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IDM Mining Announces Positive Feasibility Study Results for its Red Mountain Gold Project

Posted on junio 26, 2017

June 26th, 2017, Vancouver, BC – IDM Mining Ltd. (TSX-V:IDM) (OTCQB:IDMMF) (“IDM” or
the “Company”) is pleased to announce the results of a Feasibility Study (the “2017 FS”) for the
Red Mountain Gold Project (the “Project”), located in northwestern British Columbia near the
town of Stewart, BC. The 2017 FS, confirms the positive economics for a near term, high-grade,
bulk mineable underground gold operation at Red Mountain.
“This study demonstrates a high-margin, low-capex underground gold mine with a short
development timeline, producing over 90,000 ounces of gold per year over the first two years of
operation, with a life of mine average annual production of 78,000 ounces,” said Robert
McLeod, President and CEO of IDM Mining. “With these positive results now in place, our
highest priority is the ongoing exploration and resource expansion drilling adjacent to current
reserves, with the objective of extending the potential mine life for Red Mountain. These zones
remain open for expansion both along strike and down-dip. Importantly, this Project would be a
tremendous economic benefit to my hometown of Stewart BC, and to the citizens of the Nisga’a
“With the feasibility work now complete, IDM will be filing its Project Application Report for the
Project imminently with BC and Canadian regulatory agencies,” said Michael McPhie, Executive
Chairman of IDM Mining. “The Project enjoys significant support locally and regionally and our
goal remains to have approvals in place for a shovel-ready project by mid 2018. We believe
that Red Mountain is one of the few development-stage precious metal projects in Canada that
could see near term commercial operations.”
At a gold price of US$1,250/oz and an exchange rate of C$1.00 to US$0.76, the Project base
case estimate (the “Base Case”) generates a pre-tax net present value (“NPV”) at a 5%
discount rate of C$155 million and an internal rate of return (IRR) of 40%. The proposed mine
will operate year-round over an initial period of approximately six years. The first two years of
gold production averages 91,000 ounces per year, with life of mine average annual gold
production of 78,000 ounces. Initial capital expenditure to fund construction and commissioning
is estimated at C$135.7 million, with a life-of-mine cost of C$202.4 million (including an average
of 10 percent contingency and C$8.6 million in closure costs). The average operating cost is
estimated to be C$140.02 per tonne processed.