IDM Mining (TSXV: IDM; US-OTC: IDMMF) has added a third underground drill at its Red Mountain underground gold-silver project, east of Stewart, British Columbia. The company has increased its drill program by 5,400 metres; it will now drill 13,000 metres across 54 holes.
With its 2018 drilling, the company is testing various zones at Red Mountain including the northern and western extensions of the Smit and JW zones, the northern and eastern extensions of the SF zone and areas in between the Marc and 141 zones.
The company is also infilling the Smit and SF zones to convert inferred resources to the measured and indicated categories. The company expects to finish drilling by mid-December 2018.
The company recently closed the second tranche of private placement for $2.45 million. The first tranche was valued at $1.9 million. Osisko Gold Royalties (TSX: OR; NYSE: OR) participated in the offering by buying 16.6 million shares for $1 million. Osisko now holds 18.2% of IDM Mining. The company intends to use the proceeds to continue exploring Red Mountain.
The 171 sq. km Red Mountain project contains 2.7 million measured and indicated tonnes grading 7.91 grams gold and 22.75 grams silver for 704,600 oz. gold and 2.02 million oz. silver. It also contains 316,000 inferred tonnes at 6.04 grams gold and 7.6 grams silver for 61,400 oz. gold and 77,200 oz. silver.
Shares of the company are valued at 5 ? with a 52-week range of 4 ? to 12 ?. The company has a $26 million market capitalization.
Mining.com's sister company Northern Miner visited the IDM's Red Mountain gold project. Click here to read the report.
This story first appeared on www.northernminer.com.