging 6.04 g/t gold and 61,400 ounces of silver averaging 7.60 g/t silver.
- Excellent relations with and support from the Nisga’a Nation.
- Experienced management team with members who have worked or lived in the area for years.
Red Mountain Gold Project
In 2014, IDM signed an LOI with Seabridge Gold to acquire a 100% interest in the high-grade Red Mountain Gold Project. It is located approximately 15 kilometers east of the town of Stewart, British Columbia and is within the Nisga’a traditional territory. The project comprises a total of 17,125 hectares and is situated in British Columbia’s Golden Triangle.
The deposits at Red Mountain sit in Triassic and Jurassic age sedimentary and volcanic units. There are two porphyries on the property that can be differentiated by mineralogy, texture and geochemistry, which show the fractionation and depletion of a shared magmatic source over time.
Between 1989 and 1996, Lac Minerals Ltd. and Royal Oak Mines Ltd. explored the Red Mountain property extensively. There were 466 drill holes completed and over 2,000 meters of underground development completed. There has also been extensive environmental and engineering baseline work completed during this time. An additional 12 years of studies have been completed by Seabridge Gold, North American Metals Corp. and Banks Island Gold Ltd.
Before IDM acquired the property, there had been no significant exploration work conducted since 1996. Since acquiring the property IDM has conducted a number of exploration and drilling activities that have uncovered multiple mineralization zones including the AV, JW, Marc and JW/SF zones.
In 2017, IDM continued its drilling activities, with the goal of increasing the property’s resources and the conversion of inferred resources to measured and indicated. 2017 drilling highlights included:
- 7 meters of 14.62 g/t gold and 79.26 g/t silver and 25 meters of 13.67 g/t gold and 30.91 g/t silver at the AV zone;
- 8.6 meters of 12.33 g/t gold and 70.90 g/t silver at the JW zone;
- 4.88 meters of 149.24 g/t gold and 59.88 g/t silver and 26.61 g/t gold and 88.19 g/t silver at the Marc zone; and,
- 3.78 meters of 38.27 g/t gold and 59.39 g/t silver at the JW/SF zone.
Some 2016 drilling highlights include:
- 15.54 meters of 25.50 g/t gold and 50.92 g/t silver and 35.60 meters of 8.43 g/t gold and 35.60 meters of 8.43 g/t gold and 12.82 g/t silver at the AV Zone;
- 15.00 meters of 19.39 g/t gold and 48.14 g/t silver and 10.43 meters of 21.53 g/t gold and 12.27 g/t silver at the Marc Zone; and,
- 19.80 meters of 8.46 g/t gold and 25.53 g/t silver at the JW Zone.
The Company recently had a significant breakthrough in the geological interpretation of Red Mountain, which will help guide future exploration and was incorporated into the 2018 resource estimate.
2018 fieldwork, including mapping and trenching, has commenced within the Lost Valley area of Red Mountain, located 4km to the south of the resource area. This program is designed to identify new targets, expand upon known zones and refine surface drilling targets.
Rapidly melting glaciers have revealed new discoveries and prospective geology on the property. Red Mountain and Lost Valley are part of a 16km long trend of prospective geology, including historic mines that have never been explored by IDM. The Company plans ongoing regional exploration, in parallel to advancing the project towards production by 2021.
Exploration at Lost Valley
Lost Valley was discovered in 2016 when the Cambria icefield had receded enough to reveal the underlying bedrock. Multiple phases of quartz veining have been identified, containing coarse-grained pyrite, which is commonly found with molybdenite, chalcopyrite and sphalerite mineralization.
Results from 2016 assay up to 165 g/t gold and 1,048 g/t silver. Multiple generations of vein sets occur, with earlier stockworks up to wide shear zones and individual veins.
“Melting alpine glaciers have revealed significant new discoveries in the Golden Triangle area of British Columbia during recent years, including Pretium’s Valley of the Kings gold-silver deposit and Seabridge’s Mitchell gold-molybdenum deposit,” said McLeod. “The new, high-grade gold, silver and molybdenum-bearing structures found over an extensive area at Red Mountain suggest that the Lost Valley area could be the latest discovery in this prolific region of the province. This area was under a glacier when I worked on the Property as a junior geologist in the 1990’s and is now emerging as an exciting new zone of potential significance.”
