Integra Resources Corp. (“Integra” or the “Company”)
(TSX-V: ITR; NYSE American: ITRG) has filed a technical
report, prepared in accordance with National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”), for its
DeLamar Project located in southwest Idaho. Integra previously
released the results of the Pre-feasibility Study (“PFS”) and
Mineral Resource and Mineral Reserve statement (see news release
dated February 9, 2022) which demonstrate a robust project with low
pre-production capital required and a strong production profile.
The technical report is available on SEDAR under the Company's
profile at www.sedar.com and on the Company’s website at
www.integraresources.com.
Key highlights of the PFS include:
- After-tax Net Present Value
(“NPV”)(5%) of US$408 million and 27% after-tax Internal Rate of
Return (“IRR”) at US$1,700/ounce (“oz”) Gold (“Au”) and US$21.50/oz
Silver (“Ag”) (base case).
- After-tax NPV(5%) of US$611 million
and 36% after-tax IRR at US$1,900/oz Au and US$24.00/oz Ag.
- Pre-production Capex of US$282 million, including contingency
of 20% on processing, heap leach and tailing facilities (excluding
working capital and reclamation costs, and assuming mobile mining
equipment financing).
- Average annual production of
163,000 oz gold equivalent (“AuEq”)1 for first 8 years with life of
mine (“LOM”) average annual production of 110,000 oz Au Eq over 16
years.
- LOM site level all-in sustaining
costs (“AISC”) of US$955/oz on an AuEq co-product basis, lowest
quartile on a global basis.
- Strong leverage to silver; silver
accounts for ~35% of revenue from production.
As stated in the technical report, there is the
potential to lower DeLamar Project capital costs by foregoing mill
processing and instead operate a heap-leach only project. In this
scenario, a high percentage of the current heap-leach Mineral
Reserves would be processed at the 35,000 metric tonne per day rate
envisioned in the PFS. LOM capital expenditures would decrease
significantly as expansion capital, such as non-oxide plant and
tailing facilities, would not be required. A decision to construct
and initiate mill processing (Stage 2) could be exercised at any
time, providing the flexibility to respond to changing market
conditions and thereby reduce project risk. A heap-leach only
approach could reduce risk and provide greater flexibility to
respond to the prevailing economic environment in connection with a
decision to pursue a milling scenario later.
Further, the technical report highlights various
other opportunities to improve process recoveries and/or decrease
process costs through continued metallurgical testing include:
- Evaluation of run-of-mine leaching
for lower grade oxide materials.
- Further optimization of the planned
heap-leach and mill processes may improve recoveries and/or
decrease reagent consumptions.
- Continued evaluation of
higher-grade oxide and mixed material types (particularly for
silver) for processing by grind-leach and flotation with
concentrate regrind and leach, to determine if any of these
materials are better processed by milling.
- Ongoing optimization of the
geo-metallurgical model for further optimization of ore routing to
improve recoveries.
The opportunity to add value to the DeLamar
Project through the processing of the DeLamar Deposit non-oxide
materials will include evaluation of the following:
- Further studies on oxidative
pretreatment options such as Albion processing should be advanced
with the goal of improving metals recoveries and project economics.
Scoping-level Albion test results have yielded gold and silver
recoveries of 80% for Sullivan Gulch and 70% respectively for Glen
Silver.
- Evaluation and optimization of
flotation concentrate processing.
- Further testwork to investigate
high-density or paste deposition of the flotation tailing, which
could lessen the footprint and risk of the associated tailings
storage facility (“TSF”). Opportunities to generate power from the
tailing being pumped to the TSF will also be investigated.
There is also an opportunity, through the
evaluation of the historical waste dumps and backfill, for these
materials to be processed using similar systems outlined in this
PFS. The previous operator of the property, Kinross Gold
Corporation (“Kinross”), halted production and began reclamation
efforts at very low gold and silver prices as compared to current
prices. As seen at many operations, these materials may be economic
today.
Qualified Persons
The technical report was prepared under the
supervision of Thomas L. Dyer, P.E. and Senior Engineer for MDA,
Michael M. Gustin, C.P.G. and Senior Geologist for MDA, Steven I.
