Integra Resources Corp. (“Integra” or the “Company”)
(TSX-V:ITR; NYSE American: ITRG) is pleased to announce
exploration plans for 2021 at the DeLamar Project (“DeLamar” or the
“Project”) located in Owyhee County in southwest Idaho along with
an update on the PFS and various trade-off studies currently being
considered by the Company for the PFS in Q4 2021.
“This year will be pivotal for Integra as we
continue to grow the gold-silver resource at the Project through
exploration drilling while preparing to deliver a PFS in Q4 2021.
The Company looks forward to following-up on its drill success at
Florida Mountain and War Eagle as well as the first exploration
program at Black Sheep which has the potential for a new discovery
at the DeLamar Project. The winter drill program at the Project is
currently underway with on drill rig on the Lucky Days target
situated in the Black Sheep area and one drill rig on the Florida
Mountain Deposit,” noted Company President and CEO George Salamis.
“In anticipation of the Company’s PFS in Q4 2021, we are conducting
various trade-off studies to unlock additional value at DeLamar
through, among other initiatives, increased silver recoveries. The
DeLamar and Florida Mountain Deposits are host to significant
silver resources, in addition to gold, making the Project one of
the largest undeveloped silver-gold resources in the Western United
States. In the 2019 PEA, silver accounted for only 17% of the
estimated project revenues as the study was optimized for
gold-and-silver prices at that time. The low silver revenue
relative to gold revenue was largely related to two factors: low
heap leach recoveries of silver averaging 34% over life-of-mine and
a smaller milling scenario of 2,000 tonnes per day which would
recover on average 80% silver over life-of-mine. Given the large
silver endowment at DeLamar, the Company is also reviewing
alternative scenarios to increase silver recovery, including a
larger milling operation designed to accommodate oxide and
transitional material to be processed via agitated leach and HPGR
as a pre-cursor to heap leaching. Increasing silver recoveries
could have a materially positive effect on the project’s future
economics.”
DeLamar and Florida Mountain Silver and
Gold Resource Estimate:
The following table highlights the combined gold
and silver resource at the DeLamar and Florida Mountain
Deposits:
Classification |
Tonnes |
g/t Au |
oz Au |
g/t Ag |
oz Ag |
g/t AuEq |
oz AuEq |
Measured |
16,078,000 |
0.52 |
270,000 |
34.3 |
17,726,000 |
0.96 |
498,000 |
Indicated |
156,287,000 |
0.42 |
2,106,000 |
19.7 |
98,788,000 |
0.67 |
3,377,000 |
Measured + Indicated |
172,365,000 |
0.43 |
2,376,000 |
21.0 |
116,514,000 |
0.70 |
3,875,000 |
Inferred |
28,266,000 |
0.38 |
343,000 |
13.5 |
12,240,000 |
0.55 |
500,000 |
- Mineral Resources that are not
Mineral Reserves do not have demonstrated economic viability.
- Oxidized and Transitional Mineral
Resources are reported at a 0.2 g AuEq/t cut-off in consideration
of potential open-pit mining and heap-leach processing. Unoxidized
Mineral Resources are reported at a 0.3 g AuEq/t cut-off in
consideration of potential open pit mining a milling / agitated
leaching or flotation processing. The Mineral Resources are
constrained by pit optimizations.
- Gold equivalent in the Resource
Estimate is calculated by g Au/t + (g Ag/t ÷ 77.7). Metal prices
used were US$1,400 per oz Au / US$18 per oz Ag. Please refer to the
technical report for guidance on modeling and optimization
parameters.
- Rounding as required by reporting
guidelines may result in apparent discrepancies between tonnes,
grades, and contained metal content.
- The Effective Date of the Mineral
Resources is May 1, 2019.
- The estimate of mineral resources
may be materially affected by geology, environment, permitting,
legal, title, taxation, sociopolitical, marketing, or other
relevant issues.
Current Pre-feasibility Level Studies
Aimed at Enhanced Silver Recoveries:
Several key trade-off studies are currently
under-way, aimed to define the cost-benefit of higher metal
recoveries, specifically silver, in future development scenarios at
DeLamar.
