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Feature article July 22, 2014:

 

 

Integra Gold adding high-grade ounces along Cadillac Trend & advancing toward production

     

Integra Gold Corp.

(TSX-V: ICG) (US: ICGQF) (Frankfurt: K1IA)

 

ICG.V presents opportunity for astute investors;

 

ICG.V appears poised for sizeable share price appreciation as current market cap (~$45M) appears disproportionate relative to its intrinsic value and PEA production metrics.

 

Established intrinsic value:

  • Current resource at Integra's Lamaque Project is 756,280 ounces Gold Indicated (3,325,300 Tonnes @ 7.1 g/t) and 293,710 ounces Gold Inferred (851,400 Tonnes @ 10.8 g/t). This will increase considerably near-term -- see value drivers.

  • Integra is funded to meet current program goals and obligations; see related related June 27, 2014 news "Integra Gold Closes $10,045,124 Private Placement".

  • ~C$10 million additional intrinsic value via >C$30 million loss carry forward asset accrued from efforts to date.

Value drivers:

  • Updated resource estimate expected in Q3; current resource was based off ~105,000 m of drilling, however ICG.V has completed over 60,000 m more (>50% more) that has not yet been incorporated into a new resource.

  • Continued quality intercepts; Integra has completed its winter 2014 Triangle Zone drill program and results to date have been very high-grade; e.g. (April 22, 2014) 38.2 g/t Gold over 7 m including 241.0 g/t Gold over 1 meter, & (March 25, 2014) 23.02 g/t Gold over 5 m & 31.24 g/t Gold over 3 m, (May 21, 2014) 14.2 g/t Gold over 11.0 m, 10.5 g/t Gold over 13 m & 26.5 g/t over 6 m. ~20,000 m more drilling planned for Summer 2014.

  • Feasibility will build on PEA production metrics; PEA shows >110,000 oz Gold production per annum at all-in sustaining cost of CAD$805/oz and peak annual production of 143,300 Gold oz -- large enough to pique the interest of larger miners. Economics of project work even at US$1,000 gold.

  • Highly prospective for new high-grade discovery.

  • Experienced management & skilled technical leadership.

  • Located in infrastructure-rich Val-d'Or, mining-friendly Quebec, with several feed-hungry gold mills with excess capacity within 15 km.

 

 

Notes from the editor on feature article:

 

Valuation Commentary: Integra Gold Corp. (TSX-V: ICG) (US Listing: ICGQF) (Frankfurt: K1IA) has built-up significant ounces at its 100% owned high-grade Lamaque Gold Project located in Val-d’Or, along the prolific Cadillac Trend in Québec and is accreting value through de-risking development as it advances toward production. The Lamaque Project is one of the highest-grade advanced exploration-stage gold projects in Québec, the majority of Indicated resources are above 600 meters vertical, and ICG.V is now positioned for a near-term underground mining gold production scenario with a solid Preliminary Economic Assessment (PEA) in hand. The current resource is 756,280 ounces Gold Indicated (3,325,300 Tonnes @ 7.1 g/t) + 293,710 ounces Gold Inferred (851,400 Tonnes @ 10.8 g/t). This resource was based off ~105,000 m of drilling, however ICG.V has completed over 60,000 m more (>50% more) that has not yet been incorporated into a new resource. An updated resource is planned for Q3 2014 and is expected to be impressive as intercepts to date have been stellar high-grade. Integra is currently in the midst of a 45,000 m definition and exploration drill program (ICG recently finished up ~25,000 m on the Triangle Zone) and the assays reported to date have been outstanding. On July 9, 2014 Integra announced it had mobilized three diamond drill rigs for the summer program at Lamaque.

 

