meeting at igr

My self and a fellow shareholder met with Chris Cairns, MD, this morning and don't know where to start hardly. Wow! What a presentation. Well over an hour and very in depth. Reading back from my scribbled notes I will try to be faithful to what Chris said.

As reported by IGR, there are 5 rigs working, 3 diamond, 1 RC, 1 AC. Diamond at Salt Creek to beef up mine feasibility and probe the deep sill at 350 metres, which could be very prospective, as well as a sulfidic layer between the two, which also has promise.

Mohegan to the north is getting a good look over with lots of similarities to original probes at Salt Creek. Another target called Midway, (midway between SC and Lucky Bay and has not been previously talked much about), is getting some work. He is very keen on both prospects. And of course more at Luck Bay. Red Dale is not getting work at present, been very difficult RC drilling previous.

Drill results will not be released until an entire section is drilled out and assayed. Doesn't like releasing individual holes. But coming soon.

BFS is well advanced with release late this month or early July. I wouldn't expect too much in the way of announcements until then, as it will be more comprehensive than any interim ann.

Metallurgical studies show that the dolerite ore bodies are very amenable to milling and extraction with no fine grinding required. Relatively low cost processing. Simple simple grind and treat. Cost per oz? He is guessing $580.00, including mine development costs. As he said, guessing. Wait for BFS.

Still planning on mining as per earlier post in 2010. Chris discussed the surplus of milling plants in the area with diminishing ore. There is an option considered of a tie up with one of the mills to toll treat thus saving Capex rather than IGR mill, and reduced financing needs. With IGR's low cost mining it would be great, profitable cash flow for IGR if they decide to go that route. Transport cost of ore would not be significant in scheme of things.

I have read a Credit Suisse report, June 3 on Avoca which talks of consolidation in the region. The same report says they believe Avoca to be planning, "acquisition of Integra, or at worst a toll treating agreement with Integra". And of course, Chris is well aware IGR could become a target for takeover. He said he will do whatever is in the shareholders best interest. Ultimately it would be the shareholders who decide, not him.

We mentioned the Avoca speculation and FIN article. As he said, they completely misquoted him and retracted the article the next day.

If they decide to take the milling/production route financing would be a combination of Cap Raising and Bank finance. He would try and find a balance between dilution and hedge position to borrow.

He proceeded to give us a tour of the potential targets in the Randalls area with both gravity and magnetic data. Around Lucky Bay, we saw a beautiful cluster of targets. It made you want to get on the phone and buy more stock. Most targets are located around the intrusions and it appears to me that the IGR team have, or are very close, to unlocking the keys to the tenement geology. Chris gave us a demonstration of some predictive modeling software for past fluid movements. You could see existing bodies, e.g. French Kiss, and then just next to it a similar predicated target. These models show numerous potential targets and it is obvious the IGR team know how to use the information. That's why IGR need cash flow! To find more gold!!

Further down the line, several deposits in the Aldiss French Kiss, Harrys Hill area will see more exploration. IGR have had some very good indications there, some high grade intercepts, and more targets identified for future drilling.

POG. Chris expects the pog to weaken slightly short term but medium to long term to strengthen significantly, primarily because of lack of future supply. He wouldn't hazard his own guess, but goes along with analyst predictions of $1500.00 per oz long term.

My buy recommendation has become stronger. Watch this space!!!