SOURCE: Integra Gold Corp.

Integra Gold Corp

November 10, 2015 17:19 ET

Integra Gold Announces Triangle Zone Resource Estimate: Indicated Resources Increase 21% to 627,810 Gold Ounces and Inferred Resource Increases 400% to 871,530 Gold Ounces

VANCOUVER, BC--(Marketwired - November 10, 2015) -

Press Release Highlights:

  • Triangle Zone Indicated resources increased 21% from 520,630 gold ("Au") ounces to 627,810 Au ounces at an average grade of 7.37 grams/tonne ("g/t") Au (3.0 g/t Au cut-off grade)
  • Triangle Zone Inferred resources increased 400% from 174,470 Au ounces to 871,530 Au ounces at an average grade of 6.89 g/t Au (3.0 g/t Au cut-off grade)
  • Lamaque South total Indicated resources (includes Triangle, Parallel Zone, No. 6 Vein, No. 4 Plug, Sixteen Zone and Fortune Zone) increased 10% to 1,164,600 Au ounces at an average grade of 6.78 g/t Au (3.0 g/t Au cut-off grade)
  • Lamaque South total Inferred resources increased 211% to 1,028,050 Au ounces at an average grade of 7.03 g/t Au (3.0 g/t Au cut-off grade)
  • Excellent potential for extension remains both laterally and at depth at Triangle, with individual zones including the steeply dipping "C" type structures remaining open laterally and at depth, and on other projects within the Lamaque South and Sigma-Lamaque properties
  • Seven drill rigs currently active at the Triangle Zone drilling 8,000 to 10,000 meters per month
  • 27,815 m of new drilling included in Triangle resource; over 17,000 m already completed at Triangle since resource database closed, drill results are pending

Integra Gold Corp. (TSX VENTURE: ICG) (OTCQX: ICGQF) ("Integra" or the "Company") is pleased to announce that it has completed a new mineral resource estimate on its Triangle gold deposit ("Triangle" or the "Triangle Zone") at its 100% owned Lamaque South Gold Project ("Lamaque South"), part of the larger Lamaque Gold Project located in Val-d'Or, Québec. The Triangle Zone is located 2.5 km southeast of the city of Val-d'Or and is the largest and highest grade deposit at Lamaque South. There are currently seven drills active at the Triangle Zone and the adjacent No. 4 Plug target.

Resource Overview

The extensive winter 2015 drill program completed at Triangle has substantially increased the Company's understanding of the geology of the deposit and has led to a refinement of a number of key resource estimation parameters, relative to previously used resource estimation parameters. These refinements are based on, but not limited to, the following:

  1. An additional 27,815 m of drilling, primarily in the form of drill-hole step-outs which has led to a substantial increase in the amount of inferred resources. Infill and step-out drilling of these zones is now underway with over 17,000 m completed since the database cut-off date for this new resource estimate;
  2. Inclusion of the steeply dipping "C" structures (average true thickness between 2.5 and 4.1 m, up to 11 m), not recognized in previous resource models and estimates due to a lack of drill information (see below Discovery and Evolution of Steep "C" Structures within Triangle Zone); and,
  3. At 3 g/t Au cut-off, 11 and 23% decrease in average Indicated and Inferred grade, respectively, compared to previous resource estimates as a direct result of a more rigorous grade capping methodology (equivalent to a 30.0 - 40.0 g/t hard cap on composites) (see below Grade Variance and Sensitivity Analysis to Previous and Current Capping/Calculation Methods)

Triangle Zone Resource Estimate
(3.0 g/t, 4.0 g/t, and 5.0 g/t Au cut-off grades) (1)(2)

       
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  2,648,000  7.37  627,810  3,934,700  6.89  871,530
4.0 g/t  2,102,500  8.38  566,560  3,055,200  7.88  773,940
5.0 g/t  1,664,800  9.41  503,420  2,384,200  8.83  676,960
             
  1. Specific gravity of 2.8 g/cm3; capping of 20 g/t on composites when estimated cells are >15 m from drill hole (composites are 1m true thickness); considered intersection are 2 m minimum true thickness (if required, diluted with in situ grade when assay results are available otherwise diluted with 0 grade)
  2. Triangle Zone Resource disclosed at three cut-offs to reflect various mining methods as multiple cut-offs may be used in future economic evaluations (January 2015 PEA: 1.14 USD:CAD, US$1175 / ounce Au (CAD$1340 / once Au), 4.0-4.5 g/t cut-off used)

Total Lamaque South Resource Estimate
(including Triangle, No. 4 Plug, Parallel, Sixteen Zone, No. 6 Vein and Fortune Zone)