Integra's Lamaque Gold Project is directly adjacent to over 9 million oz of historic gold production from the Lamaque Mine (historically operated by Teck) and Sigma Mine (historically Placer Dome), each produced ~4.5M oz. The characteristics of Integra's main high-grade gold zones (plugs) are remarkably similar to the historic main plug that Teck mined; gold-laden material is contained within intrusive plugs (picture a 200 - 300 metre-wide cylinder going straight down). In its genesis, millions of years ago, the cooling magma cracked and the voids filled with mineralization. Teck's Lamaque Mine main plug was essentially a ~250 m wide target mined to just over 1,000 m and just that one plug itself produced 3.7 million ounces of the Lamaque Mine’s 4.5 million ounces. The neighboring Sigma Mine was mined to a depth of 2,000 meters, and while Integra has intersected high grade mineralization in its deepest holes at 1200 m, it is focusing its efforts on near surface ounces, above 600 meters. These are high-grade plugs that come to surface, filled with narrow veins, which have a proven history of successful underground mining. Typically the Sigma and Lamaque mines operated with seldom more than 3 years of mine life in reserves, and often less than one (as it makes little sense to spend money drilling deep when you are heading deeper anyways, and the geological model dictates the likelihood high-grade gold just keeps going), yet they were mined successfully for 50 years at Lamaque and 60 years at Sigma, adding as they progressed -- Integra appears to be looking at a similar scenario, however ICG.V is already ahead of matters as it has already proven up 4.5 years of mine life off its existing resource which has not been updated with over a year’s worth of new drilling and is actively adding to that. Integra's Phase 3 metallurgical testing has yielded results of up to 98% gold recovery.

  

Figure 1. Integra relative to two adjacent historic past producing (>9M oz Gold historic production) mines & similarities of intrusive plugs

 

ICG.V's Lamaque Project is comprised of 3 main clusters of mineralization with the Triangle Zone and Parallel Zone currently being Integra's two highest-grading and advanced zones/plugs, all within close proximity to one another;

 

1) The North Cluster is comprised of the Parallel, Fortune, No. 5 Plug, and No. 3 Mine Zone,

2) The South Cluster (located ~1.5 km southeast from the North Cluster) hosts the No. 4 Plug, Triangle and Triangle South Zones,

3) The West Cluster hosts the Sixteen Zone and No. 6 Vein.

 

Preliminary Economic Assessment & advancing toward production: This March Integra Gold released a Preliminary Economic Assessment (PEA) (click here to view release) on a mining scenario using outsourced toll milling for its main high-grade plugs at Lamaque. Integra's Lamaque Gold Project is situated in infrastructure-rich Val-d'Or where several gold mills with excess capacity are within 15 km. The PEA shows a pre-tax IRR of 51%, a NPV (5%) of CAD$146.0 M (After-Tax CAD$88.5 M), and peak annual production of 143,300 ounces gold. It is very rare to see a low cap-ex ($70M), safe jurisdiction, low op-ex gold project with a production profile of over 100,000 oz per year – Mining MarketWatch Journal is not aware of any others. Besides the fact ICG.V has been expanding zones immensely since the data cut-off used, it also has a number of strategic options to improve on the already quality PEA numbers. In the PEA it used $45/T for milling and transport (based on solid quotes), however if it acquires a mill we estimate based on milling statistics from the area it may be able to recover $20 - $25/T off that -- considering ICG.V plans to mill ~1/2 a million tonnes a year, we are talking ~$10 - $12 million in cash flow savings.

 

The deposits are very easy to access in that high-grade mineralization comes to surface. The PEA lays out a scenario with one ramp into the Parallel plug and ~3 months later there would be a ramp at the Triangle Zone plug. Since 50 to 70% of the $69.2M pre-production capex is in the ramps, if market conditions are tight ICG.V has the option of starting with just one ramp and push back the second, then it would cash flow from one to get to the other (such a move could take ~$20 - $25M off its capex -- we note that ICG.V announced (June 10, 2014) it is exploring such an option by commissioning a revised PEA aimed at improving on the already quality metrics).

 

The PEA used between a 4 and 4.5 g/T gold cut-off depending on the mining method employed. Although ICG.V has over 1 million ounces globally in its resource (Indicated and Inferred) using a 3 g/T cut-off, it is the 5 g/T cut that the grades shine; the Triangle sits at 12.6 g/T gold and the Parallel is at 10.4 g/T gold Indicated, and 15.4 g/T gold for Triangle and 21.2 g/T gold for Parallel Inferred. With these grades and the fact they are the same geology as Sigma and Lamaque which mined for 50 -60 years literally a few hundred meters away, there is no doubt Integra will only continue to strengthen and attract the attention of larger miners.

