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Discussion with Mr. Stephen de Jong, CEO Integra Gold Corp. (TSX: ICG): Exploring High Grade Lamaque South Project in Val-d’Or in Quebec Canada's Premier Gold Producing Districts

on 6/13/2016
Integra Gold Corp. (TSX.V: ICG; OTCQX: ICGQF) is a Canadian company focused on exploration of their high-grade Lamaque South Project, located in one of Canada's premier gold producing districts, known as Val-d’Or in Quebec. Integra Gold is an amazing company. The company is very well-managed, well- funded and innovative. It has a great team, excellent properties and locations, a mill and is a projected low-cost gold producer. Integra is drilling aggressively and has a proven resource growth record. Eldorado Gold with a $2.9 billion Market Cap is a very strong partner and owns 13.1% of Integra Gold. The gold resource estimate shows 872,850 ounces at 9.04 g/t Indicated and 800,620 ounces at 9.08 g/t Inferred. The historic Sigma Mill located on the property is a fully-permitted, 2,200 ton per day mill and tailings facility. According to Stephen de Jong, CEO and President of Integra Gold, in the future they anticipate production of more than 100,000 gold ounces per year with projected all-in cost of $731 Canadian per ounce, which makes them one of the lowest cost producers in the world. Currently, the company is drilling to increase the size of their resource.



Mr. Stephen de Jong, CEO and President of Integra Gold Corp. (TSX.V: ICG; OTCQX: ICGQF), was interviewed by Dr. Allen Alper, Editor-in-chief of Metals News to update readers on the company and the next steps that are in motion to explore the Lamaque South Gold Project located in the well-known area of Val-d’Or in Quebec.

Mr. De Jong said, “We are a Canadian company focused on the exploration of our high-grade Lamaque South project. It is located in one of Canada's premier gold producing districts, Val-d'Or in Québec.” As the company has continued to work on the property, they have divided it into groups. Mr. De Jong said, “The Lamaque South property is divided into three clusters, the North, South and West cluster. The primary targets are the high-grade Parallel Zone in the North Cluster and the Triangle Zone in the South Cluster.”



In addition to the clusters that the company has identified, there are additional benefits to the Lamaque property. Mr. De Jong said, “The acquired Sigma Mill, located one kilometer from the Parallel Zone and three kilometers from the Triangle Zone, is a fully-permitted, 2,200 ton per day mill and tailings facility.” Over time, the mill and mine have seen historical success that the company is seeking to replicate with new exploration targets. Mr. De Jong said, “The Sigma-Lamaque Mill and Mining Complex include the historic Sigma and Lamaque Mines which operated for 75 and 52 years respectively and produced more than 9 million ounces of gold in total.”

In terms of specific location, the Lamaque South Gold Project is east of the city of Val-d'Or along the historically significant Abitibi Greenstone in Québec, which is about 550 km northwest of Montréal. The Lamaque offers a high grade of gold, on which Mr. de Jong is pleased to report. He said, “There are 872,850 ounces at 9.04 g/t Indicated and 800,620 ounces at 9.08 g/t Inferred. We also have access to excellent infrastructure and an experienced labor force of the Val-d’Or mining community.”



The company has been carefully working on getting the permits needed in order to move the project forward. Mr. De Jong said, “Our permitting is well ahead of schedule with both federal and provincial level environmental permits in place and provincial exploration and mining permits either in place or expected in the near future.”

Over time, the company expects the Lamaque project to yield good returns for investors. Mr. De Jong said, “We are showing a 77% Pre-tax IRR and C $184.3M Pre-tax NPV with a 59% Post-tax IRR and C$113.5M Post-tax NPV, using $1,175 per ounce gold price. In the future, we are focused on an anticipated production profile of more than 100,000 ounces per year and a mill that can handle more in a world class camp.”

While these numbers are currently accurate, we expect changes to occur as this PEA will incorporate, for the first time, the steeply dipping C- Structures. The C structures will allow the Company to utilize more long-hole stoping in its mining plan, potentially lowering extraction costs and effecting the AISC. In addition, the Company will be bringing in recent drilling/modeling of the No 4. Plug, a bulk mining target that has the potential to increase TPD at the Triangle deposit.



To get the project up and running, the company has projected a capex of $62 million Canadian and an all-in cost of $731 Canadian per ounce. The $62 mm capex cited in the existing PEA is inclusive of revenue from the bulk sample/development. In the pending PEA (due Q3 2016), the company would expect the capex to remain the same, approximately $80 to $100 mm (not including revenue from bulk sample/development).

