Integra cuts high-grade at Lamaque

VANCOUVER — It has been a promising six months for Vancouver-based explorer Integra Gold (ICG-V), as the company completes a 30,000-metre diamond drill program at its wholly-owned Lamaque gold project — located in the Val-d’Or gold camp in northwestern Québec — and continues to augment its management team with industry veterans.

Lamaque is located in Québec’s “valley of gold”, which hosts a number of large-scale gold operations. Intergra’s four mining concessions incorporate a portion of Teck Resources’ (TCK.B-T, TCK-N) historic Lamaque gold mine, which produced 4.6 million oz. gold from 1935 through 1985, and sits 6 km northeast from Agnico-Eagle Mines’ (AEM-T, AEM-N) Goldex gold mine.

Integra released a resource estimate in 2011 that totalled 800,800 indicated tonnes grading 6.33 grams gold per tonne for 163,000 oz. contained gold, as well as 2.3 million inferred tonnes grading 6.91 grams gold per tonne for 518,643 oz. contained gold.

It should be noted, however; that Integra is undergoing a technical review by the B.C. Securities Commission, specifically targeting the resource estimate at the company’s Triangle zone. Integra stated on Aug. 15 that none of the cited reporting deficiencies are material to the resource, and anticipates an updated release in first quarter 2013. Integra anticipates no recalculation or audit of its resource statements.

The company is focused on four main targets in 2012 — including the No.4 Plug, Triangle zone, No. 6 Vein, and Parallel zone — in a bid to increase its resource base and establish promising secondary targets.

Integra’s primary target has been the high-grade No.4 Plug, where the company is completing 20,000 metres of diamond drilling this year. The No.4 Plug contains roughly 50% of Integra’s current gold resource, hosting 1 million inferred tonnes averaging 9.43 grams gold for 316,000 contained oz. The company has cited geological similarities between the No.4 Plug and the adjacent Main Plug, which historically produced 3.6 million oz. gold.

On July 19, Integra released bonanza grade results from its drill program at the No.4 Plug. The company published five holes after completing 14,600 metres of drilling at the target, with highlights including: 29 metres averaging 22.8 grams gold in hole P4-12-06, including a bonanza cut of 1 metre grading 945 grams gold; 2 metres carrying 25.1 grams gold in hold P4-12-07B; and 3 metres averaging 22 grams gold in hole P4-12-04.

Much of Integra’s drilling at the No.4 Plug has been targeted at increasing depths, with the majority of the intersections occurring between 400 and 800 metres, though the company has cut grades as high as 23 grams gold within 30 metres of surface.

“These latest results confirm the suspicion that the mineralization is similar to that of the adjacent Main Plug,” commented senior-vice president exploration Hervé Thiboutot. “Mineralization in these intrusive plugs is unique in that the high-grade veins occur in clusters, potentially allowing for a much more cost-effective, bulk mining methods.”

Thiboutot joined Integra in early March and brings over 29 years experience to the company, including a 24 year stint with Placer Dome, and a project management role with Goldcorp (G-T, GG-N) during the feasibility stage at the gold major’s Éléonore project in northern Québec. According to a company statement, Thiboutot has been a major contributor in the co-discovery of over 20 million oz. gold during his career.

Integra has also hit promising cuts at earlier stage targets. On Aug. 31 the company released final assays from a 4,000-metre program at its Vein No.6 target located 600 metres west of the Main Plug. Integra cut high-grades within 200 metres of surface at No.6, including: 5 metres averaging 20.15 grams gold in hole V6-12-12A; 2 metres grading 13.04 grams gold in hole V6-12-06; and 1 metre of 18.25 grams gold in hole V6-12-11.

“These are exceptional gold intersections, near surface, and within 600 meters of one of Québec’s most successful gold mines,” commented president and CEO Stephen de Jong.

The No. 6 Vein will not be a part of Integra’s pending resource upgrades, as the company is focusing on zones that have sufficient results to complete technical updates in the near-term.

“Having secondary targets of this quality speaks to the long term potential at Lamaque,” de Jong concluded.

Outside of the No.4 Plug, Integra has two more zones slated for resource updates, the Triangle zone and Parallel zone. The Triangle zone contains 220,788 inferred tonnes averaging 18.73 grams gold for 133,000 contained oz., while the Parallel zone is highlighted by 660,000 indicated tonnes carrying 4.8 grams gold for 101,800 contained oz.

Mineralization at Triangle starts at surface and remains open at depth, while the Parallel zone remains open along strike and demonstrates potential continuity with Integra’s Forestel zone lying 1 km to the east.

Integra completed 15 diamond drill holes at Triangle, with preliminary results released in early March featuring 10 metres averaging 4.71 grams gold in hole TM12-06, including a higher-grade cut of 38 grams over 4 metres.

A 31-hole program was completed on Parallel in early January, with Feb. 2 results including: 3 metres averaging 29.5 grams gold in hole PV-11-19; 10 metres grading 19.16 grams gold in hole PV-11-24; and 1 metre of 44.5 grams gold in hole PV-11-06.

With grades in hand, Integra has had little problem securing equity financing despite tight market conditions. The company completed an oversubscribed, brokered private placement on Aug. 21 worth US$3.3 million by issuing 8.8 million flow-through units at a price of 31.5¢ and 1.95 million non-flow through units at a price of 27¢. The company announced it would add 10,000 metres to its 2012 program and focus on its historic, high-grade No.5 Plug target.

Integra’s shares have traded in a 52-week range of 18¢ and 46¢. The company bounced off quarterly lows in mid-July, gaining 5¢ over the past five-weeks en route to a 27¢ press-time close. Integra has 74 million shares outstanding for a $20 million market capitalization, with 36% of the company held by insiders and 9.5% held by China’s Shandong Gold.