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
[email protected]
SOURCE: Integra Gold Corp.