 

Assuming Integra's application for certificate of authorization (CA) (expected to be filed this Q2) is approved without hiccups, ICG.V could be permitted to build its ramps underground by the end of the year. Ideally ICG.V will build the ramp(s), get underground, drill the veins from very close proximity, and then incorporate the underground drilling into a feasibility study. Drilling in this fashion is important as this type of system also contains subvertical (straight up and down) veins. When subverticals intersect others, historically at Sigma and Lamaque they were called 'jewelry boxes'; quartz with incredible amounts of visual gold embedded. When ICG.V does a resource estimate these bonanza grade intersections are essentially ‘capped out,’ however it has had intersections before of 950 g/T over 1 m. When ICG.V drills from surface it has no idea how many of these straight up and down veins there are as it is drilling along them, when it gets underground it can drill across them and get a much better feel for what is there. The saying in Val d’Or for almost 100 years has been, ‘drill for structure, drift for grade.’ This means a successful drill program is one that hits the structure, or the quartz veining, regardless of grade, as it is not until the miners drift right into the zone the true gold content is realized. Luckily for Integra they have incredible amounts of information from a long and rich history of mining on a very similar deposit right next door.

 

Integra Gold appears to presents exceptional opportunity for investors seeking exposure to precious metals. Integra is approaching critical mass with all it has in its favor, and given the extra 60,000+ m of drilling its done, given it has more results coming up, given an updated resource estimate on the way incorporating that additional drilling, and then factoring in the geophysics indicating a number of high priority targets are highly prospective for even more new high-grade discovery -- we see ICG.V as a much bigger company by the end of this year, when the production ramp(s) as per the PEA take center-stage. Especially as the PEA built on the existing resource, not including any of the additional drilling, provides a very attractive scenario as is.

 

Accreting value through de-risking development toward production: An objective look at generally accepted principles of investing in publicly traded mining/exploration companies reveals ICG.V is advancing its Lamaque Gold Project from the development stage toward production via de-risking the asset and executing on the development timeline;

 

 

The value creation in resource development lies in the de-risking of the project uncertainty (technical, execution, financing, permitting, among others) as the company moves the asset from concept toward cash flow -- the recent announcement by Integra Gold Corp. regarding the oversubscription for its latest private placement demonstrates sophisticated investors are positioning to capitalize on Integra's ability to continue executing on its plan.

 

Recently completed and near-term events for Integra Gold Corp.:

 

With ~186 million shares outstanding (~225M fully diluted) it appears ICG.V is on sale trading with a market cap under $50M; ICG.V has a sizeable high-grade resource (set to grow larger in Q3), is funded to meet current program goals and obligations with ample cash in the bank (see related related June 27, 2014 news "Integra Gold Closes $10,045,124 Private Placement"), has a PEA that shows >110,000 ounces per annum with numbers that make sense even at US$1,000/oz gold (the PEA estimates a cash-cost + sustaining cost of CAD$805 per ounce and gold is currently at ~CAD$1,410 per ounce), and also has >C$30 million loss carry forward sitting on its balance sheet from accrued efforts to date (this carry forward alone represents at least ~C$10 million additional intrinsic value). No doubt ICG.V is positioned for potential extraordinary share price appreciation over the coming months and years as the reality of the large inherent value that the Company possesses is understood by the market.

 

Mining expert Jay Taylor of Hard Money Advisors recommends Integra Gold (ICG.V) to clientele

 

Mining analyst Jay Taylor of Hard Money Advisors released an advisory to his paid subscriber base, recommending they consider a long position in Integra Gold Corp.
 

Full copy of Mr. Taylor's advisory along with chart and additional insight may be viewed at http://sectornewswire.com/ICGJayTaylor-2014-05-09.pdf online.

 

Mr. Taylor has a business MBA in Finance & Investment, in-depth accredited studies in geology, has decades of mining sector analysis under his belt, and is known for being reserved in his advice, thus investors should pay attention when he does decide a company is poised to appreciate in value and worth adding to watch list for superior return potential; ICG.V is now in that category.

 

"I believe, Integra Gold is setting itself up to richly reward investors who enter these shares at their current price...

...advanced planning is taking place on establishing this mine, and by the end of this year, we should see significantly higher resource numbers that should add value to this company’s shares."