Recent metallurgical testwork since the 2019 PEA
is being analyzed for opportunities to improve silver recovery. A
deeper evaluation into the size sensitivity of both gold and silver
recovery is underway, to be included in this year’s PFS. This
includes consideration of HPGR technology in the final stage of the
crushing circuit for the heap leach process and/or implementation
of a larger milling and agitated leach circuit for higher grade
transitional mineralization, both of which would effectively
produce finer crushed material with enhanced silver recovery
potential.
Processing additional transitional
mineralization through a mill circuit could potentially yield
greater overall metal recovery, including silver, than through
placement of crushed material on the leach pad.
Florida Mountain unoxidized material is
processed through the existing milling scenario in the PEA.
Testwork has shown that the unoxidized material from Florida
Mountain is amenable to gravity concentration, followed by
flotation of the gravity tails, with regrinding and agitated
cyanide leaching of the flotation concentrate. Mill recoveries on
this material in the PEA were 90% for gold and 80% for silver with
a relatively course grind size of 212 µm. The Company is
completing additional testwork on the DeLamar unoxidized
mineralization which was not included in the PEA. This testwork
includes various pre-cyanidation treatments options, including fine
grinding and pre-aeration, and will be reevaluated with current
metal prices and better defined costs.
A diagram that highlights a number of new
trade-off studies that have been initiated to investigate higher
recoveries from higher grade transitional and oxide materials can
be viewed through the link below:
https://www.integraresources.com/site/assets/files/2572/itr_flowchart_trade_offs.pdf
The Company will provide updates and guidance on
how these trade-off studies are progressing over the course of the
year.
2021 Exploration Program
The Company has plans for a 10,000 m exploration
program in 2021. The drill program will focus on the following
areas:
The Florida Mountain Deposit: 4,000 m:
One of two exploration drill rigs on the Project
will operate at Florida Mountain through the winter months.
Drilling at Florida Mountain will be dual-focused, including
follow-up exploration on the high-grade shoots and structures below
the existing resource and expanding the existing low-grade resource
through drilling geochemical and geophysical anomalies to the east
and west of the existing resource.
The Company has identified multiple high-grade
gold-silver shoots at Florida Mountain. Integra’s exploration team
has modeled 7 high-grade vein structures that appear similar in
size and orientation to the historically productive high-grade
Trade Dollar – Black Jack vein system. Most historic underground
production stemmed from the Trade Dollar – Black Jack vein, while
the remaining 6 veins saw limited production up until mining
operations ceased with the start of World War I. The identified
vein zones have an aggregate strike length of over 7,000 m. Within
these vein zones are steeply dipping high-grade shoots with strike
lengths of up to 200 m and down dip extensions of up to 300 m which
are interpreted as having developed at structural intersections.
Based on recent drill intercepts, the Company anticipates that the
high-grade shoots are likely to have widths of between 1 m and
8 m.
Drilling is also planned to take place in the
Florida Keys area, a large geochemical anomaly located immediately
to the east of the resource that has seen limited drilling. The
Florida Keys geochemical anomaly is of similar strength and size to
the existing resource estimate footprint at the Florida Mountain
Deposit. The Company also intends to drill in Rich Gulch, a target
located in a large zone of Induced Polarization (“IP”)
chargeability that was identified to the west of Florida Mountain
as part of a 2020 geophysical survey. Based on limited historic
drilling and the presence of historic underground workings in this
area the Company sees potential for both additional low-grade and
high-grade underground mineralization.
To view a map of Florida Mountain with competed
and proposed drill holes, click here:
https://www.integraresources.com/site/assets/files/2572/florida_mountain_drill_map_vuse.pdf
To view an image of Rich Gulch, click here:
https://www.integraresources.com/site/assets/files/2572/rich_gulch_vuse.pdf
War Eagle Mountain: 2,000 m
During the 2019 and 2020 drill programs at War
Eagle, the Company intersected high-grade gold-silver
mineralization within the volcanic unit overlying the entire area.
