The announcement indicates the results are very preliminary, they are from hole SKRC029 and much more work is required to ensure that one, the % increases in grades in consistent across all holes at Salt Creek and two the recoveries are consistent across all sections of Salt Creek.
That said, this is very encouraging news. An average increase in grade across all SKRC029 of 46.26% and gold recovery of 99.42%.
The comprehensive metallurgical work is being done for a metallurgical laboratory now.
However, if it can be demonstrated with a lot of additional work that there is indeed more gold there than the fire assay results were showing, then this could results in a very beneficial outcome for Integra Mining. Consider the project economics, the production ounces, the the margin generated by a higher head grade during production.
I guess if I refer to the most recent valuation on IGR from a Melbourne Broker of 40 cents, they talked about 115k oz's per annum at a head grade of 3 grams a tonne. We could be looking at twice that grade at Maxwell's and Salt Creek.
As for the trading halt, it's not a capital raising. So if we eliminate this, then it can only be the release of significant recent drilling results. They must be significant because you would not normally request a trading halt for only mediocre results.
I am only guessing that IGR have hit a significant intercept at either Salt Creek or Reddale and they need time to prepare the announcement, the explanation of the significance of the find.
I would love to know where these are coming from, Salt Creek or Reddale.
All I can say is that Chris Cairns and the team at Integra have been doing an extraordinary amount of research and testing and now we are seeinge the fruits of 18 months of their labour.
They have made a significant grass roots discovery at Salt Creek and Reddale, an area that we have been told has been explored to death over the last 30 years and yet here we are eyeing off one of the most significant exploration finds in recent exploration history.
Well done to those shareholders that have kept the faith. I look forward to Tuesday.
Kind Regards
Kojasper
IGR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
