Name of the Project
Red Mountain gold project.

Location
North-west British Columbia, Canada.

Client
IDM Mining.

Project Description
A feasibility study has demonstrated that the Red Mountain gold project is a high-margin, low-capex underground gold mine with a short development timeline, producing more than 90 000 oz/y of gold over the first two years of operation, with a life-of-mine average yearly production of 78 000 oz. The proposed mine will operate year-round over an initial period of about six years.

The mine plan is based on a ramp access underground mining operation, producing an average of 1 045 t/d of ore from a blend of mining methods, including:
• transverse and longitudinal longhole stoping for mining blocks dipping steeper than 55°, which represents 63% of the reserves. This is the preferred mining method from a productivity and operating-cost perspective;
• cut-and-fill for mining areas with dips of less than 55º and zones not amenable to long-hole stoping, which is more selective and represents 33% of reserves; and
• access and stope crosscut development, which forms the remaining 4% of the potentially mineable tonnage.

The deposit will initially be accessed from the existing portal and exploration ramp, in addition to a new portal accessing the top level of the mine, which will be used for ventilation exhaust and a secondary escape way. A third lower access, to be used for haulage, will be added in Year 1 of the mine life.

Testwork has shown that Red Mountain mineralisation can be treated using conventional mineral processing techniques for the recovery of gold and silver. A trade-off study was conducted to compare processing the mill feed material using either a leach or a flotation/regrind/leach circuit. The carbon-in-leach (CIL) circuit was selected based on the results of the trade-off study and metallurgical test results.

The plant will comprise three-stage crushing; primary and secondary grinding; preleach thickening and CIL; cyanide destruction; carbon processing and gold refining; and tailings disposal at the tailings management facility. The grinding circuit product size is targeted at about P80 of 25 μm, and CIL to recover gold and silver. The crushing circuit will operate at an availability of 75%, while the milling and CIL circuits will operate 24 h/d, 365 d/y at an availability of 92%.

Jobs to Be Created
Not stated.

Net Present Value/Internal Rate of Return
The project base case estimate generates a pretax net present value, at a 5% discount rate, of C$155-million and an internal rate of return of 40%, with a payback of 1.7 years.

Value
Initial capital expenditure to fund construction and commissioning is estimated at C$135.7-million.

Duration
The overall construction and commissioning period for the project is estimated at about 15 months from the start of work on the site access road to first gold pour and will be preceded by nine months of engineering and procurement.

Latest Developments
IDM Mining has significantly increased the mineral resources of its Red Mountain project.

IDM has reported a 39.2%, or a 147 000 oz, increase in measured gold ounces, and a 46.7%, or a 581 900 t increase, in measured tonnes, at a grade of 8.92 g/t gold.

The measured and indicated gold ounces have increased by 20.7% to 704 600 oz of gold and 2.03-million ounces of silver at an average grade of 7.91 g/t gold and 22.75 g/t silver.

The measured and indicated tonnes have increased by 33.6% to 2.77-million tonnes.

IDM will include the updated mineral resource estimate, along with improved geological interpretation and engineering optimisation work, in an updated feasibility study, which will be completed later this year.

Meanwhile, Red Mountain’s environmental assessment and environmental-impact statement review are at an advanced stage.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
IDM Mining CEO and director Robert McLeod, tel +1 604 681 5672, fax +1 604 484 7155 or email rm@idmmining.com.