       
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  5,346,200  6.78  1,164,600  4,551,300  7.03  1,028,050
5.0 g/t  2,998,300  9.04  872,850  2,743,000  9.08  800,620
             
  1. Fortune Zone: Specific gravity of 2.8 g/cm3; individual gold values uncap; 2 m minimum true thickness (if required, diluted with in situ grade when assay results are available otherwise diluted with 0 grade)
  1. Triangle Zone: Specific gravity of 2.8 g/cm3; capping of 20 g/t on composites when estimated cells are >15 m from drill hole (composites are 1m); 2 m minimum true thickness (if required, diluted with in situ grade when assay results are available otherwise diluted with 0 grade)
  2. No. 4 Plug: Specific gravity of 2.8 g/cm3; individual gold values capped to 300 g/t Au; no minimum true thickness
  3. Parallel Zone: Specific gravity of 2.8 g/cm3; composites are gradually capped when the gold value is over 90 g/t Au + (0.55*(Au-90)); 2 m minimum true thickness (if required, diluted with in situ grade when assay results are available otherwise diluted with 0 grade)
  4. Sixteen Zone: Specific gravity of 2.8 g/cm3; individual gold values gradually capped when the gold value is over 40 g/t using the formula hereby = 40 g/t Au + ((x-40)*0.53)); 2 m minimum true thickness (if required, diluted with in situ grade when assay results are available otherwise diluted with 0 grade)
  5. No. 6 Vein: Specific gravity of 2.8 g/cm3; individual gold values are capped at 35 g/t Au; 2 m minimum true thickness (if required, diluted with in situ grade when assay results are available otherwise diluted with 0 grade)

First Resource to Include Newly Identified, Steeply Dipping "C" Structures

This is the first resource estimate completed since the Company identified a series of steeply dipping "C" type structures at Triangle (see below Discovery and Evolution of Steep "C" Structures within Triangle Zone) whereas all previous resource estimates interpreted the gold mineralization at Triangle to be contained primarily within a series of shallow dipping structures, previously referred to as the "T" structures and now referred to as the "C Flats". The "C" structures tend to be thicker and more continuous over much larger distances.

Triangle Zone Resource Estimate Separated by Hosting Structures
("C" and "C Flats") (1)

          
Cut-off Grade (g/t Au)(3)  Host Structure  Indicated  Inferred
  Tonnes  Grade (g/t Au)  Ounces (Au)  Tonnes  Grade (g/t Au)  Ounces (Au)
3.0 g/t  "C"  1,672,500  7.39  397,270  2,793,600  7.17  644,410
 "C Flats"(2)  975,500  7.35  230,540  1,141,100  6.19  227,120
 Total  2,648,000  7.37  627,810  3,934,700  6.89  871,530
 
4.0 g/t  "C"  1,372,300  8.24  363,330  2,263,100  8.05  585,940
 "C Flats"  730,200  8.66  203,230  792,100  7.38  188,000
 Total  2,102,500  8.38  566,560  3,055,200  7.88  773,940
 
5.0 g/t  "C"  1,096,300  9.18  323,470  1,806,000  8.95  519,890
 "C Flats"  568,600  9.84  179,950  578,200  8.45  157,070
 Total  1,664,800  9.41  503,420  2,384,200  8.83  676,960
               
  1. Specific gravity of 2.8 g/cm3; capping of 20 g/t on composites when estimated cells >15 m from drill hole (composites are 1m); 2 m minimum true thickness (if required, diluted with in situ grade when assay results are available otherwise diluted with 0 grade)
  2. Previously known as "T" Structures

The positive impact of these steeply dipping "C" structures is substantial on several fronts, ranging from a net increase in resources to potentially lower cost mining methodologies. Using a 3 g/t Au cut-off grade, the gold mineralization contained within the steeper "C" structures accounts for 63% of the Triangle's total indicated ounces, and 74% of the inferred ounces. The interpretation of the "C" structures and the quantity of gold ounces within them represents a transformational change regarding the Company's future exploration and potential development plan for the Triangle zone.

Orientation, Width, and Average Grade of "C" and "C Flats" Structures

                
Host Structure  Dip (degrees)  Average True Thickness (m)  Maximum
True Thickness (m)
 Indicated Grade (3 g/t cut-off)  Indicated Grade (5 g/t cut-off)
"C"  55 to 75  2.2 - 4.1  11  7.39 g/t  9.18 g/t
"C Flats"  20 to 45  2.1 - 2.5  16  7.35 g/t  9.84 g/t
           

The previous mine plan (Lamaque Project Preliminary Economic Assessment or "PEA", January 2015) for the Company contemplated recovering approximately 228,000 ounces from the Triangle deposit, 70% of which were to be extracted from shallow dipping structures Room and Pillar mining, which is higher cost and more labor intensive than the Long Hole mining method(s).

