SOURCE: Integra Gold Corp.

Integra Gold Corp.

November 16, 2016 06:00 ET

Integra Gold Announces Lamaque Resource Estimate: Triangle Indicated Resource Increases 17.5% to 737,590 Gold Ounces and Triangle Inferred Resource Increases 15.2% to 1,004,170 Gold Ounces

VANCOUVER, BC--(Marketwired - November 16, 2016) - Integra Gold Corp. (TSX VENTURE: ICG) (OTCQX: ICGQF)

Press Release Highlights:

  • Triangle deposit (3.0 g/t Au cut-off): indicated resources increased 17.5% from 627,810 gold ("Au") ounces to 737,590 Au ounces grading 7.01 g/t Au and inferred resources increased 15.2% from 871,530 Au ounces to 1,004,170 Au ounces at an average grade of 6.94 g/t Au.
  • Triangle deposit (5.0 g/t Au cut-off): indicated resources increased 15.2% from 503,420 Au ounces to 580,150 Au ounces grading 8.96 g/t Au and inferred resources increased 14.5% from 676,960 Au ounces to 774,880 Au ounces at an average grade of 9.03 g/t Au.
  • 23,800 meters ("m") of new drilling incorporated into resource estimate announced today. Next resource estimate (Q1 2017) will incorporate an additional 105,000 m (290 drill holes) of diamond drilling at the Triangle deposit ("Triangle") with an estimated assay database cut-off date of December 31, 2016.
  • Triangle indicated and inferred resources are now 247% and 505% larger, respectively, than the resource estimate used for the Company's most recent PEA (January 2015, 5 g/t Au cut-off). An updated PEA using the resource estimate announced today is underway with an expected completion date in early Q1 2017.
  • Not included in the Lamaque Property global resource estimate summary (Tables 1 and 2) are the lower grade vein clusters at the No. 4 Plug deposit ("P4 Clusters") which account for indicated resources of 185,720 Au ounces grading 3.93 g/t Au and inferred resources of 188,900 Au ounces grading 3.12 g/t Au. When included in the total for the Lamaque Property resource estimate, global indicated resources increased by 13% while global inferred resources increased by 44%.
  • Six drill rigs currently active on the Lamaque Property, 22,550 m in drill assays currently pending, Lamaque Deep hole has reached target depth of 2,200 m and first wedge is planned to start shortly, exploration decline has advanced 370 m towards Triangle and the Company has $43 million in the treasury not including marketable securities.

Integra Gold Corp. (TSX VENTURE: ICG) (OTCQX: ICGQF) ("Integra" or the "Company") is pleased to announce that it has completed a global resource estimate on its 100% owned Lamaque South Gold Project ("Lamaque" or the "Property") in Val-d'Or, Québec. This update includes resource estimates on the Triangle, No. 4 Plug, Sixteen, Fortune, No. 6 Vein, and Parallel deposits. Resource estimation work was completed by Christian D'Amours of GeoPointCom, Val-d'Or, Québec.

The resource estimates announced today will be used for an updated Preliminary Economic Assessment ("PEA") which the Company anticipates completing in early Q1 2017. Management felt it was prudent to move forward with both the resource estimate announced today and the subsequent PEA as this resource represents a three-fold increase when compared to the resource used for the previous PEA (see news release dated January 13, 2015).

In the mine plan outlined in the Company's January 2015 PEA, a total of 228,000 Au ounces were recovered from the Triangle deposit and 62,000 Au ounces recovered from the No. 4 Plug deposit ("No. 4 Plug"). The Triangle resource estimate (at 5 g/t Au cut-off) as of today's disclosure is at 580,150 Au ounces indicated and 774,880 Au ounces inferred, respectively 247% and 505% larger than the resource estimate used in the January 2015 PEA and 15.2% and 14.5% larger than the Company's November 2015 resource estimate.

A total of 23,800 m of drilling completed at the Triangle deposit was included in the resource estimate announced today. An additional 105,000 m of Triangle drilling (approximately 70% infill / 30% step-out) was not included in this resource estimate which is expected to have a material impact on the next Lamaque resource estimate. Modelling work to incorporate these new results has already begun with an updated resource estimate expected to be completed in late Q1 2017.

