Integra Gold Corp.
TSX VENTURE : ICG

Integra Gold Corp.

September 25, 2013 08:30 ET

Integra Gold Increases Indicated Resources 304% at the Lamaque Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 25, 2013) -

Press Release Highlights:

  • At a 3 g/t cut-off, the indicated resource grade increased 28% to 7.2 g/t gold and the inferred resource grade increased 64% to 11.3 g/t gold

  • 304% increase (when compared to previous resource disclosure) in indicated resources to 661,290 gold ounces, representing 71% of total resources, with an additional 268,870 gold ounces, or 29% of total resources, in the inferred resource category

  • Three additional areas being drilled in 2013 are not included in the present resource disclosure: No. 3 Mine, Triangle South and No. 5 Plug zones; will be included in subsequent resource estimate updates

  • Substantial potential for further resource addition and conversion into indicated resource remains, multiple diamond drills currently operating on project testing potential for new zones and extensions of known zones

  • Preliminary Economic Assessment ("PEA") underway

Integra Gold Corp. (TSX VENTURE:ICG) ("Integra" or the "Company") is pleased to announce it has completed a mineral resource estimation update for its Lamaque Gold Project ("Lamaque") located in Val-d'Or, Québec. The resource calculation was conducted by Geopointcom and will be included in an NI 43-101 Technical Report currently being prepared by Geologica Inc.

Resource estimates has been completed for four zones within the Lamaque deposit; the Parallel, Fortune, No. 4 Plug and Triangle Zones. When compared to the Company's previous resource estimate, this estimate represents a substantial improvement in contained ounces, average grade, and tonnage with significant potential remaining to increase the resource base laterally, at depth and on new targets. Further details on the mineral resource estimation parameters and results will be presented in an updated NI 43-101 technical report which will be filed on SEDAR within 45 days. For clarification, all of the resources announced today are separate from the adjacent Sigma and Lamaque Mines, which have collectively produced over 9 million ounces of gold.

Table 1 - Lamaque Gold Project Resource Summary (detailed calculation methodology disclosed below)
Indicated Resources Inferred Resources
Cut-Off
Grade
Ounces Grade
(g/t Au)
Tonnes Ounces Grade
(g/t Au)
Tonnes
3 g/t Au 661,290 7.2 2,844,200 268,870 11.3 738,000
5 g/t Au 498,760 10.2 1,525,100 236,540 15.1 488,500

Please click on the following link to view the project plan map and an idealized cross-section of the known resource and current drill targets:

http://www.integragold.com/i/pdf/Integra-Plan-Map-and-Idealized-Cross-Section.pdf

"The Lamaque Project is a truly unique situation as it combines a robust, high-grade gold resource with exceptional local infrastructure, and is located in one of the safest, highest-rated mining jurisdictions in the world. The resource estimate announced today represents a significant milestone for the Company, and we look forward to continuing to advance this project at an accelerated pace. Integra is well financed, with over $5 million in working capital, actively drilling with two rigs currently operating, and on schedule to publish a PEA in the first quarter of 2014," commented Company President and CEO, Stephen de Jong. "Integra's technical team has done a remarkable job getting the project to this point and we anticipate further exploration success in the immediate future. This project has tremendous potential to expand and we look forward to continuing to see the Lamaque resource grow while concurrently moving ahead on other project development initiatives."

Mineral Resources Update - Selected Disclosure Cut-Off (3 g/t Au)

The mineral indicated resource at Lamaque increased 304% to 661,290 gold ("Au") ounces contained in 2,844,200 metric tonnes ("t") grading 7.2 grams per tonnes gold ("g/t Au"), from a previous total of 163,760 Au ounces contained in 899,800 t grading 5.7 g/t Au. The indicated resource now represents 71% of the global resource at Lamaque, from a previous 24%, successfully demonstrating the ability to convert a significant amount of inferred resources into indicated resources. The 28% increase in average grade and the 216% increase in tonnage over the previous resource estimate are primarily due to the addition of over 47,000 meters of new drilling information to the resource database, and in the geological model improvements for the deposits.