Given that the large majority of ounces in the resource estimate announced today are contained within the generally thicker "C" type structures which dip between 55 and 75 degrees, the Company plans to evaluate in particular Long-Hole mining methods to extract a larger portion of the resources in an updated PEA. The updated PEA is schedule to be completed in H1 2016.

Discovery of C6 Zone

Drilling completed up to date has allowed company geologists to identify an additional "C" structure at Triangle, the C6. Following the discovery of the C5 structure in early September (see PR dated September 1st 2015), this brings the total "C" structures identified at Triangle to 6. With an updated resource estimate confirming the importance of "C" structures for both tonnage and grade, the continual discovery of new "C" structures is a key component in Integra's exploration strategy and success. As the Triangle Zone remains open in all directions, the Company's technical team continues to believe more of these "C" structures could be discovered at depth.

Please click on the following link to view an idealized section through the Triangle deposit illustrating the new structural domains and model for resource estimation for the Triangle Zone:

http://www.integragold.com/i/pdf/Vertical-Section-296400E.pdf

Please click on the following link to view vertical longitudinal sections of the hole pierce points, grade times thickness contours and block model resource classification for the Triangle "C" Zones:

http://www.integragold.com/i/maps/November2015_Longsections.pdf

Please click on the link below to view a vertical longitudinal section of the C4 Zone with the addition of proposed drill holes which should intersect the C4 Zone, and other known "C" structures, as part of the 2015 and 2016 drill program:

http://www.integragold.com/i/maps/LS_C4-DDH_targetsv2.pdf

The following table compares the previous Triangle resource estimate (February 2015) with the resource estimate announced today, highlighting the substantial resource increase as a result of the extensive 2015 winter drill program.

November 2015 Triangle Zone Resource Estimate Compared to February 2015 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  February 2015  1,957,100  8.30  520,630  604,700  9.00  174,470
 November 2015  2,648,000  7.37  627,810  3,934,700  6.89  871,530
 
5.0 g/t Au  February 2015  1,323,500  10.40  441,580  429,300  11.00  152,370
 November 2015  1,664,800  9.40  503,420  2,384,200  8.83  676,960
               

"The resource estimate announced today is a game changer for Integra in more ways than one. With just over 27,800 meters of new drilling we have significantly increased both the quantity and quality of the ounces at the Triangle Zone. Not only have we identified a high grade resource largely contained within mineralized structures that may be amenable to lower cost and more efficient mining methods, we are now in a position to include a substantially longer mine life in our upcoming development model analysis, a luxury for underground operations in this part of the world," commented Company President and CEO, Stephen de Jong.

"Investors can expect a number of additional updates in the coming months as we continue to define and expand the Triangle Zone and other targets with seven to ten active drill rigs, complete an updated PEA incorporating the resource announced today, and at the same time continue working towards an underground exploration program. With a strong balance sheet of approximately $23 million and over $11 million in near term warrants in the money we are fully funded to execute our near term objectives and continue to build value for our shareholders We believe Integra offers investors a very rare opportunity with a well-funded business plan led by an experienced team and a project with permits, low capital intensity, a large and high grade resource base which continues to grow and in a safe jurisdiction."

Potential for Further Resource Growth: More Than 17,000 meters of Drilling Already Completed at Triangle since the Database Cut-off Date for the Resource Estimate

The updated resource estimate integrates 27,815 m of drilling in 46 new drill holes completed on the Triangle Zone. Since the database cut-off date in May 2015, an additional 17,000 m of drilling has been completed at Triangle with the objective of both expanding on and infilling the known gold mineralized zones. The Triangle Zone remains open in all directions and over the course of the next year, the Company plans to have up to 10 drill rigs in operation.

The Company believes that the majority of new resources could be accessed through the existing underground infrastructure plan proposed in the January 2015 PEA, given that most of the ounces in this resource estimate are between surface and 900 m vertical depth. The Company plans to further analyze this approach in the updated PEA.

