Integra Resources posts positive Wildcat, Mountain View PEAs, Nevada

Integra Resources Corp. [ITR-TSXV; ITRG-NYSE American] reported results for the maiden preliminary economic assessment (PEA) and updated resource estimate for each of the Wildcat project and Mountain View project located in western Nevada.

The PEA demonstrates the potential for a low-cost, high-margin, heap leach gold-silver operation with a phased development and production strategy, and robust economics. The average annual production of Wildcat and Mountain View, and the DeLamar project, on a combined basis is expected to exceed 200,000 ounces of gold equivalent (AuEq), demonstrating one of the largest heap leach production profiles among precious metal developers in the Great basin.

Wildcat and Mountain View PEA highlights: After-tax net present value (NPV) at a 5% discount of US$309.6-million (CDN$408.6-million) and 36.9% after-tax internal rate of return (IRR) using base-case metal prices of US$1,700/oz gold (Au) and US$21.50/oz silver (Ag).

After-tax NPV (5% discount) of US$442.1-million (CDN$583.6-million) and 49.7% after-tax IRR using spot metal prices on June 27, 2023, of US$1,920/oz Au and US$22/oz Ag.

Wildcat and Mountain View generate combined annual production of approximately 94,000 oz AuEq from year 1 to year 5, with average annual production of 80,000 oz AuEq over the 13 year life-of-mine (LOM).

LOM payable metals from Wildcat and Mountain View of 1,043,000 oz AuEq. LOM site-level cash costs of US$882/oz AuEq on a co-product basis and LOM site-level all-in sustaining cash costs (AISC) of US$973/oz AuEq on a co-product basis.

Year 1 initial capex (capital expenditures) of US$115-million to begin operations at Wildcat. Average Au recovery of 71.4% at Wildcat and 77.1% at Mountain View. Low combined LOM strip ratio of 1.21 (Wildcat stand-alone strip ratio of 0.28).

Total net free cash flow generated of $485-million (U.S.) over the LOM with average net annual free cash flow of zUS$46-million from year 1 to year 13.

The updated mineral resource estimate at Wildcat and Mountain View demonstrates growth of +23% and +49%, respectively, compared with the previous mineral resource estimates dated November, 2020: 2021 to 2022 drilling at Wildcat and Mountain View allowed the company to convert the majority of the previous resource estimate from the inferred category to the indicated (measured and indicated (M&I)) category: Wildcat project: 746,000 oz Au and 6,438,000 oz Ag (829,000 oz AuEq) in M&I (59,872,806 tonnes at 0.39 g/t Au and 3.34 g/t Ag), and 210,000 oz Au and 1.98 million oz (Moz) Ag (235,000 oz AuEq) in inferred (22,455,848 tonnes at 0.29 g/t Au and 2.74 g/t Ag).

Mountain View project: 578,000 oz Au and 3,402,000 oz Ag (622,000 oz AuEq) in M&I (28,750,517 tonnes at 0.63 g/t Au and 3.68 g/t Ag) and 60,000 oz Au and 244,000 oz Ag (63,000 oz AuEq) in inferred (4,155,502 tonnes at 0.45 g/t Au and 1.83 g/t Ag).

The PEA results complement the 2022 prefeasibility study for the DeLamar project in southwestern Idaho, which demonstrated a base case after-tax NPV (5-per-cent discount) of $314-million (U.S.) and a 33-per-cent after-tax IRR.

Jason Kosec, president, CEO and director, commented: “The updated resource estimate and PEA for Wildcat and Mountain View demonstrate two high-margin, low-cost, heap leachable gold and silver deposits with a strong combined production profile, low preproduction capex and robust economics. The PEA strengthens Integra’s position in the Great basin as a multiasset developer with a pathway to become a 200,000 oz/year gold-silver producer. To date, the company has successfully defined a large resource base at Wildcat and Mountain View, despite being constrained to five acres of surface disturbance. The company has submitted an exploration plan of operations for both Wildcat and Mountain View to the Bureau of Land Management which, when received, will allow for significantly increased resource expansion drilling through planned step-out drill holes. Resource growth at Wildcat and Mountain View has the potential to further enhance the economics and mine life demonstrated in the PEA results announced today.”

George Salamis, executive chairman, added: “The PEA is the first major milestone following the successful merger of Integra and Millennial Precious Metals. The next major catalysts for the company includes an updated resource estimate for the DeLamar project that will incorporate gold-silver mineralized stockpile material drilled during the 2022 to 2023 winter field season, as well as the filing of the DeLamar mine plan of operations in Q4 of this year. The mine plan of operations represents a major milestone for the project and a significant step toward permitting and de-risking the DeLamar project.”

Based on the positive results of the PEA, Integra will continue to de-risk Wildcat and Mountain View through baseline and technical studies. Once the EPO is received, the company is expected to undertake an exploration drill program to grow the resource at the Wildcat and Mountain View.