IDM Mining Ltd.
TSX VENTURE : IDM

IDM Mining Ltd.

December 06, 2016 09:00 ET

IDM Mining's Step-out Drilling Expands Mineralization in Multiple Directions at the Red Mountain Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 6, 2016) - IDM Mining Ltd. (TSX VENTURE:IDM) ("IDM" or the "Company") is pleased to announce assays from the final 13 underground core holes completed during the 2016 season at the Red Mountain gold project ("Red Mountain" or the "Project"), located 15 km east of Stewart, BC.

Highlights from the recent underground infill and step-out drill results (capped) include:

  • U16-1214: 27.00 meters true width at 6.20 g/t Au and 23.25 g/t Ag; AV Zone infill
  • U16-1217: 3.81 meters true width at 7.30 g/t Au and 15.35 g/t Ag; JW Zone north step-out
  • U16-1218: 6.49 meters true width at 21.36 g/t Au and 18.03 g/t Ag; AV Zone down-dip step-out
  • U16-1220: 34.01 meters true width at 8.85 g/t Au and 13.28 g/t Ag; AV Zone infill and metallurgical hole
  • U16-1224: 18.22 meters true width at 9.12 g/t Au and 27.87 g/t Ag; JW Zone down-dip step-out
  • U16-1226: 6.0 meters true width at 12.75 g/t Au and 44.19 g/t Ag; Marc Zone south step-out

"The majority of IDM's drilling during 2016 was planned to upgrade resources and gather technical data for our feasibility study, however these results have extended the known limits to mineralization in all three primary zones with mineralization open for further expansion to the north, south and down-dip," said Rob McLeod, President and CEO of IDM Mining. "Of particular significance is U16-1224, which intersected the widest portion of mineralization in the JW Zone yet identified, suggesting potential for another thick area of mineralization as seen in the Marc and AV zones."

All results from the 2016 program at Red Mountain have been received. Step-out holes during 2016 were drilled on 25 meter spacing along strike and down-dip from known mineralization, the minimum required for indicated resource classification. Geologic modeling is currently underway, with the objective of completing an updated Resource Estimate in early 2017. The updated Resource Estimate will be incorporated into IDM's ongoing Feasibility Study work. IDM is planning further underground resource expansion and exploration drilling in 2017.

Marc Zone

Prior to the 2016 drill program, it was interpreted that the Marc Zone was closed off to the south. Drill holes U16-1226 and 1227 were completed on section 1025N. U16-1226 intersected 6.0 meters (capped) averaging 12.75 g/t Au and 44.19 g/t Ag. This includes a 1.0 meter interval (uncapped) that assayed 110.5 g/t Au and 333.0 g/t Ag. coupled with three previously announced three step-out holes on section 1050N (see IDM News Release August 16, 2016), Marc Zone mineralization has been expanded a further 50 meters along strike to the south, and is still open for expansion along strike and down-dip.

Drill holes U16-1222 and 1223 are vertical holes that targeted historic, isolated intercepts in potential parallel zones under the Marc Zone. Both holes hit significant intervals of anomalous gold, but did not intersect higher grade mineralization.

AV Zone

Drill hole U16-1218 is a down-dip step-out and intersected 6.49 meters true width averaging 21.36 g/t Au and 18.03 g/t Ag (capped). The AV zone remains open for expansion down-dip from this intercept. On the same section, infill and metallurgical drill hole U16-1214 intersected a wide interval of 27.0 meters true width averaging 6.20 g/t Au and 23.25 g/t Ag. 50 meters to the north of this section, drill hole U16-1220 intersected a wider than expected 34.01 meters averaging 8.85 g/t Au and 13.28 g/t Ag.

JW Zone

Prior to IDM's 2016 drill program, it was interpreted that the JW Zone was a tabular mineralized body, generally 3.0 to 5.0 meters in average width. Drill hole U16-1224 was a down-dip step-out of the JW Zone, and intersected 18.22 meters true thickness averaging 9.12 g/t Au and 27.87 g/t Ag (capped). Couple with other previously announced intercepts from 2016, this suggests that wider areas potentially amenable to low-cost longhole stoping are present in this zone, similar to the thick areas of the AV and Marc Zone.

Drill holes U16-1215, 1217 and 1219 are northern step-outs along the JW Zone, all intersecting gold mineralization. Mineralization is open both and up and down-dip along this section.

Drill hole U16-1221 is another down-dip step-out, intersecting three mineralized intervals, including 2.43 meters true width averaging 11.03 g/t Au and 10.54 g/t Ag, as well as 5.40 meters true width averaging 10.56 g/t Au and 16.48 g/t Ag.

