RE:PearTree Securities comments on Integra Gold Corporationstockmaster,
Thanks for posting a nice summary from PearTree. In the last bit, there is some info relevant to the Ramp and the underground exploration:
"Recall in late 2015, Integra completed for $5.6M the installation of all surface infrastructure (road, power, water, sewage, gas and buildings), as well as a box cut and portal face to a depth of 20m, required for initiating an underground exploration program at Triangle. With all permits and bonds needed now in place, the underground exploration program ($24M) aims to complete close-spaced drilling from within the upper portions of the deposit (C1 and C2 Zones) and a bulk sample of up to 50,000 tonnes.
Read more at https://www.stockhouse.com/companies/bullboard/v.icg/integra-gold-corp#jBPHIHBXjPCXHHfE.99"
According to this analysis, the cost of the ramp development down to 20m for poking around C1 and C2 zones is included in the UG exploration budget of $24M (money has been set aside). It also provides a platform for bulk sampling (top/shallow portion of C1 and C2). Hence, the $62M initial CapEx for Triangle and #4 Plug would be a separate budget. If some 50,000 tonnes of samples are planned to be extracted then this will need to be processed somewhere, if Sigma Mill is not ready. One potential processing facility would be AEM Goldex just up the road.
Math: 50,000 tonne x 5gpt (could be a conservative assumption)/31g/oz = 8064 ozAu x $1000/oz = $8M (US or Cdn, take your pick since this is simple math). So, the bulk sample would net ICG several $Ms. And a good recovery of Au would demonstrate the potential for going full speed on making a mine out of Triangle (de-risking).
It looks like ICG would need to do the UG exploration for #4 Plug a bit later, when the Ramp is down to 150-200m level (Reference: hole P4-12-06, bonanza grade at 170m, 19 July 2012 NR).
Of course, ICG can fasttrack the development of the Ramp to the 200m level toward #4 Plug, since the UG exploration would be an excellent vehicle to check out the Gap as well.
GH