TORONTO, Nov. 07, 2017 (GLOBE NEWSWIRE) -- Integra Resources Corp. (TSXV:ITR) (“Integra” or the “Company”) is pleased to announce that its common shares have been approved for listing on the TSX Venture and will begin trading under the symbol “ITR” at market open on November 7th, 2017.
This announcement follows the recent acquisition of the DeLamar Gold and Silver Project (the “Property” or “Project”) from a wholly-owned subsidiary of Kinross Gold Corporation (“Kinross”) in Southern Idaho. The past producing 9,400 acre site has a maiden inferred resource of 2,673,000 oz of gold equivalent (“AuEq”) averaging 0.7 g/t AuEq at a 0.3 g/t AuEq cut-off grade, or alternatively employing a higher cut-off grade of 0.75 g/t AuEq, a resource of 1,356,000 oz AuEq averaging 1.26 g/t AuEq (see Table 1 below for a summary of the initial mineral resource estimate.)
Project Highlights
- Under the Radar Opportunity: The Project has been absent from the investing public’s consideration, sitting idle in the Kinross asset portfolio since it was put on care and maintenance in 1998 following low metal prices that caused industry-wide shut downs.
- Attractive Valuation Given Robust Initial Inferred Resource: Maiden inferred resource estimate portrays Integra at an attractive valuation on an Enterprise Value/Total Resources ($US/oz AuEq)* basis of between $8 and $15/oz depending on cut-off grade (based on pricing from its recent financing), versus an industry average EV/oz of approximately $48/oz.
* Includes measured, indicated and inferred resources. Equivalency includes gold and silver and is calculated using long-term consensus. As of November 1, 2017. Source: Bloomberg, FactSet, company disclosure
- Attractive Share Structure: Integra Resources has 56.2 million shares outstanding. 32.1 million shares were issued as part of the recent financing; the 5.5 million shares that were issued to Kinross as part of the DeLamar acquisition are subject to a 12 month hold period.
- Capitalized for Aggressive Exploration Campaign: The Company currently has a treasury of over C$20 million to deploy on an aggressive exploration program to be conducted over the next 12-18 months.
- Significant Exploration Potential: The site operated with limited exploration budgets for the past 30 years, with the last exploration taking place in the early 1990’s. Past shallow drilling, down to an average depth of 120 m, focused on defining near-surface low-grade bulk-mineable resources, which constitutes the majority of the gold-silver ounces included in the recently announced robust initial inferred resource estimate for DeLamar.
- High-grade zones remain largely untested: The high-grade zones historically mined underground in the late 1800’s and early 1900’s have seen very limited historic drilling beyond a depth of 200 meters. The limited drill hole data available, highlighting the largely untested high-grade potential, includes drill intercepts which have intersected a series of high-grade veins within 150 meters of surface, including:
- 105.4 g/t Au and 41.0 g/t Ag (105.9 g/ AuEq) over 10.7 metres; Number 1 Vein, DeLamar
- 10.1 g/t Au and 116.6 g/t Ag (11.5 g/t AuEq) over 18.3 metres; Ohio Stockwork, DeLamar
- 10.1 g/t Au and 188.1 g/t Ag (12.3 g/t AuEq) over 18.3 metres; South Wahl, DeLamar
- 20,000 Meter Drill Program: the company has planned a 20,000 meter drill program which it expects to commence in Q1 of 2018. Initial targets will include the series of high-grade veins, known to sit immediately below the low-grade resource which have seen very limited past drilling and are largely un-tested with modern exploration techniques and interpretations
- Ahead of the Curve: The Company is commencing its trajectory with a large database of information. The current DeLamar digital database hosts more than 1500 drill holes along with a wealth of historical data (geology, mining and metallurgy) spanning more than 40 years. The Company plans to use this large database to its full advantage, identifying new targets using the latest in modern screening methods as the management team has done in the past at Integra Gold.
- Florida Mountain Property: On or before Q1 2018 Integra is scheduled to complete an acquisition of the neighboring Florida Mountain property.
“The newly formed Integra Resources brings together an industry recognized management team in a well-funded new public company, with over $20M in cash and an enviable roster of new shareholders, all underpinned by a significant gold-silver resource situated in a first-world jurisdiction boasting excellent upside potential for further discoveries,” stated George Salamis, President and CEO. “With the acquisition from Kinross and successfully oversubscribed financing now behind us, the Integra Resources team looks forward to methodically advancing the brownfields DeLamar Gold-Silver Project with aggressive drilling, field exploration news, and periodic resource updates as we work towards a Preliminary Economic Assessment over the next 12 to 18 months. We are especially looking forward to initiating the first drilling program in Q1 2017, the first drill program in almost 25 years at DeLamar”.
Summary of the Initial Mineral Resource Estimate
Table 1. Sensitivity analysis of grade and tonnage at varying pit-constrained cut-off grades on the DeLamar Project12345
| Cutoff | Tonnes | g Au/t | oz Au | g Ag/t | oz Ag | g AuEq/oz | Eq Au oz |
| 0.30 | 117,934,000 | 0.41 | 1,592,000 | 24.34 | 91,876,000 | 0.7 | 2,673,000 |
| 0.40 | 94,172,000 | 0.48 | 1,418,000 | 27.77 | 84,395,000 | 0.81 | 2,411,000 |
| 0.50 | 71,060,000 | 0.51 | 1,200,000 | 32.57 | 74,805,000 | 0.89 | 2,080,000 |
| 0.60 | 51,818,000 | 0.58 | 981,000 | 38.74 | 64,691,000 | 1.04 | 1,742,000 |
| 0.70 | 37,637,000 | 0.65 | 791,000 | 45.94 | 55,666,000 | 1.19 | 1,446,000 |
| 0.75 | 33,716,000 | 0.69 | 735,000 | 48.69 | 52,747,000 | 1.26 | 1,356,000 |
| 1.00 | 16,028,000 | 0.89 | 451,000 | 69.26 | 35,770,000 | 1.7 | 872,000 |
1. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
2. Mineral Resources are comprised of all model blocks with gold-equivalent values greater than or equal to 0.30 g/t that lie
within an optimized pit and below the as-mined surface.
3. Gold equivalent = g Au/t + (g Ag/t ÷ 85)
4. Rounding may result in apparent discrepancies between tonnes, grade, and contained metal content.
5. The effective date of the mineral resource estimate is October 1, 2017.
About Integra Resources
Integra Resources Corp., formerly, Mag Copper Limited, is a development-stage company engaged in the acquisition, exploration and development of mineral properties in the Americas. Its flagship asset, the DeLamar Gold and Silver project, lies in the heart of the historic Owyhee County mining district in south western Idaho. The management team comprises the former executive team from Integra Gold Corp.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Gary Edmondo of Reno, Nevada who is a "qualified person" within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects and is independent of Integra.
