Integra Gold (TSXV:ICG)
Market cap: $88 million
Cash estimate: $9 million
Project: Lamaque South
Ownership: 100 percent
Resources: 2.65 million tonnes @ 9.5 g/t Au indicated; 0.78 million tonnes @ 10.9 g/t Au inferred
Project status: Advanced exploration
Integra Gold announced additional high-grade intervals from the Triangle Zone on its 100% owned Lamaque South gold project in the Abitibi greenstone belt in Val-d'Or Quebec. The project is adjacent to the past producing 4.6 million ounce Lamaque Mine and the 4.5 million ounce Sigma Mine, previously operated by Teck (TSX:TCK.b) and Placer Dome. In Oct. 2014, the Company purchased the fully permitted 2,200 tpd Sigma Mill and tailings facility for C$8 million. Highlights from the recent drilling include: 16.0 metres grading 10.73 g/t Au from the T1 Zone and 8.00 metres of 19.30 g/t Au. Based on the 44,525 metres of core drilled to date in 2015, the Company believes they are gaining a better understanding of the complex array of vein systems and the comparison with the previously mined Main Plug in the Lamaque Mine which was mined down to 1,000 metres depth. The key issue is the understanding of the steeply dipping quartz tourmaline "C structures" that previous drilling had interpreted as "flats" or shallow dipping "T structures". This understanding has helped the Company target the steeper vein structures to depth in the main dolerite intrusive as well as targeting the recently discovered "C structures" in the mafic volcanic rocks outside of the younger dolerite. Using a 5.0 g/t Au cut-off and a USD$1,175 gold price, the Company has outlined an indicated resource estimate of 2.6 million tonnes grading 9.5 g/t Au, with an additional 0.78 million tonnes of 10.9 g/t Au in the inferred class. Over 70% the indicated resources are hosted within the higher-grade Triangle and Parallel zones which do not include the volcanic hosted veins which have returned values of 6.6 metres grading 11.47 g/t Au and 5.0 metres of 15.55 g/t Au. The Company expects to release an updated 43-101 compliant resource estimate in early Q4/2015. Using a USD$1,175 per ounce gold price, the January 2015 PEA outlined a small capex project, with an estimated pre-production capital cost of $61.2 million, returning an after tax NPV (5%) of $113.5 million, an IRR of 59% with a payback of 1.6 years on the 4.5 year mine life. The operating cash, plus sustaining cost per ounce is estimated at $641 per ounce.
Development history: Past production on Sigma and Lamaque Mines — 9.1 million ounce Au. Acquired Lamaque South 2009, acquired Sigma/Lamaque North Oct 2014.
Current holes: 16.0 metres @ 10.73 g/t Au; 8.0 metres @ 19.30 g/t Au
Risks AnalysisData contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note - a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity - it is an information reference source to help quantify the meaning and relevance of early stage exploration results. Relevant Disclosures Applicable to: Drill Tracker Weekly The research analyst or a member of the research analyst's household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns shares in the following companies: Roxgold Inc (TSX:ROG). Integra Gold Corp. (ICG) is currently under coverage at Mackie Research Capital by analyst Peter Campbell. In March 2014, Peter Campbell visited the Lamaque Gold Project in Val-d'Or, Québec. Travel to and from the site in Val d'Or were paid by Integra Gold Corp. Foran Mining Corp. (FOM) is covered at Mackie Research by analyst Peter Campbell. In February 2013, an Analyst from Mackie Research Capital Corporation visited Foran's McIlvenna Bay Project site. Commercial travel expenses to and from site were paid by Mackie Research Capital Corporation.
Analyst CertificationI, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst's personal views and (ii) no part of the research analyst's compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report. Drill Tracker Weekly: Integra Confirms Presence of High-grade, Steeply Dipping Structures at Lamaque from Gold Investing News