SOURCE: Integra Gold Corp.

Integra Gold Corp.

March 22, 2017 06:00 ET

Integra Gold Announces Updated Triangle Deposit Resource Estimate: Indicated Resources Increase 100% from 737,590 to 1,473,530 gold ounces

VANCOUVER, BC--(Marketwired - March 22, 2017) -

Press Release Highlights:

  • Triangle Deposit at 3.0 g/t gold ("Au") cut-off: indicated resources increased 100% from 737,590 Au ounces to 1,473,530 Au ounces grading 7.32 g/t Au and inferred resources decreased 1% from 1,004,170 Au ounces to 991,800 Au ounces at an average grade of 5.67 g/t Au.
  • Triangle Deposit at 5.0 g/t Au cut-off: indicated resources increased 105% from 580,150 Au ounces to 1,189,550 Au ounces grading 9.24 g/t Au and inferred resources decreased 15% from 744,880 Au ounces to 631,200 Au ounces at an average grade of 7.85 g/t Au.
  • Indicated resource growth at Triangle Deposit is mostly contained within the same vertical footprint as previous resource estimates highlighting the potential to utilize currently planned infrastructure to access these additional ounces.
  • Assay database cut-off date was January 11, 2017; approximately 15,000 meters ("m") of drilling has been completed at the Triangle Deposit since the database cut-off date.
  • Re-modelling, re-interpretation, and resource estimation of the Sigma Deposit to a depth of 1,800 m vertical is underway with expected completion and disclosure of a fully validated Sigma resource in Q2 2017.
  • Five drill rigs currently in operation at Lamaque, including three at the Triangle Deposit, one at the No. 4 Plug Deposit, and one at Lamaque Deep; the Company has drilled 22,984 m since start of 2017.
  • 750 m of development on the Triangle exploration ramp (1,219 m total development) have been completed. Ramp is expected to reach the C2 structure of the Triangle Deposit in early April with the first underground drill station expected to be set up in the coming weeks.

Integra Gold Corp. (TSX VENTURE: ICG) (OTCQX: ICGQF) ("Integra" or the "Company") is pleased to announce that it has completed an updated resource estimate on the Triangle Deposit ("Triangle") on its 100% owned Lamaque Gold Project ("Lamaque" or the "Property") in Val-d'Or, Québec. This update incorporates 117,734 m of new drilling into the resource estimate for Triangle. The resource estimates for other deposits on Lamaque, including the No. 4 Plug, Sixteen, Fortune, No. 6 Vein, and Parallel deposits, were updated in November 2016 (see Company press release dated November 16, 2016) and have not changed. Resource estimation work for Triangle was completed by GeoPointCom of Val-d'Or, Québec.

The resource estimate for Triangle announced today is an update from the resource estimate used in the Preliminary Economic Assessment ("PEA") disclosed by the Company on February 27, 2017. In the proposed mine plan outlined in the PEA a total of 1,401,231 ounces, all resource categories, are mined from the Triangle, No. 4 Plug, and Parallel deposits. Of this total, 1,098,515 ounces are mined from Triangle. The updated resource estimate does not affect the validity or currency of the PEA. With the significant increase in resources at Triangle in comparison to the resource used in the PEA, Integra believes there is the potential for increased mine life at Lamaque and higher potential future mill throughput, which will be assessed in future studies.

The following tables have been prepared to show the variance in tonnage, grade and ounces since the last resource estimate was completed at Triangle, as well as the global resource estimate for Lamaque.

