Integra Gold (ICG.V) has just released an updated resource estimate for the Lamaque project in Val D’Or, Québec. Using a cutoff grade of 5 g/t, the total resources now stand at almost 900,000 ounces in the indicated category with an additional 1.04 million ounces in the inferred category, at an average grade of in excess of 8.8 g/t.
Even if you’d use a lower cutoff grade of 3 g/t, the average grade remains pretty decent at approximately 6.8 g/t, for a total of 2.53 million ounces of which the majority is (obviously) located at the Triangle deposit, where a total of 1.75 million ounces has now been outlined (+242,000 ounces). At the No4 Plug, the total resource now contains almost 310,000 ounces. That’s indeed just marginally higher (72,500 ounces), but that’s entirely caused by Integra Gold being more cautious about how it should interpret its assay results. In the previous resource estimate in November of last year, Integra’s consultant included several holes which have now been excluded due to inaccurate downhole surveys, caused by the magnetite.
We received a few enquiries from readers who were disappointed with this resource update, but we think it’s important to realize this was just an ‘amuse-gueule’ which incorporated just over 20,000 meters of additional drilling. That really isn’t much, and Integra Gold is aiming to release another resource update in February/March of next year which will include an additional 105,000 meters of drilling (for a total of 129,000 meters of drilling on top of the previous resource estimate) and that’s really something you’ll want to look forward to (as for instance the bulk tonnage target at the No4 Plug hasn’t been included in this estimate at all).
So why did Integra Gold bother to release this ‘interim’ resource update? There’s a straightforward and valid reason for doing so. Integra plans to release an updated Preliminary Economic Assessment in January 2017, and this ‘interim resource’ will be the basis for the new mine plan which will include more than three times as much gold and should have a tremendous impact on the Net Present Value of the project.
Another catalyst for Q1 2017 will be the assay results from the Lamaque Deep exploration program. The pilot hole has now reached the target depth of 2,200 meters, and a first wedge will start shortly.
Everything is still going according to plan at Integra Gold, and we’re looking forward to see the updated PEA, as well as the Lamaque Deep drill results and yet another resource update in Q1 2017.