Integra Completes Pre-Feasibility Study FOR Delamar Project with Average Annual Production of 163,000 OZ Au Eq FOR the First 8 Yrs, and Demonstrates Project Optionality with Phased Development Approach
1 Gold equivalent = oz Au + (oz Ag ÷ 79.07)
1050 – 400 Burrard Street
Vancouver, British Columbia, Canada
V6C 3A6
Email: [email protected]
FOR IMMEDIATE RELEASE TSXV: ITR ; NYSE American: ITRG
February 9, 2022 www.integraresources.com
INTEGRA COMPLETES PRE-FEASIBILITY STUDY FOR DELAMAR PROJECT WITH AVERAGE ANNUAL
PRODUCTION OF 163,000 OZ AU EQ FOR THE FIRST 8 YRS, AND DEMONSTRATES PROJECT
OPTIONALITY WITH PHASED DEVELOPMENT APPROACH
Key Pre-feasibility Study (“PFS”) Highlights:
• The Heap Leach and Mill PFS shows construction in two stages. The combined Stage 1 and 2
contemplates a 35,000 metric tonnes per day (“mtpd”) Heap Leach in Stage 1 that will process Oxide
and Mixed ore from both the DeLamar and Florida Mountain Deposits, and a 6,000 mtpd Mill to be
constructed in Stage 2 to process Non-Oxide ore:
o Heap Leach and Mill PFS after-tax NPV (5%) of US$412 million and 27% after-tax IRR at
US$1,700/ounce (“oz”) Gold (“Au”) and US$21.50/oz Silver (“Ag”) (base case).
o Heap Leach and Mill PFS after-tax NPV(5%) of US$539 million and 33% after-tax IRR at Spot Prices
(February 8, 2022) of US$1,826 /oz Au and US$23.00/oz Ag.
o Pre-production capital expenditures (“Capex”) of US$282 million, including contingency of 20%
on processing, heap leach and tailing facilities (excluding working capital and assuming mobile
mining equipment financing).
o Average annual production of 163,000 oz gold equivalent (“AuEq”)1 for first 8 years with Life of
Mine (“LOM”) average annual production of 110,000 oz Au Eq over 16 years.
o LOM site level all-in sustaining costs of (“AISC”) of US$955/oz on an AuEq co-product basis.
o Strong leverage to silver; silver accounts for ~35% of revenue from production.
o Proven and Probable Mineral Reserves of 1.8 M oz Au (at 0.45 g/t Au) and 92.4 M oz Ag (at
23.27 g/t Ag).
o Total LOM Strip Ratio (waste to ore) of 2.21.
o Mill construction will commence in Year 1 at the discretion of the Company and is expected to
be financed with internal cash flows. Mill construction in Stage 2 can be pushed out as
necessary.
• Stage 1 He ap Leach Only: The Company contemplates beginning the project with Stage 1 Heap
Leaching in year 1. Stage 1 includes a 35,000 mtpd Heap Leach of Oxide and Mixed ore. Stage 1 will
permit Integra to commence development and operation of the project at lower cash costs and give
the Company flexibility to proceed or not proceed with Stage 2 in year 1 . Stage 1 offers a robust
production profile while requiring significantly lower expansion capital than a combined Heap Leach
and Milling development:
o Heap Leach Only (Stage 1) pre-production Capex of US$273 million (excluding working capital
and assuming mobile mining equipment financing).
o LOM site level AISC of US$813 /oz on an AuEq co-product basis
o Average annual production of 136,000 oz AuEq over 7 years
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o Total LOM Strip Ratio (waste to ore): 1.35
• Integra believes that a two -stage development reduces risk because of the greater flexibility to
respond to the prevailing economic environment in connection with a decision to pursue Stage 2.
• The PFS includes multiple sustainability-driven initiatives to decrease the environmental footprint of
the Project, including:
o Railveyor: The Project’s ore haulage system will utilize Railveyor’s light rail system to haul
material between various pits and the processing location, replacing the equivalent of
approximately 5 diesel haul trucks. Powered electrically, Railveyor will decrease the Project’s
diesel usage and associated direct (Scope 1) greenhouse gas emissions. Downhill portions of the
haul will generate power regeneratively, and ancillary benefits will include re duced noise and
dust levels, and reduced water consumption for dust mitigation.
o Power Generation: The Company plans to power the Project through an onsite microgrid. A 12-
megawatt (“MW”) solar array will be installed on the historic tailing impoundment in conjunction
with 4.5 MW-hours of batteries and a Liquified Natural Gas (“LNG”) power generation plant to
be constructed on site , leased from, and maintained by a third-party provider through a long-
term use- based lease agreement. Greenhouse gas emissions from this energy mix will be an
estimated 13% lower than the current local utility grid mix. The microgrid levelized cost of energy
(“LCOE”) is 63% lower than the local electric utility.
o The incorporation of these plans is not only crucial to lowering the Project’s greenhouse gas
emissions, but they also importantly drive stronger economics for the Project, demonstrating
how mining projects can benefit economically from taking steps towards sustainability.
