SOURCE: Integra Gold Corp.

Integra Gold Corp.

June 14, 2017 06:30 ET

Integra Gold Announces Inferred Resource Prepared in Accordance with NI 43-101 at Historic Sigma Mine

VANCOUVER, BC--(Marketwired - June 14, 2017) - Integra Gold Corp. (TSX VENTURE: ICG) (OTCQX: ICGQF)

Press Release Highlights:

  • The historic Sigma Mine resource at a 3.0 g/t gold ("Au") cut-off base case consists of 890,900 Au Inferred ounces at an average grade of 4.8 g/t Au (5,733,000 tonnes).
  • A significant amount of historic close-spaced underground drill information was used to produce the new resource estimate at the historic Sigma Mine; however, following the recommendations from its Consultant, the resources are classified in the Inferred category until additional QA/QC work and underground verification, including confirmatory drilling, can be performed.
  • The Lamaque Project resource at a 3.0 g/t cut-off base case consists of 1,917,443 Indicated Au ounces grading 6.78 g/t Au (8,413,248 tonnes) and 2,233,104 Inferred Au ounces grading 5.20 g/t Au (12,863,903 tonnes).

Integra Gold Corp. (TSX VENTURE: ICG) (OTCQX: ICGQF) ("Integra" or the "Company") is pleased to announce the completion of a resource estimate prepared in accordance with NI 43-101 for the historic Sigma Mine ("Sigma") on its 100% owned Lamaque Gold Project ("Lamaque" or the "Property") in Val-d'Or, Québec. The resource estimates for other deposits on Lamaque, including the Triangle, No. 4 Plug, Sixteen, Fortune, No. 6 Vein, and Parallel, have not changed since the last Property resource update was disclosed in March 2017 (see Company press release dated March 22, 2017). Data verification, modelling, and resource estimation work for Sigma was completed by InnovExplo Inc. ("InnovExplo") of Val-d'Or, Québec.

To view a plan map of Lamaque showing the mineral deposits and exploration targets please follow the link below:

http://www.integragold.com/site/assets/files/2364/map_with_targets_-_sigma_resource.pdf

Sigma Deposit Resource Overview

The Sigma resource estimate was completed in accordance to NI 43-101 and includes resources from surface to a vertical depth of 1,900 m. As part of the resource estimation process, InnovExplo recompiled and verified all historical drilling and underground sampling information available from Sigma, including 25,241 drill holes consisting of 436,498 gold assays and 41,132 underground channel samples consisting of 65,534 gold assays. The 3D geological model for the sub-vertical shear veins and sub-vertical mineralized feldspar porphyry dykes, the primary hosts of gold mineralization at Sigma, was entirely rebuilt using the historical drift and stope plans, vertical sections, plan views and previous resource models of the historically mined zones. Flat veins were not modelled in the current mineral resource estimate. Although there is a significant amount of close spaced drill results available in the historical data, the resource at Sigma will remain classified as inferred until additional QA/QC work, confirmatory drilling and underground verification can be performed.

Below are figures that illustrate the geological model, drill database, and void model used for the Sigma resource:

Figure 1 - Updated Sigma 3D geological model:

http://www.integragold.com/site/assets/files/2362/figure_1_-_geological_model_sigma.png

Figure 2 - Drill hole traces used for the Sigma resource estimate:

http://www.integragold.com/site/assets/files/2361/figure_2_-_drilling_at_sigma.jpg

Figure 3 - Void model of underground openings at Sigma:

http://www.integragold.com/site/assets/files/2363/figure_3_-_void_model_sigma.png

The resource estimate announced today is the first resource estimate completed by the Company on the historic Sigma Mine.

 
Table 1.
May 2017 Sigma Deposit Resource Estimate
Base case at 3.0 g/t Cut-off
       
Cut-off Grade(g/t Au)  Indicated  Inferred
Tonnes  Grade
(g/t Au)
 Ounces(Au)  Tonnes  Grade
(g/t Au)
 Ounces(Au)
3.0 g/t  0  0.0  0  5,733,000  4.8  890,900
             