Weiss, C.P.G. and Senior Associate Geologist for MDA, Jack
McPartland , Registered Member MMSA., Senior Metallurgist with
McClelland Laboratories, Inc., John Welsh, P.E., of Welsh Hagen in
Reno, Nevada, Matthew Sletten, P.E. and Benjamin Bermudez, P.E. of
M3 Engineering in Tucson, Arizona, Art Ibrado, P.E., of Fort Lowell
Consulting in Tucson, Arizona, Jay Nopola, P.E, of RESPEC in Rapid
City, South Dakota, Michael Botz, P.E., of Elbow Creek Engineering
in Billings, Montana, and John F. Gardner, P.E. of Warm Springs
Consulting in Boise, Idaho, in accordance with the disclosure and
reporting requirements set forth in NI 43-101. Mr. Gustin,
Mr. Weiss, Mr. Dyer, Mr. McPartland, Mr. Welsh, Mr. Sletten, Mr.
Bermudez, Mr. Ibrado, Mr. Botz, Mr. Nopola, and Mr. Gardner are
qualified persons under NI 43-101 and have no affiliation with
Integra, their subsidiaries, or Kinross except that of independent
consultant/client relationships.
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, of Post Falls,
Idaho, and Timothy D. Arnold (PE, SME), Integra’s Chief Operating
Officer, of Reno, Nevada. Each is a qualified person under NI
43-101.
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$600m 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 robust economic studies in its
maiden preliminary economic assessment and now pre-feasibility
study. An independent technical report for the PFS on the DeLamar
Project has been prepared in accordance with the requirements of NI
43-101 and is available under the Company’s profile at
www.sedar.com and on the Company’s website at
www.integraresources.com.
ON BEHALF OF THE BOARD OF DIRECTORS
George SalamisPresident, CEO and Director
CONTACT INFORMATION
Corporate Inquiries: ir@integraresources.comCompany website:
www.integraresources.comOffice phone: 1 (604) 416-0576
Forward-Looking Statements
Certain information set forth in this news
release contains “forward‐looking statements” and “forward‐looking
information” within the meaning of applicable Canadian securities
legislation (referred to herein as forward‐looking statements) and
applicable United States securities laws. Except for statements of
historical fact, certain information contained herein constitutes
forward‐looking statements which includes, but is not limited to,
statements with respect to: the future financial or operating
performance of the Company and the DeLamar Project; results from
work performed to date; the estimation of Mineral Resources and
Mineral Reserves; the realization of Mineral Resource and Mineral
Reserve estimates; the development, operational and economic
results of the PFS for the DeLamar Project, including cash flows,
revenue potential, potential for staged development, capital
expenditures, development costs and timing thereof, extraction
rates, life of mine projections and cost estimates; magnitude or
quality of mineral deposits; anticipated advancement of the DeLamar
Project including mine plan; exploration expenditures, costs and
timing of the development of new deposits; exploration potential
and opportunities at the DeLamar Project; costs and timing of
future exploration; the completion and timing of future development
studies; estimates of metallurgical recovery rates, including
prospective use of the Albion process; anticipated advancement of
the DeLamar Project and future exploration prospects; requirements
for additional capital; the future price of metals; government
regulation of mining operations; environmental risks; the timing
and possible outcome of pending regulatory matters; the realization
of the expected economics of the DeLamar Project; and future growth
potential of the DeLamar Project. Forward-looking statements are
often identified by the use of words such as “may”, “will”,
“could”, “would”, “anticipate”, ‘believe”, expect”, “intend”,
“potential”, “estimate”, “budget”, “scheduled”, “plans”, “planned”,
“forecasts”, “goals” and similar expressions. Forward-looking
statements are based on a number of factors and assumptions made by
management and considered reasonable at the time such information
is provided. Assumptions and factors include: the Company’s ability
to complete its planned exploration programs; the absence of
adverse conditions at the DeLamar Project; no unforeseen
operational delays; no material delays in obtaining necessary
permits; the price of gold and silver remaining at levels that
render the DeLamar Project economic; the Company’s ability to
continue raising necessary capital to finance operations; and the
ability to realize on the Mineral Resource and Mineral Reserve
estimates. Forward‐looking statements necessarily involve known and
unknown risks and uncertainties, which may cause actual performance
and financial results in future periods to differ materially from
any projections of future performance or result expressed or
implied by such forward‐looking statements. These risks and
uncertainties include, but are not limited to: general business,
economic and competitive uncertainties; the actual results of
current and future exploration activities; conclusions of economic
evaluations; meeting various expected cost estimates; benefits of
certain technology usage; changes in project parameters and/or
economic assessments as plans continue to be refined; future prices
of metals; possible variations of mineral grade or recovery rates;
the risk that actual costs may exceed estimated costs; geological,
mining and exploration technical problems; failure of plant,
equipment or processes to operate as anticipated; accidents, labour
disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing; the speculative
nature of mineral exploration and development (including the risks
of obtaining necessary licenses, permits and approvals from
government authorities); title to properties; the impact of
COVID-19 on the timing of exploration and development work and
management’s ability to anticipate and manage the foregoing factors
and risks. Although the Company has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in the forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. Readers
are advised to study and consider risk factors disclosed in the
Company’s annual information form dated March 12, 2021 for the
fiscal year ended December 31, 2020 and the Company’s Form 40-F
annual report for the year ended December 31, 2020.