Please click on the following link to view the Lamaque South Project plan map:

http://www.integragold.com/i/pdf/Zones_Loc_Infrastructure_Targets_2015-03.pdf

Mineralization at Triangle

Gold mineralization at the Triangle Zone, highlighted by an abundance of quartz-tourmaline veining accompanied by minor amounts of pyrite, is interpreted to be predominantly hosted within a series of parallel, steeply-dipping shear structures identified as "C" zones. These high angle structures strike east-west and dip to the south at angles varying between 55 and 75 degrees. The associated interpreted "C Flat" structures (previously known as "T" structures), which dip from 20 to 45 degrees to the south with an east-south-east strike, continue to remain as important elements in the resource and geological model. These "C-Flat" structures are interpreted as second order structures developing from the more steeply dipping "C" structures. Both structures are gold mineralized although the "C" zones are generally more continuous. The "C" zones are present in both the core of the intrusive host rock and volcanic wall rocks while "C Flat" structures are usually constrained to the intrusive host. The "C Flat" structures are co-genetic with the "C" structures and reflects the structural changes created from the differences in rock competency between the intrusive and the volcanic rocks. The Company's predictive model as it relates to the "C" and "C Flat" structures will continue to evolve as more drill data becomes available. The Company has drilled over 45,000 m at Triangle since it first identified the "C" structures in late 2014, and the model has proven to be highly accurate with drilling generally intersecting the structures within a few meters of where the zones were projected to be.

Commenting on the Triangle Resource Estimate, Hervé Thiboutot, Senior Vice-President, said, "We are very encouraged by the considerable increase in indicated and inferred resources at Triangle which continues to show similarities to the prolific Sigma and Lamaque deposits to the north. The center of gravity of the project is now clearly moving towards Triangle, while being supported by several other deposits and targets in close proximity. The objective of recent Triangle exploration was to increase the size of the deposit and improve our confidence in the resource -- both of which have been achieved. Particularly important, our new model which is more robust due to the incorporation of the "C" structures and a more conservative approach to grade capping. Moreover, this enhanced structural model for Triangle will improve exploration success on infill and extension drilling going forward."

Discovery and Evolution of Steep "C" Structures within the Triangle Deposit

The evolution of the geological and structural model at Triangle clearly shows that the structural controls and mineralization patterns bare striking similarities to those hosting gold mineralization at the historic Lamaque and Sigma Mines. Located less than 2.5 km from Triangle, the Lamaque and Sigma Mines collectively produced over 9 million ounces of gold and are hosted within the same geological and structural domain.

For the past 3 years, the Company focused its drill efforts on mineralization hosted within the Triangle intrusive, or "plug," which is much like the Lamaque Mine's intrusive host, knows as the Main Plug. At the Lamaque Mine, over 80% of past gold production came from mineralization hosted within the Main Plug. It was not until Company geologists set up the drill rigs hundreds of meters to the south, off the footprint of the Triangle intrusive plug, with the intent of intersecting the plug at lower depths that they identified a series of isolated, mineralized, and steeply dipping structures which extended well beyond the intrusive host. This type of mineralization is similar to the Sigma Mine where mineralization is abundant in both the intrusive and in the volcanics. The bulk of the 4.5 million ounces produced at the Sigma Mine came from gold mineralization hosted within structures known as the "P" shears, which are identical in orientation and structural setting to the Triangle "C" structures. In the case of the Sigma Mine, these structures often had a strike length greater than 1.5 km, were mined to a depth of over 1.8 km and are entirely open at depth to this day (see Integra's website to learn more about the Sigma and Lamaque Mines and the Company's $1,000,000 "Gold Rush Challenge").

To view a screenshot of the 3D model compiled from 6 terabytes of historic data (+30,000 drill holes, +500,000 gold assays) from the Sigma and Lamaque Mines which clearly show the steep "C-like" structures at Sigma please click on the following link:

http://www.integragold.com/i/pdf/Lamaque-Deeps.pdf

Identification of Steep Structures and Relationship between Steep and Flat Structures

Extensive drilling conducted outside of the intrusive at Triangle in late 2014 and early 2015 confirmed a series of steeply dipping shear zones which extend through the intrusive and continued for hundreds of meters into the surrounding volcanics in the footwall and hanging-wall of the intrusive. The true thickness of these shear zones ranges from one meter to up to 20 metres and are best developed within the volcanic rocks that surround the intrusive "plug" at Triangle. The identification of these structures also provides an explanation as to why portions of the Triangle intrusive appeared to be fragmented and offset, as the large "C" structures were shown to actually fault-off and, at times, laterally displace the intrusive plug itself.

