Apr 20 2016
Integra Gold Corp., ("Integra" or the "Company") is pleased to announce a first round of assay results from its late fall 2015 and 2016 infill drill program on the No. 4 Plug Deposit situated at the Lamaque South Gold Project ("Lamaque") located in Val-d'Or, Québec.
"We believe now is the right time to evolve our growth strategy and expand our exploration efforts. As we continue to prove up Triangle we are finalizing an exploration plan that will focus on other targets on the property that we feel have the potential to increase both the feed to the mill and the total annual production profile at Lamaque," commented Company President and CEO, Stephen de Jong. "The continued success at Triangle and our latest drill results from No. 4 Plug confirm our beliefs that multiple deposits across our property can add substantial value to Integra."
Click on the following link to view a location map of the different gold deposits present at Lamaque South:
http://www.integragold.com/i/maps/Integra-Property-Map-Jan-2016-with-No-4.jpg
No. 4 Plug Showing Potential for Bulk Mining, C-Structures Present along with Abundance of Flat-Lying Tension Veins
"Gold mineralization at No. 4 Plug, located 500 m north of Triangle is, in part, hosted within a series of steeply-dipping stacked shear zones similar to C-type structures found at Triangle," commented Company Senior Vice-President, Hervé Thiboutot. "What makes these zones different is the abundance of flat lying tension veins which form large clusters of veins that are potentially amenable to bulk mining methods. These large gold bearing vein clusters have striking similarities to bulk zones mined historically at the Lamaque Mine and present close resemblance to the nearby Agnico-Eagle Goldex Deposit which is found in similar hosts rocks and vein arrays."
The results disclosed today are from the Company's late 2015 and 2016 infill drill program completed at No. 4 Plug in areas that required 25 m drill spacing for the reinterpreted geological model and subsequent resource estimate. These results are significant given that high grade gold mineralization is still being identified within high-angle structures, similar to those found within Triangle, while wider zones forming vein clusters are now being recognized and are enhancing the Company's modelling and resource estimation approach at No. 4 Plug. These enhancements are likely to further refine and enhance our approach with respect to future mining optimization on the deposit. As the gold distribution in the thicker sequences of brittle, shallow dipping tension veins have the tendency to portray a higher nugget effect relative to the high angle C-type structures, the selection of disclosed intervals is largely controlled by the visual occurrence of veins in drill core logging rather than strictly on gold grade, providing a further layer of control for the spatial constraining of these thick vein clusters.
The table below highlights the selected results from this first tranche of the 2015 and 2016 No. 4 Plug infill drill program. The summary results are presented uncapped and, when applicable, with high grade individual values capped at 34.3 grams per tonne gold ("g/t Au") (results are also available with high grade values capped at 20.0 g/t Au in the full assay table available at the link below).
- Down-hole thickness; true width varies depending on drill hole dip and on general orientation of the vein clusters; most 2015 drill holes were aimed at intersecting the generally flat lying vein clusters close to perpendicular; therefore true widths are close to down-hole widths.
- Minimum 1 g/t cut off over 10 m interval, allowing up to 5 m of below cut off material internally - individual assays cut to 34.3 g/t and 20.0 g/t Au when applicable - no minimum thickness considered.
Click on the following link to view a complete table of available composited results for the fall 2015 drilling at No. 4 Plug:
http://www.integragold.com/i/pdf/No-4-Plug-2015-Composites-Compilation.pdf
Geological Setting at No. 4 Plug
No. 4 Plug is a sub-vertical dioritic/gabbroic intrusive, similar to the Lamaque Mine Plug, located 2 kilometres to the northwest, which produced over 3.7 M gold ounces from surface to a depth of 1,100 m vertical. The No. 4 Plug intrusive is located 500 m from Triangle and can be traced on surface for 200 m east-west by 150 m north-south, extending to a depth of over 1,000 m vertical. Gold mineralization within the intrusive host is hosted within quartz-carbonates-tourmaline veins within sub-vertical shear zones (similar to Triangle C-type structures) in addition to flat lying quartz-carbonate-tourmaline veins that are present as dense vein clusters. The No. 4 Plug also presents similarities to the nearby Agnico-Eagle Goldex Mine host rocks and vein arrays, located 10 km to the west of the Lamaque property. For comparison purposes, with data taken from disclosed public information (see Agnico-Eagle's website), the average grade of the Goldex deposit is 1.8 g/t Au with a cut off set at 0.9 g/t Au; the direct mining costs at Goldex are at $34 per tonne, with ore mined using bulk mining methods.
