Integra Gold Corp.
TSX VENTURE : ICG

Integra Gold Corp.

November 16, 2011 07:30 ET

Integra Gold Corp: Triangle Zone Adds High-Grade Ounces to Lamaque Gold Project, Increases Resource by 40%

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 16, 2011) - Integra Gold Corp. (TSX VENTURE:ICG) -

  • ADDITION OF TRIANGLE ZONE TO LAMAQUE RESOURCE:
    • INFERRED RESOURCE OF 132,987 OUNCES @ 18.73 G/T GOLD (LAMAQUE TOTAL 518,643 OUNCES)
    • INDICATED RESOURCE OF 61,168 OUNCES @ 13.51 G/T GOLD (LAMAQUE TOTAL 162,962 OUNCES)
  • TRIANGLE ZONE OPEN IN ALL DIRECTIONS
  • $3.0M IN TREASURY WITH 51 MILLION SHARES OUTSTANDING
  • ADDITIONAL GOLD ZONE RESOURCE ESTIMATES UNDERWAY
  • LOCATED IN VAL D'OR, QUEBEC

INTEGRA GOLD CORP. (The "Company") is pleased to announce that it has received the Estimate of Resources and Modeling of the Triangle Sector report for the Triangle Zone portion of the Lamaque Gold Project located in Val d'Or, Quebec. The addition of the Triangle Zone resource estimate to the existing resources as published on June 23, 2011, has increased the total resource at Lamaque to 518,643 ounces inferred and 162,962 ounces indicated; an enhancement of 40%.

"The addition of high-grade ounces into our Lamaque resource estimate is an exciting milestone for Integra as it not only increases the overall value of the project, but also has the potential to positively influence the various production scenarios we are currently considering," comments Company President and CEO, John de Jong. "We will continue to increase our resource as aggressively as possible and are also considering the possible benefit of recalculating the No. 4 Plug resource (315,975 ounces inferred) as the cut-off grade used in the original calculation was determined at a time when gold traded in the $400 to $500 per ounce range."

Updated Resource Estimate for Lamaque Gold Project:

Gold Deposit Name Metric Tonnes Grade (Grams per Ton-uncut) Ounces
No. 4 Plug* 1,042,258 9.43 g/t 315,975 inferred
Forestel Zone** 861,000 2.10 g/t 58,000 inferred
Parallel Zone** 211,484 1.72 g/t 11,681 inferred
Parallel Zone** 659,959 4.80 g/t 101,794 indicated
Triangle Zone*** 220,788 18.73 g/t 132,987 inferred
Triangle Zone*** 140,840 13.51 g/t 61,168 indicated
Total Inferred Resources 2,335,530 6.91 g/t (average) 518,643 inferred
Total Indicated Resources 800,799 6.33g/t (average) 162,962 indicated
* The tabulated results above show the newly calculated resource estimates and includes the 2004 Audit Report estimate for the #4 Plug prepared by Watts, Griffis and McOuat. ** For the Parallel Zone, an Ordinary Kriging (OK) estimator was utilized and the Forestel zone was interpolated utilizing an IPD2 estimator *** For the Triangle Zone, an Ordinary Kriging (OK) estimator was utilized

The Estimate of Resources and Modeling of the Triangle Sector report prepared by Mr. Christian D'Amours, Professional Geologist, of Geopointcom located in Val d'Or, Quebec, documents the resource evaluation and incorporates information from diamond drilling completed on the Triangle Zone.

As presented in the following table, the total of indicated resources (in situ) below the security pillar amounts to 140,840 metric tonnes grading 13.51 g/t of gold. The total of inferred resources (in situ) below the security pillar amounts to 220,788 metric tonnes grading 18.73 g/t of gold. The Triangle Zone resource is open in all directions.

