Integra Resources ITR 2

Integra Resources (CSE:ITR) has appointed a consortium of brokers, led by GMP Securities, to raise a minimum of C$25M by issuing 29.5M subscription receipts, priced at C$0.85. The proceeds will be used to fund the cash portion of the acquisition of the DeLamar gold-silver project in Idaho and to fund an initial exploration program on the property. The subscription receipts will be converted into common stock of Integra Resources once all conditions will have been met which is expected to happen before the end of this year.

Integra Resources ITR 1

In a separate update, Integra Resources has also released an updated resource estimate for the DeLamar property in Idaho, where it outlined an in-pit resource containing 1.6 million ounces of gold and almost 92 million ounces of silver at an average grade of 0.41 g/t gold and 24.34 g/t silver based on 143,660 meter of drilling in more than 1,500 holes. Considering the historic recovery rates were 95% for the gold and 80% for silver, the recoverable value per tonne of rock could be estimated at $27.23 (using $1300 gold and $17.5 silver). If you prefer to use a higher cutoff-grade of 0.75 g/t AuEq (versus 0.3 g/t), the project would still contain 735,000 ounces of gold and almost 53 million ounces of silver at an average grade of 0.69 g/t gold and 48.7 g/t silver for a recoverable rock value of $49.32/t.

Integra Resources ITR 3

Idaho could generally be seen as a mining-friendly region, although we are unaware of any open pit heap leach projects in the state. Integra Resources will have to repeat its ‘recipe for success’ from Val D’Or in Idaho by making sure all local stakeholders are kept up to date on the progress. It’s definitely possible as Liberty Gold’s (LGD.TO) Black Pine gold mine in Idaho also was a heap leach mine.

It sure looks to be an exciting venture for the team which sold Integra Gold to Eldorado Gold (ELD.TO, EGO) earlier this year. As Integra Gold (ICG.V) was a huge winner for early readers (the share price moved from C$0.18 when we published our first site visit report to a high of C$1.16 (+544%) before losing momentum as Eldorado’s share price eroded.

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The author has a long position in Integra Resources. Please read the disclaimer

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