SOURCE: Integra Gold Corp.

Integra Gold Corp

November 13, 2014 07:00 ET

Integra Gold Achieves First Major Permitting Milestone at Lamaque Due to Mill Acquisition, Shortens Anticipated Development Timeline

VANCOUVER, BC--(Marketwired - November 13, 2014) -

  • Federal Permitting Update: Separate Federal Environmental Assessment/Environmental Impact Study for the Lamaque South Project no longer required as a result of recent acquisition
  • Provincial Permitting Update: Four Certificate of Authorizations have now been transferred in to Integra's name, including one which, with a simple amendment, will enable the Company to commence underground exploration at the Parallel Zone

Integra Gold Corp. (TSX VENTURE: ICG) (OTCQX: ICGQF) ("Integra" or the "Company") is pleased to announce that the Canadian Environmental Assessment Agency ("CEAA") has informed the Company that it will not be required to file a Federal Environmental Assessment ("EA"), also known as an Environmental Impact Study, for the combined Sigma-Lamaque Mine and Mill Complex (the "Mill Property") and the Lamaque South Project ("Lamaque") in Val-d'Or, Québec.

The Company submitted a preliminary project description to the CEAA to ensure compliance with the Canadian Environmental Assessment Act of 2012. After review of the preliminary project description, the CEAA concluded that an EA is not required by the Company since the contemplated future development of the Lamaque project does not meet or exceed any of the Regulations Designating Physical Activities that would prompt an EA. This is due to the fact that surface disturbance at Integra's Lamaque South Project accounts for only a very small fraction of the combined land package following Integra's acquisition of the neighbouring Mill Property (see Company press releases dated September 3, 2014 and October 9, 2014). Integra is currently modifying its development plan to reflect a change in which mineralized material from the Parallel Zone will no longer be mined from surface, but instead be accessed via underground infrastructure acquired with the Mill Property, thereby minimizing the impact on the surrounding environment. Most of the required permits are already in place for the acquired property, the majority of which have now been transferred into Integra's name.

"We are expecting to realize significant operational and capital expenditure savings as a result of the Sigma/Lamaque Mine and Mill acquisition, but we did not fully appreciate the substantial impact it would have on our project permitting timeline. Permitting is a crucial factor in the successful development of any project, and is often overlooked at the PEA stage. We will confirm the full impact that this ruling will have on our development timeline as part of our updated PEA which is now nearing completion," noted Integra President and CEO Stephen de Jong. "From a time value perspective to cash flow, this ruling should save an estimated 6 to 12 months as we progress towards a production decision, in addition to the positive timeline implications stemming from the infrastructure obtained in the acquisition."

Provincial Permitting Update - Certificate of Authorization for Parallel Zone

In addition to the ruling by the CEAA, the Company has also been informed by the Provincial authorities that underground exploration work at its Parallel Zone may proceed with a relatively simple amendment of an existing Certificate of Authorization ("CA"). This CA was obtained also with the Mill Property acquisition. Further updates will be provided once the amendment has been filed and accepted.

Updated Preliminary Economic Assessment

The Company is in the final stages of completing an updated Preliminary Economic Assessment ("PEA") which will analyze the economic effect of the mill acquisition on the existing Lamaque PEA (see news release dated March 11, 2014). The updated PEA will focus on decreased operational costs related to the mill acquisition as well as an updated engineering plan to access the Parallel Zone via existing underground infrastructure on the recently acquired Sigma-Lamaque property. The PEA update will be followed by an updated NI 43-101 Technical Report resource update which will include 40,000 meters of new drilling. 

Waste Rock Partner

The Company is pleased to announce that the confidentiality terms surrounding the identity of the company it has partnered with ("Waste Rock Partner") in the acquisition of the Sigma-Lamaque Milling Complex and Mine have been lifted. The partnership is with a large, well-known, Québec-based company, L. Fournier et Fils Inc. ("Fournier"). Fournier is a Val-d'Or based engineering and mining services provider that is also a major supplier and producer of concrete and aggregate products. Founded in 1938, Fournier has serviced the greater Abitibi region for more than 70 years.

Further information on Fournier can be found at:

http://www.fournier-fils.com/en/custompage.aspx?resourceid=35ff75b4-1829-4deb-baaa-76852d7ecde3

Project and Company Profile

Integra's Lamaque South Gold Project and Sigma-Lamaque Milling Complex and Mine are located adjacent and directly east of the city of Val-d'Or along the prolific Abitibi Greenstone belt in the Province of Québec, Canada, approximately 550 km northwest of Montréal. Québec is rated one of the best mining jurisdictions in the world. Infrastructure, human resources and mining expertise are readily available.

The Company's primary focus is the advancement of exploration at its Lamaque South project. The Lamaque South property is divided into three resource clusters, the North, South and West cluster. The primary targets are the high-grade Parallel Zone in the North Cluster and the Triangle Zone in the South cluster. The acquired Sigma Mill, located 500 meters from the Parallel Zone and 2 kilometers from the Triangle Zone, is a fully-permitted, 2,200 ton per day mill and tailings facility. The Sigma-Lamaque Mill and Mining Complex include the historic Sigma and Lamaque Mines which operated for 60 and 40 years respectively and produced more than 9 million ounces of Gold in total.

Qualified Person

The Lamaque project is under the direct supervision of Hervé Thiboutot, Eng. and Senior Vice-President of the Company, and Francois Chabot, Eng., Operations and Engineering Manager of the Company, both Qualified Persons ("QP") as defined by National Instrument 43-101, and Alain-Jean Beauregard, P.Geo., and Daniel Gaudreault, Eng., Geo. of Géologica Inc., both independent QPs as defined by National Instrument 43-101. Messrs. Thiboutot and Chabot have approved the scientific and technical content of this release.

ON BEHALF OF THE BOARD OF DIRECTORS

Stephen de Jong
CEO & President

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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 news release.

Cautionary Note Regarding Forward Looking Statements: Certain disclosures in this release constitute forward-looking statements, including the effect of the Mill Property acquisition on development of the Lamaque project, timing of completion of an updated resource estimate, timing of completion of an updated PEA and the results of that PEA. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, including that the Company is able to obtain any government or other regulatory approvals, that the Company is able to procure personnel, equipment and supplies required for its exploration and development activities in sufficient quantities and on a timely basis and that actual results are consistent with management's expectations. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, those matters identified in its continuous disclosure filings, including its most recently filed MD&A. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

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