Based on the orientation of the steeply dipping C Structures as outlined in this updated resource, the Company is anticipating a mine plan for the upcoming PEA in which a minimum of 80% of the gold at Triangle will be potentially amenable to being mined by way of long-hole mining methods. The previous mine plan prepared for Triangle projected that less than 30% of the gold to be mined by way of long-hole mining methods.

"Our exploration team has done an outstanding job in delivering consistent resource growth year after year and based on the exceptional expansion and infill drill results we've had since the database for this resource estimate closed, we are optimistic this trend will continue," commented Company President and CEO, Stephen de Jong. "As Triangle continues to prove itself as the backbone of our Company we are also encouraged by what we are seeing at the No. 4 Plug and other satellite deposits as we continue to execute on our strategy of proving up the case for an expanded mine plan which draws mill feed from multiple sources. The exploration ramp which will be used for close spaced underground drilling of the Triangle deposit as well as a bulk sample and resource reconciliation work continues to advance towards the deposit, with 370 m of the main ramp completed to date."

Resource Estimate Summary

The extensive 2015 and 2016 drill programs completed on deposits and targets across the Property have contributed greatly to refining the Company's understanding of the geology, especially in regard to gold mineralization distribution and controls. This has led to refinements on a number of key resource estimation parameters relative to previously used parameters. These refinements are briefly discussed in subsequent sections of this news release and will be discussed in more detail in the NI 43-101 Technical Report which will be filed on SEDAR within 45 days.

The global resource for Lamaque is presented in the following tables. In all cases the estimation methodology used is Ordinary Kriging ("OK"). For consistency with previous resource disclosure, the tables outline the resources at 3 g/t Au and 5 g/t Au cut-offs. Integra's team anticipates using a cut-off of between 4.5 g/t Au and 5.5 g/t Au for each area of the various deposits when optimizing potentially mineable resources in the upcoming PEA mine plan.

At the No. 4 Plug, resource estimation work was completed on the high angle shear structures which are similar to the C Structures present at Triangle. A second pass (see Table 10) was completed to assess the potential for a lower grade, bulk mineable resource which involved completing resource estimate work on the shear zones in conjunction with extensive geological modeling as well resource estimate work on the surrounding vein clusters ("P4 Clusters"). For comparison purposes and to ensure consistency with prior resource disclosure, only the high angle shear structures for No. 4 Plug have been included in the Lamaque global resource tables below. In the section of the press release that discusses the No. 4 Plug vein clusters and the associated high angle structures ("P4 Shears") outside the clusters, it has been separated with additional information provided.

Table 1
November 2016 Global Lamaque Resource Estimate (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)  3,273,000  7.01  737,590  4,500,400  6.94  1,004,170
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
Total  5,424,248  6.78  1,181,503  6,190,303  6.81  1,354,574
             
Table 2
November 2016 Global Lamaque Resource Estimate (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)  2,014,600  8.96  580,150  2,668,700  9.03  774,880
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
Total  3,139,917  8.88  896,144  3,681,832  8.79  1,040,628
(1) Triangle: Effective date is March 15, 2016; 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 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.
(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 05, 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 06, 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.

Links to Lamaque Property and Resource Estimate Images/Diagrams:

To view a plan map showing location of all deposits on the Property please click on the following link:

www.integragold.com/i/pdf/PointsofInterestMap_20161115.pdf

To view an idealized section through the Triangle and No. 4 Plug deposits illustrating the structural domains and geological model for resource estimation please click on the following link:

http://www.integragold.com/i/pdf/Triangle_Cross_Section_with_Thumbnails.pdf

Comparison of November 2016 Resource Estimate with November 2015 Resource Estimate

The following tables have been prepared to show the variance in tonnage, grade and ounces since the last resource estimates were completed at the Triangle and No. 4 Plug deposits as well as the global estimate for the Lamaque Property.

