Idaho Strategic Receives Grant Funding to Support Power Infrastructure Upgrades to the Golden Chest Mine

Rhea-AI Summary

Idaho Strategic Resources (NYSE American: IDR) has been awarded a $430,000 grant from Idaho's Rural Community Investment Fund (RCIF) for power infrastructure upgrades. This joint application with Shoshone County and Avista Utilities will benefit the Golden Chest Mine and surrounding communities. The upgrade will support the planned addition of a paste backfill system and increased mine development efforts.

Key points:

• The project covers nearly 23 line-miles between Wallace and Murray
• Construction of the paste backfill plant is expected to begin this summer
• IDR has committed to creating 6 new jobs and retaining 10 current jobs by April 2027
• The company may face potential reimbursement if job creation targets are not met

This grant demonstrates Idaho's support for mining and IDR's positive impact on local economies. The power upgrade is a important step towards potential future expansion in the Murray Gold Belt.

Positive

• Received maximum grant of $430,000 for power infrastructure upgrades
• Upgrade will support paste backfill system addition and increased mine development
• Benefits extend to surrounding communities of Murray and Prichard
• Demonstrates state and county support for IDR's operations
• Potential for future expansion in the Murray Gold Belt

Negative

• Potential reimbursement to the State of Idaho if job creation agreement is not satisfied

Financial Analyst

The $430,000 grant for power infrastructure upgrades is a positive development for Idaho Strategic Resources (IDR). This funding will support the company's expansion plans, particularly the addition of a paste backfill system and increased mine development efforts at the Golden Chest Mine. The upgrades are crucial for future growth, potentially enabling the construction of a new mill in the Murray Gold Belt.

From a financial perspective, this grant reduces capital expenditure burden on IDR, improving its cash flow position. The company's commitment to job creation (6 new jobs) and retention (10 current jobs) by April 2027 demonstrates potential for sustainable growth. However, investors should note the reimbursement clause if job targets aren't met, which represents a minor financial risk.

Overall, this news indicates positive government support for IDR's operations and suggests a favorable operating environment in Idaho for mining companies. This could potentially enhance IDR's long-term value proposition for investors interested in both gold and rare earth elements sectors.

Mining Industry Expert

The power infrastructure upgrade funded by this grant is a significant operational enhancement for Idaho Strategic's Golden Chest Mine. The planned paste backfill system is a crucial technological advancement that can improve mine stability, safety and potentially allow for more efficient ore extraction.

The company's strategy to potentially build a new mill in the Murray Gold Belt signals ambitious expansion plans. This approach could lead to economies of scale and increased production capacity, positioning IDR for district-scale operations. The power upgrade is a foundational step towards realizing these larger goals.

IDR's dual focus on gold production and rare earth elements exploration is strategically sound given current geopolitical tensions and supply chain concerns. This diversification could provide a competitive edge in the mining sector, especially with IDR holding the largest rare earth elements land package in the U.S. Investors should watch for future developments in both these areas as indicators of the company's growth trajectory.

Community Development Specialist

The grant-funded power infrastructure upgrade represents a win-win situation for both Idaho Strategic Resources and the local communities. By improving power supply to Murray, Prichard and rural residents along the 23 line-miles of upgrades, IDR is fostering positive community relations and demonstrating corporate social responsibility.

The company's commitment to job creation and retention is a significant boost to the local economy. Mining jobs typically offer above-average wages, which can have a multiplier effect on local businesses and services. This aligns with the state's rural development goals and could lead to continued government support for IDR's operations.

The strong working relationship with Avista Utilities and support from Shoshone County indicate a favorable stakeholder environment. This collaborative approach can be important for navigating regulatory processes and securing future permits. For investors, this suggests a reduced risk of community opposition or regulatory hurdles, which are often significant challenges in the mining industry.

COEUR D'ALENE, ID / ACCESSWIRE / August 8, 2024 / Idaho Strategic Resources, Inc. (NYSE American:IDR) ("IDR", "Idaho Strategic" or the "Company") is pleased to announce that its joint application with Shoshone County and the support of Avista Utilities to Idaho's Rural Community Investment Fund (RCIF) was awarded the maximum $430,000 allowable toward upgrades to public power infrastructure for the benefit of the unincorporated town of Murray, Idaho and Idaho Strategic's Golden Chest Mine, among others.

The power infrastructure upgrade is expected to provide enough power to the Golden Chest Mine to service the planned addition of a paste backfill system and increased mine development efforts. Additionally, the power infrastructure upgrades are expected to benefit the surrounding communities of Murray and Prichard, as well as the rural residents who live along the nearly 23 line-miles of planned upgrades between Wallace and Murray. Site preparations for construction of the paste backfill plant are complete, and construction activities are expected to begin later this summer and continue through the fall. The paste backfill plant and power upgrade are two key steps along the way to potentially building out a new mill in the Murray Gold Belt to facilitate future exploration and expansion activities on a district scale.

Idaho Strategic's President and CEO, John Swallow stated, "It is nice to receive this level of support from the State of Idaho and Shoshone County. This is not only a testament to Idaho's reputation as a mining and business friendly jurisdiction, but also IDR's track record of production and goodwill built over the past decade. Our guys are proud of where we live and work and we are happy to help the local economies of Murray, Prichard, and the broader Shoshone County in a meaningful way. This is one of the rare examples where I truly believe it is a win for all of the stakeholders involved. I would also like to thank Avista Utilities for their continued support of our community. Our strong working-relationship with the Avista folks was a major benefit throughout the grant application and approval process, and we look forward to continuing to work together."

