IDM Mining Ltd. (TSXV:IDM) announced it has commenced a spring 2017 Phase I drill program at its Red Mountain project in British Columbia. The underground
drill campaign is expected to consist of ~35 holes, totaling 8,000m. The program is focused on expanding mineralization to the north as well as up-dip
and down-dip of the AV and JW zones. The resources of these zones combined with that of the Marc zone currently have a strike length of 600m. Previous
intercepts indicate the gold mineralization extends for an additional 800m to the north. Initial step-out drilling at the mostly undrilled SF zone,
which is north of JW, is expected to cover a strike length of ~300m to the north of the existing resources. The company has also planned step-out drilling
up-dip and down-dip from the AV and JW zones where previous drilling suggests that mineralization continues for hundreds of meters. The zones remain
open down-dip along strike. IDM continues to trade at a discount to peers on a P/NAV basis (0.47x vs. peers at 0.51x) and on a per ounce basis (C$39/oz
vs. peers at C$53/oz). We expect the pending drill results and feasibility study for Red Mountain, coupled with the project’s ongoing de-risking (engineering
and permitting), should help close the valuation gap to peers.
Derek Macpherson | VP Mining Analysis
Sunneva Bernhardsdottir | Associate, Mining Analysis
Victoria Ellis Hayes | Associate
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Company Specific Disclosure Details IDM Mining Ltd - TSXV:IDM - 1,2,3,4
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