Through a detailed analysis of the drill core, Company geologists were able to identify a number of unique characteristics of both the steeply dipping and shallow dipping structures, allowing the team to differentiate between the "C" and "C Flats" in drill core. Both the "C" and "C Flat" structures are shear-hosted veins that share many similarities, including similar mineralogy, alteration and mineralization. The difference between the two structures is primarily the dip angle of the zones and the intensity of shearing and alteration which is generally more intense in the steeply dipping "C" structures as seen in the core photos below.

http://www.integragold.com/i/pdf/Core-Photos.pdf

Six "C" Zones and 43 "C Flats" Identified

Company geologists have now modelled 6 primary "C" structures, labelled C1 to C6, while ongoing drilling indicates that additional steeply dipping gold mineralized structures are present at depth. "C Flat" structures occur between "C" structures and are usually limited to the intrusive core itself. A total of 43 such "C Flat" structures have been modelled so far. The relevance and interaction of the "C Flat" and "C" structures continues to evolve in the Company's geological model leading to a higher level of predictability in the Company's understanding of the deposit.

Triangle Zone Resource Estimation - Rigorous and Conservative Parameters Applied

The Triangle resource estimate was completed by Christian D'Amours of GeoPointCom, Val-d'Or, Québec. A summary of mineral resource estimation parameters is presented below while details on the estimation methodology and results will be presented in an updated technical report to be filed on SEDAR within 45 days.

Sectional 2D modelling for the Triangle zone, in preparation for the resource estimate, was completed by the Company's technical staff using detailed information from drill logs and core pictures. Vein geometries and structural interpretation was first completed on sections using GEMCOM software. Each vein intersections were visually selected by the geologists for the estimation and 3D models for each vein were created by GeoPointCom involving constant interaction with the Company's technical team. A minimum true thickness of 2 m was used when creating resource domains. Final 3D validations were then performed by Integra in close collaboration with GeoPointCom. Once the 3D model for the different types of geological and structural domains was completed, verified and validated, statistical analysis (including variography and cross-validation) was performed for each individual geological domain.

Following the selection of statistical parameters, Ordinary Kriging ("OK") was used to proceed with the resource estimate. Drill hole composites were set at 1 m which is actually close to the average sampling interval used on Triangle. Block size was fixed at 10x10x10 m after which cross-validation was completed using 5x5x5 m blocks, which indicated a slightly better selectivity with the smaller blocks but without compensating for the loss of confidence potentially derived from using smaller blocks taking into consideration actual drill spacing and data available within the search ellipsoid. Hard boundaries were applied for all structures and vein domains in order to limit the "smearing" of resource blocks outside the model envelops with partial blocks considered when compiling these results. The search ellipsoids were set at a maximum of 40 m for the initial search and were extended to 80 m as a second pass to fill sections where the distance between drill holes did not permit estimation. In all cases the searches were not allowed to proceed more than 40 m from the edges of the drill data information.

Rigorous Cross Checking: Grade Variance and Sensitivity Analysis using Previous and Current Capping/Calculation Methods

With the addition of substantially more data and a better understanding of the geological and structural control of the gold mineralization, the Company has used a more conservative grade capping approach than its February 2015 resource estimate, which has resulted in a decrease (10-20%) in the average grade of the deposit. We believe that this approach is more in-line with best practices for similar deposits in the region.

In terms of resource classification, the more conservative approach in term of capping along with the fact that the majority of 2015 drilling at Triangle occurred in the form of widely spaced step-out and extensional drilling, has resulted in a significant increase in inferred resources with a smaller change to the Indicated resources when compared to the February 2015 resource estimate.

In terms of the capping of high grade outliers, and rather than using a simple capping method which is un-supported by statistics, geostatistical capping using data distribution was used. In order to honor local high grade when estimating blocks, local high grade remains uncapped within a radius of 15 m while any data beyond a 15 m radius had their respective 1 m composites values cut to 20.0 g/t Au; the 15 m radius corresponds to 1.5 times the estimate block size.

Capping Methodology: Equivalent to a Systematic Composite Cap of 30.0 to 40.0 g/t Au

Two tests were performed in order to cross-check and validate this capping methodology. This was done to evaluate its effect on the contained ounces in order to better understand the effect of the new capping method versus the method used previously in the Company's February 2015 resource estimate.

The first test consisted of re-estimating the C4 zone using the February 2015 resource estimate parameters. C4 is the only steep structure within the updated resource model which was also part of the Company's previous resource estimate (previously modelled as "T-10"). Using the February 2015 parameters, at a 3.0 g/t Au cut-off, the results indicate the new capping methodology is substantially more stringent and conservative with a loss of 16% of the contained ounces and a 8% drop in the average grade.