1. The effective date of the resource estimate is May 09, 2017. The Independent and Qualified Person (QP) for the Mineral Resource Estimate as required by National Instrument 43-101 is Harold Brisson Eng. (OIQ 41433), employee of InnovExplo Inc.
2. The official base case resource is reported at a cut-off grade of 3.0 g/t Au.
3. This estimate includes 121 mineralized zones from surface to 1,900m vertical.
4. The estimate is based from diamond drill holes and underground channel samples (moils). A minimum true thickness of 2.0 m was applied for the interpretation of the mineralized zones. A value of zero was used when not assayed and a value of 0.001 was used for assays below detection limits.
5. The resource is supported by statistical analysis with high-grade capping done on raw assay data and established on a per mineralized zone basis.
6. Compositing at 1.5 m was done from intersects falling within the mineralized zones.
7. The resource was estimated using Geovia GEMS 6.7 software with an ordinary kriging interpolation method in a block model (block size = 5 x 3 x 5 m).
8. The density used is 2.78 g/cm3 for all zones.
9. Tonnage and ounces estimates were rounded to the nearest thousand and hundred respectively.
10. CIM definitions and guidelines were followed in estimating mineral resources.
11. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability.
12. The quantity and grade of reported Inferred Resources are uncertain in nature and there has not been sufficient work to define these Inferred Resources as Indicated or Measured Resources.
13. While the results are presented undiluted and in situ, the reported mineral resource is considered by the QP to have reasonable prospects for underground economic extraction.
14. InnovExplo is not aware of any known environmental, permitting, legal, title-related, taxation, sociopolitical, marketing or other relevant issue that could materially affect the mineral resource estimate.
 
 
Table 2.
May 2017 Sigma Deposit Resource Estimate
Mineral Resource Sensitivity by Cut-Off Grades
             
Cut-off(g/t Au)  Density(t/m3)  Tonnage  Au(g/t)  Au(oz)
Inferred
 ≥ 10.0  2.78  170,000  12.3  67,000
 ≥ 9.0  2.78  260,000  11.3  94,300
 ≥ 8.0  2.78  419,000  10.2  137,600
 ≥ 7.0  2.78  670,000  9.2  197,900
 ≥ 6.0  2.78  1,089,000  8.1  284,800
 ≥ 5.0  2.78  1,833,000  7.1  415,200
 ≥ 4.0  2.78  3,189,000  5.9  609,100
 ≥ 3.0  2.78  5,733,000  4.8  890,900
 ≥ 2.4  2.78  8,349,000  4.2  1,116,200
 ≥ 2.0  2.78  10,902,000  3.7  1,295,900
 > 1.0  2.78  22,498,000  2.5  1,829,400
         
Note: Base Case Mineral Resource reported using a cut-off grade of 3 g/t Au
 

Comparison with Historical Estimates

The historical resource estimate was previously compiled using a combination of Ordinary Kriging to a vertical depth of 335 m (completed in 2011 by Century Mining) and from 335 m to 1,900 m vertical depth using polygonal methods calculation completed in the 1980s and 1990s by the previous owners of Sigma, including Placer Dome Inc. and McWatters Mining Inc. These historical resources were reported at variable cut-offs of 2.1 g/t Au and 1.0 g/t Au for the upper block model and at 1.0 g/t Au for the lower polygonal resources.

 
Table 3.
Sigma Deposit - Comparison between Historic Resource and Integra Resource
(2.1 g/t and 1.0 g/t Au cut-off grades for historic resource and 1.0 g/t Au cut-off grades for Integra)
       
Company (year released)  Indicated*  Inferred*
Tonnes  Grade
(g/t Au)
 Ounces (Au)  Tonnes  Grade
(g/t Au)
 Ounces (Au)
Century and previous owner (2011 and prior)  3,674,000  4.96  586,000  9,159,000  6.29  1,853,000
Integra (2017)  0  0.00  0  22,498,000  2.50  1,829,400
             
*The indicated and inferred resource numbers are presented for information purposes only. The assumed cut-off grade of 1.0 g/t Au used in Table 3 for Integra's resource constitutes a sensitivity analysis and does not represent the current mineral resource estimate hosted on the Property.
 

Lamaque Property Resource Estimates

Drill programs completed at Triangle and other targets on the Property since 2011 have strongly contributed to the Company's understanding of the project geology, particularly in regard to gold mineralization distribution and controls.

The resource for Lamaque, including the Sigma resource, is presented in the following tables. The estimation methodology used is Ordinary Kriging for all of the deposits listed. The tables below outline the resources at a 3 g/t Au and a 5 g/t Au cut-offs. The resource estimates for the Triangle, No. 4 Plug, Parallel, No. 6 Vein, Fortune and Sixteen Deposits were calculated by Christian d'Amours of Geopointcom in Val-d'Or, Québec. The resource estimate for Sigma was calculated by Harold Brisson of InnovExplo from Québec City, Québec.