  

"With a total resource of over 1 million ounces and growing, combined with all of the above-noted advantages, entering this stock with a market cap of under US$30 million looks highly attractive to me, especially if you believe, as I do, that we are about to enter the next major stage of this gold bull market of a lifetime." - Jay Taylor May 9, 2014

 

     Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer

Figure 2. Subject Company's Logo

Integra Gold Corp. (TSX-V: ICG)
     

       Integra Gold Corp. is a Canadian based mineral exploration mining company listed on the TSX Venture Exchange (ticker symbol ICG). The Company has come to our attention due, in part, to the exceptional opportunity afforded shareholders as ICG.V is advancing its 100% owned high-grade Lamaque Gold Project located in Val-d’Or, along the prolific Cadillac Trend in Québec toward production and continues to add ounces.

  

Lamaque Gold Project - Quebec - 100% Owned,  2% NSR to Teck (ICG.V can buyback 1% for $2M), 1459 ha

  

Region and Infrastructure

 

Integra's Lamaque Gold Project is Located along the Cadillac Trend in the prolific Val d'Or, Quebec, gold mining district

Figure 3. Area satellite map view, Integra's Lamaque Gold Project in yellow

 

The southern Abitibi greenstone belt has seen over 170 million ounces of gold production history.

 

In a world class mining camp and stable mining-friendly region:

 

• One of Canada’s highest concentrations of historic gold producers, and two historic world class mines adjacent to Integra, the Lamaque (Teck) and Sigma (Placer) mines, each produced over 4.5 M ounces of Gold.

 
• Excellent regional infrastructure with excess milling capacity and mill acquisition opportunities. There are right now 6 operating mills within ~30 km that could potentially process material from Integra's Lamaque; 2 of those are bankrupt, 2 have an estimated less than 18 months mine life left, and there are some larger ones that are operating but not running at full capacity, and there is one that is just sitting on blocks.

 

The less than stellar market-climate for mining has created opportunity on the infrastructure front; Integra is not looking at building the capex of, nor the time-frame of, nor the permitting of, associated with building and paying for a milling facility. The closest one to Integra is less than 1 km away. Integra has many options open to it, including the possibility of acquisition.
 

• Val-d’Or (population ~35,000) is a very supportive mining community with an experienced labor force and all necessary mining services (contractors, drillers, etc.). The proximity of the city to Integra’s project reduces housing, transportation and labor costs for the Company. Val-d'Or was originally brought into existence specifically to house workers and provide support for the Sigma and Lamaque Mines. Some of the best underground workers in the entire world call Val-d'Or home, they are highly experienced in tracking narrow high-grade vein underground type mines -- the exact type of deposit Integra is proving up. Integra's plans do not interfere with any infrastructure of the town (the aquifer is on other side town (far away from Integra)).

 
• Québec, voted #11 mining jurisdiction in the Fraser Institute Global Mining Survey 2013. Québec is one of the safest and highest rated mining jurisdictions in the world with established mining processes and regulations.

 
• Integra receives tax incentives: Federal and Provincial tax incentives for exploration. The Québec government reimburses 32% of exploration costs; see recent related news release entitled "Integra Gold Receives $441,284 from Québec Resource Tax Rebate, Provides Lamaque Project Update".

 

• Integra has access to Québec based institutions created to support mining exploration/development in Québec. There are special funds set up in Québec specifically to help advance exploration and development projects within the province, something we don't see in any other provinces in Canada -- Intergra has received substantial support from these groups, especially helpful in tough market climates.

  

Current resource at Integra's Lamaque Gold Project

click to access March 2014 NI 43-101 Technical Report on Lamaque Property [PDF]

 

Gold Resources - January 2014

  Indicated Resources   Inferred Resources
Cut-Off Grade Ounces Grade (g/t Au) Tonnes   Ounces Grade (g/t Au) Tonnes
3 g/t Au 756,280 7.1 3,325,300   293,710 10.8 851,400
5 g/t Au 569,410 9.8 1,812,100   258,850 13.9 582,300

 