Table 1. Triangle Deposit Only:
March 2017 Resource Estimate Compared to November 2016 Resource Estimate

         
Cut-off
Grade
 Triangle Deposit
Resource Date
Indicated  Inferred
Tonnes  Grade
(g/t
Au)
 Ounces
(Au)
 Tonnes  Grade
(g/t
Au)
 Ounces
(Au)
3.0 g/t Au  March 2017 6,262,000  7.32  1,473,530  5,441,000  5.67  991,800
 November 2016 3,273,000  7.01  737,590  4,500,400  6.94  1,004,170
 
 
Variance +2,989,000  +0.31  +735,940  +940,600  -1.27  -12,370
+91%  +4%  +100%  +21%  -18%  -1%
 
5.0 g/t Au  March 2017 4,004,700  9.24  1,189,550  2,501,100  7.85  631,200
 November 2016 2,014,600  8.96  580,150  2,668,700  9.03  744,880
 
 
Variance +1,990,100  +0.28  +609,400  -167,600  -1.18  -113,680
+99%  +3%  +105%  -6%  -13%  -15%

Table 2. Lamaque Property Global Resource Estimate:
March 2017 Resource Estimate Compared to November 2016 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  March 2017 8,413,248  7.09  1,917,443  7,130,903  5.86  1,342,204
 November 2016 5,424,248  6.78  1,181,503  6,190,303  6.81  1,354,574
 
 
Variance +2,989,000  +0.31  +735,940  +940,600  -0.95  -12,370
+55%  +5%  +62%  +15%  -14%  -1%
 
5.0 g/t Au  March 2017 5,130,017  9.13  1,505,544  3,514,232  7.94  896,948
 November 2016 3,139,917  8.88  896,144  3,681,832  8.79  1,040,628
 
 
Variance +1,990,100  +0.25  +609,400  -167,600  -0.85  -143,680
+63%  +3%  +68%  -5%  -10%  -14%

"Given the proximity of the resource growth to currently planned underground infrastructure as per the recent PEA study, we believe this new resource has the potential to have a significant positive impact on future mine plan studies including but not limited to the per ounce operating costs, total mine life and annual production profile," commented Company President and CEO, Stephen de Jong. "We are especially encouraged by the substantial upgrade in indicated resource grade, width and total ounces, of the near-surface C2 structure, which accounts for the bulk of production in the early years of the proposed mine plan. There are very few new gold projects globally, situated in a world-class jurisdiction such as Val-d'Or Québec, that boast a meaningful and growing production profile, with top-quartile cost margins and low capex estimates that can potentially be developed within the space of two years. Not only does the Lamaque Project have these rare qualities, our exploration team also continues to prove our narrative that substantial gold resource growth potential remains at both the Triangle and adjacent gold deposits."

Triangle Resource: Significant Increase with the Inclusion of 117,734 m of New Drilling

A total of 117,734 m of new drilling completed in late 2015 and 2016 on Triangle was incorporated into the resource estimate announced today. Approximately 75% of the drilling included in this updated resource estimate can be categorized as infill drilling. Furthermore, an additional 15,021 m of drilling in 75 drill holes at Triangle has been completed since the database cut-off for this resource estimate. The next resource estimate update for Lamaque, not including the Sigma resource which is currently underway, is expected to be completed for year-end.

This is the third resource estimate completed at Triangle since the Company identified the steeply dipping (45 to 75 degrees) structures ("C structures") and their relationship with the shallow dipping (25 to 55 degrees) structures ("C-Splay structures"). The average and maximum true thickness (intercepts above 3 g/t Au) for the C and C-Splays structures are 3.7 m / 14.7 m and 2.6 m / 15.8 m respectively. The largest of the C structures, the C4 structure ("C4"), has an average true thickness of 4.4 m. The C-Splay structures consist of gold bearing shear hosted quartz-tourmaline veins similar to the principal C structures; however, the C-Splay structures are generally narrower and less continuous.

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

http://www.integragold.com/site/assets/files/2228/triangle_cross_22march2017.pdf

Table 3.
March 2017 Triangle Deposit Resource Estimate (3.0 g/t and 5.0 g/t Au cut-off grades)

      
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 6,262,000  7.32  1,473,530  5,441,000  5.67  991,800
5.0 g/t 4,004,700  9.24  1,189,550  2,501,100  7.85  631,200
Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Aside from the substantial conversion of inferred resources into indicated ounces (100% and 105% increase in indicated resources for the 3 g/t and 5 g/t Au cut-offs respectively, please refer to Table 1 above), it should be noted that the average grade of the indicated ounces also increase by a few percent (4% and 3% respectively for the 3 g/t and 5 g/t Au cut-offs) possibly indicating that closer spaced infill drilling could have a positive impact on the average grade.

