IDM Mining Ltd. [IDM-TSXV; IDMMF-OTCQB] said Wednesday November 21 that it has expanded the underground drilling program at its development stage Red Mountain gold project east of Stewart, northwest British Columbia.
The company said it has added a third drill rig, in keeping with plans to complete an extra 5,400 metres of drilling. As a result, the company is planning for 13,000 metres of drilling in over 54 holes.
IDM shares were active on the news, rising 9.09% or $0.005 to 6 cents on volume of 424,000. The 52-week range is 11.5 cents and 4 cents.
IDM Mining is focused on advancing the Red Mountain Project towards production. The 17,125-hectare project is located in northwestern B.C., 15 km northeast of the mining town of Stewart. The project is located near a paved highway and grid power.
Having recently announced an increased high-grade measured and indicated resource, the company envisions bulk underground mining methods, producing a gold-silver doré bars at the site
Red Mountain hosts a NI 43-101 compliant estimated resource of 2.8 million tonnes in the measured and indicated category averaging 7.91 g/t gold and 22.75 g/t silver, for 704,600 ounces of gold and over 2 million ounces of silver. On top of that is an inferred resource of 316,000 tonnes, averaging 6.04 g/t gold and 7.61 g/t silver, for 61,400 ounces gold and 77,200 ounces of silver.
IDM recently secured a provincial environmental assessment certificate for the Red Mountain project, which provides a defined set of conditions and commitments that will allow for commercial development and operation of the project.
On Wednesday IDM said exploration drilling this year has been testing multiple extensions to various zones at Red Mountain, including:
- A near-surface synform between the Marc and 141 zones;
- The northern and western extensions to the Smit and JW zones;
- A projected high-grade connection between the Smith and 141 zones;
- The northern and eastern extensions to the SF Zone antiform.
Additionally, drilling has been targeting the conversion of the inferred resource to measured and indicated classification, primarily within the Smit and SF zones. Multiple exploration holes are also planned to test previously undrilled areas located to the south and east of the resource area.
“Our new geological interpretation, that has connected zones previously thought to be separate mineralized structures through large-scale folding, is being validated,’’ said IDM President and CEO Robert McLeod.
“With increased confidence in the continuity of the extensions of the mineralized horizon at Red Mountain, we are looking forward to exploring new, undrilled targets in addition to expanding known zones,” he said.
On Tuesday, IDM said it had closed the second tranche of a previously announced private placement offering, raising $2.45 million, and pushing total gross proceeds to $4.37 million.
The second tranche consisted of 12.4 million flow-through shares at $0.07 per share and 26.4 million non-flow-through units at 6 cents per common unit. Osisko Gold Royalties Ltd. [OR-TSX, NYSE] bought 16.7 million common units for $1 million and now owns 18.2% of IDM.