Shoshone County Board of Commissioners commented, "Shoshone County is excited to participate in this partnership process with the Golden Chest Mine, the State of Idaho, and Avista for the benefit of everyone living and working in this county, and especially for the residents of Prichard and Murray, and Idaho Strategic Resources. We're excited to see mining making a comeback and appreciative of the quality jobs it creates and helps sustain for our citizens now and in the future."

As a part of the RCIF grant, Idaho Strategic entered into a job creation and retention agreement with the State of Idaho and Shoshone County. IDR has committed to create a minimum of six new jobs, while retaining ten current jobs by April 2027, as its expansion activities in the Murray Gold Belt and at the Golden Chest Mine are realized. The State of Idaho is entitled to a potential reimbursement of funds from the Company if the job creation agreement is not satisfied. The amount of potential reimbursement to the State of Idaho will be determined on a pro rata rate per job included in the job creation agreement that is not created within the expected timeframe.

About Idaho Strategic Resources, Inc.

Idaho Strategic Resources (IDR) is an Idaho-based gold producer which also owns the largest rare earth elements land package in the United States. The Company's business plan was established in anticipation of today's volatile geopolitical and macroeconomic environment. IDR finds itself in a unique position as the only publicly traded company with growing gold production and significant blue-sky potential for rare earth elements exploration and development in one Company.

For more information on Idaho Strategic Resources, visit https://idahostrategic.com/presentation/, go to www.idahostrategic.com or call:

Travis Swallow, Investor Relations & Corporate Development

Email: tswallow@idahostrategic.com
Phone: (208) 625-9001

Forward Looking Statements

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are intended to be covered by the safe harbor created by such sections. Often, but not always, forward-looking information can be identified by forward-looking words such as "intends", "potential", "believe", "plans", "expects", "may", "goal', "assume", "estimate", "anticipate", and "will" or similar words suggesting future outcomes, or other expectations, beliefs, assumptions, intentions, or statements about future events or performance. Forward-looking information includes, but are not limited to, Idaho Strategic Resources' plans and timeline to build the paste backfill system as well as complete the power upgrades, the Company's plans to increase its mine development activities, the potential for mine expansion at the Golden Chest, the potential for increased exploration activities in the Murray Gold Belt, the potential for the paste backfill system and power upgrades to lead to the construction of a new mill, the potential for a new mill to have a material benefit to the Company's existing operations, the potential for a new mill to unlock the Murray Gold Belt on a district scale, the potential for the Company to meet its job creation goals outlined in the RCIF Grant, the potential for Idaho Strategic Resources to repay the RCIF Grant, and the potential for Avista Utilities to help fund the power upgrades. Forward-looking information is based on the opinions and estimates of Idaho Strategic Resources as of the date such information is provided and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of IDR to be materially different from those expressed or implied by such forward-looking information. Investors should note that IDR's claim as the largest rare earth elements landholder in the U.S. is based on the Company's internal review of publicly available information regarding the rare earth landholdings of select companies within the U.S., which IDR is aware of. Investors are encouraged not to rely on IDR's claim as the largest rare earth elements landholder in the U.S. while making investment decisions. The forward-looking statement information above, and those following are applicable to both this press release, as well as the links contained within this press release. With respect to the business of Idaho Strategic Resources, these risks and uncertainties include risks relating to widespread epidemics or pandemic outbreaks, if they occur, including our ability to access goods and supplies, the ability to transport our products and impacts on employee productivity; interpretations or reinterpretations of geologic information; the accuracy of historic estimates; unfavorable exploration results; inability to obtain permits required for future exploration, development or production; general economic conditions and conditions affecting the industries in which the Company operates; the uncertainty of regulatory requirements and approvals; fluctuating mineral and commodity prices; the ability to obtain necessary future financing on acceptable terms; the ability to operate the Company's projects; and risks associated with the mining industry such as economic factors (including future commodity prices, and energy prices), ground conditions, failure of plant, equipment, processes and transportation services to operate as anticipated, environmental risks, government regulation, actual results of current exploration and production activities, possible variations in ore grade or recovery rates, permitting timelines, capital and construction expenditures, reclamation activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Readers are cautioned not to place undue reliance on such information. Additional information regarding the factors that may cause actual results to differ materially from this forward‐looking information is available in Idaho Strategic Resources filings with the SEC on EDGAR. IDR does not undertake any obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

SOURCE: Idaho Strategic Resources, Inc.

View the original press release on accesswire.com

FAQ

What is the amount of the grant received by Idaho Strategic Resources (IDR) for power infrastructure upgrades?

Idaho Strategic Resources (IDR) received a grant of $430,000, which is the maximum allowable amount from Idaho's Rural Community Investment Fund (RCIF) for power infrastructure upgrades.

How will the power infrastructure upgrade benefit IDR's Golden Chest Mine?

The power infrastructure upgrade will provide enough power to the Golden Chest Mine to support the planned addition of a paste backfill system and increased mine development efforts.

What job creation commitments has IDR made as part of the RCIF grant?

As part of the RCIF grant, IDR has committed to creating a minimum of six new jobs and retaining ten current jobs by April 2027.

When is the construction of the paste backfill plant expected to begin at IDR's Golden Chest Mine?

Construction activities for the paste backfill plant are expected to begin later this summer and continue through the fall.

What potential risk does IDR face regarding the job creation agreement?

IDR faces a potential reimbursement of funds to the State of Idaho if the job creation agreement is not satisfied within the expected timeframe.