production resumed

PRODUCTION RESUMED
Integra Mining Limited (ASX:IGR) advises that crushing activities at its Randalls Gold Project resumed late
Wednesday afternoon and milling recommenced shortly thereafter.

The operation will steadily ramp to full capacity over the next couple of days.

The crusher failure was caused by temporary low hydraulic pressure allowing the major internal components of the crusher to come into contact resulting in burning-out the bush connected to the main shaft. All damaged components have been replaced.

Additional measures have been implemented to ensure that the risk of further breakdowns are mitigated including:
• Increasing the minimum ‘gap’ between the major component – the bowl and cone – from 10mm to 12 mm, and
• Installing an automated hydraulic pressure monitoring system which will isolate the crusher if low hydraulic pressure occurs – further enhancements to this system are in-progress.

The Symons 7’ crushers used at the Randalls Gold Project are widely used throughout the mining and aggregate industries and are considered very robust pieces of equipment.

Integra expects the measures put into place should ensure reliable operation of the tertiary crusher and achievement of production guidance for FY2013.

Outlook
Due to the mechanical issues experienced during the quarter Integra expects to produce 12,000-13,000 ounces of gold at a cash cost of circa $1400 per ounce in the current June Quarter.

It is not expected that there will be any impact on future production and previous FY2013 guidance of 100,000 ounces at an average cash cost of production of $850 per ounce is maintained.

The higher costs are a function of scheduling as higher cost stockpile and production from the upper portions of the Maxwells open pit (higher strip ratio) are the main feed sources for the first three Quarters of FY2013.

Costs are expected to reduce to $750 per ounce towards the end of FY2013 as higher grade Majestic open pit production begins to contribute in May 2013.

Further, that order of cost should be maintained into FY2014 as higher grade open pits such as Lucky Bay and Imperial come into the production schedule.

The FY2013 guidance does not provide for any underground production beyond the current trial mining exercise at the Cock-eyed Bob gold deposit.

However, the trial mining is progressing very well and it is expected that a parcel of 40,000 tonnes of material will be batch treated in October and recovered gold
reconciled against forecast production.

If, as expected, the trial is successful, Board consent would be sought to continue underground production from Cock-eyed Bob and to commence underground development of the Santa gold deposit early in 2013.

Corporate
Integra’s current outstanding debt balance is $8.4 million, down from $11.2 million as at the end of the
March Quarter. Integra is in the process of replacing the project debt facility with a corporate facility of $20
million.

Credit approval has been received from Westpac for the corporate facility subject to the usual conditions.