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