Resource Estimate and Reserve
On June 19, 2018 IDM published an updated resource estimate. The property hosts a measured and indicated resource of 2.7 million tonnes containing 704,600 ounces at 7.91 g/t gold and 2,026,800 ounces at 22.75 g/t silver. This is supported by an inferred resource of 316,000 tonnes containing 61,400 ounces at 6.04 g/t gold and 77,200 ounces of 7.60 g/t silver. Resources are reported at a 3.0 g/t Au cut-off grade.
In 2017, IDM released a feasibility study for the Red Mountain project which confirmed the positive economics for a near-term, low Capex, high-grade, bulk mineable underground gold operation.
IDM intends to update its 2017 feasibility study by the end of 2018, incorporating the 2018 resource update estimate into the mine plan as well as theongoing value engineering studies that outlined several opportunities to reduce costs and improve the value of the project.
- Reducing the long-hole and cut-and-fill transition, reducing the percentage of higher-cost cut-and-fill mining;
- Investigating the Holloway method as an alternative to cut-and-fill to further reduce operating and sustaining capital costs;
- Optimizing the infrastructure design and layout to reduce quantities of earthworks, concrete, steel, electrical and piping;
- Optimizing the crushing and grinding circuits to maximize the use of high-efficiency mills; and
- Increasing throughput from 1,000 tpd to increase annual gold production above 100,000 oz annually.
IDM is currently working towards getting their Environmental Assessment Certificate (EAC) and Environmental Impact Survey (EIS) for Red Mountain approved by both provincial and federal governments by the end of 2018. The Company believes that these permits will be approved as the expected environmental impact for the underground operation will be relatively low. This information is based on extensive environmental baseline studies that have been completed over the past 20 years.
Currently, IDM is working on scoping the Mines Act (MA) and Environmental Management Act (EMA) permits, which will be submitted after receipt of the EAC and EIS. The Company is expecting to receive the MA and EMA permits in 2020, authorizing construction of the mine which is expected to be operational by the end of 2021.
IDM will also continue its exploration efforts focused on expanding the project’s resources.
Robert McLeod — President & CEO
Robert McLeod is a professional geoscientist and is President and CEO of IDM Mining Ltd. as well as a Director of the Company. He is a third-generation miner, born and raised in Stewart B.C., near the Company’s flagship Red Mountain Project. Previously, he was founder and VP Exploration of Underworld Resources. Kinross Gold Corporation acquired Underworld for $140M after an initial resource estimate of over 1.4 million ounces gold at the White gold Deposit in the Yukon. He is a highly technical, creative and innovative exploration geologist. He was also VP Exploration and CEO of Full Metal Minerals Ltd., an Alaska-focused exploration company with numerous discoveries to his credit.
He has over twenty-three years’ experience in mining and mineral exploration, working for a variety of major and junior mining companies. McLeod’s exploration strategy is a multi-tiered approach, including: conceptual geologic ideas with prospecting, early-stage project advancement focusing on discovery, and advancing mid-stage projects towards feasibility. As an exploration geologist and project manager at Miramar’s Hope Bay project, McLeod was part of the team that discovered the Naartok deposit, as well as expanding and delineating the Boston and Doris deposits. He was previously Vice-President of Exploration for Atna Resources and is currently an independent director of Gold Standard Ventures.
McLeod is a graduate of Geology from the University of British Columbia and has a M.Sc. in Mineral Exploration from Queens University. He is an active volunteer in the mining industry, as an executive director of AME-BC, and as a director of the Britannia Mine Museum.