Mr. De Jong said, “Our costs make the Lamaque gold project one of the lowest capex/opex development stage projects in the world.”

Currently, the company is focused on increasing the size of the resource. Mr. De Jong said, “We are working on increasing the size of our resource. We have seen that the Triangle Zone Indicated resource estimate increased recently from 14% from 441,580 ounces of gold to 503,420 ounces of gold and the Inferred resource increased 344% from 152,370 ounces of gold to 676,960 in November 2015 on 27,815 meters of drilling.” The company is planning on an additional drill program during this year that will offer significant results. Mr. De Jong said, “We have planned a 90,000 meter 2016 drill program, with five drill rigs currently operating on the property.”



In terms of market share, the company has 475 million shares outstanding with a market cap of $287 million dollars. There are 21 million options and no warrants. Fully diluted, the company has 499 million shares outstanding.

The leadership team has made the progress of the company a top goal. Mr. Stephen de Jong, the President and CEO has been instrumental in the financing of the company, having raised over $100 million in equity since assuming the CEO position in 2012. This is despite the challenges faced by the mining sector that have been seen over the last few years. Hervé Thiboutot, Senior Vice President of the company, is a former Vice President of Exploration at Alamos Gold, where he played a key role in increasing gold reserves to more than 8 million ounces in 3 years. He has more than 25 years of experience at Placer Dome, including Head of Exploration for the Las Christina’s project in Venezuela. Finally, Langis St-Pierre the COO of Integra Gold, is a former President of IAMGOLD S.A. Burkina Faso, Africa, a subsidiary of IAMGOLD where he oversaw 2,300 employees with an annual production of 350,000 ounces of gold. He has 27 years of experience with Cambior/IAMGOLD Corp., including the position of Mine Manager and General Manager at the Langlois Mine, Bouchard-Hébert Mine, the Sleeping Giant Mine, and the Doyon Mine in Québec.

The company is focused on moving the Lamaque project forward during 2016. Mr. De Jong said, “As a leadership team, we know that the Abitibi greenstone belt is one of the most prolific gold mining districts in the world. Historically, Val-d’Or, along with the surrounding camps extending to Timmins, Ontario, has produced over 156 million gold ounces since the 1930s. This is just one of the reasons that we are optimistic about the future for the Lamaque project.”



Recently, the company took an innovative approach to finding gold resources. Mr. De Jong said, “We decided to launch the Integra Gold Rush Challenge. This was an open innovation challenge where more than 1,300 individuals and teams from 83 countries signed up to help us find the next major Gold Discovery in Val-d’Or. They didn’t have to go out and complete any physical exploration. We asked them to look through more than 75 years of historic mining data and tell us what they thought. This has led to some interesting observations.”



Integra Gold has done and is continuing do an outstanding job exploring for gold in a great location. Investors will probably be interested in watching Integra Gold closely as it continues to drill. They are expecting excellent results.

Upcoming Catalysts for the Year:
    - Ramp construction at Triangle Zone en route to underground exploration and a bulk sample. Construction is set to commence this month (June) - Triangle Results and Drilling
      o 25,000 m of drilling planned for balance of 2016 o 50,000 m of drill results pending
    - No. 4 Plug
      o Additional drilling and modeling of No. 4 Plug, a bulk mining target similar to Agnico-Eagles Goldex Mine
    - Discovery drilling at Lamaque Deep
      o The first ever testing of Lamaque Deep, a target below the old Lamaque Mine (which produced 4.5 million ounces of gold and stopped operation in mineralization)
    - Discovery drilling at Gold Rush targets
      o Over 100 people/teams submitted proposals on high-probability targets for testing. Drilling on some of these targets will begin in July.


Major studies expected:
    - Updated PEA, Q3 2016 - Updated Resource Estimate, Q3 2016 (our previous resource estimate, which included 27k meters of drilling, increased the indicated resource at Triangle 14% and the inferred resource at Triangle 344%)


http://www.integragold.com/
Integra Gold Corp.
Address: Suite 2270, 1055 West Georgia St
Royal Centre, P.O. Box 11144
Vancouver, BC
Canada V6E 3P3
Telephone: 604-629-0891
Fax: 604-229-1055
TSX-V: ICG
OTCQX: ICGQF
Email: info@integragold.com


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