 
Table 4.
May 2017 Lamaque Property Resource Estimate
(Base case at 3 g/t Au cut-off)
       
Deposit  Indicated  Inferred
Tonnes  Grade
(g/t Au)
 Ounces(Au)  Tonnes  Grade
(g/t Au)
 Ounces(Au)
Triangle (1)  6,262,000  7.32  1,473,530  5,441,000  5.67  991,800
No. 4 Plug (2)  505,448  6.67  108,443  915,903  6.84  201,464
Parallel (3)  761,100  7.48  182,920  382,100  5.72  70,290
No. 6 Vein (4)  462,800  5.60  83,450  362,000  6.40  74,240
Fortune (5)  330,200  5.10  53,660  28,100  4.60  4,160
Sixteen (6)  91,700  5.20  15,440  1,800  4.20  250
Sigma (7)  0  0.00  0  5,733,000  4.80  890,900
Total  8,413,248  6.78  1,917,443  12,863,903  5.20  2,233,104
             
 
Table 5.
May 2017 Lamaque Property Resource Estimate
(Sensitivity Analysis at 5 g/t Au cut-off)
       
Deposit  Indicated  Inferred
Tonnes  Grade
(g/t Au)
 Ounces (Au)  Tonnes  Grade
(g/t Au)
 Ounces (Au)
Triangle (1)  4,004,700  9.24  1,189,550  2,501,100  7.85  631,200
No. 4 Plug (2)  300,417  8.56  82,634  579,432  8.59  160,028
Parallel (3)  426,800  10.29  141,210  184,100  7.70  45,560
No. 6 Vein (4)  201,300  7.90  51,280  239,800  7.50  58,080
Fortune (5)  155,000  6.30  31,620  9,400  6.60  1,990
Sixteen (6)  41,800  6.90  9,250  400  6.40  90
Sigma (7)  0  0.00  0  1,833,000  7.10  415,200
Total  5,130,017  8.82  1,505,544  5,347,232  7.31  1,312,148
             
(1) Triangle: Effective date is March 17, 2017; specific gravity of 2.8 g/cm3; geologically constrained model with hard boundary; capping of 20 g/t Au on composites when estimated cells are more than 15 m from drill hole otherwise uncapped; composited to full length for each zone intersection before geostatistical analysis; 2 m minimum true thickness, if required diluted with in situ grade when assay results are available otherwise diluted with "zero" grade; ordinary kriging; 3 g/t cut-off calculated for official resource numbers.
(2) No. 4 Plug: Effective date is October 28, 2016; specific gravity of 2.80 g/cm3; geologically constrained model with hard boundary; capping of 20 g/t Au on composites when estimated cells are more than 15 m from drill hole otherwise uncapped; composites are 1 m in downhole length before geostatistical analysis; 2 m minimum true thickness, if required diluted with in situ grade when assay results are available otherwise diluted with "zero" grade; ordinary kriging; 3 g/t cut-off calculated for official resource numbers.
(3) Parallel: Effective date is February 5, 2016; specific gravity of 2.80 g/cm3; geologically constrained model with hard boundary; capping of individual gold values at 100 g/t Au then capping of 20 g/t Au on composites when estimated cells are more than 15 m from drill hole otherwise uncapped; composited to 1 m downhole length before geostatistical analysis; 2 m minimum true thickness, if required diluted with in situ grade when assay results are available otherwise diluted with "zero" grade; ordinary kriging; 3 g/t cut-off calculated for official resource numbers.
(4) No. 6 Vein: Effective date is June 17, 2016; specific gravity of 2.80 g/cm3; geologically constrained model with hard boundary; capping of 20 g/t Au on composites when estimated cells are more than 15 m from drill hole otherwise uncapped; composited to 1 m downhole length before geostatistical analysis; 2 m minimum true thickness, if required diluted with in situ grade when assay results are available otherwise diluted with "zero" grade; ordinary kriging; 3 g/t cut-off calculated for official resource numbers.
(5) Fortune: Effective date is April 6, 2015; specific gravity of 2.82 g/cm3; geologically constrained model with hard boundary; individual gold values uncap; composited to 1 m downhole length before geostatistical analysis; 2 m minimum true thickness, if required diluted with in situ grade when assay results are available otherwise diluted with "zero" grade; ordinary kriging; 3 g/t cut-off calculated for official resource numbers.
(6) Sixteen: Effective date is November 18, 2013; specific gravity of 2.80 g/cm3; geologically constrained model with hard boundary; individual gold values capped at 35 g/t Au; composited to 0.7 m downhole length before geostatistical analysis; 2 m minimum true thickness, if required diluted with in situ grade when assay results are available otherwise diluted with "zero" grade; ordinary kriging; 3 g/t cut-off calculated for official resource numbers.
(7) Sigma: The effective date of the resource estimate is May 9, 2017. The Independent and Qualified Person (QP) for the Mineral Resource Estimate as required by National Instrument 43-101 is Harold Brisson Eng. (OIQ 41433), employee of InnovExplo Inc. The official base case resource is reported at a cut-off grade of 3.0 g/t Au. This estimate includes 121 mineralized zones from surface to 1,900m vertical. The estimate is based from diamond drill holes and underground channel samples (moils). A minimum true thickness of 2.0 m was applied for the interpretation of the mineralized zones. A value of zero was used when not assayed and a value of 0.001 was used for assays below detection limits. The resource is supported by statistical analysis with high-grade capping done on raw assay data and established on a per mineralized zone basis. Compositing at 1.5 m was done from intersects falling within the mineralized zones. The resource was estimated using Geovia GEMS 6.7 software with an ordinary kriging interpolation method in a block model (block size = 5 x 3 x 5 m). The density used is 2.78 g/cm3 for all zones.

