VANCOUVER, Feb. 6, 2019 /CNW/ - IDM Mining Ltd. (TSX-V:IDM)
(OTCQB: IDMMF)("IDM" or the "Company") is pleased to announce that
final assays have been received from 2018 trenching of the Randell
Vein area located in the Lost Valley area, four kilometers south of
the Red Mountain Resource area. Additionally, surface
sampling assays from the Meg, Cambria and Dave's Trench areas on
the Red Mountain Property, located in the Golden Triangle of
northwest BC, 15 kilometers northeast of the mining town of
Stewart, BC.
Money Rock/Randell Structure, Lost Valley
Located in an area of recent glacial retreat, trenching during
2018 exposed a high-grade structure at Lost Valley and traced over
300 meters of strike through systematic panel sampling, channel
sampling and trenching. The final round of sampling includes
1.0 to 1.5-meter-long panel samples from multiple trenches in a 9.0
by 7.3 meter area. 21 samples were collected averaging
7.17 g/t Au and 56.64 g/t Ag. Good continuity was exhibited
in adjacent samples, with assays ranging from 1.65 to 15.38 g/t Au
and 8.69 to 203 g/t Ag. Sample material is primarily
quartz/pyrite colluvium, overlain by granite-dominated talus
suggesting that the mineralization is deteriorating in place by
weathering and glacial unloading. The shallow-dipping Money
Rock zone hosts banded quartz with strong sulphide mineralization,
primarily coarse pyrite, with accessory molybdenite, chalcopyrite,
sphalerite and bismuthinite. The structure ranges from 0.5 to
over 9.0 meters in thickness, where exposed. High-grade
silver samples in local panels within the Money Rock structure
(previously reported) include: 2,617, 2,059 and 846 g/t Ag.
The Lost Valley area has received extensive prospecting and
sampling by IDM. Since 2014, 713 samples have been collected,
including panel, channel, grab and float samples. The average
of all samples is 6.05 g/t Au and 38. 67 g/t Ag, with samples
ranging from trace to 165 g/t Au and trace to 2059 g/t Ag. A
total of 237 samples assayed over 1.0 g/t Au, 117 over 5.0 g/t Au
and 44 over 30 g/t Au.
Trenching completed during 2018 connected the high-grade Money
Rock and Randell Zones which originally were interpreted to be
separate structures since discovery in 2016. Gold
mineralization at Lost Valley occurs within broad stockworks of
gold-silver-molybdenum mineralization within an early-Tertiary
granite, similar to the late-Cretaceous age Tintina Gold belt
intrusive-related deposits located within Alaska and Yukon, such as Fort Knox and Eagle Gold
(Dublin Gulch). The high-grade gold-silver vein-hosted
mineralization that was the focus of the 2018 trenching program is
similar in structure and geochemistry to the Pogo Deposit, an
underground gold mine in Alaska.
The Money Rock structure occurs at the base of a cliff, which
can be traced for at least another 250 meters to the west; the
Randell structure can be traced for another 75 meters to the east
through intermittent sampling, along the base of a separate cliff
face.
Sample distribution maps and photos are available on the
www.idmmining.com and within the Red Mountain virtual tour at
www.Vrify.com.
During 2016, three drill holes from a single drill pad were
completed at the Money Rock zone, where across strike channel
sampling averaged 18.7 g/t Au and 61.4 g/t Ag over 0.84 meters
along a 33-meters of strike. These samples locally overlap
the 2018 sampling. Drill hole LV16-01 intersected 1.0 meters
of 3.0 g/t Au and 23.80 g/t Ag, and LV16-02 intersected 1.2 meters
averaging 4.63 g/t Au and 90.90 g/t Ag. All three holes
intersected a post-mineralization dyke where the zone was projected
to occur from surface trenching (see IDM NR November 17, 2016). Future drilling will
target areas to the west and east of this dyke.
Meg, Dave's Trench & Cambria Zone
1,200 meters southwest of the Marc Zone Resource, the Meg Zone
returned 5.67 g/t Au and 12.64 g/t Ag in a 0.50 meter channel, 3.88
g/t Au and 56.75 g/t Ag in a 1.0 by 1.0 meter panel and 4.09 g/t Au
and 140 g/t Ag in a grab sample, within an area of strong sulphide
mineralization and alteration. This area has not been drill
tested.
Over the past two years, a large new area of prospective
rocks was exposed by the rapidly melting Cambria icefield and
measures approximately 1,000 by 500 meters. Located
immediately northeast of the Marc Zone and north of the initial
resource at the Cambria Zone, gold mineralization has been
discovered through reconnaissance mapping and sampling.
Assays have been received for 54 samples to-date, averaging 1.44
g/t Au for all samples, including grab, panel and channel
sampling. Mineralization is associated with pyrite
mineralization, similar to the Red Mountain resources; individual
assays range from trace to 18.74 g/t Au and 193 g/t Ag.
The Company is encouraged by the prospectivity of this new area of
new exposure at Red Mountain.
Exposed within the access road from the Red Mountain camp to the
underground portal, strong pyrite/magnetite mineralization, with
intense propylitic altered Goldslide intrusive, was trenched during
2018. Results from this area included 14 channel and grab
samples averaging 0.17% Cu and 0.02% Mo, with individual samples
ranging up to 0.55% Cu and 0.15% Mo, along with anomalous gold and
silver. Jurassic gold deposits in the Golden Triangle are
commonly associated with copper and molybdenum systems.
QA/QC and Qualified Person
Samples from the 2018 program were collected by experienced
geologists and technicians, placed in sealed bags and shipped to MS
Analytical Labs in Terrace, BC for
sample preparation, with pulps subsequently shipped to Langley, BC for gold and multi-element ICP
analysis. A Quality Control/Quality Assurance program
including the insertion of Standards and Blanks was
implemented. The 2018 Exploration Program was performed under
the supervision of Andrew Hamilton,
P.Geo, Senior Geologist for IDM Mining Ltd. and Robert McLeod, P.Geo, President and CEO of IDM
Mining Ltd; both are 'Qualified Persons' under NI 43-101. Mr.
McLeod has reviewed and approved the technical content of this
release.
Bridge Loan with Ascot Resources
The Company also announces that it closed the previously
announced $3.35 million secured
convertible bridge loan (the "Loan') from Ascot Resources Ltd
("Ascot") and has drawn down the full amount.
The Loan has an interest rate of CDOR plus 9% per annum and is
convertible into IDM common shares at C$0.0857 per share. If the definitive
arrangement agreement between IDM and Ascot is terminated, the Loan
will become payable within 30 days or six months of termination,
depending on the circumstances. If Ascot converts the Loan into IDM
common shares it will not vote its IDM common shares at the IDM
shareholder meeting to approve the transaction.
About IDM and Red Mountain
IDM Mining Ltd. is an exploration and development company based
in Vancouver, BC, Canada focused on advancing the Red Mountain
Gold Project towards production. The 17,125 hectare Red
Mountain Gold Project is located in northwestern BC, 15 km
northeast of the mining town of Stewart.
Recently, IDM and Ascot Resources entered into a definitive
arrangement agreement whereby Ascot will acquire all outstanding
common shares of IDM. This transaction would result in the
consolidation of Ascot's Premier Gold project and IDM's Red
Mountain project to create the leading high-grade gold development
and exploration company in BC's Golden Triangle. For more
information on the transaction, please view IDM's press release
dated January 7, 2019.
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. There can be no assurance that the
Company will complete the proposed transaction with Ascot Resources
Ltd. on the proposed terms or at all.
SOURCE IDM Mining Ltd.