In 2020, the Company identified a second high-grade shoot
400 m to the north of the 2019 drill holes. This second
structure is interpreted over a strike length of approximately
550 m south-southeast and is largely untested. The geochemical
soil anomaly that led the Company to this new structure is
interpreted as being lateral leakage outward along the base of the
latite flow, presumably emanating from the eastern most structure
identified in the 2020 drill program.
Drilling in 2021 will continue to test these
parallel structures at War Eagle. In addition, the Company plans on
completing a detailed IP program to generate targets within a large
geochemical anomaly to the east of the 2019 and 2020 drill holes
locations.
To view a map of War Eagle, click here:
https://www.integraresources.com/site/assets/files/2572/war_eagle_geology_vuse.pdf
Black Sheep and DeLamar (Henrietta Ridge): 4,000
m
Exploration drilling at Black Sheep is underway
with one drill rig expected to operate through the winter months.
The drill campaign at Black Sheep will focus on the Georgianna and
Lucky Days targets. Black Sheep is host to extensive areas of
sinter and opaline silica cut by high-level epithermal veining and
brecciation. Due to the shallow level of erosion at Black Sheep,
very limited exploration drilling completed by previous operators
was shown to be too shallow to properly evaluate the potential for
high-grade vein style mineralization.
Two shallow drill holes have been completed at
the Georgianna target to better define the structures controlling
mineralization. Deeper, follow-up drill holes are planned at the
Georgianna target for this year to test the productive zone at
approximately 200 m below the current surface.
To view an image of this IP anomaly at Black
Sheep, click here:
https://www.integraresources.com/site/assets/files/2572/black_sheep_ip_vuse.pdf
The Company also plans on drilling the Henrietta
Ridge target in 2021. Henrietta Ridge is located between the
DeLamar Deposit and the Black Sheep area. Historic drilling
completed by previous operators along with geophysical surveys
suggest mineralization from the DeLamar Deposit extends along a
northwest corridor from the current resource through Henrietta
Ridge.
Qualified Person
The scientific and technical information
contained in this news release has been reviewed and approved by E.
Max Baker Ph.D. (F.AusIMM), Integra’s Vice President Exploration,
and Timothy D. Arnold (PE, SME), Integra’s Chief Operating Officer,
both of of Reno, Nevada. Each is a “Qualified Person” (“QP”) as
defined in National Instrument 43-101 – Standards of Disclosure for
Mineral Projects.
About Integra Resources
Integra is a development-stage mining company
focused on the exploration and de-risking of the past producing
DeLamar Gold-Silver Project in Idaho, USA. Integra is led by the
management team from Integra Gold Corp. which successfully grew,
developed and sold the Lamaque Project, in Quebec, for C$600 M in
2017. Since acquiring the DeLamar Project, which includes the
adjacent DeLamar and Florida Mountain gold and silver Deposits, in
late 2017, the Company has demonstrated significant resource growth
and conversion while providing a robust economic study in its
maiden Preliminary Economic Assessment. The Company is currently
focused on resource growth through brownfield and greenfield
exploration and the start of Pre-feasibility level studies designed
to advance the DeLamar Project towards a potential construction
decision. For additional information, please reference the
“Technical Report and Preliminary Economic Assessment for the
DeLamar and Florida Mountain Gold – Silver Project, Owyhee County,
Idaho, USA (October 22, 2019).”
ON BEHALF OF THE BOARD OF DIRECTORSGeorge
SalamisPresident, CEO and Director
CONTACT INFORMATIONCorporate Inquiries:
ir@integraresources.comCompany website:
www.integraresources.comOffice phone: 1 (604) 416-0576
Forward looking and other cautionary
statements
This news release contains “forward-looking
information” and “forward-looking statements” (collectively,
“forward-looking statements”) within the meaning of the applicable
Canadian securities legislation. All statements, other than
statements of historical fact, are forward-looking statements and
are based on expectations, estimates and projections as at the date
of this news release. Any statement that involves discussion with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions, future events or performance (often, but
not always using phrases such as “plans”, “expects”, “is expected”,
“budget”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates”, or “believes” or variations (including negative
variations) of such words and phrases, or state that certain
actions, events or results “may”, “could”, “would”, “might” or
“will” be taken, occur or be achieved) are not statements of
historical fact and may be forward-looking statements. In this news
release, forward-looking statements relate, among other things, to:
statements about the estimation of mineral resources; magnitude or
quality of mineral deposits; anticipated advancement of mineral
properties or programs; future operations; future exploration
prospects; the completion and timing of mineral resource estimates
and PEA; future growth potential of Integra; and future development
plans.
