IDEX Metals (IDEX.V) has released the assay results of the first hole it completed on the Kismet target on the Freeze project in Idaho. The first hole immediately intersected mineralization, returning just over 182 meters containing 0.32% copper and 1.08 g/t silver, almost starting from surface (the mineralization started at 1.5 meters down hole). The highest grade was actually found the closest to surface as the second layer of mineralization started at 189 meters and returned 0.26% copper and 2.25 g/t gold over that interval. The table below however, indicates there are three distinct zones of higher grade copper mineralization with 3.2 meters of 1.44% copper, 1 meter of 1.41% copper, 7 meters of 1% copper and 5 meters of 1.39% copper.
The first drill hole was a technical success: the thickness of the known mineralization was expanded by 200-300% and the fact the mineralization starts almost at surface is a clear positive as well. The grade is a bit light though. 0.32% copper and 1.08 g/t silver has a gross rock value (before taking recovery rates and payability percentages into account) of around US$33/t and around $34.5/t if we also take the moly grades into account. That would be well above a cutoff grade that would be used in the current copper price environment, but determining the economic viability of mineralization further down the road (and this if of course still over half a decade out) will also need to take the initial capex into consideration. But we are obviously getting ahead of ourselves, and let’s first wait to see additional drill results from Kismet and the CM drill target, as IDEX Metals has barely been scratching the surface.
The first hole offers a ‘mixed bag’. It’s good to see mineralization, and it’s good to see it is close to surface. But the average grade of the wide interval is on the lower end of the spectrum although the shorter but higher grade intervals offer an interesting perspective. We are looking forward to seeing the assay results of the next two holes and we are keen on seeing the assay results from hole 2, which appears to contain more breccia than hole 1.
Disclosure: The author still has a long position in IDEX Metals. Idex is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