The inferred resource decreased to 268,870 Au ounces contained in 738,000 t grading 11.3 g/t Au, from a previously disclosed total of 518,650 Au ounces contained in 2,336,000 t grading 6.9 g/t Au. The inferred resource represents 29% of the global resource at Lamaque. The significant 64% increase in average grade is primarily due to remodelling of the Fortune and Parallel zones which are now considered as "selective" underground resources rather than "bulk" open-pit targets.

Tables 2 and 3 give a summary, by zones, of indicated and inferred mineral resources at the selected disclosure cut-off:

Table 2 - Indicated Resources by Zones - Selected Disclosure Cut-Off (3.00 g/t Au)
Zone Tonnage
(metric tonnes)
Grade
(g/t Au)
Contained
Ounces (Au)
Fortune (1) 125,500 5.8 23,600
Triangle (2) 599,700 9.9 190,670
No. 4 Plug (3) 1,325,100 5.6 237,450
Parallel (4) 793,900 8.2 209,570
Total 2,844,200 7.2 661,290
Table 3 - Inferred Mineral Resources - Selected Disclosure Cut-Off (3.00 g/t Au)
Zone Tonnage
(metric tonnes)
Grade
(g/t Au)
Contained
Ounces (Au)
Fortune (1) 252,300 5.6 45,220
Triangle (2) 332,300 12.9 137,600
No. 4 Plug (3) 0 0.0 0
Parallel (4) 153,400 17.5 86,050
Total 738,000 11.3 268,870
(1) 3.00 g/t Au cut-off - calculated using an gold price of US$1,450 per ounce, mining/milling cost per tonne estimated at US$115 + 25% contingency, 92% metallurgical gold recovery; specific gravity of 2.8 g/cm3; individual gold values uncap; 2 metres ("m") minimum true thickness; Fortune Zone previously known as the 'Forestel' Zone
(2) 3.00 g/t Au cut-off - calculated using a gold price of US$1,450 per ounce, mining/milling cost per tonne estimated at US$115 + 25% contingency, 92% metallurgical gold recovery; specific gravity of 2.8 g/cm3; individual gold values are gradually capped when the gold value is over 80 g/t using the formula hereby: 80 g/t Au + ((x-80)*0.5)); 2 m minimum true thickness
(3) 3.00 g/t Au cut-off - calculated using a gold price of US$1,450 per ounce, mining/milling cost per tonne estimated at US$115 + 25% contingency, 92% metallurgical gold recovery; specific gravity of 2.8 g/cm3; individual gold values capped to 300 g/t Au; "bulk" selectivity therefore no minimum true thickness
(4) 3.00 g/t Au cut-off - calculated using a gold price of US$1,450 per ounce, mining/milling cost per tonne estimated at US$115 + 25% contingency, 92% metallurgical gold recovery; specific gravity of 2.8 g/cm3; individual gold values are gradually capped when the gold value is over 100 g/t using the formula hereby: 100 g/t Au + ((x-100)*0.4); 2 m minimum true thickness

A gold price of US$1,450 and an exchange rate of 1$US=1$CAN was used to calculate the disclosure cut-off. At the end of August 2013, the 3 year running average of the London Fix gold price was US$1,556; this number represent the most common method to determine the gold price to be used for gold resource and reserve calculations in the industry. In view of fluctuating gold market prices, the effect of using a lower gold price on the cutoff value was evaluated for the Parallel zone. If all of the other parameters to calculate the cut-off remained unchanged and a gold price of $1,300 is used, the cut-off would need to be increased by 11% to 3.33 g/t Au. At this stage of resource evaluation of the Lamaque Project, this is not considered a material increase in cut-off and it is not anticipated this would affect the resource base significantly. Furthermore in the present fluctuating gold price environment, a recognized and widely use selection method for gold price setting is preferred.

Mineral Resources Update - Variable Cut-Off

The mineral resources were also compiled using different cut-offs with results presented at the 5.00 g/t Au and 0.00 g/t Au cut-offs for all zones in Tables 4 to 7. Tables at other cut-offs will be available in the updated NI 43-101 technical report which will be published and filed on SEDAR. The high grade nature of the deposit is illustrated when looking at the 5.00 g/t Au cut-offs, although no attempts to evaluate the "minability" of those higher grade zones were performed. This is being evaluated in the ongoing PEA.