Susan Neale — CFO
Susan Neale is a chartered accountant and has over 25 years experience of financial management experience in the mining industry working for exploration and development companies and producers. Ms. Neale has held management roles for TSX, TSX Venture and AIM listed companies over her career which began with Viceroy Resource Corporation and was part of the team that transitioned it to a publicly traded mortgage investment corporation. She previously worked with the Lundin Group of Companies and served as CFO for Lucara Diamond Corp. During her career Ms. Neale has gathered experience working on gold, silver, diamond and iodine projects in North and South America, Africa and Australia.
Ryan Weymark — VP Project Development
Ryan Weymark, P. Eng. is VP Project Development of IDM Mining’s Red Mountain Project. Weymark has experience working on projects as a consultant, contractor and owners representative at various stages, from pre-feasibility through to completion. Prior to joining IDM Mining, Weymark was Project Manager with Ledcor Contractors Ltd. in the Heavy Civil and Mining Division. Prior to Ledcor, he worked for Teck Resources Ltd. in various project and operational roles, including Mine Construction Project Manager for the Line Creek Phase II Expansion Project and Project Engineer for the Quintette Coal Operations Project.
Prior to Teck, Weymark worked for SNC-Lavalin Inc. in the Mining & Metallurgy Division on various feasibility and pre-feasibility studies. Weymark holds a B.A.Sc from the University of British Columbia in Mining and Mineral Processing and is a registered Professional Engineer with the Association of Professional Engineers and Geoscientists of British Columbia.
Dave Green – Mine Manager
Mr. Green is considered one of the top development and production miners in northwestern Canada. Based in Stewart B.C., he has several decades of underground experience throughout the north and around the world, primarily for Procon Mining for 26 years. Recent experience includes: several years at Pretium’s nearby Brucejack Project, located northwest of Red Mountain as well as 10 years with the Northair Group of Companies. His reputation for an emphasis on Safety and Productivity has enabled him to attract a top-tier team of miners and support crews working under his leadership.
Michael McPhie — Chairman
In a career spanning more than 20 years, Michael McPhie has worked as a founder, director and executive leading the financing, permitting and development of resource projects on four continents. He is a specialist in regulatory, permitting, and governance issues in the mining sector globally. In addition to serving as Chairman of IDM Mining Ltd., McPhie is the Founder and CEO of Falkirk Resource Consultants Ltd. and Managing Director of JDS Gold Ltd.
Prior to this, he was President and CEO of Curis Resources Ltd., a publicly traded copper mining company headquartered in Vancouver that was taken over in 2014. McPhie also served as a Director and Executive Vice President of Exeter Resource Corporation, CEO of the Mining Association of British Columbia and a Policy Director with Canada’s Department of Natural Resources. He is a Director of Independence Gold, recent past Chair of the Board of the Association for Mineral Exploration BC (AMEBC) and the British Columbia Institute of Technology (BCIT).
McPhie earned a Bachelor of Science degree from Simon Fraser University, a Masters of Science degree from Royal Roads University and is a registered Qualified Environmental Professional (QEP). He is a strong advocate for responsible development, sustainability and good practice in business globally.
Andree St – Germain — Director
Andree St-Germain is the Chief Financial Officer of Integra Resources Corp. (CSE:ITR). She is an experienced mining finance executive with an extensive background in banking, mining finance and financial management. She began her career in investment banking for Dundee Capital Markets Inc. As an investment banker, St-Germain worked exclusively with mining companies on M&A advisory and financing.
In 2013, she joined Golden Queen Mining Co. Ltd. (TSX:GQM) as CFO. During her tenure at Golden Queen, she played an instrumental role in securing project finance and overseeing Golden Queen as it transitioned from development and construction to commercial production. She joined Integra Gold (TSX-V:ICG) as CFO in early 2017 and helped oversee the sale to Eldorado Gold Corporation in July 2017 for $590 million. St-Germain is a director of Barkerville Gold Mines Ltd. (TSX-V:BGM).
She holds a Master of Business Administration (Honours) degree from the York University Schulich School of Business.
David Parker — Director
David Parker recently joined the Norman B. Keevil Institute of Mining Engineering at the University of British Columbia Faculty of Applied Science on a two year secondment as an Adjunct Professor and Executive in Residence. In addition to teaching in the graduate program, Parker is developing new programs and initiatives related to governance of the extractives sector, integrated resource management and sustainable livelihoods. He is also working closely with academia, the mining industry, civil society, and government to establish the recently announced Canadian International Institute of Extractive Industries and Development.