Breakdown by Zone

  Indicated Inferred
Zone Tonnage
(metric tonnes)
Grade
(g/t Au)
Contained Ounces (Au) Tonnage
(metric tonnes)
Grade
(g/t Au)
Contained Ounces (Au)
Fortune (1) 125,500 5.8 23,600 252,300 5.6 45,220
Triangle (2) 599,700 9.9 190,670 332,300 12.9 137,600
No. 4 Plug (3) 1,325,100 5.6 237,450 0 0.0 0
Parallel (4) 793,900 8.2 209,570 153,400 17.5 86,050
No. 6 Vein (5) 389,400 6.4 79,550 111,400 6.9 24,590
Sixteen Zone(6) 91,700 5.2 15,440 1,800 4.2 250
Total 3,325,300 7.1 756,280 851,400 10.8 293,710
  1. 3.00 g/t Au cut-off - calculated using an gold price of US$1,450 per ounce, mining/milling cost per tonne estimated at US$115 + 25% contingency, 92% metallurgical gold recovery; specific gravity of 2.8 g/cm3; individual gold values uncap; 2 metres ("m") minimum true thickness; Fortune Zone previously known as the "Forestel" Zone
  2. 3.00 g/t Au cut-off - calculated using a gold price of US$1,450 per ounce, mining/milling cost per tonne estimated at US$115 + 25% contingency, 92% metallurgical gold recovery; specific gravity of 2.8 g/cm3; individual gold values are gradually capped when the gold value is over 80 g/t using the formula hereby: 80 g/t Au + ((x-80)*0.5)); 2 m minimum true thickness
  3. 3.00 g/t Au cut-off - calculated using a gold price of US$1,450 per ounce, mining/milling cost per tonne estimated at US$115 + 25% contingency, 92% metallurgical gold recovery; specific gravity of 2.8 g/cm3; individual gold values capped to 300 g/t Au; "bulk" selectivity therefore no minimum true thickness
  4. 3.00 g/t Au cut-off - calculated using a gold price of US$1,450 per ounce, mining/milling cost per tonne estimated at US$115 + 25% contingency, 92% metallurgical gold recovery; specific gravity of 2.8 g/cm3; individual gold values are gradually capped when the gold value is over 100 g/t using the formula hereby: 100 g/t Au + ((x-100)*0.4); 2 m minimum true thickness
  5. 3.00 g/t Au cut-off - calculated using an gold price of US$1,450 per ounce, mining/milling cost per tonne estimated at US$115 + 25% contingency, 92% metallurgical gold recovery; specific gravity of 2.8 g/cm3; individual gold values gradually capped when the gold value is over 40 g/t using the formula hereby: 40 g/t Au + ((x-40)*0.53)); 2 metres ("m") minimum true thickness.
  6. 3.00 g/t Au cut-off - calculated using a gold price of US$1,450 per ounce, mining/milling cost per tonne estimated at US$115 + 25% contingency, 92% metallurgical gold recovery; specific gravity of 2.8 g/cm3; individual gold values are capped at 35 g/t Au; 2 m minimum true thickness.

The resource above was at 3 g/T cut-off, however using a 5 g/T cut-off the grades really shine:

 

 

 

 

Figure 4. (above) Map of ICG.V's Lamaque claims, showing mineralized zones, and adjacent mines; Integra’s project is located within 500 meters of two world class mines that historically produced over 9 million ounces of gold. The historic Sigma and Lamaque Mines were most recently operated by Century Mining. Although Integra's property is called 'Lamaque' it does not contain the historic Lamaque mine; the 4.5 million historically mined ounces did NOT come out of Integra's ground -- when Teck sold its mine it partitioned out the exploration ground which became Integra's ground.

 

The Lamaque Mine was operated by Teck Resources from 1933 to 1985, producing ~4.6 million ounces of gold. Lamaque mine was the foundation of Val-d’Or. Since 1985 other operators at Lamaque include Placer Dome, McWatters Mining and Century Mining.

The Sigma Mine was operated by Placer Dome from 1937 to 1997, producing over 4.5 million ounces of gold. The Sigma mine was acquired by McWatters Mining in 1997 and subsequently sold alongside the Lamaque mine to Century Mining.

 

Comparing Integra's Lamaque deposit to past producing neighbor

 

Intrusive plugs that just keep going down from surface with many high-grade narrow veins:
 

