Integra Gold Corp. (TSX-V:ICG) (OTCQX:ICGQF) is pleased to announce the closing of the previously announced bought deal offerings of 26,565,000 flow-through shares at a price of $0.87 per share including the exercise in full of the over-allotment option, and 8,500,000 non flow-through common shares at a price of $0.59 per share for aggregate gross proceeds of $28,126,550. The Offering was co-led by Raymond James Ltd. and Paradigm Capital Inc., and included GMP Securities L.P., Cormark Securities Inc., Haywood Securities Inc., Mackie Research Capital Corporation, Macquarie Capital Markets Canada Ltd., Laurentian Bank Securities, Scotia Capital Inc., and Beacon Securities Limited. For information purposes, the dilution from the offering represents an 8% increase in the current shares outstanding of Integra, with the offering shares being issued at a weighted average price of $0.80 per share.
The Offering was oversubscribed, with 22 institutional investors from across North America, Australia and Europe participating. Upon closing of the financing the Company has $52 million in cash in the treasury, near term tax receivables of $4 million, marketable securities of $8 million and no debt. The Company is now fully financed for both its underground and surface exploration programs currently underway.
“We now have the financial capacity to take the next step at the Triangle deposit including an expanded surface drill program and, for the first time, the ability to execute on a plan to conduct underground exploration,” commented Company President and CEO, Stephen de Jong. “In addition to what is already one of the largest exploration programs in North America, we will continue to build on the momentum from Triangle and begin testing other targets within close proximity to our Sigma Milling Complex, many of which have never been tested. The purpose of these programs is to identify additional zones of mineralization that could be included in future development studies as additional draw points of production, with the potential to support a greater annual production profile than that set forth in the existing PEA.”
2016 and 2017 Exploration Outlook/Guidance
The Company now has the financial capacity to fully execute on both its surface and underground exploration programs at its flagship Triangle Deposit which remains the Company’s primary focus and accounts for the majority of the 2016/2017 exploration budget. Details on work plans at Triangle are provided below.
Building on this continued success at Triangle, the Company has elected to accelerate exploration on extensions from known deposits and targets outside of Triangle. Management is pursuing these exploration programs with a view to identifying additional mineralization that could support expanded throughput compared to the approximately 1,500 tonnes per day set forth in the existing PEA. Drilling is focused on targets in close proximity (0-4 km) to existing surface and underground infrastructure. The Company believes that any success in the discovery and delineation of additional mineralization outside of the Triangle Deposit could have a positive impact on the annual production profile in future development studies, as it has the potential to represent additional draw points with independent underground infrastructure.
Two of these targets (No. 4 Plug Deposit & Sigma Deposit) are at the resource delineation stage while two others (Lamaque Deep & Gold Rush Challenge targets) are ready for drill testing.
Brief summaries of the Company near term exploration objectives are provided below.
Triangle Surface Drill Program Summary
Over 165 drill holes totalling approximately 86,800 metres have been drilled at Triangle since the database cut-off date for the November 2015 resource estimate. As of June 1, 2016 there are 50,000 m of drill results pending from drilling completed at Triangle. There are currently four drills operating at Triangle, focused on defining and expanding the existing resource. The Company anticipates completing an additional 25,000 m of drilling at Triangle by the end of the year.
2016 Triangle Surface Exploration Budget to Year End: $5,000,000
Triangle Underground Exploration Program Commences
In late 2015 the Company completed installation of all surface infrastructure (road, power, water, sewage, gas and buildings) required prior to commencing an underground exploration program at Triangle at a cost of $5.6 million. A box cut was completed and the portal face was constructed to a depth of 20 m, with all permits and bonds required now in place.
The objective of the underground exploration program is to conduct close-spaced drilling from within the upper portions of the deposit (C1 and C2 Zones) as well as exploration drilling in order to continue growing the Triangle resource base. The proposed underground exploration program is also anticipated to include a bulk sample of up to 50,000 tonnes for the purposes of reconciling gold content of the bulk sample versus previous resource estimates. The ultimate size, point(s) of extraction and timing of the bulk sample will be determined by both the extraction permits required and results from underground drilling.
A formal bidding process to hire a mine contractor for the underground program has been completed, which the Company anticipates announcing in the near future. Underground work is expected to commence in the second week of June.
2016 Triangle Underground Exploration Budget to Year End: $9 million
2017 Triangle Underground Exploration Budget: $15 million
lick on the following link to view photos of the Triangle Deposit portal and surface infrastructure: http://www.integragold.com/i/pdf/2016-06-02-fig3.pdf
Lamaque Project Satellite Targets: Resource Estimation Underway on Multiple Deposits, Major Drill Campaigns Starting in July and August
No. 4 Plug: 500 m from Triangle and Showing Bulk Potential
The No. 4 Plug deposit located approximately 500 m north of Triangle, was drilled in late 2015 for the first time since 2012 (9,350 m in drill assays currently pending). While a resource currently exists at No. 4 Plug, the Company’s review of exploration work conducted to date, including assays on the latest drill results and those that are pending, suggests that the geological model may need to be reconstructed and that No. 4 Plug may host a larger, lower grade resource that could be the subject of analysis for bulk mining methods in future development studies. Preliminary work indicates mineralization could be modeled as a large, low-grade bulk resource with stope dimensions substantially larger than what is being proposed at Triangle. Given its close proximity to Triangle, the two deposits could potentially share underground infrastructure. Upon receipt of final No. 4 Plug drill assays, which are expected to be received in the next 4-6 weeks, the Company will complete an updated resource estimate.