The second grade capping test consisted of estimating all C type domains (C1 to C6) using multiple capping scenarios (13 in total) and comparing the contained gold ounces, within the same volume, per selected capping methodology. The scenarios varied from capping 1 m composites to 20.0 g/t, 30.0 g/t, 40.0 g/t, and up to 100.0 g/t, with an uncapped scenario also calculated. On a total contained ounces basis, at a 3.0 g/t Au cut-off, the selected geostatistical capping is equivalent, for all C zones, to a systematic composite capping of 30.0 to 40.0 g/t which is judged to be fairly conservative compare to January 2015 estimate. These results validate the selection of the more conservative capping methodology especially when considering, as a matter of historic record, that the Lamaque and Sigma Mines grade capping was set at 40.0 g/t on samples when polygonal resource estimation methods were used.

The capping methodology used allows the Company to honor the high grade results locally while not smearing the high grade result over a 15 m radius. A standard cross validation procedure comparing estimated grade to the intersection average grade for each hole returns a correlation factor of 0.938 for the actual capping method compared to 0.736 obtained from an estimation using a standard 30 g/t capping method. In the case the actual capping method returns the same amount of ounces, local estimation is much more accurate, allowing for better selectivity.

Resource Classification

Resources estimation was performed using the estimation search ellipsoid of 40 m where indicated resources required a minimum of two drill holes with a minimum of 4 composites within the search ellipsoid before it could be classified as an indicated resource. All other resources were classified as inferred. A systematic visual check was done on all C zone longitudinal sections to ensure that the 40 m resource envelope extension on the edges of the deposit was respected and that internal resources within the domains were adequately classified. The search ellipsoid in the previous resource estimation for Triangle was substantially larger, as much as 75 m depending on the zone. This new classification methodology is also considered to be much more conservative than that used for previous estimation.

Resource Potential Beyond Triangle

An additional 43,435 m of drilling completed on targets other than the Triangle Zone remains to be integrated into new resource updates. This drilling includes:

  • Parallel Zone - 5,509 m
  • No. 6 Vein - 8,197 m
  • Fortune Zone - 6,025 m
  • No. 3 Mine - 13,108 m
  • No. 5 Plug - 9,585 m
  • No. 4 Plug - 1,011 m

This additional drilling highlights the potential for additional resource growth at Lamaque South beyond the Triangle Zone. All of the above mentioned areas of mineralization are hosted within the same 2.5 km corridor between Triangle and the past producing Sigma and Lamaque Mines.

Resource Comparison with Previous Estimates

Resources are presented at three selected cut-off grades, 3.0, 4.0 and 5.0 g/t Au for consistency with previous disclosures and to account for potentially variable cut-offs to be used depending on selected mining methods in future economic studies. In the Company's upcoming PEA the mining cut-off may vary from those selected cut-offs depending on mining methods and other costs. Considering the orientation of mineralization the Company plans to investigate the use of long-hole mining methods for the "C" structures and a mix of long-hole and room and pillar for "C Flat" structures, which will be studied in detail in an upcoming PEA.

Using a 3.0 g/t Au cut-off, the Triangle Indicated resources increased by 21% to 627,810 Au ounces at an average grade of 7.37 g/t Au and Inferred resources increased by 400% to 871,530 Au ounces at an average grade of 6.89 g/t Au.

Triangle Zone Compared to February 2015 Resource Estimate
(3.0 g/t Au cut-off)

       
Resource Estimate  Indicated  Inferred
 Tonnes  Grade (g/t Au)  Ounces (Au)  Tonnes  Grade (g/t Au)  Ounces (Au)
February 2015  1,957,100  8.30  520,630  604,700  9.00  174,470
November 2015  2,648,000  7.37  627,810  3,934,700  6.89  871,530
Variance  +35%  -11%  +21%  +551%  -23%  +400%
             

Using a 4.0 g/t Au cut-off, the Triangle Indicated resources stand at 566,560 Au ounces at an average grade of 8.38 g/t Au and Inferred resources stand at 773,940 Au ounces at an average grade of 7.88 g/t Au. The February resource estimate was not compiled or disclosed at a 4.0 g/t Au cut-off and a direct comparison to the previous resource estimate has not been included.

Triangle Zone Compared to February 2015 Resource Estimate
(4.0 g/t Au cut-off)

       
Resource Estimate  Indicated  Inferred
 Tonnes  Grade (g/t Au)  Ounces (Au)  Tonnes  Grade (g/t Au)  Ounces (Au)
November 2015  2,102,500  8.38  566,560  3,055,200  7.88  773,940
             

At a higher cut-off of 5.0 g/t Au, the Triangle Zone Indicated resources increased by 14% to 503,420 Au ounces at an average grade of 9.40 g/t Au and Inferred resources increased by 344% to 676,960 Au ounces at an average grade of 8.83 g/t Au.

