Resource World Magazine

38 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 7 prices. With recent high gold prices and extensive infrastructure improvements in the region, Skeena is betting that it can outline significantly more gold mineralization that is economic by today's standards. "The 2016 drill program successfully tested several promis- ing high-grade targets away from the historical mine workings including the new 200 Footwall Zone," said Skeena's Chairman, Ron Netolitzky. This year Skeena drilled a total of 28 diamond drill holes (7,180 metres) and confirmed three significant high-grade zones outside of the historic mine workings. These three zones are dubbed the Lamp Zone, the 200 Footwall Zone and the Twin West Structural Corridor. Drill assays from the Lamp Zone indicate at least two new high-grade vein structures that remain open along strike. Highlights include S-16-03 with 59.5 g/t gold over 1.4 metres and 21.3 g/t gold over 1.15 metres. The 200 Footwall Zone is located 200 metres into the footwall below the main Twin Zone historic mine workings. Intercepts suggests a vein structure with a dip length of 110 metres that remains open down-dip and along strike. Highlights include S-16-06 with 16.24 g/t gold over 13.5 metres including 30.99 g/t gold over 4.5 metres. The Twin West Structural Corridor is west of the historic Twin West Mine workings. Several parallel veins have been identified with a strike length of over 300 metres. The zone remains open down-dip and along strike. Highlights include S-16-11 with 16.01 g/t gold over 4.7 metres, including 37.7 g/t gold over 1.65 metres. "Our objective over the next few months is to complete the acquisition of the mine and to prepare for an aggressive under- ground drill program in 2017," said Netolitzky. Skeena is also advancing its 100%-owned Spectrum and GJ gold-copper porphyry projects about 37 km west of Imperial Metals' Red Chris Mine. This season the company earmarked 6,000 metres for resource expansion and 4,000 metres for explora- tion drilling at Spectrum. Initial results intersected long intervals of gold-copper mineralization as predicted by geological and geo- physical work. In August, IDM Mining [IDM-TSXV] filed an updated PEA for its Red Mountain Project located just 15 km NE of Stewart. The 17,125-hectare property has seen over $40 million of explora- tion since its discovery in 1989. IDM acquired the property from Seabridge in 2014. IDM Mining's recent PEA estimates an after-tax base case NPV of $86.6 million using a 5% discount rate. The IRR was 32.3% and the project had a two-year payback of initial capital which is estimated at US $89 million. Due to the wide nature of the mineralized zones, the majority of the deposit is amenable to bulk underground long-hole mining methods. The project utilizes a year round design processing rate of 1,000 tpd and underground mining rate of 1,500 tpd for eight months per year. The average life of mine head grade is 7.0 g/t gold and 21.5 g/t silver and the life of project direct operating costs are estimated to be US $441/oz of gold recovered. The mine life is estimated at five years with a 15 to 18-month pre-produc- tion period. The most recent results released from this season's underground infill drilling program include hole U16-1205 which intersected 8 metres (true width) averaging 20.29 g/t gold and 68.74 g/t silver. Hole MC16-06 returned 54.0 metres averaging 1.29 g/t gold, including 7 metres of 4.62 g/t from the 141 Zone. "These results confirm the substantial widths and robust grades at Red Mountain," said Robert McLeod, President and CEO of IDM Mining. "Our underground drill crews at Red Mountain are currently wrapping up the final resource expansion holes from the 2016 program." Brixton Metals [BBB-TSXV] holds a 100% interest in the 996 km 2 , Thorn Project. This past season Brixton collected 2,337 soil samples and 247 rock samples and completed 15.5 km of ground IP geophysics at the Chivas Zone. Results from the Chivas Zone outlined a 3.5 km long north- west-trending, gold-in-soil anomaly up to 2 km wide as well as an associated geophysical IP anomaly. "The Chivas Zone represents a very attractive large scale gold target which is to be drill tested in 2017," stated Chairman and CEO of Brixton, Gary Thompson. With $20 million in the bank, Ascot Resources [AOT-TSXV] has been active this season on its Premier/Dilworth Project which covers the past producing Silbak-Premier gold mine and the

• Cover