Table 3

November 2016 Triangle Resource Estimate Compared with November 2015 Resource Estimate

Cut-off Grade  Resource Date  Indicated  Inferred
Tonnes  Grade
(g/t Au)
 Ounces(Au)  Tonnes  Grade
(g/t Au)
 Ounces(Au)
3.0 g/t Au  November 2015  2,648,000  7.37  627,810  3,934,700  6.89  871,530
November 2016  3,273,000  7.01  737,590  4,500,400  6.94  1,004,170
Variance  +625,000  -0.36  +109,780  +565,700  +0.05  +132,640
 +23.6%  -4.9%  +17.5%  +14.4%  +0.7%  +15.2%
 
5.0 g/t Au  November 2015  1,664,800  9.40  503,420  2,384,200  8.83  676,960
November 2016  2,014,600  8.96  580,150  2,668,700  9.03  774,880
Variance  +349,800  -0.44  +76,730  +284,500  +0.20  +97,920
 +21.0%  -4.7%  +15.2%  +11.9%  +2.30%  +14.5%

Table 4

November 2016 No. 4 Plug Resource Estimate Compared with November 2015 Resource Estimate

Cut-off Grade  Resource Date  Indicated  Inferred
Tonnes  Grade
(g/t Au)
 Ounces(Au)  Tonnes  Grade
(g/t Au)
 Ounces(Au)
3.0 g/t Au  November 2015  1,325,100  5.60  237,450  0  0  0
November 2016  505,448  6.67  108,443  915,903  6.84  201,464
Variance  -819,652  +1.07  -129,007  +915,903  n/a  +201,464
-61.9%  +19.1%  -54.3%  n/a  n/a  n/a
 
5.0 g/t Au  November 2015  522,900  8.30  140,280  0  0  0
November 2016  300,417  8.56  82,634  579,432  8.59  160,028
Variance  -222,483  +0.26  -57,646  +579,432  n/a  +160,028
-42.6%  3.1%  -41.1%  n/a  n/a  n/a

It is important to note that in Table 4 the number of indicated ounces in the No. 4 Plug has declined while the inferred has increased. Several holes used in the earlier analysis were excluded as they were found to have had inaccurate downhole surveys, caused by an abundance of magnetite which makes historic downhole deviation measuring techniques imprecise. The current resource estimate is based on 54 drill holes representing 43,202 m (29,459 samples), a 47% reduction in total meters when compared to the previous resource estimate, even after including new results from the 2015-16 drill program (11,719 m).

The Lamaque global resource estimate as presented in Tables 1 and 2 includes the high angle shears hosted at the No. 4 Plug. These tables do not include the associated, lower grade vein arrays, the P4 Clusters, which contain indicated resources of 185,720 Au ounces grading 3.93 g/t Au and inferred resources of 188,900 Au ounces grading 3.12 g/t Au. The P4 Clusters are not included in the global resource estimate due to different estimation parameters used, notably cut-off grades, and also to prevent "double counting." The P4 Clusters highlight yet another example of the upside on the project and the Company will continue to drill this target with the objective of further enhancing its geological model as well as expanding its resource base.

Table 5

November 2016 Lamaque Global Resource Estimate Compared to November 2015 Resource Estimate

Cut-off Grade  Resource Date  Indicated  Inferred
Tonnes  Grade
(g/t Au)
 Ounces(Au)  Tonnes Grade
(g/t Au)
 Ounces(Au)
3.0 g/t Au  November 2015  5,346,200  6.78  1,164,600  4,551,300 7.03  1,028,050
November 2016  5,424,248  6.78  1,181,503  6,190,303 6.81  1,354,574
Variance  +78,048  0.00  +16,903  +1,639,003 -0.22  +326,524
+1.5%  0.0%  +1.5%  +36.0% -3.2%  +31.8%
 
5.0 g/t Au  November 2015  2,998,300  9.04  872,850  2,743,000 9.08  800,620
November 2016  3,139,917  8.88  896,144  3,681,832 8.79  1,040,628
Variance  +141,617  -0.16  +23,294  +938,832 -0.29  +240,008
+4.7%  -1.8%  +2.7%  +34.2% -3.2%  +30.0%

Triangle Deposit Sees Meaningful Increase in Ounces with Addition of only 23,800 m of New Drilling

For the purposes of preparing a new resource estimate for the upcoming PEA that enhances the understanding and predictability derived from the C Structure modelling, only 23,800 m of the approximate 120,000 m of diamond drilling completed at Triangle in the last 12 months was used. This is significant given the success in recent infill and step out drilling which points to the remaining growth potential of Triangle. The Q1 2017 resource estimate which will utilize a year-end database cut-off date of December 31, 2016 and will incorporate an additional 105,000 m to 110,000 m (approximately 290 - 300 drill holes). No additional drilling has been completed on the other five deposits since their respective database cut-off dates.

