Integra Resources (ITR.V) has now confirmed it has completed the acquisition of the Empire claim group which includes the past-producing Florida Mountain mine. We already briefly discussed the Florida Mountain project in our Q&A report with CEO George Salamis, but let’s recap why this is an interesting acquisition.
First of all, this past-producing mine is located less than 10 kilometers away from Integra’s DeLamar gold project. Whilst DeLamar is intriguing enough to be considered on a standalone basis, we firmly believe one should not turn down an opportunity to become a district play by acquiring similar projects within walking and trucking distance, especially if the price tag for the Empire claim group is just US$1.6M.
The history of both projects is pretty similar. Both were past-producing mines and have high-grade gold potential. The underground mine at Florida Mountain produced approximately 133,000 ounces of gold and in excess of 15 million ounces of silver approximately 120 years ago, whilst more recently an additional 125,000 ounces gold was recovered from the open pit. But just like at DeLamar, the historical Florida Mountain owners didn’t care too much about drill-testing the deposit at depth, and only very few holes were drilled below 150 meters (which actually still is an ‘open pit depth’…).
Needless to say this is a great bolt-on acquisition for Integra Resources which can now focus on finding the high grade gold zones on both deposits and perhaps start building towards increasing the resources on both projects. Keep in mind an external consultant is currently working on a resource model for the Florida Mountain mine, and this should be released in the next few months.