Figure 5 (above) Comparing Integra's Lamaque deposit to neighbor; The characteristics of Integra's main high-grade gold zones (plugs) are remarkably similar to the historic main plug that Teck mined; gold-laden material is contained within intrusive plugs (picture a 200 - 300 metre-wide cylinder going straight down). In its genesis, millions of years ago, the cooling magma cracked and the voids filled with mineralization. Teck's Lamaque Mine main plug was essentially a ~250 m wide target mined to just over 1,000 m and just that one plug itself produced 3.7 million ounces of the Lamaque Mine’s 4.5 million ounces. The neighboring Sigma Mine was mined to a depth of 2,000 meters, and while Integra has intersected high grade mineralization in its deepest holes at 1200 m, it is focusing its efforts on near surface ounces, above 600 meters. These are high-grade plugs that come to surface, filled with narrow veins, which have a proven history of successful underground mining. Typically the Sigma and Lamaque mines operated with seldom more than 3 years of mine life in reserves, and often less than one (as it makes little sense to spend money drilling deep when you are heading deeper anyways, and the geological model dictates the likelihood high-grade gold just keeps going), yet they were mined successfully for 50 years at Lamaque and 60 years at Sigma, adding as they progressed -- Integra appears to be looking at a similar scenario, however ICG.V is already ahead of matters as it has already proven up 4.5 years of mine life off its existing resource which has not been updated with over a year’s worth of new drilling and is actively adding to that.

 

Large Upside

 

Figure 6. Area satellite map view, Integra's Lamaque Gold Project in yellow

Current resource is based off of 105,000 m of drilling, however ICG.V has already had over 60,000 m more (>50% more) that has not been incorporated into a new resource yet.

 

Note the large number of intercepts not yet included in the resource:

 

The image to the left illustrates how the next updated resource estimate should be impressive -- the red areas shown on Integra's plug represent the resource material, the dashed red lines represent gold intersects that are not yet in the resource. The known resource on the Triangle Zone shown in the image to the left is only ~250 wide (if looked at from surface) -- ICG.V has since stepped out 200 m away and has hit 22.1 g/T over 4 m. The recent March 25, 2014 release 23.02 g/t Gold over 5 m & 31.24 g/t Gold over 3 m is in-between the resource and that 22.1 g/T hole. Additionally important is that these plugs go down very deep, theoretically to the mantel of the earth (unless there is a fault), and ICG.V is sitting next to a mine that was mined down to 2000 m deep. ICG.V has stopped almost all its drills at 600 m because it wants to focus on near-term resources. That being said, it has drilled at one zone to 1,100 m and another zone 1,200 m and hit high-grade veins throughout -- we know these systems continue but it makes little economic sense to drill deep to define a resource when there is a better return on ounces near surface; 600 m is ample enough to get to the next stage, especially if you consider ICG.V does not need to build a mill.

 

The planned updated resource estimate will bolster the PEA (highlights featured further below) metrics, the PEA was built on the North cluster and the South cluster; the South cluster PEA zones are No. 4 and Triangle, and the North cluster is the parallel and the fortune. Not yet in resource estimate are the No. 5 Plug and the No. 3 Mine, however Integra has drilled 12,000 m on those two zones and has encountered very good results (i.e. 183 g/T over 3 m on No. 5 Plug), it is estimated ~10,000 m of drilling on those and ICG.V will be ready to do a resource estimate on them as well. 

 

Recent news releases of significance:

 

July 15, 2014 "Integra Gold Announces Additional High Grade Results at Triangle With 31.9 g/t Gold Over 3.0 Meters, 38.6 g/t Gold Over 2.3 Meters and 38.8 g/t Gold Over 2.0 Meters"

 

July 9, 2014 "Integra Mobilizes Three Diamond Drill Rigs for Summer Program at Lamaque"

 

June 27, 2014 "Integra Gold Closes $10,045,124 Private Placement"

 

June 20, 2014 "Integra Gold Announces Private Placement Oversubscribed, Increased to $10,000,000 Due to Demand"

 

June 12, 2014 "Integra Gold Announces Private Placement Oversubscribed, Increased to $8,000,000 Due to Demand"

 

June 10, 2014 "Integra Gold Announces $4.0 Million Private Placement + Update"

 

May 21, 2014 "Integra Gold Announces Best Results to Date on Triangle Zone With 14.2 g/t Gold Over 11.0 Meters, 10.5 g/t Gold Over 13.0 Meters and 26.5 g/t Over 6.0 Meters"

 

Apr 22, 2014 "Integra Gold Intersects 38.2 g/t Gold over 7.0 meters including 241.0 g/t Gold over 1 meter, Confirms Continuity of Deeper Triangle Zones"

  

Mar 25, 2014 "Integra Gold Intersects 23.02 g/t Gold over 5.0 meters and 31.24 g/t Gold over 3.0 meters at the Triangle Zone, Confirms Structural Continuity with South Triangle Discovery and Mobilizes Sixth and Seventh Drill Rigs"

 