There can be no assurance that forward‐looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. The Company undertakes no obligation to update
forward‐looking statements if circumstances or management’s
estimates or opinions should change except as required by
applicable securities laws. The forward-looking statements
contained herein are presented for the purposes of assisting
investors in understanding the Company’s plan, objectives and goals
and may not be appropriate for other purposes. Forward-looking
statements are not guarantees of future performance and the reader
is cautioned not to place undue reliance on forward‐looking
statements. This news release also contains or references certain
market, industry and peer group data which is based upon
information from independent industry publications, market
research, analyst reports and surveys and other publicly available
sources. Although the Company believe these sources to be generally
reliable, such information is subject to interpretation and cannot
be verified with complete certainty due to limits on the
availability and reliability of raw data, the voluntary nature of
the data gathering process and other inherent limitations and
uncertainties. The Company has not independently verified any of
the data from third party sources referred to in this news release
and accordingly, the accuracy and completeness of such data is not
guaranteed.
Cautionary Note for U.S. Investors
Concerning Mineral Resources and Reserves
NI 43-101 is a rule of the Canadian Securities
Administrators which establishes standards for all public
disclosure an issuer makes of scientific and technical information
concerning mineral projects. Technical disclosure contained in
this news release has been prepared in accordance with NI 43-101
and the Canadian Institute of Mining, Metallurgy and Petroleum
Classification System. These standards differ from the
requirements of the U.S. Securities and Exchange Commission
(“SEC”) and resource information contained in this
press release may not be comparable to similar information
disclosed by domestic United States companies subject to the SEC's
reporting and disclosure requirements.
All references to “$” in this news release are
to U.S. dollars unless otherwise stated.
Cautionary Note Regarding Non-GAAP
Financial Measures
Alternative performance measures in this news
release such as “cash cost”, “AISC” “free cash flow” are furnished
to provide additional information. These non-GAAP performance
measures are included in this news release because these statistics
are used as key performance measures that management uses to
monitor and assess performance of the Project, and to plan and
assess the overall effectiveness and efficiency of mining
operations. These performance measures do not have a standard
meaning within International Financial Reporting Standards (“IFRS”)
and, therefore, amounts presented may not be comparable to similar
data presented by other mining companies. These performance
measures should not be considered in isolation as a substitute for
measures of performance in accordance with IFRS.
Cash Costs
Cash costs include site operating costs (mining,
processing, site G&A), refinery costs and royalties, but
excludes head office G&A and exploration expenses. While there
is no standardized meaning of the measure across the industry, the
Company believes that this measure is useful to external users in
assessing operating performance.
Site Level All-In Sustaining Cost (“AISC”)
Site level AISC include cash costs and
sustaining capital, but excludes head office G&A and
exploration expenses. The Company believes that this measure is
useful to external users in assessing operating performance and the
Company’s ability to generate free cash flow from current
operations.
Free Cash Flow
Free cash flows are revenues net of operating
costs, royalties, capital expenditures and cash taxes. The Company
believes that this measure is useful to the external users in
assessing the Company’s ability to generate cash flows from the
Project.
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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