TSX-V-listed IDM Mining has signed a letter of intent (LoI) with junior exploration company Sunvest Minerals to provide technical and geological consultation work, as well as logistical and community guidance for Sunvest’s Clone gold property, located south of IDM’s Red Mountain property.
Pursuant to the LoI, IDM and Sunvest will pursue a definitive agreement for IDM to provide Sunvest with certain geological, technical and other general support services, including the use of its camp at Red Mountain or facilities in Stewart, British Columbia.
Sunvest will be required to pay a monthly retainer fee and the agreed upon fees in connection with each scope of work and services requested.
In addition, Sunvest will grant to IDM certain rights of first refusal.
“This is extremely positive for Sunvest Minerals given the IDM team’s geological expertise and excellent relationships with the Nisga’a nation and the community of Stewart, as they advance the Red Mountain project towards production," stated Sunvest Minerals CEO Mike England.
He added that the company looks forward to an active field season to begin shortly, with beneficial contributions and exploration efficiencies through this agreement with IDM.
“Our technical understanding of mineralisation in this area of the Golden Triangle, particularly with IDM’s recent interpretations of post-mineralisation folding will contribute to advancing and further exploring the Clone project,” said IDM CEO and president Robert McLeod.
“I personally worked on the Clone project in 1995 as a geologist for Homestake Mining, in joint venture with Teuton Resources, and am a believer in its exploration potential,” he noted.
CLONE PROJECT
Permitting is under way for drilling on Clone, subsequent to surface exploration that is proposed to start within the next few weeks.
Significant retreat of glaciers over the past decades has exposed new areas of rock outcroppings in the area.
Surface exploration work and proposed drilling during the 2018 season would be staged out of IDM’s nearby exploration camp.
High-grade gold mineralisation at the Clone project is associated with earliest-Jurassic age volcanic and intrusive rocks, forming during approximately the same metallogenic event as Premier, KSM, Brucejack, Red Mountain, Dolly Varden and other gold/silver deposits in northwestern British Columbia.
All of these mineralising systems, including Clone, are spatially associated with earliest Jurassic intrusives; however, they often exhibit different mineralisation styles and metal associations, the company noted.
Significant drilling, albeit highly localised, has been completed on the property.
In addition to high-grade gold mineralisation, significant cobalt bloom has been observed on surface, at a facies transition between hematite and magnetite.