Feb 19, 2014 "Integra Gold Intersects 91.03 g/t Gold over 1.0 meter, 73.75 g/t Gold over 1.0 meter and 29.69 g/t Gold over 3.0 meters at Parallel Zone"

 

Jan 23, 2014 "Integra Gold Expands South Triangle Zone, Intersects 13.14 g/t Gold over 2.0 meters"

 

Nov 26, 2013 "Integra Gold Intersects 32.32 g/t Gold over 3.0 meters in First Exploration Drill Program at No. 3 Mine Target"

 

Nov 18, 2013 "Integra Gold Discovers Extension of High-Grade Triangle Zone 175 meters from Existing Resource, Intersects 13.29 g/t Gold over 7.0 m including 22.1 g/t Gold over 4.0 m"

 

Jun 05, 2013 "Integra Gold Intersects 8.86 g/t Gold over 8.3 m and 81.62 g/t Gold over 2.0 m, Extends Depth of Triangle Zone from 325 m to over 600 m Vertical"

 

Geophysics indicate a number of high priority targets are highly prospective for even more new high-grade discovery

 

 

Figure7. (above) Geophysics; These plugs carry a lot of magnetite in them and are thus very magnetic, geophysics elicit the magnetic response. Looking at the Lamaque Mine (where it says 4,500,000 oz (historically mined)) it acts as a bull's-eye magnetically, so does Integra's No. 5 Plug next door. The Parallel zone and No. 3 Mine doesn't show well as the top of the plug isn't completely one solid body ( it is chewed-up volcanics) . When we move down to the Triangle and the No. 4 Plug, you can see again how well these plugs show up. Integra has outlined 40 targets along trend of the No. 4 Plug; there is a huge magnetic trend which could potentially host multiple plugs along it that has never been properly tested historically. Integra has completed an airborne geophysical, or magnetic, survey and is finalizing drill targets. Integra will use this detailed geophysics and will do an in depth technical compilation to get very detailed targeting as to where to put actual drill holes.

  

Preliminary Economic Assessment

 

This March 11, 2014 Integra Gold released a Preliminary Economic Assessment (PEA) click here to see full copy of release. In short, for ~$70M capex investors get exposure to a PEA that shows >110,000 oz Gold production per annum at all-in sustaining cost of C$805/oz and peak annual production of 143,300 Gold oz, in a safe, mining-friendly region -- certainly large enough to make an impact on on (pique the interest of) larger miners.

 

Highlights:

 

       

Note: The base case scenario uses USD $1,275/oz gold and 1.05 Canadian dollar exchange rate to USD and all dollar amounts are in Canadian. Looking at the PEA, one thing that really sets Integra apart from others is the fact it does NOT need gold to get to $1,600 for it to shine -- it would be great if it did, but its PEA outlines a scenario of all-in sustaining costs at $805 Canadian an ounce. Also since all of the numbers are in $Canadian it is important to note that gold in $Canadian is significantly more right now (~$125 more as of April 29, 2014). Plus the conversion rate (USD/CAD of 1.05) used is ~5% off (currently 1.10) so that makes close to $65 difference/oz more leeway to Integra not reflected in PEA.

 

PEA base case and production profile:

 

 

PEA Production Profile:

 

 

Note: There is obvious potential to extend life of mine as more than 55,000 meters of subsequent drilling has not been included in the PEA and considering the fact Integra has the same geology as Sigma and Lamaque which mined for 50 -60 years literally a few hundred meters away and they seldom retained more than 3 years mine life (adding as they go).

 

Sensitivity:

 

 

Advancing toward feasibility and production:

 

 

Figure 12. (above) Phase 1 development zones; The deposits are very easy to access in that high-grade mineralization comes to surface. The PEA lays out a scenario with one ramp into the Parallel plug and ~3 months later there would be a ramp at the Triangle Zone plug. Since 50 to 70% of the $69.2M pre-production capex is in the ramps, if market conditions are tight ICG.V has the option of starting with just one ramp and push back the second, then it would cash flow from one to get to the other (such a move could take ~$20 - $25M off its capex -- we note that ICG.V announced (June 10, 2014) it is exploring such an option by commissioning a revised PEA aimed at improving on the already quality metrics).