Complete results are as follows:

Hole-ID Section From (m) To (m) Length True Width Au g/t Ag g/t UnCapped Au g/t UnCapped Ag g/t
U16-1214 1375N 87.00 117.00 30.00 27.00 6.20 23.25
U16-1215 1625N 166.50 168.00 1.50 1.35 3.73 2.42
U16-1217 1625N 141.50 144.00 2.50 2.30 4.52 1.44
148.27 150.84 2.57 2.36 8.26 6.43
155.83 159.97 4.14 3.81 7.30 15.35
U16-1218 1375N 119.00 120.00 1.00 0.90 20.00 7.44
129.79 137.00 7.21 6.49 21.36 18.03 22.47 18.03
U16-1219 1625N 150.20 155.75 5.55 5.00 4.57 13.79
U16-1220 1425N 79.09 113.10 34.01 34.01 8.85 13.28
U16-1221 1575N 128.00 129.27 1.27 1.14 5.66 1.02
137.50 140.20 2.70 2.43 11.03 10.54
153.50 159.50 6.00 5.40 10.56 16.48
U16-1222 1300N No significant intercept
U16-1223 1175N No significant intercept
U16-1224 1550N 119.50 139.30 19.80 18.22 9.12 27.87 9.21 27.87
U16-1225 1525N 34.38 35.38 1.00 1.00 5.94 14.05
109.00 110.50 1.50 1.50 4.48 6.35
117.00 121.30 4.30 4.30 3.54 9.98
U16-1226 1050N 63.00 69.00 6.00 6.00 12.75 44.19 22.00 63.02
U16-1227 1050N 31.00 37.00 6.00 5.04 7.46 53.46
56.00 57.00 1.00 0.84 7.75 5.38
* Assays capped at 55.0 g/t Au and 220 g/t Ag
** Drilled intervals estimated using approximate 3.0 g/t cut-off for underground mining
*** In many intercepts, 10 to 20 cm intervals of whole core were collected for grind and rock mechanical properties tests; these intervals were assigned a zero (0.0 g/t Au and Ag) grade during compositing.

Drill hole collar information and location maps, core photos along with sample cross sections can be viewed at www.idmmining.com.

About Red Mountain

The 17,125 hectare Red Mountain gold project is located in northwestern BC, 15 km northeast of the town of Stewart. IDM is advancing a Feasibility Study for a high-grade underground gold mine, which envisions primarily bulk underground mining methods and the production of gold dore on site. The Project is advancing through the Provincial and Federal Environmental Assessment process, with ongoing consultation with the Nisga'a First Nations government.

On April 4, 2016, the Company announced an updated mineral resource estimate reported at 3.0 g/t Au cut-off for the Red Mountain gold project.

Classification Tonnage Au (g/t) Ag (g/t) Oz Au Oz Ag
Measured 847,200 9.38 34 255,400 920,700
Indicated 794,600 7.29 18 186,100 459,100
Measured + Indicated 1,641,800 8.36 26 441,500 1,379,800
Inferred 548,100 6.10 9 107,500 153,700

Red Mountain is a porphyry-related hydrothermal gold system, located in the Stikine terrain. Gold mineralization is associated with, and partially hosted within an early to mid-Jurassic multi-phase intrusive complex, with associated volcanic and volcaniclastic rocks and sediments. Many gold mineralized zones occur on the property, including five mineralized zones with established resource estimates. The five mineralized zones (Marc, AV, JW, 141 and 132) have been folded, and are often separated by dip-slip fault zones. The mineralized zones vary in orientation from shallow to steeply dipping and are generally tabular. The Marc, AV and JW Zones vary in widths from one to forty meters, averaging about fifteen meters in thickness. Gold and silver mineralization is associated with stockworks, disseminations and patches of coarse grained pyrite, surrounded by a pyrrhotite/sphalerite halo. Alteration facies includes strong quartz-sericite alteration.

Additional information, including the Company's NI 43-101 Technical Reports for the Red Mountain gold project, is available at www.idmmining.com and at www.sedar.com.

QA/QC AND QUALIFIED PERSON

Samples for the 2016 exploration program were cut with a diamond saw, and placed in sealed bags and shipped to ALS Labs Ltd. in Terrace, BC for sample preparation, with pulps subsequently shipped to Vancouver, BC for gold and multi-element ICP analysis. A Quality Control/Quality Assurance program, including the insertion of Standards and Blanks, was implemented. The 2016 exploration program was performed under the supervision of Rob McLeod, P.Geo, President and CEO of IDM Mining Ltd. and a 'Qualified Person' under NI 43-101. Mr. McLeod has reviewed and approved the technical content of this release.

ABOUT IDM MINING LTD.

IDM Mining Ltd. is a mineral exploration and development company based in Vancouver, BC, Canada. The Company's current exploration and development activities are focused on precious metals in British Columbia and Yukon, with a primary focus on the high grade underground Red Mountain gold project which has entered the BC and Canadian environmental assessment process.

ON BEHALF OF THE BOARD of IDM Mining Ltd.

Robert McLeod, President, CEO and Director

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Forward-Looking Statements: Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to the proposed exploration and development activities and their timing, resource estimates and potential mineralization. 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, timing and success of future exploration and development activities, exploration and development risks, 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 regulatory approval, 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.

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