Integra Resources Corp. (TSXV:ITR ; OTCQX:IRRZF)
(the “Company” or “Integra”) is pleased to announce that it has
filed on SEDAR the independent NI 43-101 Technical Report (the
“Report”) for the maiden Preliminary Economic Assessment (“PEA”)
for the DeLamar Gold-Silver Project located in southwest Idaho,
USA.
The Report filed today contemplates a production
scenario that outlines surface oxide and transitional
mineralization at the Florida Mountain and DeLamar Deposits within
an overall resource that can be processed by heap leaching. A
further component of milling is anticipated to process
mineralization from the unoxidized mineralization at Florida
Mountain. The PEA was completed by Mine Development Associates
(“MDA”) of Reno, NV, conducted under the direction of Timothy
Arnold, Integra’s Vice President of Project Development, and
includes contributions from the consulting teams at McClelland
Laboratories (Reno) (“McClelland”), Woods Process Services (Denver)
(“Woods”), Welsh Hagen (Reno) (“WH”) and EM Strategies (Reno)
(“EMS”). The PEA Report is available on SEDAR under the Company’s
profile, and on the Company’s website at:
https://www.integraresources.com/site/assets/files/2572/pea_ni43-101delamarfloridamtn2019_oct_22_2019_final.pdf
The 2019 PEA, which includes resources from the
Company’s Updated Resource Estimate (please click the following
link:
https://integraresources.com/site/assets/files/2663/2019-06-17_nr_itr_t7hg7g9s.pdf),
demonstrates the robust economics of the project. Assuming a gold
price of US$1,350 per ounce, and a discount rate of 5%, the DeLamar
Project’s estimated after-tax NPV is C$472.0 M and after-tax IRR is
43%. The payback period for DeLamar is 2.4 years after-tax. As is
common, Project economics are sensitive to metal price assumptions,
though remain very viable in the downside case and extremely robust
in the upside case, as seen in Table 2 below and in the sensitivity
analysis in the Report.
Economic and Operational
Highlights
Table 1. Overview of PEA Technical Inputs and
Financial Assumptions
DELAMAR PEA: Technical Inputs and Financial
Assumptions |
Economic Assumptions |
|
Gold Price |
US$1,350/oz |
Silver Price |
US$16.90/oz |
Exchange Rate (C$/US$) |
1.32 |
Discount Rate |
5% |
Contained Metals |
|
Contained Gold ounces |
1,243,820 |
Contained Silver ounces |
46,129,538 |
Contained AuEq ounces |
1,821,293 |
Mining |
|
Mine Life |
10 years |
Open Pit Mining Rate: min/waste tpd |
53,751 |
Strip Ratio (Waste: Mineralization) |
1.09 |
Total Tonnage Mined (t) |
196,190,238 |
Total Mineralized Material Mined (t) |
93,749,888 |
Processing |
|
Processing Throughput: Heap-leaching /Milling |
27,000 tpd / 2,000 tpd |
Average Diluted Gold Grade (g/t) - HL |
0.39 g/t |
Average Diluted Silver Grade (g/t) - HL |
15.21 g/t |
Average Diluted AuEq Grade (g/t) - HL |
0.58 g/t |
Average Diluted Gold Grade (g/t) - Milling |
0.80 g/t |
Average Diluted Silver Grade (g/t) - Milling |
17.18 g/t |
Average Diluted AuEq Grade (g/t) - Milling |
1.02 g/t |
Production |
|
Gold Recovery: Heap-leaching/Milling |
83% / 90% |
Silver Recovery: Heap-leaching/Milling |
34% / 80% |
LOM Payable Gold ounces |
1,031,179 |
LOM Payable Silver ounces |
16,602,692 |
LOM Payable AuEq ounces |
1,239,020 |
Years 1-10 Avg Annual Production - Gold |
103,118 |
Years 1-10 Avg Annual Production - Silver |
1,660,269 |
Years 1-10 Avg Annual Production - AuEq |
123,902 |
Years 2-6 Avg. Annual Production - Gold |
125,989 |
Years 2-6 Avg. Annual Production - Silver |
1,795,845 |
Years 2-6 Avg. Annual Production -AuEq |
148,471 |
Operating Costs per Tonne |
|
Mining Costs ($/t mined) |
US$2.00 |
Mining Costs ($/t processed) |
US$4.18 |
Processing Costs ($/t processed) – Heap Leach |
US$2.79 |
Processing Costs ($/t processed) – Milling |
US$9.07 |
Processing Costs ($/t processed) – Combined |
US$3.08 |
G&A Costs ($/t processed) |
US$0.55 |
Total Site Operating Cost ($/t processed) |
US$7.82 |
Cash Costs and All-in Sustaining Costs |
|
LOM Cash Cost ($/oz) Au, net-of-silver by-product |
US$469/oz |
LOM Cash Cost ($/oz) AuEq, co-product |
US$617/oz |
LOM AISC ($/oz) Au, net-of-silver by-product |
US$619/oz |
LOM AISC ($/oz) AuEq, co-product |
US$742/oz |
Capital Expenditures |
|
Pre-Production Capital Expenditures ($ million) (1) |
