new gold discovery at majestic

NEW GOLD DISCOVERY AT MAJESTIC

Initial drilling intersects 20m @ 5.79g/t within a broader interval of 198m @ 1.0g/t
22km north of the flagship Salt Creek Deposit
Integra Mining Limited (Integra; ASX: IGR) is pleased to report significant results from
the Companys first RC drilling programme at the Majestic Prospect, located 22km north of its
Salt Creek gold deposit, where construction of a gold processing facility is in-progress at the
Companys Randalls Gold Project, itself 60 kilometres south-east of Kalgoorlie, Western
Australia.
Initial drilling has intersected good widths of near-surface, high-grade gold mineralisation
within very broad zones of gold anomalism. Results for 4-metre composite samples from 7
holes of an initial 11-hole RC drilling programme received to date include:
􀂾 A very broad gold anomalous interval of 198 metres at 1.0g/t gold from 24
metres to end of hole in IMRC010 including:
􀂙 12 metres at 1.59 g/t gold from 68 metres down-hole
􀂙 20 metres at 5.79g/t gold from 104 metres down-hole
􀂾 A broad gold anomalous interval of 64 metres at 1.3 g/t gold from 28 metres
depth in hole IMRC008, including:
􀂙 16 metres at 4.42 g/t gold from 40 metres down-hole
The Majestic Prospect is part of the Monger Joint Venture between Integra (85%) and
Newcrest Operations Limited (15%) (see Figure 1). Integra recently commenced construction
of a new gold processing facility at Salt Creek, 22km south of Majestic, as part of the
development of the Randalls Gold Project.
The Majestic Project area is dominated by a granitoid intrusion of varying composition. From
the aeromagnetic data, four different magnetic characteristics can be identified ranging from
strongly magnetic to non-magnetic granodiorite. A series of magnetic lineaments can also be
identified from the aeromagnetics orientated northwest, northeast and north-northeast. These
features are interpreted to be faults, shears or zones of alteration.
It would appear the weakly magnetic phase of granodiorite intrusion that drilling has targeted
is a hybrid porphyry with widespread gold enrichment (see Figures 2-5).
Integra is very encouraged by these preliminary results but cautions investors that evaluation
of the Majestic Prospect is at a very early stage and further drilling is required before the
Company can confirm the economic potential of this prospect.
As can be seen in Figure 3, drilling to date has only tested a small number of the identified drill
targets at Majestic and additional targets will now be tested to follow up these results.
Four-metre composite results are pending from the remaining four drill holes (IMRC004-007)
from this RC drilling programme. The mineralised intervals announced today have been resampled
at 1-metre intervals and submitted to the laboratory with assay results pending.
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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
ASX RELEASE 8th March 2010
A further drilling programme is currently in progress including a diamond twin of drill hole
IMRC010 to obtain structural orientations, as well as a diamond tail to drill hole IMRC011 and a
scissor drill hole to IMRC010 C both designed to test a possible vertical dip of the high-grade
gold interval.
ABOUT INTEGRA MINING
The Randalls Gold Project development is only the second integrated mining and processing
gold mine development based on a new gold discovery in Australia in the past 10 years. With
Phase 1 base case production forecast at 75,000 ounces per year, the Randalls Gold Project
has the potential to generate approximately $50 milion of operating profit per year at current
gold prices, positioning it to rival or exceed the profitability of any other domestic Australian
gold miner with the exception of Newcrest Mining Limited.
The Randalls Gold Project is located some 60 kilometres southeast of Kalgoorlie and will
commence Phase 1 mining of two open pits at an average grade of 3.1 g/t gold. The capital
cost for project development has been estimated to be $64 million (see ASX announcement 30
July 2009). The project development is fully funded.
Integra will utilise additional funds surplus to the requirements of the Randalls Gold Project
development to evaluate the early commencement of underground mining at the Maxwells,
Santa and Cock-Eyed Bob banded-iron formation (BIF) hosted gold deposits with the objective
of increasing gold production to approximately 100,000 ounces per annum without a
processing facility expansion and then subsequently to +140,000 ounces per annum with a
processing facility upgrade to 1.2 million tonnes per annum (see ASX announcement 30
October 2009).
The potential underground developments and processing facility upgrade will be fully funded
through existing cash reserves and project cashflow.
The Company acquired the New Celebration gold processing facility three years ago and the
facility was disassembled and stored on-site at Mt Monger. Integra has executed a Guaranteed
Maximum Price (GMP) refurbishment, construction and commissioning agreement for the gold
processing facility with GR Engineering Services. Refurbishment of key process facility
components (ball mill and crushers) is advanced and the Salt Creek process facility site was
handed over to GR Engineering on January 4, 2010 for commencement of construction.
Project commissioning and first gold production is expected to be achieved in September 2010.
Yours sincerely,
Chris Cairns
Managing Director
Information in this announcement that relates to Exploration Results and Mineral Resources is based on information compiled by Chris
Cairns, Managing Director, who has sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Chris Cairns is a member of The
Australasian Institute of Geoscientists and consents to the inclusion in the report of the matters based on the information in the form
and context in which it appears.
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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
ASX RELEASE 8th March 2010
Figure 1 C Integra Tenement Location Plan
Majestic
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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
ASX RELEASE 8th March 2010
Figure 2 C Majestic Prospect Geology Plan
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5
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
ASX RELEASE 8th March 2010
Figure 3 C Majestic Prospect Drill Collar Plan with Bedrock Gram Metres Gold Contours
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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
ASX RELEASE 8th March 2010
Figure 4 C Majestic Prospect Section A C A
Figure 5 C Majestic Prospect Section B C B