Triangle Zone Compared to February 2015 Resource Estimate
(5.0 Au g/t cut-off)

       
Resource Estimate  Indicated  Inferred
 Tonnes  Grade (g/t Au)  Ounces (Au)  Tonnes  Grade (g/t Au)  Ounces (Au)
February 2015  1,323,500  10.40  441,580  429,300  11.00  152,370
November 2015  1,664,800  9.41  503,420  2,384,200  8.83  676,960
Variance  +26%  -10%  +14%  +455%  -20%  +344%
             

Global Lamaque South Mineral Resource Summary

Gold mineralization for the Lamaque South deposits starts at surface and occur in multiple zones which are all situated within close proximity to each other within a 2.5 km long corridor present between the Triangle Zone and the past producing Sigma and Lamaque mines; this occasionally include zones laterally separated by only a few hundred meters. The mineral resource estimate announced today is limited to the Triangle Zone.

Using a 3.0 g/t Au cut-off, the Lamaque South Indicated resources increased by 10% to 1,164,600 Au ounces at an average grade of 6.78 g/t Au and Inferred resources increased by 211% to 1,028,050 Au ounces at an average grade of 7.03 g/t Au.

Lamaque South Comparison with Previous Resource Estimate
(3.0 g/t Au cut-off)

       
Resource Estimate  Indicated Resources  Inferred Resources
 Tonnes  Grade (g/t Au)  Ounces (Au)  Tonnes  Grade (g/t Au)  Ounces (Au)
February 2015  4,655,300  7.08  1,057,420  1,221,300  8.45  330,990
November 2015  5,346,200  6.78  1,164,600  4,551,300  7.03  1,028,050
Variance  +15%  -4%  +10%  +273%  -17%  +211%
             

The Lamaque South resources for all zones, except Triangle, were not previously calculated at 4.0 g/t Au cut-off for this November 2015 resource update and are therefore not provided here.

At a higher cut-off of 5.0 g/t Au, the Lamaque South Indicated resources increased by 8% to 872,850 Au ounces at an average grade of 9.04 g/t Au and Inferred resources increased by 190% to 800,620 Au ounces at an average grade of 9.08 g/t Au.

Lamaque South Comparison with Previous Resource Estimate
(5.0 g/t Au cut-off)

       
Resource Estimate  Indicated Resources  Inferred Resources
 Tonnes  Grade (g/t Au)  Ounces (Au)  Tonnes  Grade (g/t Au)  Ounces (Au)
February 2015  2,657,000  9.50  811,010  788,100  10.90  276,030
November 2015  2,998,300  9.04  872,850  2,743,000  9.08  800,620
Variance  +13%  -5%  +8%  +248%  -17%  +190%
             

Significant potential remains to increase gold resources, both laterally and at depth, at Triangle and at other deposits at Lamaque South. Recent drilling completed at the Parallel zone, and other deposits within the Lamaque South property, needs to be compiled prior to new geological models and resource estimates can be completed.

Resources for all others zones presented in this resource update, namely for the Parallel Zone, No. 4 Plug, Fortune Zone, No. 6 Vein, and Sixteen Zone, remain unchanged from previous disclosures. In addition, resource estimation has not yet been completed by the Company on the No. 3 Mine and No. 5 Plug targets.

The following tables give a summary, by zone, of Indicated and Inferred mineral resources for all deposits at the selected disclosure cut-off of 3.0 and 5.0 g/t Au. The tables at multiple cut-offs will be available in the updated NI 43-101 Technical Report which will be published and filed on SEDAR within 45 days. Cut-offs used in the January 2015 disclosed PEA for selection of potential stopes vary on an individual zones basis depending on mining method but were between 3.0 and 5.0 g/t Au.

Summary of Lamaque Project Resource (3.0 g/t cut-off) including Sigma Resource (varying cut-off disclosed below)

       
Zones  Indicated Resources  Inferred Resources
 Tonnes  Grade (g/t Au)  Ounces (Au)  Tonnes  Grade (g/t Au)  Ounces (Au)
Lamaque South Property (1)
Fortune  125,500  5.80  23,600  252,300  5.60  45,220
Triangle  2,648,000  7.37  627,810  3,934,700  6.89  871,530
No. 4 Plug  1,325,100  5.60  237,450  -  -  -
Parallel  766,500  7.30  180,750  250,900  10.70  86,460
Sixteen  91,700  5.20  15,440  1,800  4.20  250
No. 6 Vein  389,400  6.40  79,550  111,600  6.90  24,590
Total  5,346,200  6.78  1,164,600  4,551,300  7.03  1,028,050
Sigma-Lamaque Property (2)
Sigma  3,674,000  4.96  586,000  9,159,000  6.29  1,853,000
             
