Integra Mining Limited (ASX:IGR) is pleased to report that recent RC drilling along the Santa trend has further confirmed the potential for both an open pit as well as underground production for the Randalls Gold Project. In addition diamond drilling at Cock-eyed Bob continues to deliver outstanding results. Santa Area high-grade results include - • 14 metres at 5.58 g/t gold, including o 5 metres at 8.47 g/t gold • 5 metres at 13.21 g/t gold • 9 metres at 4.68 g/t gold • 7 metres at 4.21 g/t gold Cock-Eyed Bob high-grade results include - • 3.25 metres at 25.10 g/t gold, including o 1.65 metres at 47.00 g/t gold Santa and Cock-eyed Bob are located 16km east and 13km east, respectively of the Randalls Gold processing facility (Figure 1). Recent drill intercepts support previously announced results, (see ASX announcement 22 March 2011) and continue to indicate that high-grade gold mineralisation within the BIFhosted Santa Trend persists at depth with excellent potential for underground extraction and also persists along strike with good potential for additional open-pit production. The high-grade BIF-hosted gold deposits at Cock-eyed Bob, Santa and Maxwells continue to emerge as potential future sources of high-grade underground and open pit material for the Randalls Gold Project (Figure 2). Pre-stripping at the Maxwells open pit and stockpiling of Maxwells Ore commenced in the June Quarter in preparation for fully fledged production from the Maxwells open pit in 2012. Resource drilling designed to enable final modelling of the open pit mineralisation of the Anomaly C and Fly Camp areas has been conducted over the lasted few months. The drilling has returned some excellent shallow results, including 7 metres at 4.21 g/t gold from 4 metres and 2 metres at 6.66 g/t gold from 1 metre (Figure 3). Deeper holes drilled through the main zone of BIF units and to the eastern side of the Santa deposit have shown a strong presence of magnetite-rich BIF and returned excellent grades, including 14 metres at 5.58 g/t gold from 89 metres and 5 metres at 13.21 g/t gold from 105 metres (Figure 3). 23 November 2011 168 Stirling Highway Nedlands Western Australia 6009 · PO Box 612 Nedlands WA 6909 · T 61 (8) 9423 5920 · F 61 (8) 9423 5930 E [email protected] · W www.integramining.com.au ABN 54 093 278 436 The three diamond holes drilled at Cock-Eyed Bob to give additional confidence to the grade model where drill information was lacking and assist with the underground design returned high grade results including 3.25 metres at 25.10 g/t gold (Figure 4). It is anticipated that, subject to regulatory approvals, trial underground mining will commence in December at the high-grade Cock-eyed Bob gold deposit. An agreement has been reached with a preferred underground mining contractor. The Mining Proposal has been lodged with the Department of Mining and Petroleum in preparation for a December start-up. If the trial mining proves successful, underground mining will continue to the next level at Cock-eyed Bob and underground development at the Santa gold deposit will commence. Upon completion of open pit mining operations at the Maxwells gold deposit, underground development would commence from the base of the open pit. Subject to successful completion of the trial mining exercise, the objective is to progressively develop underground operations at the Cock-eyed, Santa and Maxwells gold deposits to the extent that 50% of the process facilities feed is provided by underground sources at an expected grade of 5-6 g/t gold. This will be blended with open pit production ore and stockpiled ore to maintain a 3-4 g/t head grade presented to the process facility. By supplementing the process facility with 50% of feed from underground sources, the life of the remaining open pit Ore Reserve is effectively doubled. In this way, without any additional discovery, Integra is targeting a 10-year mine life at the Randalls Gold Project. Previous high-grade drilling results from the Santa, Maxwells and Cock-eyed Bob gold deposits were released to the market on 9 November 2009, 22 January 2010, 8 February 2010, 10 June 2010, 24 August 2010, 10 September 2010 and 21 March 2011. Yours sincerely, Chris Cairns Managing Director
IGR Price at posting:
56.5¢ Sentiment: None Disclosure: Held
