The Red Mountain gold and silver underground mine, in the Nass Wildlife area of British Columbia, is one step closer to development, with the provincial government granting the project environmental approval.

Environment and Climate Change Strategy Minister George Heyman and Energy, Mines and Petroleum Resources Minister Michell Mungall on Friday signed off on the Red Mountain environmental assessment (EA) certificate, imposing 38 conditions and specifying legally binding design requirements.

The provincial EA was coordinated with the Environmental Assessment Agency process, although separate reports were submitted for approval to respective agencies. A federal decision on whether to issue a certificate is pending.

In a media statement, the Ministers said that they were confident that the Red Mountain project would be constructed, operated and closed in a way that ensured no significant adverse effects were likely to occur.

Key conditions for the project require IDM to develop a human-health monitoring and management plan, a wildlife management plan and a social effects management plan. The company is also required to conduct monitoring of mountain goat populations and to develop an aquatic effects monitoring plan to monitor impacts to aquatic resources.

Further, it has to consult with the Nisga’a Nation on the implementation of the requirements of the certificate for all phases of the project and during any care-and-maintenance periods.

The mine, located in the Stewart district of the Nass Wildlife Area, is expected to extract 1 000 t a day of ore, with a net production of 365 000 t/y, during the mine’s six-year operational life.

During the 18-month construction phase, 103 direct full-time equivalent jobs will be created and direct project expenditures on construction are estimated to total C$93.5-million within the province.

During operations, Red Mountain will generate 13 direct full-time equivalent local jobs, with an additional 20 direct jobs generated in the province. Total purchases of goods and services during operations are estimated at C$167.6-million.

IDM is completing an updated feasibility study, which will incorporate value engineering improvements from the 2017 study and the increased measured and indicated resources from the June 2018 resource estimate.

The 2017 study demonstrated a high-margin, low-capital underground gold mine with a short development timeline, producing 91 000 oz/y of gold over the first two years of operation, with a life-of-mine average output of 78 000 oz. The proposed mine will have a 1 000 t/d mill, operating year-round, over an initial period of about six years. The mine will produce 425 000 oz of gold and 1.17-million ounces of silver.

PRIVATE PLACEMENT
IDM on Friday announced a nonbrokered private placement financing for aggregate gross proceeds of up to C$4.1-million. The company would sell flow-through shares at C$0.07 a share and non-flow-through shares at C$0.06 a share.

The net proceeds of the offering would go towards exploration and development activities on the Red Mountain project.