Integra Resources Corp. (“Integra” or the “Company”)
(TSX-V: ITR; NYSE American: ITRG) is pleased to provide an
update on the Company’s PFS which is expected to be completed in Q4
2021. As previously reported, the Company has been working on a
series of trade-off studies to optimize both the heap leach and
mill processing circuits. This work was aimed at incorporating a
significant portion of the unoxidized resource from the DeLamar
deposit which was excluded in the 2019 PEA and improving the silver
recoveries.
The results of column leach tests completed on
Florida Mountain oxide and transition material in Q2 have indicated
that 0.5 inch crush provides the most economic feed size for the
Florida Mountain heap leach circuit. While column leach testing has
recently commenced on samples for DeLamar, the Company sees scope
to increase the heap leach circuit to between 32,000 and 35,000 tpd
from the 27,000 tpd contemplated in the PEA.
In addition, extensive metallurgical testing of
the DeLamar unoxidized material has demonstrated that a portion of
this resource can be processed through a larger mill with a similar
flowsheet to that used in the PEA. Consequently, the Company is
considering an 8,000 to 10,000 tpd mill in the PFS as compared to
the 2,000 tpd plan in the PEA. The potential increase in mill
processing capacity, subject to on-going studies, is expected to
result in a 50% or greater increase in gold and silver production
profile than that considered in the 2019 PEA.
“In undertaking a Pre-feasibility study at
DeLamar, Integra looked to increase the project’s production
profile relative to the already robust 2019 PEA,” stated George
Salamis, President and CEO of Integra. “The Company specifically
set its sights on larger production profiles and greatly enhanced
potential revenue streams from silver production, given the large
untapped silver resource base that exists on the project, in
addition to a large gold resource base. We view DeLamar as
‘many-projects-in-one’ due to the optionality in both mining and
processing options at the Project. The optionality and expansion
capability of our Project, a key factor in our decision to acquire
DeLamar nearly 4 years ago, will become clear in the upcoming PFS
study that we expect to deliver in Q4 of this year.
It should be noted that the Company does
anticipate an increase in capex for the upcoming PFS; however, the
expectations are that the increase in capex will be in-line with
the larger production profile presented. The increase in capex will
be primarily driven by a larger production scenario to increase the
annual production profile, as well increased costs of raw
materials. Integra’s commitment to responsible mining will also be
prevalent in the PFS, including solutions to decrease carbon
emissions through alternative transportation options for
mineralized material and the use of renewable power for operation.
Lastly, George Salamis stated, “It was a pleasure to
recently meet with Idaho’s Governor, Brad Little, to update him and
his staff on our on-going studies at DeLamar. The Governor’s
support of responsible mining development opportunities in Idaho is
encouraging and welcomed.”
Idaho Support of Mining
In August, the Integra Board of Directors had a technical
meeting in Boise, Idaho to discuss the PFS and exploration program.
While in Boise, the Company had the opportunity to meet with
Governor Brad Little. During the meeting, Integra management
discussed progress at the DeLamar project and the upcoming
permitting process. Governor Little expressed his support for the
project moving forward, noting, “We’re the Gem State for a reason,
and there’s never been a more exciting timing for Idaho to realize
the potential of our diverse mineral resources. The building of
responsible mines is a priority for the state, especially those
with the potential to be strong contributors to their counties and
communities.”
Metallurgy
The Company continues to complete extensive
metallurgical testing on the DeLamar and Florida Mountain deposits,
including oxide and transitional mineralization column leach tests
for heap leaching and optimization testwork on unoxidized material
for the mill. Mill testwork has covered a myriad of processing
options including flotation optimization, regrind and leach
optimization, pre-aeration, cyanide detoxification, solid and
liquid separation, comminution options, quick mineral scans and
high-pressure grinding rollers (“HPGR”) for crushing.
Regarding heap leach testwork, all column leach
tests for Florida Mountain are now complete, with the oxide
composites complete and the final assays in process for the
transitional composites. In general, the 0.5 inch heap leach feed
appears to economically outperform both 2 inch and 0.25 inch.
DeLamar column leach composites are on-line.
Economic Contribution of
Silver
Due to the larger milling scenario contemplated
in the PFS, the Company expects to derive a larger percentage of
economic contribution from an increase in silver ounces in the PFS.
In the 2019 PEA, silver accounted for only 18% of the total project
forecasted economics. Since silver recoveries averaged 80% for the
Florida Mountain mill in the PEA versus 34% on the heap leach pad,
increased throughput at the mill focussed on unoxidized material
with higher silver content has the potential to significantly
increase silver recoveries and silver derived revenues. These
increased silver recoveries, in addition to gold, have the
potential to positively impact the economics of the project and
provide exposure to long-term silver prices.
Current Drill Status
The Company currently has 2 drill rigs in
operation, with one positioned at Florida Mountain and a second
drill at War Eagle.
Sampling and QA/QC
Procedure
Thorough QA/QC protocols are followed on the
Project, including insertion of duplicate, blank and standard
samples in the assay stream for all drill holes. The samples are
submitted directly to American Assay Labs in Reno, Nevada for
preparation and analysis. Analysis of gold is performed using fire
assay method with atomic absorption (AA) finish on a 1 assay ton
aliquot. Gold results over 5 g/t are re-run using a
gravimetric finish. Silver analysis is performed using ICP for
results up to 100 g/t on a 5 acid digestion, with a fire
assay, gravimetric finish for results over 100 g/t silver.
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 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 delivery of a Pre-feasibility Study in Q4 2021.
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 scope, timing and completion of the
Pre-feasibility study; estimates of metallurgical recovery rates
and the contribution of silver production to mining operations;
anticipated advancement of DeLamar and future exploration
prospects.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.
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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