VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 11, 2014) - Integra Gold Corp (TSX VENTURE:ICG) ("Integra" or the "Company") is pleased to report the results of a NI 43-101 compliant Preliminary Economic Assessment (the "PEA") carried out on the Company's flagship Lamaque Gold Project (the "Lamaque Project") in Val-d'Or, Québec, Canada. The PEA was prepared by InnovExplo Inc. ("InnovExplo") with technical contributions from AMEC, Golder Associates, Geologica Groupe-Conseil Inc., Geopointcom Inc. and WSP Engineering. The technical report with respect to the PEA will be filed on the Company's website and SEDAR within 45 days.
For clarification, Integra's Lamaque Project is separate from the adjacent Sigma and Lamaque mines, which have collectively produced over nine million ounces of gold to a vertical depth of 2,000 m.
The Company has provided a base case scenario (the "Base Case") using a USD$1,275 per ounce gold price and a 1.05 CAD to USD exchange rate which is equivalent to CAD$1,339 per Au ounce (March 7, 2014 closing spot price was CAD$1,485 per ounce and exchange rate was 1.11). All currency figures are in Canadian Dollars (CAD$) unless otherwise stated. The Base Case economic evaluation has a pre-tax internal rate of return ("IRR") of 51%, payback of capital in 1.5 years and a net present value ("NPV") of $146.0 million at a discount rate of 5%.
The PEA is preliminary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized.
"This PEA represents a significant milestone for Integra and we are very encouraged by both the outcome and our team's continued ability to deliver within the timeframe we committed to. Our decision to advance the project to the PEA level was guided by the success obtained in the past by both Teck and Placer Dome, at the neighboring Lamaque and Sigma Mines a few hundred meters from our property boundary. These mines produced over 9 million ounces of gold over respective 50 and 60 year mine lives, yet seldom had more than 3 years in reserves, and often less than one. The PEA outlines a scenario showing potentially strong financial returns and based on the success we've had drilling since the resource estimate was done we are confident the mine life has potential to grow," commented Company President and CEO, Stephen de Jong. "30,000 meters of drilling has been undertaken since the resource estimate was completed in 2013, and we currently have 4 exploration drill rigs active on the Triangle Zone with results from over 10,000 meters pending. The resource used for the Triangle Zone in the PEA was limited to a depth of 620 meters, although drilling has now intersected high-grade mineralization within the same host rock to a depth of 1,000 meters, as well as 200 meters south of the resource limit. I want to thank our team and our consultants for the work they did to complete this PEA, they continue to prove they are the Company's most valuable asset."