The IMA Mine Project At-A-Glance
Legacy Asset With Historical Tungsten Production & Optionality to Explore for Significant Molybdenum
A De-Risked, Brownfield Tungsten-Molybdenum Project
- Advanced, past producing tungsten-molybdenum property principally located on patented mining claims.
- A substantial amount of capital has been allocated over many years to fund and advance the project by a variety of junior and senior mining exploration companies (including Bradley Mining Co, AMAX, and Inspiration Development, a subsidiary of Anglo American), with the most recent investments being made in 2008.
- Extensive tungsten-molybdenum- and silver-related exploration and drilling work demonstrates potential for readily permittable short-term small scale tungsten production.
- Immediate opportunity to advance strong identified molybdenum-bearing intrusion targets located below historic tungsten production area through step-out drilling program.
- Property is accessible from nearby paved roads with access to key infrastructure items and resources, including tier-1 low-cost power supply, water rights, and a miningoriented labour force.
History of The IMA Mine Project
Legacy Asset With Historical Exploration, Development, and Production Work Completed
1881-1934
- IMA Mine begins operations as a silver mine.
- Tungsten was discovered at the mine in 1903, but serious operations did not take place until 1911 when the Idaho Tungsten Company secured a 7-year lease on the property.
- Tungsten ore was concentrated using a 50tpd mill in 1911.
- During WWI, the mine’s recovery rate was ~26%, and concentrate was 45-50% WO3.
1945-1979
- In 1945, Bradley Mining Co. (“Bradley”) optioned and operated the mine, producing at least +114.1k standard units of tungsten throughout its operations In 1951, Bradley was awarded a contract with the Defense Minerals Exploration Administration. Underground mining ceased in 1957.
- In 1961, American Metal Climax (“Climax”) leased the mine and sampled the property; work included rehabilitating some of the mine openings and taking 4,214 ft of channel-chip samples and 1,419 ft of grabchip samples; in 1962, Climax conducted a drilling program at the mine.
- In 1970, Midwest Oil Co. of Denver conducted exploration work at the mine and continued exploration and development in 1971; work included 870 feet of drifting and crosscutting, 2,055 ft of diamond drilling, and 250 ft of percussion drilling.
1979-1982
- In 1979, Inspiration Development (a subsidiary of Anglo American) explored the mine for tungsten and molybdenum.
- Inspiration had been looking at the mine as a molybdenum prospect but decided to explore for tungsten; Inspiration continued feasibility studies in 1980 and conducted an exploratory diamond drilling program (~12000 ft) and delineated mineral resources within the tungsten zone of the ore body;
- In 1981, the mine passed from exploration to the development stage. Early in 1982, the company started a 14×16 ft development drift; the drift was 150 ft long when all work on the property stopped because of lower tungsten demand and prices.
2008-2010
- In 2007, Gentor Resources optioned the mine and explored for molybdenum.
- In March 2008, Gentor completed the drilling of 10 holes (25,000 ft), confirming historical drilling results and locating an area of higher grade molybdenum mineralized east of the main mine area.
Selected Drill Results:
- Hole 27: 1,586 ft grading 0.135% MoS2, including intercepts of 475 ft grading 0.247% MoS2, 0.021% W, 0.085% Cu and 0.095 oz/ton Ag.
- Hole 23: 675 ft grading 0.144% MoS2, 0.037% W, 0.25 oz/ton Ag, incl. 225 ft grading 0.280% MoS2, 0.04% W, 0.42 oz/ton Ag.
- Hole 30: 368 ft grading 0.269% MoS2, 0.102 oz/ton Ag.
Summary of Historical Production
1934-1982
Total Ore
743,069 t
Total Tailings
3,314 t
Gold
302 oz
Silver
1,296 oz
Copper
1,813,758 lbs
Lead
2,921,509 lbs
Zinc
20,581 lbs
Tungsten (WO3)
(1983 tons)
Potential For Near Term Underground Development Of Tungsten Mineralization
Building America’s First Tungsten Mine
Favourable Jurisdiction
- Property is located on patented mining claims in mine-friendly Idaho.
- Underground mining operations on patented claims are administered by state agencies; costly EIS through NEPA process not anticipated; only state reclamation bond, and ancillary permits are anticipated (air, water).
Strong Historical Work & Data
- Vein systems are accessible underground from 1980s rehabilitation of “zero” and “D” levels and existing access roads.
- Only limited underground drilling is anticipated to delineate short-term production volumes.
Access to Quality Resources
Local communities can provide skilled workforce.