Preliminary interpretation of the intersected gold bearing zones at No. 4 Plug indicates that these dense vein clusters can be tens of metres thick vertically, are geometrically staked within the intrusive in the down-dip direction, and can also extend roughly 150 m to 200 m laterally. The mineralized vein clusters appear to be more abundant below a vertical depth of 200 m, remaining confined to within the intrusive plug. The intrusive host and the vein clusters remain open at depth as indicated by previously disclosed results from the drilling completed in 2012 (see summary tables and a link to full tables below). Similar vein mineralogy and alteration assemblages consisting of carbonate, sericite, albite alteration is associated with these dense veins clusters but vary in intensity and distribution, being more pronounced when cross-cut by high-angle shear zones. Where these sub-vertical shear zones cross-cut the intrusive, brittle and shallower dipping tension veins appear to be more dominant.
In consideration of this new evidence regarding the distribution and controls of gold mineralisation at No. 4 Plug, a complete geological re-modelling program was initiated in early 2016 and is approaching completion. Once the new geological model is available an updated resource estimate will be completed and disclosed later in 2016.
Historic mining in the late 1960s was performed by Teck in the upper part of No. 4 Plug (above 200 m vertical). New 3D modelling of historic stoping indicates both high angle veins and vein clusters were mined, which provides additional certainty in the modeling at No. 4 Plug. Approximately 50,000 ozs of gold were recovered by Teck from No. 4 Plug.
Results from Previous Drilling
In light of the new geological understanding at No. 4 Plug, results from 21 holes drilled on No. 4 Plug during the 2012 drill campaign (20,500 m) were also re-compiled, re-evaluated, and re-interpreted. The table below highlights selected results from the 2012 No. 4 Plug drill program in the context of the new vein cluster interpretation. Due to the abundance of intervals reported from 2012 drilling, only a few intervals are presented below. Please follow the link below to view the complete 2012 assays. Results are presented uncapped and, when applicable, with high grade individual values capped at 34.3 g/t Au (results are also available with high grade values capped at 20.0 g/t Au in the full assay table available at the link below). In general, these results show that capping of higher grade values has a limited effect on most of the reported mineralized intervals which tend to confirm the widespread nature of gold mineralisation at No. 4 Plug.
- Down-hole thickness; true width varies depending on drill hole dip and on general orientation of the vein clusters; most 2015 drill holes were aimed at intersecting the generally flat lying vein clusters close to perpendicular therefore true widths are close to down-hole widths.
- Minimum 1 g/t cut off over 10 m interval, allowing up to 5 m of below cut off material internally - individual assays cut to 34.3 g/t and 20.0 g/t Au when applicable - no minimum thickness considered.
Click on the following link to view a complete table of available composited results for the 2012 drilling campaign at No. 4 Plug:
http://www.integragold.com/i/pdf/No-4-Plug-2012-Composites-Compilation-NRel.pdf
Click on the following link to view a set of two idealized and schematic composite sections showing the spatial relationship between the Triangle and No. 4 Plug gold deposits and illustrating selected results from the 2015 and 2012 drilling programs.
http://www.integragold.com/i/pdf/2016-04-18_tap4-ngqk8k.pdf
2016 Exploration Summary
To date in 2016, a total of 52,000 m in 93 holes have thus far been completed at the Lamaque South project; drilling is on-going with five drill rigs currently in operation. The results announced today are from five holes drilled at No. 4 Plug representing 2,700 m of the 12,000 m 2015-2016 drill program. Including the fall 2015 drilling, as of April 15, drill results are still pending from an additional 140 drill holes representing 52,460 m of core. Results from ongoing infill and extensional drilling at Triangle, No. 4 Plug, and other targets will be disclosed as they become available during the year.