This is the second resource estimate completed at Triangle since the Company identified the steeply dipping (45 to 75 degrees) structures ("C Structures") and their relationship with the more shallow dipping (25 to 75 degrees) structures ("C-Splay Structures"). The Company no longer refers to the secondary C-Splay Structures as C Flats as many of these structures have an orientation steeper than 45 degrees and are often sub-parallel to the main C Structures, thereby making the "flat" reference inaccurate, especially considering the potential impact this could have on how the steeper C-Splay Structures are potentially mined. The C-Splay Structures consist of gold bearing shear hosted quartz-tourmaline veins, very similar to the principal C Structures. However, they are generally narrower and less continuous.

Table 6

November 2016 Triangle Deposit Resource Estimate

(3.0 g/t Au and 5.0 g/t Au cut-off grades)

Cut-off Grade
Indicated Inferred
Tonnes Grade
(g/t Au)
Ounces(Au) Tonnes Grade
(g/t Au)
Ounces(Au)
3.0 g/t Au 3,273,000 7.01 737,590 4,500,400 6.94 1,004,170
5.0 g/t Au 2,014,600 8.96 580,150 2,668,700 9.03 774,880

Ongoing exploration and extensive data interpretation continues to support the C Structure geological model in all of its aspects. The positive impact of the steeply dipping C Structures has been substantial on several fronts including among other attributes, a net increase in resources and an indication of potential utilization of lower cost mining methods (long-hole mining versus room and pillar mining methods) which will be explored in the upcoming PEA study scheduled for Q1 2017.

Using a 3 g/t Au cut-off grade, gold mineralization contained within the C Structures accounts for 63% of Triangle's total indicated ounces, and 72% of the inferred ounces. The discovery of the C Structures and the quantity and quality of gold ounces within them represents a transformational change regarding the Company's future exploration and potential development plan for Triangle.

Table 7

November 2016 Triangle Deposit Resource Estimate Separated by Hosting Structures (C and C-Splays)

Cut-off Grade
 Host Structure  Indicated  Inferred
Tonnes  Grade
(g/t Au)
 Ounces
(Au)
 Tonnes  Grade
(g/t Au)
 Ounces
(Au)
3.0 g/t Au  C  2,034,700  7.08  462,980  3,084,600  7.29  722,500
C-Splays  1,238,300  6.90  274,610  1,415,800  6.19  281,670
Total  3,273,000  7.01  737,590  4,500,400  6.94  1,004,170
 
5.0 g/t Au  C  1,356,600  8.66  377,730  1,924,400  9.33  577,230
C-Splays  658,000  9.57  202,420  744,300  8.26  197,650
Total  2,014,600  8.96  580,150  2,668,700  9.03  774,880

For informational purposes the following table presents some basic statistics for the C and C-Splay Structures:

Table 8

Dip, Width, and Maximum True Thickness of C and C-Splay Structures

Host Structure Dip(degrees) Average True Thickness (m) Maximum
True Thickness (m)
C 45 to 75 2.4 to 4.6 11
C-Splay 25 to 75 2.2 to 3.2 16

To view vertical longitudinal sections of the Triangle C Structures showing drill hole pierce points, grade times thickness contours and block model resource classification (at 5 g/t Au cut-off), please click on the following link:

http://www.integragold.com/i/pdf/C1-C6_bare_and_countour_vUSE.pdf

No. 4 Plug Deposit: Resource Continues to Expand Despite Reduction of Drill Database

The No. 4 Plug database used for the prior resource estimate (November 2015) contained 279 surface and underground diamond drill holes which accounted for 81,505 m of core and 50,980 samples. In 2016, validation work completed as part of the Company's rigorous QA/QC program highlighted a significant lack of precision in a number of historic, previously drilled holes concerning survey information (due to an abundance of magnetite that caused errors in downhole orientation surveys). The decision was made to resurvey all available holes with a Gyroscope, a downhole survey method that is not influenced by the rocks magnetic properties. The lack of correlation between the Gyroscope results and previously used survey methods led to a decision to only use holes where Gyroscope survey data was available for the resource estimation.

