RE:Fridays 30 sec smack down ?Current Bid - 0.55 Current Bid Size - 16,000 ----- Seems there news in the wings!
Latest from "TheEquedia Letter" ---- A Shining Opportunity for Canada
With a weaker Canadian dollar and lower costs, Canadian gold producers and advanced-stage gold plays are heating up.
In September, I wrote:
"The combination of a weak currency and stable jurisdiction makes Canada one of the best places in the world to produce.
It's no wonder why big producers have been, and continue to be, aggressively pursuing assets in Canada."
In that report, I talked about one of my favourite advanced-stage stories, and a Company that I believe is ripe for a takeover:
Integra Gold Corp
(TSX-V: ICG) (OTCQX: ICGQF)
To summarize, Integra is:
A near-term high-grade production opportunity with excellent infrastructure
A major exploration upside with critical mass
A potential takeover target in one of the best jurisdictions in the world
One of the most aggressive exploration juniors in the world
A company very much undervalued when compared to its peers
Integra's South Lamaque project offers one of the highest IRRs of any development-stage gold project, one of the lowest pre-production capital requirements, and a low all-in sustaining cost.
In other words, it's cheap to build and cheap to produce.
Take a look:
Base case pre-tax IRR of 77% and NPV (5% discount rate) of C$184.3M (after-tax IRR of 59% and NPV of C$113.5M)
Pre-production capital requirements of only C$61.9M
Pre-production period of only 18 months
Life of mine ("LOM") cash cost of C$551 per ounce and all-in sustaining costs of C$731 per ounce
Since that report, Integra has only improved its asset which ultimately improves many of the numbers above which were the result of a PEA conducted over a year ago.
And with continued positive corporate developments, new analysts have jumped on board, all with target prices much higher than where Integra trades today:
integra gold analyst coverage
Source: Integra Gold Investor Presentation March 2016
I also mentioned:
"...I would be shocked if Eldorado*, or another major, doesn't make a move within the next year. With an updated resource coming out, another 100,000 meters of drilling expected, and the potential at the Lamaque Deep through the Gold Rush challenge, anyone looking at acquiring Integra better move fast - because the price is likely going higher."
*Eldorado currently owns 15% of Integra.
And it has.
In my initial report, shares of Integra were trading at $0.34. Since then, shares have surged and are now trading at a new 52-week high, reaching $0.55 before settling at $0.51 this past Friday.
But even with this surge, things may still just be ramping up.
Earlier this week, Integra announced drill results from its Triangle Deposit. The results clearly show that their project is getting bigger and better than ever.
As Stephen de Jong, Integra's CEO, put it:
"The bulk of the Triangle mineralization is hosted within a series of sub-parallel, steeply-dipping, stacked C type structures which demonstrate a high degree of periodicity and continuity. We are encouraged to see today's results showing strong continuity of gold mineralization within the upper structures where we plan on initiating underground exploration later this year. We are also encouraged to see initial results from the deeper C5 structure which indicate ample room for growth of the Triangle gold resource at depth."
Not only are Integra's drill programs going well and on-going, but it still has over 52,500 metres of diamond drilling results on backlog just waiting to be released. It is already the most active junior I know and with so much drilling still underway, market-moving news flow should be around every corner.
But that's not all.
In just a few months, Integra is expected to release an updated Preliminary Economic Assessment (PEA), which includes a much bigger resource than the one it released more than a year ago.
Given that there have been two new resource calculations since the last PEA, the discovery of the much more economic sheer zones, and tons of new drilling, I am expecting the new PEA will make the old one look like child's play.
And the old one was darn good.
With a backlog of over 52,500 m of diamond drilling results, $33 million in the bank, a new updated PEA on the way, and a growing interest in advanced-stage economic Canadian gold assets, the bullseye on Integra just got bigger.