News out this morning
Integra hires MDA as DeLamar PFS lead consultant
2020-12-03 08:24 ET - News Release
Mr. George Salamis reports
INTEGRA ENGAGES MINE DEVELOPMENT ASSOCIATES AS LEAD ENGINEERING FIRM TO MANAGE THE DELAMAR PROJECT 2021 PRE-FEASIBILITY STUDY AND ANNOUNCES RECENT APPOINTMENTS
Integra Resources Corp. has engaged Mine Development Associates, a division of RESPEC (MDA), as the lead consultant for the prefeasibility study at the DeLamar gold-silver project in southwest Idaho.
George Salamis, President and CEO, commented: "The upcoming DeLamar Project Pre-Feasibility Study will be based on similar parameters that led to the robust 2019 Preliminary Economic Study, demonstrating a baseline of gold and silver production to come from the heap-leaching of oxide and transitional gold and silver mineralization from the Florida Mountain and DeLamar Deposits. Last year's PEA also contemplated a measure of sulphide mineralization processing in a 2,000 tonne per day milling scenario, to compliment low-grade heap-leaching. The upcoming PFS will be examining the potential for larger milling options to process and recover more gold and silver from sulphide mineralization, potentially leading to higher overall gold and silver production rates than those outlined in the 2019 PEA. As more than 90% of the current resource at DeLamar is in the Measured and Indicated category, the Company will not be required to deplete its treasury with costly resource-definition drilling in preparation for the 2021 Pre-feasibility Study. The 2019 PEA envisaged an average annual production of 124,000 ozs per year gold equivalent, from two open pits on the project. The 2019 PEA also produced an After-tax NPV (5%) of US$358 million and 43% After-Tax IRR at US$1350/oz Au and US$16.90 /oz Ag with a AISC of US$742/oz on an AuEq co-product basis." Mr. Salamis added, "As of our last reporting period, the Company's treasury totalled C$ 42 million and thus we are fully financed to complete this study in 2021. As the Company works to establish formal sourcing and procurement best practices, the equipment and consumables for the PFS will be sourced using an "Idaho-First" methodology, meaning procurement options will be prioritized on sourcing from within the State of Idaho, and specifically from within Owyhee County where possible. Hiring personnel for the Project has been and will continue to be locally prioritized. We look forward to the formal start of the PFS as it represents an exciting next step in the evolution and de-risking of the DeLamar Project."
As lead consultant for the PFS, MDA will be responsible for resource and reserve calculations, geology, open pit mine design, site infrastructure design including waste rock piles and haul roads, mine scheduling, capital and operating cost estimation, and execution planning. Tom Dyer of MDA, the lead project manager for the PFS, will be coordinating contractor engagement with a strong focus on local procurement, service providers, and employment. Working in coordination with MDA, Integra has selected M3 Engineering and Technology for process facilities design, access and power infrastructure design. Welsh Hagen have been retained for the design of the tailing management facility and the heap leach pad design, and McClelland Laboratories will continue to handle all metallurgical test work. As part of Integra's commitment to responsible modern mining that prioritizes environmental stewardship, Warm Springs Consulting of Boise, Idaho, has been retained to undertake trade-off studies that evaluate the integration of several sustainable and regenerative systems into the PFS.
Over the course of 2020, several pre-feasibility-level and environmental baseline studies have been underway at the DeLamar Project, including geomechanical drilling and testwork for pit slope design and stability. Tetra Tech, out of its local office in Boise, Idaho, is the lead consultant for surface water sampling and analysis as well as hydrogeological studies in support of groundwater well drilling oversight and installation that was completed in Q4. Environment & Health experts from Ramboll's Boise, Idaho, office have been overseeing the collection of meteorological data at the DeLamar site since construction of the meteorological tower was completed in early August 2020. SRK Consulting (US), Inc., out of Reno, NV, has been selected to initiate the baseline geochemical studies in Q4 of 2020 with Q1 of 2021 being targeted for sample selection and testing.
The PFS is projected to take approximately 10 months to complete, with results currently expected in the 4th quarter of 2021.
Recent Appointments
The Company is pleased to announce the appointment of Josh Serfass to Executive Vice President, Corporate Development and Investors Relations. Mr. Serfass is responsible for leading the Company's marketing and investor relations activities. The Company also announces the appointment of Mark Stockton to the position of Vice President, Corporate Affairs and Sustainability. Mr. Stockton will be responsible for leading the development and implementation of Integra's corporate affairs and ESG (Environment Social Governance) strategy and programs.
The Company has also significantly expanded its Boise team in 2020 with the important additions of Robert Mullener as Permitting Manager, Michael Spicher as Engineering Manager, Christopher Longton as Senior Exploration Manager, and Jared Blake as Site Controller. These recent hires bring significant Western U.S. mining experience, and will play critical roles as the DeLamar Project advances towards PFS.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Tim Arnold (PE, SME), Integra's Chief Operating Officer, of Reno, Nevada, and is a "Qualified Person" ("QP") as defined in National Instrument 43- 101 {‒ –} Standards of Disclosure for Mineral Projects.
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