Total inferred resources, in terms of contained ounces at a 3 g/t Au cut-off, have slightly decreased compared to the previous resource estimate. This decrease is viewed positively though as it demonstrates the Company's success at replacing inferred resource that have been converted to the indicated resource category. The grade of the inferred resource at 3 g/t and 5 g/t Au cut-offs decreased 18% and 13% respectively. This decrease is in part explained by the location of those inferred resources which are now surrounding the indicated resources on the edges of the deposit. Drill spacing is wider for the inferred resources with the selected capping methodologies appearing to have a bigger impact on the average grade for that resource category. It is possible that infill drilling in those areas, and potential conversion to indicated resources, will result in an increase in average grade.

As shown on the longitudinal sections of the C structures available at the link below, there seems to be a significant amount of inferred resources for the C4 and C5 structures that could be converted into indicated resources through closer spaced drilling. As far as future potential growth in inferred resource, the longitudinal section for the C5 structure (and partially for the C4 structure) are showing open ended drill results that would require additional drilling to fully assess; some of that drilling will occur in 2017. The deeper structures will also be a focus of future exploration and expansion drilling and could become a significant contributor to the resource growth as limited drilling exists to date deeper than the C5 structure.

Ongoing exploration and extensive data interpretation continues to support the C structure geological model. The incorporation of C structures have had a positive impact on the project, including a net increase in resources and greater use of long-hole mining in future mine plans, which is a more cost-effective and efficient mining method. Table 4 below illustrates the proportion of gold mineralization contained within the C versus the C-Splays structures at cut-offs of 3 g/t Au and 5 g/t Au, separated by resource categories. In the proposed mine plan published in the Company's February 2017 PEA, 91% of the mining at Triangle utilized long-hole mining methods, excluding those ounces mined through ongoing development. It is important to note that a large portion of the C-Splay Structures dip greater than 45 degrees, suggesting that these structures would also be amenable to long-hole mining methods.

Table 4.
Proportion of resource ounces per structures

     
Cut-off Grade (Au) C Structures C-Splays Structures
Indicated Inferred Indicated Inferred
3 g/t 67% 80% 33% 20%
5 g/t 72% 87% 28% 13%

To view vertical longitudinal sections of the Triangle C structures showing drill hole pierce points, grade distribution, and block model resource classification please click on the following link:

http://www.integragold.com/site/assets/files/2226/march_2017_longsections_vuse.pdf

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

http://www.integragold.com/site/assets/files/2227/pointsofinterestmap_march_2017vfinal.pdf

Resource Estimate Summary

Extensive drill programs completed on Triangle and other targets at Lamaque since 2014 have strongly contributed to the Company's understanding of the project geology, particularly in regard to gold mineralization distribution and controls. This understanding has led to refinements on a number of key resource estimation parameters relative to those used in previous estimates. These refinements are briefly discussed in 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. The estimation methodology used is Ordinary Kriging ("OK") on all the deposits listed. The tables below outline the resources at a 3 g/t Au and a 5 g/t Au cut-offs. The Company anticipates using a cut-off between 4.5 g/t Au and 5.5 g/t Au at each deposit when optimizing resources into potentially minable ounces in future mine plans. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Table 5.
March 2017 Lamaque Property 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)  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
Total  8,413,248  7.09  1,917,443  7,130,903  5.86  1,342,204

Table 6.
March 2017 Lamaque Property Global 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)  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
Total  5,130,017  9.13  1,505,544  3,514,232  7.94  896,948
(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 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.

The No. 4 Plug Deposit ("No. 4 Plug") resource estimate listed below was completed in the fall of 2016 on the high angle shear structures which are similar to the C structures present at Triangle. A second pass was completed to assess the potential for a lower grade, potentially bulk mineable resource 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 above. Detail on the No. 4 Plug methodologies and results can be reviewed in the Company press release dated November 16, 2016 or by consulting the most recent Technical Report, December 2016, available on SEDAR or the Company's website.

