PEA/RE An Email I sent to IR last Thursday:
A few of us here on Stockhouse have questioned the timetable of releases pertaining to the PEA, and RE, that will be released later this year. Several of the analysts that cover Integra have put out in their own reports conflicting schedules of those releases counter to that of what Integra had indicated in past NR's, and presentations.
My understanding was a PEA would be coming out 3Q, incorporating the C Structures, (No. 4 Plug?) and a RE 4Q, incorporating all of the S. Lamaque resource, (Sigma Resource?) with a follow-up PEA 1H 2017 (Indicated by S. de Jong at the European Gold Forum 2016) that would then include the No. 4 Plug?
If you would, could you help clarify to all of us here on Stockhouse by detailing what the timetable would be of those releases, and what would be included in both the PEA, and RE when released latter this year (Is the No 4 Plug included in this years PEA? Is the Sigma Resource included in this years RE? What of the PFS?FS?).
Response from IR's John Glanville last Friday:
Thanks for your questions and interest in Integra Gold.
Analysts are entitled to their own opinions, and a part of their mandate is to make their own assumptions, and in some cases this separates them from their peers. These opinions and assumptions are out of our control. Integra will release a new PEA this Fall and a new resource estimate is planned for release in Q4 2016. As you follow Integra closely I’m sure you’re aware that the Company has recently released three good Plug #4 drill result news releases which indicate the strong possibility for a bulk mining approach to Plug #4. This realization, combined with ongoing drilling successes at the Triangle zone, have led the Company to increase its 2016 drill program from 100km to 120 km. Integra is a very active explorer, and this high level of activity, combined with these advances, also complicates timelines and schedules as new questions arise as to what resources get incorporated in the PEA, and the resource estimate, and how and when do they get added to those documents/studies. In a sense Integra is a victim of its own success. The Company is currently looking at several options, and internal dialogue and planning is underway due to these favourable outcomes generated by successful expansion drilling. These are good problems to have - fortunately Integra is also going underground at Triangle as an integral part of any of these options, and the time-consuming aspect of this priority enables our team to look at all options. Importantly, the mill is fully permitted, was underutilized in the Jan 2015 PEA, and could accommodate three times the throughput stated in that study – so, additional resources won’t cause concerns of a bottleneck there. As always, the Company’s objective is to create significant value for its shareholders in the immediate future, and that remains the focus as we weigh the options afforded by success on the ground.
Best regards,
John
To summarize Mr. Glanville's response: With successful drilling results come more options, of which all are now being considered, and with a 15-18 month timeframe of UG work at Triangle, culminating with up to a 50,000 tonne bulk sample, those decisions of when & what will be included in any upcoming, and/or future PEA & RE will be made through that timeframe, with those options that weigh the heaviest towards creating the most value for shareholders given the highest priority.
My thoughts: With Mr. Glanville's lengthy response came no definitive answers of what resources will be included in the upcoming Fall release of the PEA (Fall begins Sept. 22 & ends Dec 20) nor in the RE that's planned to be released Q4 (Would not be surprised of an RE released early 2017 instead). Without being taken as a complete fool, it's petty clear that an updated PEA that was first commissioned last Nov. 10, 2015, and was to be release last June 2016, has been revamped, and expanded to include the No. 4 Plug (As Caesars has indicated). Which without would of made no sense at all, and with, will up the production numbers considerably. Enabling the mill to run close to name plate capacity of around 2400 tpd, we would be in excess of 170K Au ounces per/year produced. Saying nothing of what it would mean to the share price.
As far as the RE, with the doubling of the core lines, I'd be more than happy to see an RE Q! 2017 (Market gives us $100/$150 added value per/ounce) if it would contain results from the majority of drilling (2015/2016) not reported since the last RE Nov. 2015. More time = more ounces added = more value = higher share price.
Integra seems to have laid-out a 2 prong attack in developing the Lamaque Property. 1) Leave no stone unturned on the Lamaque Property in locating all the economical mineralization zones throughout. 2) Continued development above & below ground culminating to the front door of commercial production.
As mentioned in a previous post, most successful gold exploration companies are bought -out. Uncovering those gold zones before any type of a possible buy-out occurs is of course a high-priority for the Integra team. Needed ... money, expertise, and time. The money has been raised, we certainly have the expertise, and with a window of 15-18 months of underground development at Triangle, we have the time to uncover all those other areas of gold mineralization on the Lamaque Property.
That 2 prong attack IMO covers the steps/bases needed in order for shareholders to gain the most leverage in seeing one's stock appreciate ..... significantly. GLTA