14
W I N T E R 2 0 1 5 Photograph : IDM Mining
"It's a different mindset. Instead of think-
ing one quarter out, they think in terms
of five years. As a result, due diligence can
take longer."
Another B.C.-based company that lies
along the red line is
IDM Mining Ltd.,
whose flagship Red Mountain gold project
hosts a high-grade resource. President and
CEO Rob McLeod says Red Mountain is
amenable to bulk underground mining.
Over $40 million in work has been com-
pleted on the property by previous oper-
ators. That includes 127,300 metres of
surface and underground drilling; 2,000
metres of underground development; and
advanced environmental, metallurgical
and engineering studies.
A National Instrument 43-101-com-
pliant resource estimate of the project
was completed in 2013. At a three-grams-
per-tonne cut-off, the resource estimate
consists of 1,138,000 tonnes averaging
8.7 grams per tonne gold in the measured
category, 473,000 tonnes at 7.7 grams per
tonne gold in the indicated category and
807,000 tonnes at 5.4 grams per tonne gold
in the inferred category.
McLeod says
IDM has been financing
itself with a combination of flow-through
shares and hard-dollar raises. "Now that
we're in the pre-development stage at
Red Mountain, we're looking at all of our
options." He says the challenging times
mean that exploration companies need to
be creative to raise the money they need
to move a project along. One of those cre-
ative ways is streaming, whereby a funder
makes an agreement with a company to
purchase all or part of its future precious
metals production at a low, predeter-
mined price on which both parties agree.
The streamed resource is often a byprod-
uct of the mining company's operations.
There are also other sources of financ-
ing. "For example, market your company
to non-traditional sources that you haven't
approached in the past," says McLeod.
"Use social media, such as Twitter and
LinkedIn, to create brand awareness. And
don't forget about Asian investors."
■
IDM Mining Ltd.'s Red Mountain gold project.
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