Integra Gold (
TSXV:ICG, Forum) announced Wednesday that they had – yet again –
discovered more gold at the Lamaque South property, continuing a good run by the Quebec-based outfit.
“Results from the ongoing exploration program at Triangle continue to show substantial resource growth potential with the majority of assays reported today coming from holes drilled outside of the current resource envelope,” said President and CEO, Steve De Jong in a news release.
“We can confirm today that we have intersected yet another significant C-type structure hosting high gold grades, below a depth of 1,000 m vertical. In our view, this further enhances the notion that drilling has yet to identify the lateral and depth limits of the primary C-type structures which make up the bulk of the gold ounces in the Triangle deposit,” he added.
Integra is going to keep their seven drills rolling through 2016 and add three more during the winter months, as they expect to notch around 90,000m more of holes, similar to their 2015 program totals.
REACTION:
Share prices were largely unchanged, as Integra’s gold discovery habits are well entrenched in the existing share price, which has held up in contrast to just about every other miner through 2015.
Stock was up 1.5% on solid volume. The market cap for the company now sits at $115.5 million.
GMP research has put an
$0.80 buy on the company, which currently sits at $0.32.
OUR TAKE:
A few years back, a trio of fresh-faced young mining guys walked into the offices of Stockhouse and revealed to me a plan to turn around a twice-fumbled gold property with a bad rep. And they didn’t have a lot of money. And people in the industry thought they were idiots.
The execs, from Integra Gold, talked about how the old timers laughed at their move to take over the Lamaque South claim in Val d’Or Quebec, and that every time they walked into a room, the establishment called them ‘kids’ and treated them like clueless rubes.
“G’way son, ya bother me.”
Today,
their news release timeline stands in contrast to just about every other gold company out there, resplendent as it is in new discoveries, resource estimate growth, and a stock price seemingly resistant to the downward track every establishment gold company exec blames on ‘the market’.
Integra’s plan was not to slam drills in every direction and claim a massive dig was imminent, rather they focused in on where they knew the gold was and planned to go in small and tight, expanding only as was necessary and as they could afford to, taking advantage of existing infrastructure while purchasing a nearby mill to move the project forward quickly and inexpensively.
When they sat with us, repping a $0.16 stock with no reputation to speak of, they asked our opinion on changing the Lamaque name, shackled as it was by the failures of past owners. I said no, telling them that once they’d rehabbed the site, they could point to that turnaround as evidence of their legitimacy going forward. Having doubled their stock in a crappy market, that’s exactly what they can do.
At this point, an Integra discovery is almost boring. But it’s probably time to confirm for those naysayers back in the day that their plans have been proven as valid and their results are undisputable. The new kids are running the block. Other companies looking to become nine-figure market caps should take note of how this one was made.
Lamaque South isn’t a problem child any more, and that’s down to new thinking, fiscal restraint, and smart management.
If you lost money on Integra in 2015, it’s because you sold some. Quit doing that.
--Chris Parry
https://www.twitter.com/chrisparry
FULL DISCLOSURE: Integra Gold is a Stockhouse Publishing marketing client. They have not paid for this article, which is the opinion of the author. If you disagree with that opinion, let’s take it outside.