US$142.0 |
Working Capital / Cash for Reclamation Bond ($ million) |
US$19.0 |
Florida Mill (Plant & Tailings in Yr 2) ($ million) |
US$41.3 |
Other Production Capex / Sustaining Capital Expenditures ($
million) |
US$93.4 |
Reclamation Cost ($ million) |
US$20.0 |
Economics |
|
After-Tax IRR |
43% |
After-Tax NPV (5%) (US$ million) |
US$357.6 |
After-Tax NPV (5%) (C$ million) |
C$472.0 |
After-Tax NPV (8%) (US$ million) |
US$284.4 |
After-Tax NPV (8%) (C$ million) |
C$375.5 |
Pre-Tax IRR |
49% |
Pre-Tax NPV (5%) (US$ million) |
US$437.3 |
Pre-Tax NPV (5%) (C$ million) |
C$577.2 |
Pre-Tax NPV (8%) (US$ million) |
US$351.2 |
Pre-Tax NPV (8%) (C$ million) |
C$463.6 |
After-Tax Payback period (years) |
2.4 |
Average Annual after-tax net free cash flow (Year 1 to year 10) ($
million) |
C$81.1 |
LOM net after-tax free cash flow ($ million) |
C$697.2 |
1) Mobile equipment financing could reduce the pre-production capex
by up to ~C$34.8 million (US$26.4 million), assuming a 20% cash
down. |
Table 2. After-Tax NPV and IRR Sensitivities Assuming No Mobile
Equipment Financing (PEA Case)
|
PEA Prices |
Downside |
Upside |
Gold Price (US$/oz) |
$1,350 |
$1,200 |
$1,500 |
Silver Price (US$/oz) |
$16.90 |
$15.00 |
$19.00 |
After-Tax NPV(5%) (Million) |
C$ 472.0 / US$ 357.6 |
C$ 330.5 / US$ 250.4 |
C$ 615.0 / US$ 465.9 |
After-Tax IRR (%) |
43% |
32% |
54% |
Payback (years) |
2.4 |
3.0 |
1.9 |
Average Annual Free Cash Flow (Million) |
C$81.1 |
C$64.1 |
C$98.4 |
Qualified Persons & Technical
Report
The scientific and technical information
contained in this news release has been verified and approved by
Tim Arnold, Integra’s Vice President of Project Development, of
Reno, Nevada, a professional engineer and "Qualified Person" within
the meaning of NI 43-101, Thomas Dyer, a PE within the state of
Nevada, a Registered Member of the SME with expertise in mining and
economic analysis and a “Qualified Person” within the meaning of NI
43-101, Jack McPartland, a member of MMSA, with special expertise
in metallurgy/processing and a “Qualified Person” within the
meaning of NI 43-101, Jeffrey Woods, Principle Consulting
Metallurgist at Woods Process Services of Denver, Colorado, a
registered member of the SME and MMSA and “Qualified Person” within
the meaning of NI 43-101, John D. Welsh, Senior Principal of Welsh
Hagan Associates and independent of the Company, a registered
professional engineer and “Qualified Person” within the meaning of
NI 43-101.
The DeLamar and Florida Mountain mineral
resource estimates were prepared by Mine Development Associates of
Reno, Nevada under the supervision of Michael Gustin. Mr. Gustin is
a Qualified Person and is independent of the Company as defined by
NI 43-101.
Further information about the PEA referenced in
this news release, including information in respect of data
verification, key assumptions, parameters, risks and other factors,
can be found in the NI 43-101 technical report for the DeLamar
Project that will be filed on SEDAR under Integra’s profile at
www.sedar.com.
About Integra Resources
Integra Resources is a development-stage company
engaged in the acquisition, exploration and development of mineral
properties in the Americas. The primary focus of the Company is
advancement of its DeLamar Project, consisting of the neighbouring
DeLamar and Florida Mountain Gold and Silver Deposits in the heart
of the historic Owyhee County mining district in south western
Idaho. The first exploration program in over 25 years began on the
DeLamar Project in 2018, with more than 30,000 meters drilled to
date. The management team comprises the former executive team from
Integra Gold Corp. For additional information, see “Technical
Report and Updated Resource Estimates for the DeLamar and Florida
Mountain Gold – Silver Project, Owyhee County, Idaho, USA”, dated
July 30, 2019.
ON BEHALF OF THE BOARD OF DIRECTORS
George Salamis President, CEO, and Director
CONTACT INFORMATION
Corporate Inquiries: Chris Gordon,
chris@integraresources.comCompany website:
www.integraresources.comOffice phone: 1 (604) 416-0576
Cautionary Statement Regarding Forward
Looking 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.
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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