The total number of holes retained in the final No. 4 Plug database was 54 drill holes representing 43,202 m and 29,450 samples, a reduction of 47% in meterage, even after including drilling from the 2015-16 drill campaigns (11,719 m). The significantly reduced database explains, in part, the change in resource classification (from indicated to inferred) for a portion of the resource at No. 4 Plug.

Gold mineralization at the No. 4 Plug differs slightly from that at Triangle. Both deposits host steeply dipping C type structures within its intrusive core, but mineralization at No. 4 Plug appears to be more constrained with very little mineralization occurring outside the intrusive.

Table 9

November 2016 No. 4 Plug Deposit Resource Estimate

Cut-off  Indicated  Inferred
Tonnes  Grade
(g/t Au)
 Ounces(Au)  Tonnes  Grade
(g/t Au)
 Ounces(Au)
3 g/t Au  505,448  6.67  108,443  915,903  6.84  201,464
5 g/t Au  300,417  8.56  82,634  579,432  8.59  160,028

No. 4 Plug continued: First Ever Estimation of Low Grade Vein Clusters (P4 Clusters) Completed

In addition to the high angle shear structures (Table 9 above), large zones of tension vein arrays (herein referred to as P4 Clusters) occur inside the intrusive host unit. The tension vein arrays in the clusters appear to be genetically associated with the high angle shear veins. As illustrated in the resource estimate below the clusters contain substantial gold mineralization. In consideration of the two types of distinct mineralization styles, different modelled domains and a different estimation method was used to better estimate gold resources contained in the P4 Clusters.

A Monte Carlo simulation method of resource estimation was used to estimate the gold resources within the P4 Clusters. This same method is used for resource estimation at Agnico Eagle's Goldex deposit in Val-d'Or, Québec, situated 10 kilometers ("km") to the east of Lamaque. The similarities of the P4 Clusters to Goldex style gold mineralization represents the rationale for using the Monte Carlo method of resource estimation. The P4 Clusters cannot be reported using a specific cut-off grade due to their geological characteristics and related estimation methodology, hence the P4 Cluster values being identical in both parts of the following table which includes the P4 Shears at both 3 g/t Au and 5 g/t Au cut-off grades.

The P4 Shears outside the P4 Clusters (essentially a sub-domain of the global P4 Shears domain with resources presented in Table 9 above) were estimated with an Ordinary Kriging ("OK") interpolation methodology, while constraining mineralization by using the lithological and structural models. This model was also constrained on a minimum true thickness of 2 m.

The P4 Shear resource estimate in the table below differs from the No. 4 Plug resource estimate included in the Lamaque global resource estimate (Tables 1 and 2) as a result of some ounces reporting to the P4 Clusters instead of the P4 Shears when the two estimates overlap each other. Careful analysis and rigorous QA/QC checks were completed throughout the process to ensure resources were not double counted.

Due to the reduced database, additional drilling of the P4 Clusters will be required to increase confidence in the geological model and the P4 Cluster resource estimate. For the upcoming PEA the Company anticipates using only the No. 4 Plug resource estimate as presented in Tables 1, 2 and 9 while additional work on the P4 Cluster model is undertaken.

Table 10.

November 2016 No. 4 Plug Deposit Resource Estimate

Host Structure Indicated  Inferred
  Tonnes  Grade
(g/t Au)
 Ounces(Au)  Tonnes  Grade
(g/t Au)
 Ounces(Au)
P4 Shears (3 g/t Au cut-off) (1) 268,600  6.13  52,930  650,100  6.66  139,230
P4 Clusters(2) 1,468,500  3.93  185,720  1,881,000  3.12  188,900
Total 1,737,100  4.27  238,650  2,531,100  4.03  328,130
                  
