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by Stockwatch Business Reporter

New York spot gold gained $11.30 to $1,266.70 on Friday. The TSX Venture Exchange gained 8.73 points to 808.59 while the TSX Gold Index rose 1.54 points to 209.49. Guyana Goldfields Inc. (GUY) bucked the upward trend today. It lost eight cents to $5.46 on 2.68 million shares.

Robert McLeod's IDM Mining Ltd. (IDM), unchanged at 14.5 cents on 326,000 shares, has closed its acquisition of the Red Mountain gold project, near Stewart in northwestern British Columbia, from Seabridge Gold Inc. (SEA: $13.86). IDM now holds a 100-per-cent interest, having completed the requirements of an option arrangement set up three years ago. Mr. McLeod, president and chief executive officer, says that acquiring title to Red Mountain is "another significant step" for IDM, adding that he and his crew are "excited for further milestones" on the road to a production decision.

Red Mountain hosts 2.07 million tonnes measured and indicated at 8.75 grams of gold and 24.82 grams of silver per tonne. Another 324,000 tonnes are inferred at 6.21 grams of gold and 10.11 grams of silver per tonne, for a combined 650,000 ounces of gold and 1.75 million ounces of silver. IDM has been drilling this year to expand the resource and results have been encouraging. A recent step-out hole produced 12.95 grams of gold and 48.83 grams of silver per tonne over 6.23 metres in the AV zone. The latest intercepts are unlikely to be included in the feasibility study that Mr. McLeod says the company will "release shortly," but investors are expecting a cheerful result nevertheless. A preliminary economic assessment, completed last year, projected a $111-million, 1,000-tonne-per-day mine with a discounted net present value of $86.6-million.

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