Idaho Strategic rises on gold property acquisition from Hecla

Idaho Strategic Resources (NYSE-A: IDR) surged on Friday after purchasing a land package to consolidate its position within the Murray gold belt region, where it already operates the Golden Chest mine.

In a press release earlier, Idaho Strategic said it paid Hecla Mining Company $300,000 cash to acquire the Toboggan project. Hecla also retains a 1% net smelter royalty on parts of the property not previously owned by IDR.

The Toboggan property, covering mining claims and prospects for a total of 143.5 acres, was once explored by Newmont, which identified two large anomalies while exploring for gold, silver and tellurium during the 2000s. Hecla, which operates the Lucky Friday silver mine in the state, later took on the project.

Idaho Strategic said its acquisition of Toboggan represents the first time that a company has united two major components of the Murray gold belt, which has a rich mining history dating back to the 1880s and is viewed as the predecessor to the famous Coeur d’Alene mining district of Idaho.

The company said its management team also has familiarity with the Toboggan project, as VP exploration Rob Morgan previously worked on the project while at Newmont, focusing specifically on the Idaho-Montana region.

“The land package and geology are familiar to us, with similar host rocks and faulting. Given our operating mine and on-site geology staff championing the project, IDR is best suited to adequately and thoroughly evaluate the potential of this impressive land package,” Morgan stated.

Shares of Idaho Strategic rose 4% on Friday to $17.07, with a market capitalization of $240.6 million.

Ready to explore

The company has so far consolidated a land package of 7,300 acres containing numerous historic mines such as the Giant Ledge, Goldback, Buckskin and King. It currently owns and operates the Golden Chest mine — the largest in the district by gold production and size.

“The Toboggan project was one of the reasons I was originally drawn to the company over a decade ago, so it is good to once again have this horse back in the stable,” Idaho Strategic CEO John Swallow added.

“We have always thought the Toboggan project held many quality prospects, and we are a much different company today than in the early 2000s. Regardless of whether a company is large or small, projects need an internal champion to get advanced.”

The company has previously been focused on the gold-production side of its business after bringing its Golden Chest mine into production in 2016. Recently, it said it is now in “a position to invest in the exploration side”, having recently begun Phase 1 drilling in the Murray gold belt.

In parallel to precious metals, Idaho Strategic is also exploring for critical minerals in Idaho. According to the company, its rare earth elements properties represent the largest land package in the country.