IGR 0.00% 50.0¢ integra mining limited

randalls ore reserves increased to 510,000

  1. 3,559 Posts.
    RANDALLS GOLD PROJECT ORE RESERVES INCREASED TO 510,000
    OUNCES FROM OPEN PITS ONLY.

    115,000 OUNCES ADDED TO ORE RESERVES – YET TO INCLUDE ANY UNDERGROUND ORE RESERVES OR THE RECENT IMPERIAL DISCOVERY

    Integra Mining Limited (ASX:IGR, Integra) is pleased to report that its annual update has resulted in an open pit Ore Reserve estimate of 7.1 million tonnes at 2.3 g/t gold for a contained 510,000 ounces (Table1).

    At a 1.2 million tonne per annum processing rate from open pit sources only, the Randalls Gold Project now has a six-year mine life.

    The current Ore Reserve estimate does not include any underground Ore Reserves.

    Trial mining at the Cock-eyed Bob gold deposit, the first of three potential underground mines, is progressing well with aparcel of 40,000 tonnes of material expected to be processed in October.

    If, as Integra expects, the underground mining trial is successful, mining would continue at Cock-eyed Bob and development would commence on the second underground mine at the Santa gold deposit.

    Once an underground production history has been
    demonstrated for the respective undergrounds, Integra intends to incorporate underground Ore Reserves into the Randalls Gold Project total Ore Reserves.

    Once open pit mining is completed at the Maxwells gold deposit, Integra intends to develop underground access from the base of the completed open pit for a third underground mine.

    Ultimately, it is expected that the combined underground production could provide half of the current process facility feed, thereby doubling the remaining open pit Ore Reserve life.

    Also not yet included in the Ore Reserve update is the high-grade Imperial discovery. It is expected that an
    initial Mineral Resource and Ore Reserve for Imperial will be available at the end of this year.

    Additionally,the Fingalls oxide open pit is likely to come into Ore Reserves next year.

    Integra had initially developed the Randalls Gold Project with an Ore Reserve of 300,000 ounces of gold Ore Reserves
    from two open pits.

    Despite the modest Ore Reserve, at a $1250/ounce gold price, the project had an IRR of 74%. It was Integra’s stated intention that additional deposits would be progressively added to the production profile over time funded by project cashflow rather than using shareholders funds predevelopment.

    This strategy has resulted in two consecutive Ore Reserve upgrades with further guidance to maintain this trajectory with the expected additions of the Imperial and Fingalls open pits.

    The additionalpotential for long-life and substantial additions from underground sources is being actively pursued.

    The global Mineral Resources estimate for the Aldiss and Randalls Gold Projects now stands at 27 million tonnes at 2.4g/t gold for a contained 2.1 million ounces (Table 2). The Mineral Resources likewise do not include the recent Imperial discovery.

    Since the last Mineral Resources estimate, Integra has been focused on improving the confidence in the
    estimate with the high confidence Measured category increasing 377%, the Indicated category increasing
    8% and the lower confidence Inferred category reducing 56%.

    Aside from Mineral Resources classification changes reflecting significantly higher levels of confidence in
    the estimates, other changes include mining depletion of 130,000 ounces, a reduction of some 170,000 ounces of lower confidence Inferred Resources from the Santa Area deposits and an adjustment forIntegra’s 85% equity interest in the Majestic gold deposit that was not properly accounted for in the earlier estimate.
 
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