Took a Flyer on IDM Mining (IDM.V)
IDM Mining (IDM.V) may be new to some readers but the key person behind it should be familiar to those that have been following my reports over the years. During the last bull move in gold, I made a number of picks in my written reports, several made big discoveries, often I started coverage when they made their first big drill hits and followed their developments with commentary until they were taken over. Underworld Resources, lead by Rob McLeod, was one of those picks I jumped on from their earliest drill holes and featured them a bunch of times in my reports before they were bought out. Rob McLeod has another company with its best growth days ahead of them while gold is primed to go higher and give quality gold stocks better valuations.
Rob McLeod is a second generation mining guy from a family of well-known mining people. Several members of the McLeod Clan of miners have had successes during their careers, including Rob with his Underworld which was a foray into the Yukon. He grew up in Stewart, BC, Canada, the epicenter of the famous Golden Triangle, and his IDM Mining is focused on an old project called Red Mountain. The project is literally in the backyard of his hometown, it is 15km from Stewart, Hwy 37A is within approximately 10km from the claim boundary where they have a proposed road giving them access to the site. This is a taxi project, maybe I will have to change that to an Uber project to get with the latest lingo. You can jump in a taxi or Uber and get to the project, don’t think Uber is in Stewart yet so I’ll stick with taxi project.
I’m going to get Rob McLeod on a show to tell us the whole story of how he worked on Red Mountain as a rookie geologist, and how it has seen glaciers recede and expose a lot of uncovered potential for additional discoveries. Often I talk about the truth machine and the importance of what comes out of drilling. There is another truth machine in mining other than the drill rig, that is the mine which is the big truth machine. IDM Mining has recently put together the funding to cover their costs to complete a feasibility study. Their hope is that they can prove it is an economically viable gold mine that can be put into production with a relatively low capital expenditure and a quick payback.
The other day, Rob McLeod was going over their goals with me, and it hit me as he was describing the focus on their feasibility study and trying to get the project into production, then use the underground workings to build drill stations to do the exploration drilling. It is costly to do exploration and resource definition drilling from the surface, but from underground it gets way less costly and can be done year round. It struck me that they are going to use the big truth machine to get the little truth machine doing its magic.
When I get Rob McLeod on a future show, I will get him to explain the rocks in the region and what they have at Red Mountain, but the key things are, they have a lot of high-grade gold on the property with plenty of targets. The key part of the project where they are focusing their efforts has plenty of high-grade gold and also benefits from being able to use underground bulk mining methods.
This isn’t just another project for Rob McLeod, he named that company using the initials of his dad and uncle Ian and Don McLeod, they are the IDM in IDM Mining and I have a feeling this is a legacy building type company for Rob, I’m stoked to join him on the journey. The project is in his backyard with the potential to launch IDM Mining into a gold mining company with a low-cost high-grade operation that also looks to be relatively low cost to build. These are the things the company is assessing in their feasibility study, they will also be doing some drilling on the project this year. Drilling will be focused on upgrading the resource, in the kinds of rock they are drilling into could easily come up with pleasant surprises.
The main attributes investors should look for in the short and medium term from IDM Mining includes reporting their feasibility study, followed by permitting, delineation and exploration drilling. This is the big picture story for IDM Mining, and I’m impressed with the game plan because there really aren’t many potential gold mines out there like this. We are going to see demand increase dramatically for high-quality gold stocks as gold goes much higher. In addition to the gold mining business needing more gold mines to replace what is being mined out, during the last bull run for gold plenty of companies were taken over. They basically removed the middle-tier sized companies, which leaves a vacuum for high-quality projects that aren’t big enough for a major but could help a middle-tier turn into a major. IDM Mining lead by Rob McLeod has the likelihood to grow into a much larger gold company over the next few years considering the quality of their projects,
I took a flyer this morning at $0.125 with the game plan to build it into a long-term core holding. I’m really impressed with the potential for them to grow because the industry needs more mines to replace old mines and there is going to be a new wave of investors coming into the gold space and will have a hard time finding companies with projects like IDM Mining’s Red Mountain. I’m also in the late stage of securing IDM Mining as a new member of my website sponsorship program and hope to have that announcement out in the next few weeks.
Gold made a bottom in late 2015 and has since started a new bull market, I’ve been on top of these trends like few others which has enabled me to have a growing audience for my work. I made some bold calls for gold and gold stocks at the beginning of the year and since then it has unfolded nicely.
In a recent report, I made the case of why it is time for investors to sell America and buy high-quality resource stocks in Canada. Canada is a resource-dependent economy with a currency primed to go much higher as gold and other commodities go higher. When the big crowd of investors comes into Canadian resource stocks in a big way, they will only have a small menu of quality to choose from. Considering IDM Mining’s people and projects, they are well positioned to have a spot on the menu.
All the best,
Allan Barry Laboucan
P.S. my reports are for information purposes only, before making any investment decisions it is important to do your homework and speak with your financial advisers.
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