Integra Gold Commences Drilling at Triangle Zone, Provides Project Update and Outlines Plan for 2013
Press Release Highlights:- 4,000 meter drill program has commenced at Triangle Zone, which contains Company's highest grade resource
- Results from 11 holes (5,000 m) pending from recent drilling at exploration target No. 5 Plug
- Key steps being taken to advance project and bring Company closer to underground exploration including detailed structural analysis, preliminary engineering studies, and environmental baseline study
- Metallurgical testing and study of local milling facilities underway
- Updated resource estimate (anticipated completion Q2 2013) to include additional 35,000 meters of new drilling
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/28/13 -- Integra Gold Corp. (TSX VENTURE: ICG) ("Integra" or the "Company") is pleased to announce it has commenced a 4,000 meter ("m") infill drill program on the Triangle Zone at its Lamaque Gold Project located in Val d'Or, Quebec. The Triangle Zone is 400 m south of No. 4 Plug, which together make what the Company refers to as the "South Cluster". The Triangle Zone and No. 4 Plug comprise the two highest grade zones on the Lamaque Gold Project and contain over 75% of the Lamaque Project's global resources.
This 4,000 m program is aimed at increasing the level of confidence in the Triangle Zone resource estimate (press release Nov 16, 2011) as well as testing between known mineralized zones. Due to field conditions, certain portions of the Triangle Zone are significantly easier to drill during the winter season. Drill results will not be received in time to be included in the upcoming resource estimate and therefore will be included in a subsequent resource update.
"We are aggressively advancing the project and have provided this project update to give investors a clear picture of the direction we are going, while at the same time outlining expectations and our corporate vision for the next 12 months. Integra is well financed, with over $5 million in working capital, has numerous near term catalysts, and continues to be very active both on exploration and engineering fronts," commented Company President and CEO, Stephen de Jong. "To properly define this type of deposit, underground exploration is crucial, and we are taking all necessary steps to accelerate our timeline in that regard. Resource estimation, metallurgical testing, permitting, and environmental studies are all important elements in the process and we remain committed to ensuring we do it right the first time. We will continue to build our team to ensure we have the expertise necessary to continue to execute on our corporate strategy, as well as a communications and investor relations team whose first priority will be to keep our investors up to date as we progress."
Project Update
No. 5 Plug Drilling
The Company has completed 5,000 m of a 10,000 m program initiated in October 2012; with results pending for the first 11 holes. At the start of 2013 the diamond drill rig was moved to the Triangle Zone, approximately 1.4 km south, to take advantage of winter conditions for drilling that zone. Upon completion of this program, anticipated in late March, the diamond drill rig is set to complete a short infill drill program at Plug No. 4 and then return to complete the 10,000 m program at the No. 5 Plug.
The No. 5 Plug is an exploration target close to the northern project boundary and is situated adjacent to the Parallel and Forestel Zone, collectively referred to as the "North Cluster". All three zones are immediately adjacent to over 9 million ounces of past production from the Sigma and Lamaque Mines. The No. 4 Plug, where over 20,500 meters of drilling was completed in 2012, is located approximately 1,000 m to the south of the No. 5 Plug.
Resource Estimation
The Company continues modelling, interpretation and estimation work that will include an additional 35,000 m of drill core from 2011 and 2012. The bulk of the modelling and estimation work remaining is for the No. 4 Plug, which accounts for a significant portion of the 35,000 m being compiled. The resource estimate at the No. 4 Plug has not been updated since 1988, when it was calculated as a mining reserve by Teck. The Company has classified the No. 4 Plug and the Triangle Zone as the South Cluster, which contains 75% of the Lamaque Project's global resources and which are in such close proximity to each other that they could likely share underground infrastructure. The upcoming resource represents the first time the Company has compiled all its zones with the same high standard modelling parameters and estimation methods. This resource estimate is a significant milestone towards the completion of a preliminary economic assessment (PEA).
For the resource estimate, the Company has retained Geopointcom ("Geopoint"), a mining service company which provides specialized geostatistic services and National Instrument 43-101 compliant resource estimation. Geopoint has substantial experience estimating the specific type of deposits found in the Val d'Or area with a client list that includes Agnico Eagle Mines, Bema Gold, Aurizon Mines, Wesdome Mines, Virginia Mines and Richmont Mines.
The Company anticipates the resource estimate will be completed in Q2 2013.
Structural Interpretation
SRK Consulting ("SRK") has been retained by the Company to conduct a detailed structural analysis of the Triangle Zone and the No. 4 Plug. Although it is not anticipated it will be completed in time to be incorporated in the pending resource estimate, the study will provide valuable information to help guide future drilling, interpretation and estimation work. Preliminary geotechnical work is also set to start by mid-February, initially on the Triangle zone with possible work on Plug No. 4 in April, depending on drill sequencing.
Engineering and Environmental Studies
The Company is currently reviewing a number of proposals related to environmental, permitting and engineering studies required to initiate underground exploration as well as eventual production. Further information on these studies, including the commencement of an environmental baseline study, will be disclosed in the near future.
Mill Study
The Company is currently conducting an analysis of all milling facilities in the Val d'Or area to assess their custom milling potential. Due to the high grade of Integra's deposit, custom milling is an attractive option as it could significantly reduce the Company's initial capital expenditure commitment and shortens the timeline to production.
Options Correction
The Company announces a correction to the term of stock options which expire on January 22, 2018. The expiry date was incorrectly stated as January 22, 2017, in a press release dated January 22, 2013. The Company announces the issuance of 20,000 stock options to an employee of the Company at a price of $0.24, which will expire on January 28, 2018.
Qualified Person
The Lamaque exploration project is under the direct supervision of Herve Thiboutot, P.Eng. and Vice-President of the company, a Qualified Person ("QP") as defined by National Instrument 43-101, Alain-Jean Beauregard, P.Geo., and Daniel Gaudreault, P.Eng., Geo. of Geologica Inc., both independent QP as defined by National Instrument 43-101. The Company's QP has reviewed the technical content of this release.
Project and Company Profile
Integra's Lamaque Gold Project is located in the heart of the Val d'Or gold camp in the Province of Quebec, Canada, approximately 550 km northwest of Montreal. Quebec is rated one of the best mining jurisdictions in the world. Infrastructure, human resources and mining expertise are readily available in the area.
The Company's focus is to evaluate and enhance gold bearing zones demonstrating the potential to increase existing resources and develop them into economic deposits. The Lamaque project currently has an inferred and indicated gold resource of 2,335,530 metric tonnes averaging 6.91 g/t Au for 518,643 ounces ("oz.") Au and 800,799 metric tonnes averaging 6.33 g/t Au for 162,962 oz. Au, respectively.
ON BEHALF OF THE BOARD OF DIRECTORS
Stephen de Jong, CEO & President
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Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release constitute forward-looking statements. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, including that the Company is able to obtain any government or other regulatory approvals required to complete the private placement and Company's planned exploration activities, that the Company is able to complete the private placement, that the Company is able to procure personnel, equipment and supplies required for its exploration activities in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, that the private placement will not be completed, that actual results of the Company's exploration activities will be different than those expected by management and that the Company will be unable to obtain or will experience delays in obtaining any required government approvals or be unable to procure required equipment and supplies in sufficient quantities and on a timely basis. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Contacts:
Integra Gold Corp.
Ariel Cobangbang
Corporate Inquiries
ariel.c@integragold.com
www.integragold.com