GOLD: IDM Mining submits project application and EIS for Red Mountain

BRITISH COLUMBIA – IDM Mining of Vancouver has submitted both the project application and environmental impact statement for the Red Mountain underground gold project to the BC Environmental Assessment Office and the Canadian Environmental Assessment Agency. [caption id="attachment_1003719112" align="alignright" width="300"] The aptly named Red Mountain where IDM Mining proposes to develop an underground gold mine. (Credit: IDM Mining)[/caption] IDM has outlined a year-round, 1,000-t/d underground mine and mill in the Bitter Creek Valley, 15 km east of Stewart. The project necessitates building an all-season road and powerline from the GC Hydro grid. Workers would be housed in Stewart, rather than at the mine site. Ore will be transported from the mine to the processing plant by truck. Initial capital costs are estimated to be $135.7 million, and the pre-tax base case economics indicate a net present value of $155 million at a 5% discount with a 40% internal rate of return, and a 1.7-year payback of initial capital. Red Mountain is subject to a review by both the provincial and federal authorities. The most recent drilling results from the project include 6.86 metres of 20.16 g/t gold, including 1.53 metres of 42.59 g/t; 1.52 metres of 54.25 g/t gold from a depth of 2.29 metres; 2.29 metres of 35.35 g/t gold, including 0.76 metre of 59.30 g/t; 6.10 metres of 22.30 g/t gold; and 1.52 metres of 72.25 g/t gold. See the Red Mountain feasibility study at www.IDMmining.com.