The 100% owned DeLamar Project was acquired from a wholly-owned subsidiary of Kinross Gold Corporation (“Kinross”) for C$7.5 million in cash and the issuance of Integra shares that is equal to 9.9% of all of the issued and outstanding Integra shares upon closing of the transaction (November 3, 2017).
The Delamar Project key highlights include:
Established production history: Over 100 years of prior open pit and underground mining operations, with total historic production of 1.6 million ounces of gold and 100 million ounces of silver. Typical recoveries for dominantly oxidized ores processed through the DeLamar agitated leach mill between 1990 and 1998 ranged between 85% to 95% for gold and 70% to 80% for silver. Recoveries for mixed oxide ore typically ranged between 77% to 90% for gold and 65% to 75% for silver1.
“Under the radar” opportunity with multiple untested targets: The mine has remained relatively unknown since it was put on care and maintenance in 1998 following low metal prices, and no exploration work has taken place on multiple high conviction targets in over two decades.
Robust resource potential: As a result of limited exploration work during DeLamar’s operating mine life and no exploration post closure, the potential to expand existing mineralization and outline further near-surface bulk tonnage resources is high, as well as the opportunity to employ modern techniques to explore high grade underground targets.
Excellent infrastructure and existing on-site facilities: All-season road access, grid power, a lined water treatment pond, workshop, and an office building.
The DeLamar project is subject to a retained variable net smelter return (“NSR”) royalty payable to Kinross.
NI 43-101 Technical Report and Estimated Gold – Silver Resources, DeLamar Project, Integra Resources Corp. Effective Date October 1, 2017.
Sensitivity analysis of grade and tonnage at varying pit-constrained cut-off grades on the DeLamar Project
|Cutoff||Tonnes||g Au/t||oz Au||g Ag/t||oz Ag||g AuEq/oz||Eq Au oz|
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- Mineral Resources are comprised of all model blocks with gold-equivalent values greater than or equal to 0.30 g/t that lie within an optimized pit and below the as-mined surface.
- Gold equivalent = g Au/t + (g Ag/t ÷ 85)
- Rounding may result in apparent discrepancies between tonnes, grade, and contained metal content.
- The estimate of mineral resources may be materially affected by geology, environment, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
- The effective date of the mineral resource estimate is October 1, 2017.
- Gary Edmondo, P.Geo, of Reno, Nevada, is a Qualified Person within the meaning of NI 43-101 - Standards of Disclosre for Mineral Projects. Mr. Edmondo has reviewed and verified that the scientific and technical information contained herein. Mr. Edmondo is independent of Integra Resources Corp..