2016 Drilling Program
The Company anticipates drilling approximately 90,000 to 100,000 m in 2016 with the majority of this drilling aimed at defining and expanding the gold resource at Triangle and at No. 4 Plug. The bulk of the drill program will be completed during the winter and spring months, from January to June 2016. The spring breakup is anticipated to commence soon, however, following the construction of new surface access roads, the Company expects that it will be able to continue drilling throughout the spring with three to five drill rigs in operation. Integra's planned 2016 drill campaign remains one of the largest drill programs currently underway in the Canadian mining industry.
The ongoing winter drill program includes exploration, extensional and definition type drilling on key targets such as Triangle and the No. 4 Plug gold deposits. The program will also include exploration drilling of promising new targets outlined by geophysical surveys, geological mapping, surface sampling and reconnaissance drilling conducted in 2015; additional information on these new targets will be provided by the Company in follow-up 2016 news releases.
Warrant Acceleration
The Company is pleased to announce that it has elected to accelerate the expiry date of the remaining 15,263,757 warrants (the "Warrants") issued as part of the June 27, 2014 private placement, set to expire on June 27, 2016. Each Warrant may be exercised to acquire one common share of Integra at $0.30, for gross proceeds of up to C$4,579,127. The Company is also accelerating the expiry date of the remaining 590,905 compensation warrants (the "Compensation Warrants") issued in respect of the June 2014 private placement. Each Compensation Warrant may be exercised to acquire one common share of Integra at $0.26 for gross proceeds of C$153,635. Each Warrant or Compensation Warrant must be exercised on or before May 23, 2016.
Under the terms of the Warrants, Integra is permitted to accelerate the expiry date of the Warrants if the volume weighted average trading price ("VWAP") of the Company's common shares listed on the TSX-V remains at or above C$0.50 for ten consecutive days (the "Acceleration Event").
On April 8, 2016, Integra met the conditions of the Acceleration Event. As a result, the Company has chosen to accelerate the expiry date of the Warrants to 5:00 pm Pacific Standard Time on Monday, May 23, 2016.
Project and Company Profile
Integra Gold is a junior gold exploration company advancing projects in Val-d'Or, Québec, one of the top mining jurisdictions in the world. The Company's primary focus is its high-grade Lamaque South project. In 2014, Integra completed the accretive acquisition of the Sigma Mill and Mine Complex, a fully permitted 2,200 ton per day mill and tailings facility. With major federal and provincial permits in place, existing infrastructure and exploration potential, this acquisition removed major costs and shortened timelines typically associated with mine project developments. With a current market capitalization of over $220 million, Integra has raised over $85 million since 2012 despite depressed gold prices. Integra was recently named to the TSX Venture top 50 performers in 2015 and the OTCQX Best 50 award for 2015.
Qualified Person
The Lamaque South exploration project and Sigma-Lamaque Mill and Mine Complex, jointly known as the Lamaque project, are under the direct supervision of Hervé Thiboutot, Eng., Senior Vice-President of the Company, and Jacques Simoneau, P. Geo., Exploration Manager of the Company. Mr. Thiboutot and Mr. Simoneau are Qualified Persons ("QPs") as defined by the National Instrument 43-101. The Company's QPs have reviewed the technical content of this release.
Quality Assurance - Quality Control ("QA/QC")
Thorough QA/QC protocols are followed on the project including insertion of duplicate, blank and standard samples in all drill holes. The core samples are submitted directly to the Bourlamaque Laboratory in Val-d'Or for preparation and analysis. Analysis is conducted on 1 assay-ton aliquots. Analysis of Au is performed using fire assay method with atomic absorption (AA) finish, with a gravimetric finish completed for samples exceeding 5 g/t Au. Metallic sieve assay is conducted, additional to the regular fire assay methods, for all samples containing visible gold. Results published are from the metallic sieve assay results is available, if not they are from the gravimetric finish if above 5 g/t and from the AA finish if lower than 5 g/t.
ON BEHALF OF THE BOARD OF DIRECTORS
Stephen de Jong
CEO & President