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Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Integra Resources economic assessment shows strong potential for Nevada projects

Both projects projected to produce approximately 1,043,000 ounces of gold equivalent during operational life

Integra Resources economic assessment shows strong potential for Nevada projects
Image via Integra Resources

Integra Resources Corps (TSXV: ITR) (NYSE: ITRG) preliminary economic assessment (PEA) shows that its Wildcat and Mountain View Projects in western Nevada show a collective value of USD$309.6 million with a profitability rate of 36.9 per cent.

The company announced the filing of its maiden PEA for the two sites in western Nevada on Monday.

Integra anticipates the average combined production of the Wildcat and Mountain View as well as the DeLamar Project to be over 200 kilo-ounces of gold equivalent. The PEA shows the potential of both sites to produce a low-cost, heap leach gold-silver operation with a phase development and production strategy.

The Wildcat and Mountain View sites combine to produce roughly 94,000 ounces of gold equivalent annually for the first five years. Over the course of 13 years, the average annual production stabilizes at about 80,000 ounces of gold equivalent.

Throughout their operational life, Wildcat and Mountain View are projected to yield a total of approximately 1,043,000 ounces of gold equivalent. The cost of running the mines averages about $882 per ounce of gold equivalent, and when considering all expenses, with the total cost approximately $973 per ounce.

To initiate operations at Wildcat, an initial investment of $115 million was made before the first year. From the extracted ore, about 71.4 per cent of gold is recovered at Wildcat, while Mountain View achieves a recovery rate of 77.1 per cent.

The ratio of waste material to ore, known as the strip ratio, averages at 1.21 for the entire project. Wildcat alone boasts a lower strip ratio of 0.28, indicating a more efficient extraction process.

Over the 13 year mining period, the total net cash generated after accounting for costs is estimated to be around $485 million, averaging approximately $46 million each year.

“When combined with the DeLamar Project, Integra demonstrates the path to becoming +200koz AuEq per annum producer in the prolific Great Basin,” said Jason Kosec, Integra’s president, CEO & director.

“For the remainder of the year, the team is focused on delivering two more significant milestones at DeLamar, including the updated mineral resource estimate in Q3 and the submission of the Mine Plan of Operations in Q4.”

Read more: NevGold Ptarmigan subsidiary gets five BC exploration assets in option agreement

Read more: NevGold forms B.C. subsidiary to focus on Ptarmigan

Integra surveys show increase in estimated mineral resources

Recent surveys reveal a significant increase in estimated mineral resources at Wildcat and Mountain View, showing growth of approximately 23 per cent and 49 per cent, respectively, compared to previous estimates from November 2020. This increase is largely attributed to successful surveys conducted between 2021 and 2022.

Through these surveys, Integra managed to shift a significant portion of resources from the less certain inferred category to the more confidently estimated measured and indicated category.

The new estimates for the Wildcat Project show approximately 746,000 ounces of gold and 6,438,000 ounces of silver in the more certain category, with an additional 210,000 ounces of gold and 1,980,000 ounces of silver in the less certain category.

Similarly, for the Mountain View Project, the updated estimates indicate around 578,000 ounces of gold and 3,402,000 ounces of silver in the more certain category, and an additional 60,000 ounces of gold and 244,000 ounces of silver in the less certain category.

The findings from the PEA align well with the data from the 2022 pre-feasibility study for the DeLamar Project in Idaho. This study demonstrated a post-tax net present value of approximately $314 million and a profitability rate of 33 per cent.

Integra Resources shares dipped 5 per cent to $1.15 on Monday on the TSX Venture Exchange.

Read more: NevGold intercepts quartz veining on the surface of Nutmeg Mountain

Read more: NevGold discovers new untested areas at Limousine Butte

Nevada is a prime location for gold mining

Nevada is a prime location for gold mining due to its abundant mineral reserves and favorable geology, fostering a rich history of successful gold discoveries and mining operations. Additionally, the state’s mining-friendly regulations and established infrastructure further contribute to its attractiveness for gold exploration and extraction.

In early July, NevGold Corp. (TSXV: NAU) (OTCQX: NAUFF) examined and re-evaluated data from its 2022 drilling campaign, leading to the identification of previously unexplored zones within Nevada’s Limousine Butte Project.

NevGold CEO Brandon Bonifacio mentions the discovery of several fresh, top-priority prospects aimed at enlarging the mineralized zones within Resurrection Ridge and Cadillac Valley, as well as uncovering previously unknown areas of mineral presence across the broader project area.

A few other companies presently operating gold mining operations in Nevada include Newmont Corporation (TSX: NGT) (NYSE: NEM) and Barrick Gold Corporation (TSX: ABX) (NYSE: GOLD), which jointly own the Nevada Gold Mines operation. Also, Kinross Gold Corporation (TSX: K) (NYSE: KGC) which owns Round Mountain and Bald Mountain in Nevada.

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NevGold is a sponsor of Mugglehead news coverage

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