2016 No. 4 Plug Deposit Exploration / Resource Estimation Budget to Year End: $500,000
Please click on the following link to view an idealized cross section of Triangle and No. 4 Plug: http://www.integragold.com/i/pdf/2016-04-18_tap4-ngqk8k.pdf
Sigma Deposit: Rebuilding from the Ground Up for the First Time
The Sigma Deposit, which includes limited resources from the Lamaque Mine mining concessions, was acquired by Integra as part of the October 2014 mill acquisition. The acquisition involved Integra acquiring the Sigma Mill as well as the historic Lamaque and Sigma Mines. No work has been completed on the deposit since the acquisition and the Company believes there is an opportunity to identify near surface mineralization in close proximity to processing infrastructure. As a result of the Integra Gold Rush Challenge, the Company now has all of the historic data digitized, which will be used to first rebuild the geological model and subsequently conduct focused resource estimation. This work was initiated in March 2016 with compilation parameters involving only analyzing mineralization within 400 meters of surface, situated at or near existing mining infrastructure may be completed by year-end.
2016 Sigma Deposit Exploration / Resource Estimation Budget to Year End: <$500,000
Lamaque Deep Target: First Ever Surface Drill Campaign Set to Commence in July
The Lamaque Deep target is one of the Company’s most exciting drill targets to date. This high-priority target corresponds with a potential down dip extension of the Lamaque Mine, historically one of the highest ounce per vertical meter gold content mines in Canada. The Lamaque Mine, which opened in 1933, produced 4.5 million ounces of gold and was shut down in 1985, mined to a depth of 1,150 meters while the Sigma Mine, 500 m to the north, produced approximately the same amount of gold but to a depth of 1,850 meters. In 1997, after the Lamaque Mine and Sigma Mine were consolidated under one ownership structure, a limited amount of drilling took place from the lower levels of the Sigma Mine with the objective of intersecting the extension of the Lamaque Mine’s Main Plug. Gold mineralization was identified in numerous drill holes and records suggest that management at the time believed the mineralized body did continue. Despite positive results, no additional drilling and/or development was done due to financial problems encountered by the then owner.
Integra plans to drill test the Lamaque Deep target from surface, commencing in July. The drill location is currently being prepared and preliminary plans involve a 2,000 m deep pilot hole which will have a series of angled wedged extensions to test the extensions at various depths. Additional details on the Lamaque Deep drill program will be provided prior to commencement of drilling.
Please click on the following link to view a presentation on the Lamaque Deep target: http://www.integragold.com/i/pdf/2016-06-02-fig1.pdf
Please click on the following link to view recently discovered core photos from historic drilling at the Lamaque Deep target: http://www.integragold.com/i/pdf/2016-06-02-fig2.pdf
2016 Lamaque Deep Drill Program Budget to Year End: ~$2,500,000
Integra Gold Rush Challenge: Target Compilation Nearing Completion, Drilling to Commence in August
In mid-2015, Integra launched a $1,000,000 global crowd sourcing challenge to identify drill targets at its Lamaque Gold Project utilizing large amounts of historic data residing in a 6 TB digital database. Through this initiative, Integra received over 100 technical submissions with detailed plans on where the Company should look to make its next big gold discovery. The Company hired an independent geological consulting firm to compile the top 20 submissions into one consolidated target and drill plan map, as a means of prioritizing the vast amount of viable targets identified during the Gold Rush Challenge. Preliminary results from this compilation are now being reviewed and the Company plans to have a detailed drill program outlined by early July with an anticipated drilling start date in August 2016.
Please click on the following link to view preliminary compilation of near-mine targets generated from the Integra Gold Rush Challenge: http://www.integragold.com/i/pdf/2016-06-02-fig4.pdf
2016 Gold Rush Challenge Drill Program Budget to Year End: $1,500,000
PEA Study Update
Work is well underway on the Company’s updated PEA study, which is expected to be completed in the second half of 2016. The scope of the study has been increased to encompass development options on underground shaft access, pairing Triangle to increased Plug 4 development, etc.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor in any other jurisdiction.
The shares issued in the offering are subject to a four month hold period expiring October 3, 2016. A 6% cash commission is payable on all shares issued pursuant to the Offering. The offering is subject to final acceptance of the TSX Venture Exchange.
Project and Company Profile
Integra’s Lamaque South Project and Sigma-Lamaque Mill and Mine Complex are located directly east of the city of Val-d’Or along the prolific Abitibi Greenstone belt in the Province of Québec, Canada. Québec is rated one of the best mining jurisdictions in the world. Given the location of the project, near the city of Val-d’Or, infrastructure, human resources and mining expertise are readily available.
The Company’s primary focus is its high-grade Lamaque South project. Lamaque South project is divided into three clusters, the North, South and West clusters. The primary targets are the high-grade Triangle and No. 4 Plug deposits in the South Cluster and the Parallel deposit in the North Cluster.
The Sigma Mill, a fully permitted 2,200 ton per day mill and tailings facility which was acquired by Integra in 2014, is located 1 kilometre from the Parallel deposit and 3 kilometres from the Triangle deposit. The Sigma-Lamaque Mill and Mine Complex include the historic Sigma and Lamaque Mines which operated for 75 and 52 years respectively and produced more than 9 M ounces of gold in total.
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