  1. Using a 3.0 g/t Au cut-off grade
  2. Using a 1.0 g/t Au cut-off grade, except for 19,000 ounces in the Indicated category and 6,000 ounces in the Inferred category for Lamaque No.2 Mine for which the cut-off grade is 2.1 g/t Au

Summary of Lamaque Project Resource (5.0 g/t cut-off) including Sigma Resource (varying cut-off disclosed below)

       
   Indicated Resources  Inferred Resources
   Tonnes  Grade (g/t Au)  Ounces (Au)  Tonnes  Grade (g/t Au)  Ounces (Au)
Lamaque South Property (1)
Fortune  60,700  8.00  15,610  111,300  7.70  27,470
Triangle  1,664,800  9.40  503,420  2,384,200  8.83  676,960
No. 4 Plug  522,900  8.30  140,280  -  -  -
Parallel  462,900  9.60  142,890  153,700  15.00  73,880
Sixteen  41,800  6.90  9,250  400  6.40  90
No. 6 Vein  245,200  7.80  61,400  93,400  7.40  22,220
Total  2,998,300  9.04  872,850  2,743,000  9.08  800,620
Sigma-Lamaque Property (2)
Sigma-Lamaque  3,674,000  4.96  586,000  9,159,000  6.29  1,853,000
             
  1. 1 Using a 5.0 g/t Au cut-off grade
  2. 2 Using a 1.0 g/t Au cut-off grade, except for 19,000 ounces in the Indicated category and 6,000 ounces in the Inferred category for Lamaque No.2 Mine for which the cut-off grade is 2.1 g/t Au

Next Steps

The Company presently has seven diamond drills active at the Triangle Zone and the adjacent No. 4 Plug target, completing between 8,000 and 10,000 m of drilling on a monthly basis. This drilling rate will increase during the winter months as a program of 100,000 m is planned for 2016. The objective of the current exploration program at Triangle is to continue drill testing potential extensions of the deposit as well as conduct wide spaced infill drilling.

The following vertical longitudinal section of the C4 structures illustrates proposed drill hole pierce points which are part of the fall 2015 and winter 2016 drill program at Triangle. Over 17,000 m of drilling has already been completed on this target since the closure of the resource database and assay results for this drilling are pending. Other targets that will be seeing additional drilling, among others, are the No. 4 Plug, located 400 m north of Triangle, and the area between the two gold deposits known as the "Gap Zone" in search of the extension of the "C" structures in the hanging wall of the Triangle intrusive and/or footwall of the No. 4 Plug intrusive host.

http://www.integragold.com/i/maps/LS_C4-DDH_targetsv2.pdf

The Company has also commissioned an updated PEA which will incorporate all new resource estimates completed since the previous PEA in January 2015. The updated PEA will be completed in the first half of 2016.

Project and Company Profile

Integra's Lamaque South Gold Project and Sigma-Lamaque Mill and Mine Complex are located directly east of the city of Val-d'Or along the prolific Abitibi Greenstone belt in the Province of Québec, Canada. Québec is rated one of the best mining jurisdictions in the world. Given the Lamaque South's project to the city of Val-d'Or, infrastructure, human resources and mining expertise are readily available.

The Company's primary focus is its high-grade Lamaque South project. Lamaque South property is divided into three clusters, the North, South and West clusters. The primary targets are the high-grade Triangle zone in the South Cluster and the Parallel zone in the North Cluster.

The Sigma Mill, a fully permitted 2,200 ton per day mill and tailings facility which was acquired by Integra in 2014, is located 1 kilometre from the Parallel zone and 3 kilometres from the Triangle zone. The Sigma-Lamaque Mill and Mine Complex include the historic Sigma and Lamaque Mines which operated for 75 and 52 years respectively and produced more than 9 million ounces of gold in total.

Qualified Person

The Lamaque South exploration project and Sigma-Lamaque Mill and Mine Complex, jointly known as the Lamaque project, are under the direct supervision of Hervé Thiboutot, Eng., Senior Vice-President of the Company, and Jacques Simoneau, Geo., Exploration Manager of the Company. Mr. Thiboutot, Mr. Chabot, and Mr. Simoneau are Qualified Persons ("QPs") as defined by the National Instrument 43-101. Mr. Christian D'Amours, P. Geol., OGQ #226, from GeoPointCom, is responsible for the completion of the 2015 resource update and is 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 Bourlamaque Lab 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 finish, with a gravimetric finish completed for samples exceeding 5 g/t Au, or a metallic sieve assay for all samples containing visible gold. When available the gravimetric or metallic sieve assay results are used for the reported composite intervals.

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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