Access to nearby paved roads and grid power to site.
Potential to ship concentrates to millsites in northern Idaho or Montana.
The IMA Mine Project Mineralization
Climax-Type Molybdenum Porphyry System
Tungsten
- Tungsten bearing quartz veins with hubnerite, scheelite, tetrahedrite, galena, sphalerite, and chalcopyrite.
- Veins occur within metasediments along aniclinal hinge structurally above Eocene granitic stock.
- System is contiguous along strike for over 2000 feet, 900 ft wide and 700 feet vertically.
Molybdenum
- Disseminated and vein hosted molybdenite in potassic altered Eocene intrusives below IMA mine area.
- Late Gentor drilling delineated higher MoS2 east of the IMA mine area.
These historical resource estimates pre-date the implementation of NI 43-101 and do not use categories stipulated by CIM. Prior operators assigned confidence categories which differ from those stipulated by CIM, as they may not have demonstrated economic viability. The estimates should not be relied upon until they have been verified. Neither American Tungsten, nor its Qualified Person, has not done sufficient work to classify the historical estimates as current mineral resources. American Tungsten is not treating the historical estimates as current mineral resources or mineral reserves. The historical estimates are relevant as they demonstrate the tenor and size of exploration targets that exist on the property. Additional work, including drilling, validation sampling, and assessment of reasonable prospects for economic viability, would be required to upgrade or verify the historical estimates as current mineral resources.
IMA Historical Resources and Reserves
These historical resource estimates pre-date the implementation of NI 43-101 and do not use categories stipulated by CIM. Prior operators assigned confidence categories which differ from those stipulated by CIM, as they may not have demonstrated economic viability. The estimates should not be relied upon until they have been verified. Neither American Tungsten, nor its Qualified Person, has not done sufficient work to classify the historical estimates as current mineral resources. American Tungsten is not treating the historical estimates as current mineral resources or mineral reserves. The historical estimates are relevant as they demonstrate the tenor and size of exploration targets that exist on the property.
1963 & 1981 Non-43-101 Compliant Estimates of Mineralized Materials
Bradley Mining Company
Following closure, in a report dated Jan 9, 1963, BMC Geologists estimated tungsten ore reserves based on polygonal sectional methods of 352,000 tons with probable recoverable grades of 0.5% WO3, 0.19% Cu, 0.22%Pb, and 1.9 oz Ag(1).
Inspiration Development Company
Polygonal estimates by Inspiration, applying a minimum width criteria and supported by ~12,000 ft of additional drilling and extensive underground sampling, and inclusive of BMC reserves calculated 1.023M tons of “Probable” and “Highly Probable” material grading 0.63% WO3, 0.042% MoS2, and 1.79 Oz/t Ag, and an additional 419k tons of “possible ore”(2).
The Law of the Apex, governing mineral ownership, may be applicable to some historical estimates of mineralized materials spanning property boundaries.
2008 Wardrop Mineral Resource Estimate
Gentor Resources
Gentor Resources reported a 43-101 compliant Mineral Resource Estimate prepared by Wardrop Engineering for the molybdenum ore body occurring below the IMA mine. The estimate does not include the area encompassing mineral reserves reported in historical estimates.
The estimate is supported by limited information including only 13 drillholes.
The estimate reports inferred Mineral Resources of 5.7M tons grading 0.15% Mo.
No Mineral Resources were classified as Indicated.
(1) Joralemon, P., Mineralization at the IMA Mine, Bradley Mining Company, Patterson, Idaho, Jan 9, 1963; 24p.
(2) Inspiration Development Co., 1980; 1980 Progress Report, IMA Property, ID, 1980, 12p.
(3) Wardrop Engineering, 2008; Technical Report on the IMA Mine Molybdenum Project, July 2008, 51p.
Overview of Key Acquisition Terms
8-Year Option Agreement for 100% Interest In the IMA Mine Project
Summary of IMA Mine Project Option Cash Payments
US$
@ Close
$100,000
@ 6-Month
$50,000
@ 1-Year
$100,000
@ 2-Year
$130,000
@ 3-Year
$150,000
@ 4-Year
$250,000
@ 5-Year
$250,000
@ 6-Year
$770,000
@ 7-Year
$1,000,000
@ 8-Year
$3,000,000
Total
$5,800,000
Net Smelter Return Royalty: 2.0% on Mo, Cu, Pb, Zn, W, Ag, Au, and all other ore products(1)
Source: Company Filings
(1) 1.0% of NSR Royalty can be repurchased on or before the fourth year for US$2.0MM.
