SOURCE: Integra Gold Corp.

Integra Gold Corp

December 21, 2015 17:03 ET

Integra Gold SEDAR Files NI 43-101 Technical Report for the Lamaque Resource Estimate

VANCOUVER, BC--(Marketwired - December 21, 2015) -

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Press Release Highlights:

  • Technical Report for the Company's Lamaque Project has been filed on SEDAR
  • Resource estimate incorporated 27,815 metres of new drilling at the Company's Triangle Zone; results from an additional 35,500 metres of drilling that has since been completed at Triangle are pending
  • $2.5M non-brokered flow-through financing at a price of $0.40 per share has been closed

Integra Gold Corp. (TSX VENTURE: ICG) (OTCQX: ICGQF) ("Integra" or the "Company") is pleased to announce it has filed on SEDAR the independent NI 43-101 Technical Report (the "Report") including the updated Mineral Resource Estimate for the Lamaque Gold Project ("Lamaque") located in Val-d'Or, Québec, as described in the Company's news release dated November 10, 2015.

The Report is available on SEDAR under the Company's profile and on the Company's website at:

http://www.integragold.com/i/pdf/reports/43-101-Fall-2015-Mineral-Resource-Estimate-Update.pdf

The updated Resource Estimate at Lamaque focused exclusively on the Company's high-grade Triangle Zone deposit ("Triangle"), incorporating 27,815 metres ("m") of drilling completed during the Company's extensive winter 2015 drill program. The drill program substantially increased the Company's understanding of the geology of the deposit and has led to a refinement of a number of key resource modelling and estimation parameters relative to the previously used 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 at Triangle is now underway with over 35,500 m completed since the database cut-off date for this new resource estimate;
  2. Inclusion of the steeply dipping (60 - 70 degree dip) "C" structures (average true thickness between 2.5 and 4.6 m and up to 15 m wide), not recognized in previous resource models and estimates due to a lack of drill information; and
  3. At 3 g/t gold ("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 - 40 g/t Au hard cap on composites).

Triangle Deposit Resource Estimate

(3.0 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
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 Au on composites when estimated cells are >15 m from drill hole (composites are 1 m true thickness); intersections 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 Deposit Resource disclosed at two cut-offs to reflect various mining methods as multiple cut-offs may be used in future economic evaluations (January 2015 PEA economic parameters: 1.14 USD:CAD, US$1,175 / ounce Au (CAD$1,340 / once Au), 4.0-4.5 g/t Au cut-off used)

Triangle Deposit Resource by Zone

(5.0 g/t cut-off grade) (1)

         
Zone   Indicated   Inferred
  Tonnes   Average Grade
(g/t Au)
  Ounces
(Au)
  Tonnes   Average Grade
(g/t Au)
  Ounces
(Au)
C1   128,100   9.20   37,900   102,800   7.76   25,640
C2   370,400   8.22   97,950   300,300   7.31   70,580
C3   67,800   8.34   18,180   32,000   8.14   8,370
C4   529,900   9.94   169,440   950,800   9.83   300,630
C5   0   0.00   0   360,900   8.72   101,210
C6   0   0.00   0   59,200   7.07   13,460
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 Au on composites when estimated cells are >15 m from drill hole (composites are 1 m true thickness); intersections are 2 m minimum true thickness (if required, diluted with in situ grade when assay results are available otherwise diluted with 0 grade)

Total Lamaque South Resource Estimate

(including Triangle, No. 4 Plug, Parallel, Sixteen, No. 6 Vein and Fortune Deposits) (1)(2)(3)(4)(5)(6)

         
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: 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)
  2. Triangle: Specific gravity of 2.8 g/cm3; capping of 20 g/t Au on composites when estimated cells are >15 m from drill hole (composites are 1 m); 2 m minimum true thickness (if required, diluted with in situ grade when assay results are available otherwise diluted with 0 grade)
  3. No. 4 Plug: Specific gravity of 2.8 g/cm3; individual gold values capped to 300 g/t Au; no minimum true thickness
  4. Parallel: 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)
  5. Sixteen: Specific gravity of 2.8 g/cm3; individual gold values gradually capped when the gold value is over 40 g/t Au 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)
  6. 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)

The Report, dated December 15, 2015, was prepared according to NI 43-101 guidelines and in accordance with CIM Standards on Mineral Resources and Reserves, under the supervision of independent qualified persons. The resource update section of the technical report was completed by Christian D'Amours, P. Geol., OGQ of Geopointcom in Val-d'Or, Québec and an Independent Qualified Person; geological modeling and interpretation was completed under the supervision of Jacques Simoneau, P.Geo. and Luc Théberge, P.Geo., Exploration Manager and Senior Geologist respectively for the Company.

2015 and 2016 Drill Program

The Company presently has seven diamond drills active at the Triangle Deposit and the adjacent No. 4 Plug target, completing between 10,000 m and 12,000 m of drilling on a monthly basis. Total drilling at Lamaque for 2015 will be approximately 90,000 m. Since the Resource Estimate was completed, approximately 35,500 m of drilling has been completed in and around Triangle, eclipsing the number of metres (27,815 m), incorporated in this new resource estimation. The Company estimates the next Triangle resource estimate, anticipated to be completed in Q3 2016, will incorporate results from 60,000 to 70,000 m of new drilling.

The drilling rate will increase during the winter months as a program of 100,000 m is planned for 2016. The objective of the remaining 2015 drill program and upcoming 2016 drill 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:

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

Additional drilling is ongoing or planned at multiple targets on Lamaque, including the No. 4 Plug, located 400 m north of Triangle. Drilling at No. 4 Plug is also aimed at the area between the two gold deposits (the "Gap Zone") in search of the extension of the "C" structures in the hanging wall of the Triangle and/or footwall of the No. 4 Plug intrusive hosts.

Closing of $2.5 Million Private Placement

The Company is pleased to announce that it has closed a non-brokered private placement of flow through shares (the "FT Shares") at a price of $0.40 per FT share for aggregate proceeds of $2,500,000 (the "Offering"). The shares are subject to a four month hold period expiring April 22, 2016. Finder's fees in the amount of $144,000 are payable on the Offering. The Offering is subject to final TSXV approval.

The proceeds of the Offering will be used for exploration at the Company's Lamaque project in Val-d'Or, Québec and qualify as an eligible exploration expense for an additional 28% tax rebate under the Québec Refundable Tax Credit for Resources.

Issuance of Stock Options and Restricted Share Units

In accordance with its stock option plan, the Company has granted 3,175,000 stock options (the "Options") to directors, officers and employees of the Company at an exercise price of $0.32 for a period of 7 years. In accordance with its Restricted Share Unit Plan, the Company has granted 1,325,000 Restricted Share Units ("RSUs").

Project and Company Profile

Integra's Lamaque South Gold Project and Sigma-Lamaque Mill and Mine Complex are located directly east from the city of Val-d'Or along the prolific Abitibi Greenstone belt 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 focus is on exploring and if positive subsequently developing, subject to further underground exploration, its high-grade Lamaque South project. The Lamaque South property is divided into three clusters, the North, South and West cluster. 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 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.

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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