Timeline & Eldorado Gold INTEGRA GOLD - PROBABLE TIMELINE:
Ongoing 45,000 Meter 2015 Fall & Winter drill program.
Triangle Resource Update which will include the geological model required to finalize its plan for the underground exploration program at Triangle - November 2015.
Triangle Zone Surface Work completed by year end 2015, removes 6 Months from the underground pre-production stage, 18 months to 12 months.
Commence underground exploration program, (which can include a bulk sample of up to 5,000 tonnes of mineralized material), shortly after preparatory surface work, and geological underground exploration model is complete - December 2015/January 2016.
100,000 Meter drill program - 2016.
Preliminary Economic Assessment ("PEA"), expected in the first-half of 2016 will incorporate Triangle's steeply dipping "C" structures.
Initiate a feasibility study after PEA submission, completed Q4 2016
Conversion of exploration claims to mining leases, (feasibility study documentation required) Q4 2016.
Production 2017
ELDORADO GOLD'S POSSIBLE FUTURE INVOLVEMENT:
From Gwen Preston "Eldorado Gold, a successful gold miner with a track record of taking over the companies it invests in. In late 2013 Eldorado took over Glory Resources after acquiring a 19.9% stake. In 2009 Eldorado acquired Sino Gold, six months after buying 19.8% of Sino in a private placement.
Eldorado has also taken over two companies without investing ahead of time: it bought European Goldfields in late 2011 and Brazauro Resources in mid-2010. The point is (1) Eldorado grows by acquisition and (2) when ELD buys a chunk of a company, there’s a good chance the miner is pretty darn interested in owning the rest."
With that being said, for EGO to take over Integra 100%, it would have to come with management's & shareholder's approval, EGO simply does not have the share count to go it alone, at least at this time, (EGO will most certainly Increase their share count in Integra, so as to the very least, allow them a seat on the board).
Also, when EGO entered into discussion's with Integra last Summer, what was discussed behind closed doors was of course not only of what would their present involvement be with Integra, but even more importantly, what would their future involvement be with Integra.
What did Integra's management invision on how they wanted to develop this project prior to committing to the Eldorado Gold's investment? Alone, 50/50, or were they going to allow Integra to be taken-out? Would you not think that decision would have had to be made by management prior to committing to the Eldorado investment.
I would be totally surprised if Integra's management team, would give their blessings in letting the Lamaque Project be taken out as a whole at this juncture. The share price upside is just to great for that to make sense, it would have to be an unbelievable offer for shareholders to except.
Going it alone, and finding financing for the "Lamaque South", with the pre-production CAPEX below C$60 Million would not be all that difficult. The only setback, if you want to call it that, would be that the "Lamaque Deeps" would have to be put on the shelf with it's $100 M+ costs, while Integra was ramping up production from the south zones.
BUT, Eldorado Gold would have never invested in Integra Gold if they didn't feel they could own at least half of the pie.
That's why I can envision where Eldorado & Integra could enter into some type of a 50/50 deal. Splitting the ownership of Lamaque South, along with the Sigma Mill.
This very well may of already been discussed behind those closed doors, just waiting for the Triangle numbers to come in.
One hypothetical scenario would be for Eldorado to pay Integra $250M for their 50% ownership in Lamaque South & the Sigma Mill.
$75 Million up-front, $50 Million after FS.
$70 Million to cover pre-production costs, and tailings expansion.
$40 Million for further underground exploration.
$15 Million for FS Study.
Under this scenario, Integra would own 50% of Lamaque South, 50% of Sigma Mill, 100% of Lamaque North, $125 Million cash, and No Debt.
This would provide ample development funding for the "Deeps", along with whatever else may come out of the "Gold Rush Challenge".
All of which time will shortly tell, and is of my own opinion. GLTA