Integra Gold (ICG.V) has updated the resource estimate on its 100% owned Lamaque gold project in Val D’Or, Québec.

The updated estimate reveals an indicated resource totaling 756,000 ounces at an impressive average grade of 7.1g/t. The inferred resource contains an additional 294,000 ounces of gold at 10.1g/t. This means that Integra Gold has now in excess of the magic threshold of 1 million ounces on the Lamaque property, based on a cutoff grade of 3g/t. Even if the cutoff grade would be raised to 5g/t, the project would still contain 830,000 ounces of gold at an average grade of almost 11g/t, which once again underpins how robust this project is. On top of that, almost 30,000 meters of additional drilling on the property has not been included in this resource estimate.

The next step for Integra Gold will be to release the results of a Preliminary Economic Assessment which is expected next month. We expect to see a throughput rate of 1,500 tonnes per day, which should result in a 7 year mine life based on the current indicated resources. This might seem to be quite short, but it wouldn’t make sense to drill the entire property out at this stage. The focus will be on bringing the project into production, where after more exploration will be conducted funded by the operational cash flow.

We will release our site visit report early next week.

> Click here to read the press release

Disclosure: The author holds a long position in Integra Gold. Integra Gold is not a sponsor of the website, but we were compensated by a third party to initiate coverage. Please see our disclaimer for current positions.

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