These forward-looking statements, and any
assumptions upon which they are based, are made in good faith and
reflect our current judgment regarding the direction of our
business. Management believes that these assumptions are
reasonable. Forward-looking information involves known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
information. Such factors include, among others: risks related to
the speculative nature of the Company’s business; the Company’s
formative stage of development; the Company’s financial position;
possible variations in mineralization, grade or recovery rates;
actual results of current exploration activities; actual results of
reclamation activities; conclusions of future economic evaluations;
business integration risks; fluctuations in general macroeconomic
conditions; fluctuations in securities markets; fluctuations in
spot and forward prices of gold, silver, base metals or certain
other commodities; fluctuations in currency markets (such as the
Canadian dollar to United States dollar exchange rate); change in
national and local government, legislation, taxation, controls
regulations and political or economic developments; risks and
hazards associated with the business of mineral exploration,
development and mining (including environmental hazards, industrial
accidents, unusual or unexpected formation pressures, cave-ins and
flooding); inability to obtain adequate insurance to cover risks
and hazards; the presence of laws and regulations that may impose
restrictions on mining; employee relations; relationships with and
claims by local communities and indigenous populations;
availability of increasing costs associated with mining inputs and
labour; the speculative nature of mineral exploration and
development (including the risks of obtaining necessary licenses,
permits and approvals from government authorities); and title to
properties. Although the forward-looking statements contained in
this news release are based upon what management of Integra
believes, or believed at the time, to be reasonable assumptions,
Integra cannot assure its shareholders that actual results will be
consistent with such forward-looking statements, as there may be
other factors that cause results not to be anticipated, estimated
or intended.
Forward-looking statements contained herein are
made as of the date of this news release and the Company disclaims
any obligation to update any forward-looking statements, whether as
a result of new information, future events or results, except as
may be required by applicable securities laws. There can be no
assurance that forward-looking information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
information.
Cautionary Note to U.S. Investors
Concerning Estimates of Measured, Indicated and Inferred
Resources
The terms “mineral resource”, “measured mineral
resource”, “indicated mineral resource”, “inferred mineral
resource” used herein are Canadian mining terms used in accordance
with National Instrument 43-101 - Standards of Disclosure for
Mineral Projects (“NI 43-101”) under the guidelines set out in the
Canadian Institute of Mining and Metallurgy and Petroleum (the
“CIM”) Standards on Mineral Resources and Mineral Reserves, adopted
by the CIM Council, as may be amended from time to time (the “CIM
Definition Standards”). Inferred mineral resources' have a great
amount of uncertainty as to their existence, and as to their
economic and legal feasibility. It cannot be assumed that all or
any part of an inferred mineral resource will ever be upgraded to a
higher category. These definitions differ from the definitions in
the United States Securities and Exchange Commission (the “SEC”)
Industry Guide 7 (“Industry Guide 7”). United
States investors are cautioned not to assume that all or any
part of measured or indicated mineral resources will ever be
converted into mineral reserves. United States investors are
also cautioned not to assume that all or any part of an inferred
mineral resource exists, or is economically or legally
mineable.
Under Industry Guide 7, a mineral reserve is
defined as a part of a mineral deposit which could be economically
and legally extracted or produced at the time the mineral reserve
determination is made. While the terms “mineral resource”,
“measured mineral resource”, “indicated mineral resource”, and
“inferred mineral resource” are recognized and required by Canadian
regulations, they are not defined terms under Industry Guide 7 and
historically they have not been permitted to be used in reports and
registration statements filed with the SEC. As such, information
contained herein concerning descriptions of mineralization and
resources under Canadian standards may not be comparable to similar
information made public under Industry Guide 7 by U.S. companies in
SEC filings.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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