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DeLamar PEA yields 'exceptional' economics for Integra

Integra Resources has outlined annual production of 103,000 ounces of gold and 1.7Moz of silver for 124,000oz/y gold-equivalent in a preliminary economic assessment of its DeLamar gold-silver project in Idaho, USA.
DeLamar PEA yields 'exceptional' economics for Integra DeLamar PEA yields 'exceptional' economics for Integra DeLamar PEA yields 'exceptional' economics for Integra DeLamar PEA yields 'exceptional' economics for Integra DeLamar PEA yields 'exceptional' economics for Integra

DeLamar in Idaho, USA

Staff reporter

Integra said the project would yield an after-tax net present value of C$472 million at a 5% discount rate and a 43% after-tax internal rate of return at a $1,350/oz gold price and S$16.90/oz silver price following an initial capital expenditure of C$213 million (US$161 million).

"The economics presented for DeLamar are truly exceptional," said president and CEO George Salamis.

"Presenting a scenario for generating approximately C$697 million in cumulative after-tax cash flow, Integra's maiden DeLamar project PEA highlights a strong premise for an extraordinary, high-margin and long-life mining operation in a great tier one, infrastructure-rich mining jurisdiction like southwestern Idaho."

The study outlined all-in sustaining cash costs (AISC) of US$619/oz net of silver by-product or US$742/oz on a gold-equivalent co-product basis over its 10-year mine life. Mobile equipment financing could reduce the pre-production capex by up to C$34.8 million, assuming 20% cash down.

The PEA focused on resources amenable to heap leaching with a proposed 27,000 tonnes per day heap leach facility complemented by a 2,000 tonnes per day milling facility, sourcing oxide and transitional mineralisation from both the Florida Mountain and DeLamar deposits. A 2,000tpd mill would commence in year three to process unoxidised mineralisation from Florida Mountain. Production in years two to six would average 126,000oz gold and 1.8Moz silver for 148,000oz gold-equivalent.

The openpit mining operations would have a strip ratio of 1.09 and deliver a diluted head grade of 0.39 grams per tonne gold and 15.21g/t silver. Gold recovery is estimated to be 83% in heap-leaching and 90% in milling. Silver recoveries would be 34% in heap-leaching and 80% in milling.

Some 90% of DeLamar's estimated 2019 mineral resource estimate is in the measured and indicated categories backed by more than 2,500 drill holes. With a large portion of the unoxidised resource excluded from the PEA, and with other areas yet to drill test, Integra believes there is upside potential for oxide and transitional gold-silver mineralisation along the margins of the current DeLamar and Florida Mountain resources.

The DeLamar and Florida Mountain deposits host measured and indicated resources of 172.4 million tonnes grading 0.43g/t gold and 21g/t silver containing 2.4Moz gold and 116.5Moz silver. The company is undertaking resource expansion drilling to identify an expanded resource to support future studies including a pre-feasibility study which is due to commence in the coming months and be completed in the second semester of 2021.

Shares in Integra Resources (TSXV:ITR) are trading at C$1.30, valuing the company at $98 million.