integra igr gold project (formerly relode)
Hi Folks
Yes RLD is now Integra IGR.
For those interested. Recent news re the companys BFS;
I hold IGR. I think it is one of the few juniors at the moment with good upside, real opportunity to progress from explorer to producer, excellent tenements, focused management and importantly only 100 million shares on issue. With a gold price set to further strengthen, its companies like this that do have a good chance of considerably improving the economics of their projects.
The company has been active in the last couple of months inparticular which has had a positive impact on the share price and recent drilling has upped the resource base. The chances of further resource upgrades are definitely possible, which, as mentioned below, would be "HIGHLY SENSITIVE TO THE GOLD PRICE"
ONLY 100 MILLION SHARES ON ISSUE clearly demonstrates the leverage possibilities.
The recent publicised find of a 5CM QUARTZ VEIN FLOAT WITH VISIBLE GOLD in the southern portion of the Aldiss gold project has the company mapping priority drill targets in the area.
CURRENTLY TRADING BELOW 9 CENTS.
From a technical perspective, the company has certainly moved out of its recent trading range and appears to have started trending upwards. The companies aggressive focus may well further support this trend with upcoming updates on drilling progress.
55,000 ounces gold per annum operation with a mine life of four years, costing $17 million to start up.
Based on a gold price of $625 per ounce the project could generate an operating cash flow of $32.2 million after operating costs.
The recent study pointed to a 800,000 tonnes per annum processing operation and was based on mining from four open pits – Main Zone, Harry's Hill, French Kiss and Tank – which together have a resource of 3.3 million tonnes at 2.3 grams per tonne gold for 220,000oz.
Overall cash costs have been put at $463 per ounce with the Tank deposit producing gold at $554/oz and, at the other end of the cost scale, French Kiss at $395/oz.
ReLODE said the scoping study has "clearly demonstrated the viability of a stand alone gold mining operation". The bankable feasibility study would take about six months to complete.
Project is highly sensitive to the gold price and an increase in mineable reserves of 50,000oz would increase operating cash flows by $8.1 million.
The company plans to continue drilling at the project and has identified a number of resource extension opportunities, including exploring the poorly tested footwall position at the Main Zone.
Earlier this month ReLODE increased the resource at the French Kiss deposit by 21% to 111,000 ounces of gold.