 

Assuming Integra's application for certificate of authorization (CA) (expected to be filed this Q2) is approved without hiccups, ICG.V could be permitted to build its ramps underground by the end of the year. Ideally ICG.V will build the ramp(s), get underground, drill the veins from very close proximity, and then incorporate the underground drilling into a feasibility study. Drilling in this fashion is important as this type of system also contains subvertical (straight up and down) veins. When subverticals intersect others, historically at Sigma and Lamaque they were called 'jewelry boxes'; quartz with incredible amounts of visual gold embedded. When ICG.V does a resource estimate these bonanza grade intersections are essentially ‘capped out,’ however it has had intersections before of 950 g/T over 1 m. When ICG.V drills from surface it has no idea how many of these straight up and down veins there are as it is drilling along them, when it gets underground it can drill across them and get a much better feel for what is there. The saying in Val d’Or for almost 100 years has been, ‘drill for structure, drift for grade.’ This means a successful drill program is one that hits the structure, or the quartz veining, regardless of grade, as it is not until the miners drift right into the zone the true gold content is realized. Luckily for Integra they have incredible amounts of information from a long and rich history of mining on a very similar deposit right next door. 

 

   

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Integra Gold's Technical Leadership, Management, and Governance  Skip to top

The current management team and board of directors has a well rounded combination of people that each contribute expertise in disciplines necessary for a successful mining entity:

 

Stephen de Jong, President, CEO and Director

 • Has held several senior management and advisory positions in publicly-listed Canadian mineral exploration companies since 2008.
 • Since appointed CEO in July 2012 has increased the Company’s market capitalization from $12 million to over $40 million through a major downturn in the resource and precious metal markets.
 • Raised $20 million for exploration since 2012.

 

Hervé Thiboutot, Eng., Senior Vice President

 • Former VP Exploration at Alamos Gold, played key role in increasing the Company’s reserves to more than 8 million ounces in 3 years.
 • 25 years of experience at Placer Dome, including Head of Exploration for the Las Christina’s project in Venezuela.

 

George Salamis,P. Geo., Vice President Corporate Development

 • Over 20 years of experience in mineral exploration, mine development and operations.
 • Currently CEO of Edgewater Exploration Ltd., a TSX Venture-listed exploration company.
 • Experience in senior management positions with established mining companies including Placer Dome Inc. and Cameco Corporation.
 • Experience in several M&A transactions valued at over $1.2 billion.
 • Holds a degree in geology from the University of Montreal.

 

Francois Chabot, MSc., Eng., Manager of Operations / Engineering

 • Former Director of Richmont’s Beaufor Mine and Monique Project.
 • 20+ years experience as a geological engineer and extensive experience in Val-d’Or region, including Regional Manager of the Val-d’Or office for Golder Associates, and Production Geologist for Placer Dome at the Sigma Mine.

 

Travis Gingras,CMA,MBA, Chief Financial Officer

 • Controller for Avigilon Corporation, a Deloitte Technology Fast 50 Company.
 • Former finance manager of Powerex Corporation, a$3 billion revenue company.

 

Robert Bryce, Eng., Director

 • Over43 years of experience in the mining industry.
 • Member of the Québec Order of Engineers and the Canadian Institute of Mining and Metallurgy.
 • Local resident of Val-d’Or, Québec with significant knowledge of the Val-d’Or/Malartic mining districts.

 

YuhuanGe, P.Eng., Director

 • Director, mine manager and engineer in China and South America for Shandong Gold group, China’s 3rdlargest gold producer operation 5 of the top ten gold mines in China.

 

John de Jong, Director

 • Has directed the mining, milling and exploration projects in British Columbia and the Yukon for several exploration and mining companies.
 • Experience as a management consultant advising several TSX Venture-listed companies in business and corporate development.

 

Note: This list is not intended to be a complete overview of Integra Gold Corp. or a complete listing of Integra's projects. Mining MarketWatch urges the reader to contact the subject company and has identified the following sources for information:

 

For more information contact Integra Gold Corp.'s head office at: Ph (604).629.0891

 

Company's web site: www.integragold.com   SEDAR Filings: URL

 

     

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Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer. This is a journalistic article and the author is not a registered securities advisor, and opinions expressed should not be considered as investment advice to buy or sell securities, but rather journalistic opinion only. Technical mining terms used by the writer may be used/expressed in simplified layman terms and should not be relied upon as appropriate for making investment decisions unless the reader contacts the company directly for independent verification.

 

     

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