Triangle Zone Resource Table

*Indicated resources within the security pillar (60 meter rock cover between overburden and main ore body)
Sector 1 South 2 South 3 South 4 South 1 North 2 North Total
Gold Grade (g/t) 5.6 3.26 3.83 3.94 4.16
Metric tonne (T) 11,230 3,830 35,556 4,527 55,143
Ounce Troy (Oz) 2,022 401 4,378 573 7374
*Inferred resources within the security pillar (60 meter rock cover between overburden and main ore body)
Sector 1 South 2 South 3 South 4 South 1 North 2 North Total
Gold Grade (g/t) 5.46 3.67 3.53 3.78
Metric tonne (T) 2,766 7,896 14,716 25,378
Ounce Troy (Oz) 486 932 1,670 3,088
Indicated resources below the security pillar
Sector 1 South 2 South 3 South 4 South 1 North 2 North Total
Gold Grade (g/t) 9.52 25.18 13.51
Metric tonne(T) 104,972 35,868 140,840
Ounce Troy (Oz) 32,130 25.18 61,168
Inferred resources below the security pillar
Sector 1 South 2 South 3 South 4 South 1 North 2 North Total
Gold Grade (g/t) 3.74 12.29 27.33 18.73
Metric tonne (T) 2,853 121,713 96,222 220,788
Ounce Troy (Oz) 343 48,094 84,550 132,987
* The indicated and inferred resources estimates referred to and which form part of this deposit do not include the gold ounces reported in the security pillar as it is unlikely this zone will lend itself to open pit mining. The security pillar (approximately 60 meters of covering rock that is situated between the overburden and the main part of the resource) is required to provide a support cover in the event underground mining is undertaken. Resources located above the pillar should never be included except if it is shown that there exists a possibility for open pit mining.

To view a map highlighting the Triangle Zone, please click on the following link: http://www.brmstatpack.com/lt/1005/1213/triangle-zone-map-insert

Planning for the Future

As has been stated in previous news releases and updates, the Company is focusing on the zones that demonstrate the greatest likelihood of open pit mining and those zones which will add to the overall gold resource most quickly. Management is undertaking a full review of the project in conjunction with SRK Consulting (Toronto), considered one of the world's top mining consulting firms, and Geologica Inc., Integra Gold's geological contractor and consultant that has been working in the Val d'Or area for many years in both the exploration and mining fields.

The zones demonstrating the greatest potential for open mining are the Parallel and Forestel Zones. It is Geologica's opinion that the #5 Plug (located approximately 1000 meters from the Lamaque Mine Main Plug where 4.3 million ounces were mined during its mine life) could potentially be the heat and mineralization source for the Parallel and Forest Zone and will therefore be drilled after the Parallel Zone drilling has been completed.

The No. 4 Plug hosting 315,975 gold ounces grading 9.43 g/t is based on a cut-off grade of 6.14 g/t at a gold value of $400 to $500 per ounce. The current value used by the majority of mining companies for the purpose of resource calculations is $1,365 gold. The Company plans to review the No. 4 resource in the context of the current gold price allowing for lower cut off grades. This will be completed in conjunction with the deep drilling program projected to start early in 2012. A drill rig capable of deep drilling is currently being built for the Company by Orbit Garant of Val d'Or, Quebec, specifically for this project and projected to be on site prior to the end of December, 2011.

A revised drill plan predicated on the direction the Company has adopted and taking into consideration the current Triangle Zone and pending Sixteen Zone resource estimates, will be released when fully determined. The resource estimate for the Sixteen Zone is in progress with management anticipating its release shortly. In addition, it is anticipated that the 31 holes presently being drilled on the Parallel Zone will initiate a further resource update for this zone. The No. 4 plug review may also mandate a need to initiate a new updated resource estimate calculation as will several zones reporting non-compliant historical resource estimates (104,848 Inferred ounces (uncut), June 23, 2011 NI 43-101 Technical Report) which will require further drilling to confirm accuracy.

"The potential for the Lamaque Gold Project to reach its milestones appears to be well within reach. The company is well financed and currently has 50,937,465 shares outstanding. Management is focused on exploiting the potential of the Lamaque Gold Project to its fullest extent, doing so in a geologically prudent manner and with strong fiscal oversight," says John de Jong, CEO and President.

