Integra Resources (ITR.V) has published an interim update on its metallurgical test work it has been conducting at its DeLamar and Florida Mountain zone. In the update, which was published a day before the European Gold Forum in Zürich started, Integra highlighted the results of the bottle roll tests of six oxide samples taken at Florida Mountain and an interim update on the column leach test results.
In the bottle roll test, 83.3% of the gold and 39.7% of the silver was recovered. Both recovery rates are higher than the historical recoveries using the leaching method and while the gold recovery rate is just a little bit higher, we are pleasantly surprised by the 39.7% recovery rate of the silver. Interestingly, Integra Resources refers to an average historical recovery rate of 81% for gold and 40% for silver, so it’s nice to see the new metallurgical test program pretty much confirms the expected
So depending on the historical recovery rates, Integra Resources is either meeting or strongly exceeding the historical results.
Additional test work is obviously ongoing and we are looking forward to see the final recovery rates of the column leach tests. Additionally, Integra Resources also plans to have a look at the recoveries of the transitional mineralization, but we don’t expect the company to focus too much on the transitional zones at this point in time. We remain convinced a dual-prong approach for DeLamar and Florida Mountain (start with a low-capex heap leach mine to generate the cash to fund the construction of a mill) will be the most optimal choice going forward, and we would expect the transitional zones to be milled rather than leached, just like the ‘unoxidized’ mineralization.
The updated met work allows Integra Resources to tick another box, and the next main catalyst will be an updated resource estimate and the publication of a Preliminary Economic Assessment. We don’t expect too much from the updated resource as we don’t think it’s likely the massive step-outs at Sullivan Gulch will have sufficient drill density to be included in the resource, but we remain firmly convinced the subsequent resource update (in 2020?) will show in excess of 5 million gold-equivalent ounces.
The current resource contains 3.54 million ounces gold-equivalent, and it will be interesting to see how much of those ounces effectively end up in a mine plan.