Lamaque Project Next Steps

The Company has eight drill rigs operating on the Property, including six drill rigs on surface at Triangle completing an expanded infill and extensional drill program, one drill rig underground at Triangle completing close spaced drilling at 10 m centers in the selected bulk sampling area, and one drill rig testing the Lamaque Deep target. To date in 2017, a total of 35,895 m of infill and extension drilling have been completed at Lamaque, of which 26,711 m were completed at Triangle.

Project and Company Profile

Integra Gold is a junior gold exploration company advancing projects in Val-d'Or, Québec, one of the top mining jurisdictions in the world. The Company's primary focus is its high-grade Lamaque South project. In the fall of 2014, Integra completed the accretive acquisition of the Sigma Mill and Mine Complex, a fully permitted 2,200 ton per day mill and tailings facility. With major federal and provincial permits in place, existing infrastructure and significant exploration potential, this acquisition removed major costs and shortened timelines typically associated with mine projects. Integra has raised over $150 million since 2013, at successively higher share prices, despite depressed gold prices.

On May 15, 2017, Integra and Eldorado Gold Corporation separately issued press releases announcing that they had entered into a definitive agreement pursuant to which Eldorado Gold Corporation agreed to acquire all of the issued and outstanding common shares of Integra that it does not currently own.

Qualified Person

The Lamaque project is under the direct supervision of Hervé Thiboutot, Eng., Senior Vice-President of the Company, and Jacques Simoneau, P. Geo., Exploration Manager of the Company. Mr. Thiboutot and Mr. Simoneau are Qualified Persons ("QPs") as defined by the National Instrument 43-101. Mr. Christian D'Amours, P. Geo., OGQ #226, from GeoPointCom, is responsible for the completion of the resource estimations for all deposits at Lamaque except for Sigma which was completed by Harold Brisson, Eng. (OIQ #41433), from InnovExplo Inc. Mr. Brisson and Mr. D'Amours are both independent QPs as defined by the National Instrument 43-101. The Company's QPs have reviewed and approved the scientific and technical disclosure in this news release.

Quality Assurance - Quality Control ("QA/QC")

Thorough QA/QC protocols are followed on the project including insertion of duplicate, blank and standard samples in all drill holes. The core samples are submitted directly to the Bourlamaque and ALS Laboratories in Val-d'Or for preparation and analysis. Analysis is conducted on 1 assay-ton aliquots. Analysis of Au is performed using fire assay method with atomic absorption (AA) finish, with a gravimetric finish completed for samples exceeding 5 g/t Au. Results published are from the gravimetric finish if above 5 g/t Au and from the AA finish if lower than 5 g/t Au.

ON BEHALF OF THE BOARD OF DIRECTORS

Stephen de Jong
CEO & President

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. 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 required to complete the private placement and Company's planned exploration activities, that the Company is able to complete the private placement, that the Company is able to procure personnel, equipment and supplies required for its exploration activities in sufficient quantities and on a timely basis and that actual results of exploration activities 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, that the private placement will not be completed, that actual results of the Company's exploration activities will be different than those expected by management and that the Company will be unable to obtain or will experience delays in obtaining any required government approvals or be unable to procure required equipment and supplies in sufficient quantities and on a timely basis. 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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