Geopointcom's Conclusions and Recommendations

The study of the Triangle Zone allowed the author to present the following conclusion and recommendations:

  • High auriferous values should not be limited.
  • Composites length should be 1.0 meter.
  • By using a 3 g/t Cut-off, the indicated resource in situ located below the pillar is estimated at 140,840 metric tonnes grading 13.51 g/t Au. The resources located above the pillar are excluded from this estimate.
  • The inferred resources non-diluted reach 220,788 metric tonnes grading 18.73 g/t Au. The resources located above the pillar are excluded from this estimate. The degree of confidence linked to this category of resources is insufficient to allow the significant implementation of the technical and economic parameters or to allow an assessment of the economic viability. The mineral inferred resources must be excluded from these estimations forming the basis of these feasibility studies or other economic studies.
  • In order to increase the level of confidence, to increase the resources and to demonstrate the attitude of the tension veins, the author proposed to perform a series of the following drillings.

Proposed Drill Locations

Target Collar Azimuth Dip Length Name
X y z
Deep Extension of North 1 and 2 296026 5328302 320 358 -56 493 Planned - 1
Deep Extension of North 1 and 2 296026 5328302 320 358 -63 530 Planned – 2
Deep Extension of North 1 and 2 296120 5328320 320 358 -55 460 Planned – 3
Deep Extension of North 1 and 2 296120 5328320 320 358 -64 485 Planned – 4
Shallow extension of North 2 296525 5328447 322 0 -50 255 Planned – 5
Understanding of flat vein 296578 5328514 322 180 -73 210 Planned – 6
Understanding of flat vein 296580 5328565 322 180 -70 225 Planned – 7
Understanding of flat vein 296478 5328532 322 180 -72 255 Planned – 8
Understanding of flat vein 296480 5328577 322 180 -72 290 Planned – 9
Understanding of flat vein 296379 5328561 322 180 -68 275 Planned – 10
Understanding of flat vein 296382 5328609 322 180 -69 303 Planned – 11
Understanding of flat vein 296384 5328652 322 180 -68 335 Planned – 12

Company and Gold Project Location

Integra's Lamaque Gold Project is located in the Val d'Or gold camp in the Province of Quebec, Canada, which is rated one of the best mining jurisdictions in the world. Infrastructure, human resources and mining expertise is readily accessible.

The Company's shares are tightly held by number of private investors, institutions and a major gold producer, Shandong Gold International Mining Ltd. The Company's focus is to advance gold zones demonstrating potential for open pit mining and where gold resources can be added quickly to the reported gold resource of 2,335,530 metric tons, average grade 6.91 g/t gold for 518,643 ounces troy inferred and 800,799 metric tons, average grade 4.80 g/t gold for 162,962 ounces troy indicated.

The gold project shares its northeastern border with the producing Sigma Mine which has produced 4.7 million ounces of gold to date and has reported significant gold resources and reserves. On its northwest border the Main Plug produced the majority of its 4.7 million ounces of gold for the historic Lamaque Mine. The Agnico-Eagle Goldex Mine located approximately 6 kilometers west reports reserves of 3.5 million gold ounces, and directly west of Goldex is the producing Osisko Mine reporting reserves of 15.9 million ounces of gold.

The Lamaque Property is located about 550 km northwest of Montréal, Quebec. The property consists of four (4) contiguous mining concessions and twenty (20) mining claims for a total of 1,459 hectares, owned 100% by Integra.

QUALITY ASSURANCE - QUALITY CONTROL

Thorough quality assurance and quality control program (QA/QC) protocol was utilized on the project including duplicate, blank and standard samples for all the holes. The core samples were submitted directly to ALS Laboratory Group and Bourlamaque Labs in Val-d'Or for preparation and analysis. Analysis was conducted on 1 assay ton samples. Analysis of gold was by fire assay, with a gravimetric finish on samples exceeding 5 g/t gold. The gravimetric assay results were used for the reported composite intervals. The Lamaque project exploration is under the direct supervision of Alain Beauregard, P.Geol. of Geologica Inc., an independent qualified person as designated by National Instrument 43-101, who has reviewed the technical content of this release.

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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 Company's planned exploration activities, 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 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.

This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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.

Contact Information

  • Integra Gold Corp. - Corporate Inquiries
    John de Jong
    CEO & President
    604.629.0891

    Integra Gold Corp. - Corporate Inquiries
    Ariel Cobangbang
    604.629.0891
    604.229.1055 (FAX)
    arielc@integragold.com
    www.integragold.com