Table 4 - Indicated Resources by Zones - 5.00 g/t Au Cut-Off
Zone Tonnage
(metric tonnes)
Grade
(g/t Au)
Contained
Ounces (Au)
Fortune (1) 60,700 8.0 15,160
Triangle (2) 412,200 12.6 167,200
No. 4 Plug (3) 522,900 8.3 140,280
Parallel (4) 529,300 10.4 176,120
Total 1,525,100 10.2 498,760
Table 5 - Inferred Mineral Resources - 5.00 g/t Au Cut-Off
Zone Tonnage
(metric tonnes)
Grade
(g/t Au)
Contained
Ounces (Au)
Fortune (1) 111,300 7.7 27,470
Triangle (2) 258,000 15.4 128,000
No. 4 Plug (3) 0 0.0 0
Parallel (4) 119,200 21.2 81,070
Total 488,500 15.1 236,540
(1) 5.00 g/t Au cut-off; specific gravity of 2.8 g/cm3; individual gold values uncap; 2 metres ("m") minimum true thickness
(2) 5.00 g/t Au cut-off; specific gravity of 2.8 g/cm3; individual gold values cap at 80 g/t Au + ((x-80)*0.5)); 2 m minimum true thickness
(3) 5.00 g/t Au cut-off; specific gravity of 2.8 g/cm3; individual gold values cap at 300 g/t Au; "bulk" selectivity therefore no minimum true thickness
(4) 5.00 g/t Au cut-off; specific gravity of 2.8 g/cm3; individual gold values cap at 100 g/t Au + ((x-100)*0.4); 2 m minimum true thickness
Table 6 - Indicated Resources by Zones - 0.00 g/t Au Cut-Off
Zone Tonnage
(metric tonnes)
Grade
(g/t Au)
Contained
Ounces (Au)
Fortune (5) 416,700 2.4 31,750
Triangle (6) 1,492,600 4.6 222,100
No. 4 Plug (7) 18,257,300 0.9 507,600
Parallel (8) 1,550,800 4.8 239,830
Total 21,717,400 1.4 1,001,280
Table 7 - Inferred Mineral Resources - 0.00 g/t Au Cut-Off
Zone Tonnage
(metric tonnes)
Grade
(g/t Au)
Contained
Ounces (Au)
Fortune (5) 853,200 2.4 66,950
Triangle (6) 651,700 7.1 148,800
No. 4 Plug (7) 44,900 0.4 540
Parallel (8) 275,900 10.3 91,090
Total 1,825,700 5.2 307,380
(5) 0.00 g/t Au cutoff; specific gravity of 2.8 g/cm3; individual gold values uncap; 2 metres ("m") minimum true thickness
(6) 0.00 g/t Au cutoff; specific gravity of 2.8 g/cm3; individual gold values cap at 80 g/t Au + ((x-80)*0.5)); 2 m minimum true thickness
(7) 0.00 g/t Au cutoff; specific gravity of 2.8 g/cm3; individual gold values cap at 300 g/t Au; "bulk" selectivity therefore no minimum true thickness
(8) 0.00 g/t Au cutoff; specific gravity of 2.8 g/cm3; individual gold values cap at 100 + ((x-100)*0.4); 2 m minimum true thickness

Mineral Resources Update - Zones by Zone Comparison

Comparisons of the 2013 mineral resource updates versus the previous resource disclosure on a zone by zone basis were prepared and are presented in tables 8 and 9 below. Because the modeling and estimation parameters are significantly different between the previous and the most recent mineral resources estimates, the comparisons should be considered qualitatively rather than quantitatively. When comparing the results of the new mineral resource to the previous estimations, the most striking difference remains the amount of resource being transferred from the inferred to the indicated resource categories, the significant increase in the indicated tonnage for the Triangle and Plug No. 4 zones, and the significant improvement in grades for the Fortune (previously named "Forestel") and Parallel zones.

Estimation parameters for the previous mineral resources are presented in the NI 43-101 Technical Report dated September 21, 2012. The principal parameters for the present mineral resource disclosure are presented above with additional information to be presented in the upcoming Technical Report.

