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Integra seizes precious metals opportunity in Idaho

20th September 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

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VANCOUVER (miningweekly.com) – Mere months after Integra Gold was bought out in a deal worth about C$590-million by Eldorado Gold, essentially the same team – reincarnated as Integra Resources – has reached agreement with major Kinross Gold to buy the DeLamar gold/silver mine, in Southern Idaho.

The C$7.5-million cash-and-scrip deal will give the Integra team full access to the brownfield project, which was shuttered in 1998 on the back of precious metal prices dipping below $300/oz, after producing 1.6-million ounces of gold and 100-million ounces of silver.

Integra said it would issue stock in connection with the transaction equal to 9.9% of all of the issued and outstanding Integra shares upon closing of the transaction.

The DeLamar project is subject to a retained variable net smelter return (NSR) royalty payable to Kinross.

Concurrent to the DeLamar transaction, Integra has signed binding letters of intent with two private entities to acquire patented claims in the past-producing Florida Mountain gold and silver project, which borders DeLamar to the east. 

The project is located 80 km south of Boise, Idaho, and constitutes roughly 2 145 ha of patented and unpatented claims, and a further 1 659 ha leased lands with about 1 575 drill holes and 145 940 m of drilling outlined in historic databases. The average drill hole depth was less than 100 m, with only four holes deeper than 350 m, the company advised.

A material portion of drilled-out precious metal mineralisation remains unmined, with significant exploration potential to outline additional near-surface bulk tonnage resources, as well as high-grade underground potential using modern exploration techniques. Utilising all available drill data, Integra is in the process of completing an updated resource estimate for the DeLamar project.

“We are pleased to be part of this formative transaction with Kinross because, in our view, the pedigree and genesis of this asset opportunity bears some striking similarities to Integra Gold’s asset acquisition of Sigma-Lamaque, back at its nascent stages.

“Integra is once again emerging as a precious metals company with a past-producing property in a developed world, pro-mining jurisdiction, with excellent access and infrastructure and host to a large geological database to work from,” stated president and CEO George Salamis.

He added that the DeLamar property had not seen any modern exploration work for almost 30 years.

“The Integra team is keen to get working on financing and executing an aggressive path of exploration and future studies. We believe the exploration upside potential for both heap-leachable gold/silver mineralisation at surface; high-grade, vein-type ‘feeder’ mineralisation is very promising.”

The mine has remained relatively unknown since it was put on care and maintenance in 1998 following low metal prices, and no exploration work has taken place on multiple high-conviction targets in over two decades, the company advised.

Because of limited exploration work during DeLamar’s operating mine life and no exploration post closure, Integra believes in the high probability to expand existing mineralisation and outline further near-surface bulk tonnage resources, while the property also has the opportunity to employ modern techniques to explore high-grade underground targets.

The project also has excellent infrastructure and existing on-site facilities.

Integra has appointed Mine Development Associates to undertake a Canadian National Instrument 43-101-compliant resource estimate, which is currently under way; results are expected within weeks.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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