Updated Resource Estimation Underway at Sigma

An updated resource for the Sigma Deposit, following a complete re-interpretation and re-modelling, from surface to 1,800 m vertical, is progressing and is expected to be disclosed in Q2 2017 upon completion. The Sigma Deposit is adjacent to the Company's milling infrastructure and is situated approximately 3 km northwest of Triangle.

The entire Sigma Mine database of drill holes and underground channel samples is being recompiled and re-validated by InnovExplo. Following this validation, known gold mineralized zones within the deposit are being re-modelled and a new NI 43-101 compliant resource estimate is expected to be complete in Q2 2017. Despite the significant amount of close spaced drilling and underground data available for the updated modelling and estimation, all resources will be classified as inferred as data is historic in nature and cannot, at this time, be properly validated by re-drilling, re-sampling and proper NI 43-101 Quality Assurance and Quality Control ("QA/QC").

Lamaque Project Next Steps

To date in 2017, 22,884 m of infill and extension drilling in 102 drill holes have been completed at Lamaque, of which 15,021 m in 75 drill holes were completed at Triangle. Drill results in 2017, which have been disclosed on a timely manner since the beginning of the year, demonstrate the potential for additional resource growth at Triangle.

For example, 2017 surface drill results completed at 20 m to 25 m centers in the upper C2 structure of Triangle in the area of the proposed bulk sample have returned higher grade and thicker intercepts than previously anticipated using the block model, suggesting future internal resource growth potential at Triangle.

Previously released select drill intercepts from this part of the C2 structure published since the database cut-off for the resource estimate announced today include (all results uncapped, downhole width, see full assay tables in respective 2017 press releases for capped intervals and additional details):

  • 71.61 g/t Au over 14.75 m (C2 - TM-17-261)
  • 26.31 g/t Au over 8.55 m (C2 - TM-17-253)
  • 21.96 g/t Au over 5.75 m (C2 - TM-17-259)
  • 53.70 g/t Au over 2.10 m (C2-30 - TM-16-222A)
  • 17.29 g/t Au over 2.65 m (C2 - TM-16-224BW01)
  • 40.43 g/t Au over 2.80 m (C2 - TM-16-225)
  • 22.06 g/t Au over 7.85 m (C2 - TM-16-226)
  • 36.86 g/t Au over 5.55 m (C2 - TM-16-229A)

The Company currently has five diamond drills active at Lamaque, including three at Triangle, one on the No. 4 Plug, and one testing the Lamaque Deep target. The 2017 drill program includes a minimum of 71,000 m of surface drilling. The focus of drilling in 2017 will remain on Triangle and No. 4 Plug as well as testing key exploration targets including the Lamaque Deep and the highest priority Gold Rush Challenge targets.

The Company also plans to complete approximately 10,000 m of underground definition drilling, commencing in the coming weeks, from the Triangle exploration ramp which has advanced 750 m. The underground drilling will initially focus on drilling the C2 structure at 10 m centers in the area selected for the bulk sample.

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 capital costs and shortened timelines typically associated with mine development projects. Integra has raised over $125 million since 2013, at successively higher share prices, despite depressed gold prices.

Further detail about the resource estimate, including assumptions, parameters, risks and data verification measures, will be available in an updated technical report on Lamaque to be filed by Integra within 45 days following the date of this news release.

The PEA referenced in this news release is considered preliminary in nature. It includes inferred mineral resources that are considered too speculative to have the economic considerations applied that would enable classification as mineral reserves. There is no certainty that the conclusions within the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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 update at Triangle and others deposits at Lamaque 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

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward Looking Statements: Certain disclosures in this release constitute forward-looking statements, including timing and results of future development studies, of a resource estimate on other deposits and the Sigma zone, and the results of future exploration work. 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 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. 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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