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


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TSX.V:ICG / PK:ICGQF
04/30/2014 [ACCESSWIRE]

NEW YORK, NY / ACCESSWIRE /April 30, 2014 / Integra Gold Corp. (TSX VENTURE: ICG) (Pink Sheets: ICGQF) (Frankfurt: K1IA) is the subject of a Mining MarketWatch Journal Review offering insight and opportunity afforded investors. ICG.V 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. 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. 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 55,000 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 (just finishing up 25,000 m on the Triangle Zone) and the assays reported to date have been outstanding.
 
The full Mining Journal article may be found at http://miningmarketwatch.net/ICG.htm online.
 
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).
 
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 is at 12.6 g/T and the Parallel is at 10.4 g/T Indicated, and 15.4 g/T for Triangle and 21.2 g/T 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 55,000+ m of drilling its done, given all the results it has coming up (currently 35 drill holes pending), 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 ramps 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.
 
With 134.2 million shares outstanding (~166M fully diluted) it appears ICG.V is on sale trading with a market cap under $35M; ICG.V has a sizeable high-grade resource (set to grow larger in Q3), is funded to meet current program goals and obligations with ~C$4.5 million cash in the bank (as of April 2014), has a PEA that shows >110,000 ounces per annum with numbers that make sense even at $1,000 gold (the PEA estimates a cash-cost + sustaining cost of CAD$805 per ounce and gold is currently at ~CAD$1,425 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.
 
The full Mining Journal article may be found at http://miningmarketwatch.net/ICG.htm online.
 
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL(s).
 
Contact information:
James O'Rourke, Editor

Mining MarketWatch Journal
editor@miningmarketwatch.net

SOURCE: Integra Gold Corp.  

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