Name of the Project
DeLamar gold/silver project.

Location
The project is located in Idaho, in the US.

Project Owner/s
Integra Resources.

Project Description
A preliminary economic assessment (PEA) based on Integra’s recently completed mineral resource estimate has shown a strong premise for an extraordinary, high-margin and long-life mining operation at the DeLamar project.

The PEA is based on surface oxide and transitional mineralisation at the Florida Mountain and DeLamar deposits within an overall resource that can be processed using heap leaching. The project comprises measured and indicated resources of 172.37-million tonnes grading 0.43 g/t gold and 21 g/t silver. Inferred resources are estimated at 28.27-million tonnes grading 0.38 g/t gold and 13.5 g/t silver.

The PEA envisages openpit mining of the DeLamar and Florida Mountain deposits, with mine planning and scheduling based on mineralisation from economic pit.

Openpit mine production is estimated at 27 000 t/d equating to 9.7-million tonnes a year of mineralised leach feed material, in addition to 730 000 t/y of unoxidised mill feed from years 3 to 8. With an average waste to mineralisation strip ratio of 1.09 to 1, the average mining rate is about 58 000 t/d of mineralised feed and waste material. A cutoff of 0.2g/t gold equivalent will be used for oxidised and transitional mineralisation that is to be heap-leached, while a cutoff of 0.3g/t gold equivalent is to be used for mineralisation that is to be fed to the mill for processing.

Integra plans to conduct openpit mining at the DeLamar and Florida Mountain deposits using an owner-operated, conventional mine fleet, which includes production drill rigs for mineralisation definition and blasting, 23 m3 hydraulic shovels and 12.8 m3 front-end loaders with 136 t haul trucks. Mining will begin at Florida Mountain with heap-leachable material, followed by a mix of heap-leach and millable materials. Beginning in Year 6, heap-leach material will transition from the Florida Mountain area to the DeLamar mining area.

Gold and silver extraction is proposed from two processes.

Heap-leaching of oxide and transitional mineralisation at 27 000 t/d is the primary means of gold and silver extraction at the DeLamar and Florida Mountain deposits, whereas a smaller 2 000 t/d mill has been modelled into the PEA processing Florida Mountain unoxidised mineralisation. As a sequence, the PEA highlights that heap leaching will first begin at the Florida Mountain deposit in Year 1 of operations and will transition to heap leaching of DeLamar material in Year 6.

In the scenario presented in the PEA, mill construction at Florida Mountain will take place in Year 2, with processing expected in Year 3 for six years.

The project has an initial mine life of ten years, over which it will deliver 1.03-million ounces of gold and 16.6-million ounces of silver.

Potential Job Creation
About 330 mining, milling, maintenance and general administrative people will be employed directly by the project during peak.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of C$577.2-million and an internal rate of return of 49%, with a payback of 2.4 years.

Capital Expenditure
Initial capital expenditure is estimated at C$213-million.

Planned Start/End Date
Not stated.

Latest Developments
Integra plans to start work in support of a prefeasibility study on the DeLamar project in the coming months.

In accordance with current in-house estimates and subject to raising the necessary financing, the company is targeting completion of these studies by the second half of 2021. A decision to advance towards mine development and production will be based on the results of future studies, in addition to permitting work, which has started.

Integra’s goal of rapidly advancing feasibility-level work in a fast-tracked timeline is linked to the large amount of data that exists on the project, stemming from more than 20 years of past production history, the significant amount of metallurgical testwork that has been conducted thus far, the large existing measured and indicated gold-silver resource base to work with, and the large amount of infrastructure currently in place at the project.

Budgets and timelines for the upcoming development study work are being reviewed and are expected to be completed in the coming months.

Key Contracts and Suppliers
MDA Associates, with contributions from McClelland Laboratories, Woods Process Services, EM Strategies and Welsh Hagen (PEA).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Integra Resources, tel +1604416 0576 or email info@integraresources.com.