Parker was previously Vice President Sustainability at Teck Resources Limited and is currently on secondment. Over the 22 years that he has been with Teck, Parker has led and collaborated in several initiatives to advance Teck’s approach to sustainability and has been particularly focused on creating mutually respectful and collaborative relationships with First Nations people in Canada. He has conceived and implemented a number of visionary initiatives, such as the Sullivan Round Table, a conference co-chaired by Teck, the City of Kimberley and the World Bank to examine best practices in mine closure. Parker was the inspiration for the Zinc Saves Kids program with UNICEF, which is active in saving children’s lives in Nepal, Peru and India. He also developed Teck’s role in the Vancouver 2010 Olympic Winter Games and chaired the Olympic Sponsor’s Sustainability Initiative.
Parker has chaired the Mining Association of British Columbia and the International Council on Mining and Metals Social and Economic Development Task Force. He currently serves as a director on the boards of UNICEF Canada, the Mining Association of British Columbia, and Science World. His education includes a Bachelor of Business Administration degree from Acadia University, a Bachelor of Law degree from Dalhousie University and a Masters of Law degree from the University of British Columbia where he has served as an adjunct professor in environmental law.
Andrew Farncomb — Lead Director
Mr. Farncomb graduated from the Queen’s University School of Business with a Bachelor of Commerce (Honours) degree. He is a founding partner of Cairn Merchant Partners LP, an independent merchant bank offering a full range of advisory services to public and private companies.
Farncomb has extensive experience advising public and private companies on mergers, acquisitions and financing transactions, in the natural resources, consumer products, industrial, technology and media sectors. He was formerly a Partner and Investment Banking professional at Paradigm Capital Inc., a Canadian investment dealer. He sits on the Board and is Chair of the Investment Committee at the Flavelle Foundation.
Terry Harbort, B.Sc. (Honors) PhD. — Director
Dr. Terry Harbort is a professional economic geologist with 24 years of multi-continent experience in mineral exploration. As Senior Geologist and later Chief Structural Geologist for the Americas Region, he was a senior member of the discovery team of AngloGold’s Ashanti’s La Colosa and Gramalote deposits. Dr. Harbort is a specialist in mapping and interpretation of ore geometries and ore controls covering various types of geological environments with direct applications to mineral economics from target generation, target definition and evaluation, and project management.
He is a co-founder and VP Exploration of Talisker Exploration Services Inc. Talisker provides technical consulting predominantly to the Osisko Group and their investee companies. Dr. Harbort also holds the position of Chief Geoscientist at Barkerville Gold Mines and is a Director of Sable Resources (TSXV:SAE).
Duncan Middlemiss — Director
Duncan Middlemiss, P.Eng, is the president, chief executive officer and a director of Wesdome Gold Mines Ltd. Prior to joining Wesdome, he was president, chief executive officer and a director of St. Andrew Goldfields Ltd. until its acquisition by Kirkland Lake Gold Inc. in January, 2016. Middlemiss joined St. Andrew in July, 2008, as general manager and vice-president of operations, later assuming the role of chief operating officer. He was appointed as president and chief executive officer in October, 2013.
He earned a B.Sc. in mining engineering at Queen’s University in 1989 and worked for Inco Ltd. (now Vale Canada Ltd.) as mine design engineer until 1995. He subsequently joined Barrick Gold Inc. at the Holt-McDermott mine, where he held the position of chief mine engineer. In 2002, he joined Fox Point Resources (now Kirkland Lake Gold Inc.), where he was instrumental in overseeing the rehabilitation, development and commencement of production at the Macassa mine, beginning as engineering and production manager and later as mine manager.
Middlemiss is a native of Kirkland Lake, Ont., and has extensive experience in the mining of gold deposits in the Abitibi greenstone belt. He is currently the Chairman of the Ontario Mining Association.
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