Table 8 - Indicated Mineral Resources - Zone by Zone Comparison (3.00 g/t Au cut-off)
Zone Tonnage
(metric tonnes)
Grade
(g/t Au)
Contained
Ounces (Au)
Fortune 2010 (1) 0 0.0 0
Fortune 2013 (1) 125,500 5.8 23,600
Triangle 2011 (2) 140,800 13.5 61,170
Triangle 2013 (2) 599,700 9.9 190,670
No. 4 Plug 2004 (3) 0 0.0 0
No. 4 Plug 2013 (3) 1,325,100 5.6 237,450
Parallel 2011 (4) 759,000 4.2 102,590
Parallel 2013 (4) 793,900 8.2 209,570
Total Previous Resource 899,800 5.7 163,760
Total 2013 2,844,200 7.2 661,290
Variance +216% +28% +304%
Table 9 - Inferred Mineral Resources - Zone by Zone Comparison (3.00 g/t Au cut-off)
Zone Tonnage
(metric tonnes)
Grade
(g/t Au)
Contained
Ounces (Au)
Fortune 2010 (1) 861,000 2.1 58,000
Fortune 2013 (1) 252,300 5.6 45,220
Triangle 2011 (2) 220,800 18.7 132,990
Triangle 2013 (2) 332,300 12.9 137,600
No. 4 Plug 2004 (3) 1,042,300 9.4 315,980
No. 4 Plug 2013 (3) 0 0.0 0
Parallel 2011 (4) 211,500 1.7 11,680
Parallel 2013 (4) 153,400 17.5 86,050
Total Previous Resource 2,335,600 6.9 518,650
Total 2013 738,000 11.3 268,870
Variance -68% +64% -48%
(1) Previous resource compiled using a 0.0 g/t Au cut-off, 2013 resource compiled at a 3.0 g/t Au cut-off
(2) Previous resource compiled using a 3.0 g/t Au cut-off, 2013 resource compiled at a 3.0 g/t Au cut-off
(3) Previous resource compiled using a 3.43 g/t Au cut-off and audited by Geologica Inc. in September 2004. 2013 resource compiled at a 3.0 g/t Au cut-off
(4) Previous resource compiled using a 3.43 g/t Au cut-off, 2013 resource compiled at a 3.0 g/t Au cut-off. Previous resources compiled at 3 m minimum true thickness including 15% internal dilution at 0.25 g/t.

Environmental Baseline Study and Initial Public Consultation Update

The Company remains on track to complete the environmental baseline study ("EBS") and other engineering work require for the completion of the PEA in Q1 2014.

In relation to the ongoing socio-economic studies, Integra will be implementing a preliminary phase of public consultation in the fall of 2013 with the main objectives being to assess and integrate knowledge, expectations and concerns from our stakeholders into the ongoing PEA.

Project and Company Profile

Integra's Lamaque gold project is located in the heart of the Val-d'Or gold camp in the Province of Québec, Canada, approximately 550 km northwest of Montréal. Québec is rated one of the best mining jurisdictions in the world. Infrastructure, human resources and mining expertise are readily available.

The Company's primary objective is to continue to prove up additional resources while advancing the existing resource towards production. The project is split into two main clusters, the North and South Clusters, which are located approximate 1 kilometer ("km") from each other. The Lamaque Project's primary target, the South Cluster, consists of the No. 4 Plug and Triangle zones, and is located 3 km from the City of Val-d'Or. The North Cluster, consisting of the Parallel, Fortune, No. 5 Plug, and No. 3 Mine zones, is located 1 km from Val d'Or.

Qualified Persons ("QP")

The Lamaque exploration project is under the direct supervision of Hervé Thiboutot, Eng., Senior Vice-President of the Company, and Francois Chabot, Eng., Manager Operations/Engineering of the Company. Both Mr. Thiboutot and Mr. Chabot are QPs as defined by the National Instrument 43-101. Alain-Jean Beauregard, P.Geo., Daniel Gaudreault, Eng., Geo., of Geologica Inc., and Christian D'Amours, P. Geol., OGQ, are responsible for the completion of the 2013 resource updates; all three are 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 ALS Laboratory Group and Bourlamaque Labs 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 and for mineral resource estimations.

ON BEHALF OF THE BOARD OF DIRECTORS

Stephen de Jong, CEO & President

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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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