d e c e m b e r / j a n u a r y 2 0 1 6
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g/t silver (82,300 oz contained gold and
136,200 oz contained silver).
The proposed 1,000 tpd, underground
gold/silver mine is amenable to longhole,
low-cost, bulk, underground mining.
Waste rock can be backfilled and stored
underground. The processing circuit envi-
sions a conventional cyanide leach with
SO
2
destruction producing doré on site.
Low cost power will be supplied from the
BC hydro grid.
IDM states that there is still significant
exploration upside to define additional
gold and silver mineralization at Red
Mountain. The company has identified
an additional 800 metres of mineralization
from Marc/AV/JW resource area, as well as
the parallel, high-grade 141 Zone trend.
Additional targets include high-grade
drill intercepts and surface samples found
at Cambria, Brad, McAdam, Marc Zone
extension, Singh, Meg and Rio Blanco
zones. The project is part of a 16-km-long
trend of mineralization and alteration
that is bound on the southeast by the
rapidly melting Cambria ice-field, and
other historic producing mines, nine km
northwest of Red Mountain. IDM sees
numerous geologic similarities to prolific
KSM/Brucejack/Valley of the Kings trend
located a little further north.
IDM management is also in discussions
with a number of banking and mining
finance firms in preparation for securing
the debt and equity capital required to
support the potential development of Red
Mountain in 2016.
More recently, the company completed
a private placement which will add $2.5
million to its coffers. A total of $1.4 mil-
lion of that investment was contributed by
Delbrook Capital Advisors and Lake Shore
Gold. Both Delbrook and Lakeshore now
effectively control 19.9% each of IDM
Mining's current share capital. Seabridge
Gold holds 6.7%, Kinross Gold as another
4.5%, and other institutions together hold
a total of 9%. Insiders and advisors to the
company control 10%. This leaves about
30% or 22 million shares of float in the
market. Currently, IDM mining has 73.65
million shares outstanding and a market
capitalization of $6.6 million.
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