P4 Shears (5 g/t Au cut-off) (1) 143,700  8.08  37,340  398,700  8.43  108,100
P4 Clusters(2) 1,468,500  3.93  185,720  1,881,000  3.12  188,900
Total 1,612,200  4.30  223,060  2,279,700  4.05  297,000
  1. P4 Shears (high angle shear veins structures outside vein clusters), effective date is October 28, : 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); 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 vein clusters ("P4 Clusters"), effective date is October 28, 2016: Part of No. 4 Plug deposit that corresponds to areas containing multiple gold bearing shears and tension vein arrays varying in dip from flat to up to 65 degrees; it is anticipated that some of these resources could be developed using bulk mining methods. A Monte Carlo estimation approach involving a bootstrapping average procedure that can be applied to a specific volume of rock if the number of samples inside the reference volume is sufficient to reasonably capture the sample distribution pattern was used for P4 Clusters. For this method to be appropriate samples must be reasonably equally distributed within the reference volume, and up to a certain point, a proper de-clustering process may address a lack of uniformity, also lithology inside the volume not need to be unique but the proportionality and relation between them must be constant. The bootstrapping average can be considered as representative of the entire volume of reference; this method is non-parametric and it does not relay on any assumption about the shape of the distribution; it allows for properly estimating intervals of confidence for non-parametric distribution; average estimation is verified only for the entire volume of reference; it does not allow for subsequent mining selectivity.

Due to the proximity of the No. 4 Plug to Triangle, there may be an opportunity to utilize future planned underground infrastructure at Triangle to access the No. 4 Plug. This could potentially reduce the development infrastructure required to access No. 4 Plug mineralization, lowering the threshold required to justify a potential bulk tonnage-style mining operation. A trade-off study is currently underway to determine what the approximate minimum resource threshold will be to justify a bulk mining scenario at the No. 4 Plug versus the more selective mining of the P4 Shears that will be focussed on in the upcoming PEA. Regardless of the outcome of this study, more drilling will be required to better define and potentially expand the resource which will take place in 2017 and beyond.

The No. 4 Plug resource estimate was completed by Christian D'Amours of GeoPointCom, Val-d'Or, Québec. It should be noted Mr. D'Amours is familiar and has a detailed understanding of the Monte Carlo estimation methodology used at Goldex having been involved closely in the early stage of Goldex resource modelling and estimation. Details on modelling, estimation methodologies, and results will be presented in an updated NI 43-101 Technical Report to be filed on SEDAR within 45 days.

To view a 3D geological model of No. 4 Plug including resource domains for P4 Shears and P4 Clusters please click on the following link:

www.integragold.com/i/pdf/P4-Geological-Model_20161115.pdf

Next Steps

All drilling completed on the various satellite deposits (Parallel, No. 6 Vein, No. 4 Plug, Fortune, Sixteen) has now been incorporated in the current resource estimate. The one significant exception is Triangle, where a total of 103,850 m of both infill (70%) and step-out (30%) drilling has been completed since the database cut-off for the current estimate. These drill results, which have been disclosed on a timely basis throughout the year, clearly illustrate the potential for additional resource growth at Triangle (see 2016 News Releases). Modelling is now underway for a full Triangle resource update which will include all of the drill data referenced above. This resource estimate is expected to be completed in Q1 2017.

The Company currently has six diamond drills active at Lamaque, including four at Triangle, and estimates that the total drilling conducted in 2016 will amount to approximately 120,000 m. In 2017, the drilling rate will remain high in the coming winter months and will continue to focus on Triangle and No. 4 Plug in addition to key exploration targets throughout the property including the Lamaque Deep and priority Gold Rush Challenge targets.

The Company has commissioned a PEA which will incorporate the resource estimate disclosed in this news release. This PEA is anticipated to be completed in early Q1 2017 and will focus on four of the six deposits for which resources exist at Lamaque. The Fortune and Sixteen deposits, which account for minimal resources, will not be included in the upcoming PEA.

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 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, an excellent resource base, and exploration potential, this acquisition removed major costs and shortened timelines typically associated with mine projects.

Integra has raised over $120 million since 2013, at successively higher share prices, despite depressed gold prices. In August 2015, Eldorado Gold Corporation completed a strategic investment in Integra, acquiring 15% of the outstanding common shares. Integra was recently named to the TSX Venture top 50 performers in 2015 and the OTCQX Best 50 award for 2015.

Qualified Person

The Lamaque South and Sigma-Lamaque exploration projects, jointly known as the Lamaque project, are 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 updates and is an independent QPs as defined by the National Instrument 43-101. The Company's QPs have reviewed the technical content of this 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

Follow Integra Gold On:

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.

Contact Information