• To view a 3D VRIFY presentation of the PFS results, click on the following link:
https://vrify.com/decks/10989?auth=74c8f3c4-fa11-4e7a-ab09-ccab72b99a5e
• To view a video of President and CEO George Salamis discussing the PFS, click on the following link:
https://www.youtube.com/watch?v=2xJATH9niCc
Vancouver, British Columbia – Integra Resources Corp. (“Integra” or the “Company”) (TSX-V: ITR; NYSE
American: ITRG) is pleased to announce the results of the Pre -feasibility Study (“PFS”) and Mineral
Resource and Reserve Statement on its 100% owned DeLamar Project completed by Mine Development
Associates, a division of RESPEC of Reno, Nevada, supported by M3 Engineering & Technology Corporation
of Chandler, Arizona, McClelland Laboratories, Welsh Hagen Associates, and EM Strategies, a WestLand
Resources, Inc, Company, all of Reno, Nevada, Warm Springs Consulting, LLC of Boise, Idaho, and Elbow
Creek Engineering of Billings, Montana, for the DeLamar Project (“DeLamar” or the “Project”) located in
southwestern Idaho.
George Salamis, Integra Res ources President and CEO reports: “The completion of the DeL amar Pre -
feasibility study is a crowning achievement for the C ompany, representing the culmination of two years
of work by the Integra team and its various consultants. Following on from the succe ss of the 2019
preliminary economic assessment, this PFS is a materially different and larger scale Project, both in Heap
Leaching and Milling, relative to the PEA. Despite inflationary pressure currently overhanging the mining
industry from a capital and operating cost perspective, the Project continues to demonstrate strong
positive economics and a high degree of optionality in terms of the scale, mining/processing scope and
capital cost of gold/silver mines to be built at the Project. The two-stage Project contemplates a larger
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scale open pit mining scenario that combines Heap Leaching and Milling to achieve an average production
level of 163,000 AuEq ozs per annum for the first 8 years, a mine life of 1 6 years, life of mine site level
AISC of $955/oz (co-product basis) and with a clear path to future Non -Oxide processing enhancements
and resource growth upside.” Mr. Salamis continues, “ the staged approach to development also means
that the Company starts production with Heap Leach only that can be developed with far lower capital
and operating cost requirements, capable of producing an average of 136,000 AuEq ozs per annum at a
site level AISC $813/oz (co-product basis). We believe that in an inflationary environment, such as the one
that our shareholders and stakeholders are currently experiencing, having a multi- phase development
stage is critically important, and demonstrates maximum flexibility and transparency. This study also
outlines the potential for significant upside opportunities at the DeLamar Project, including increased gold
and silver recoveries in the Non-Oxide ore through the use of Albion processing methods, a process that
has much lower capital costs than traditional Oxidation plants and has yielded promising results in recent
test work. Additionally, this study does not incorporate any of the high-grade gold-silver potential below
the Florida Mountain resource envelope.”
Integra will host a call on February 10, 2022, at 8am PST/11am EST. To register for the webinar, click on
the following link: https://us02web.zoom.us/webinar/register/WN_VUvizkuaSlykvDQGzaSWaQ
1. DeLamar Project Global (DeLamar + Florida Mountain) Gold and Silver Reserves
Mineral Resources
Table 1 shows the updated Mineral Resource estimate included in the PFS.
Table 1: Mineral Resource Estimate
Notes:
(1) All estimates of Mineral Resources have been prepared in accordance with NI 43-101.
(2) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
(3) Mineral Resources are reported inclusive of Mineral Reserves.
(4) Michael Gustin, MDA a division of RESPEC of Reno, Nevada, is a Qualified Person as defined in NI 43-101, is responsible for reporting
Mineral Resources for the DeLamar Project. Mr. Gustin is independent of the Company.
(5) The DeLamar and Florida Mountain Deposit Mineral Resources have been constrained to lie within optimized pit shells created using
metal prices of US$1,800/ounce of gold and US $21/ounce of silver.
- 4 -
(6) Oxidize and Mixed Mineral Resources are reported at a 0.17 g AuEq/t cut-off in consideration of potential open-pit mining and Heap
Leach processing. Non-Oxide Mineral Resources are reported at a 0.3 g AuEq/t cut-off at DeLamar in consideration of potential open
pit mining and grinding, flotation, ultra -fine regrind of concentrates, and Albion cyanide- leach processing of the reground
concentrates. Non-Oxide Mineral Resources at Florida Mountain are reported at a 0.2 g AuEq/t cut -off in consideration of potential
open pit mining and grinding, flotation, ultra-fine regrind of concentrates, and agitated cyanide-leaching for the Non-Oxide materials.
(7) Additional inputs for the pit -optimizations include: Mining - US$2.20/tonne mined; Heap Leaching - US$2.75/t for Oxide materials,
US$3.75/t for Mixed materials at DeLamar and US$3.50/t at Florida Mountain; Non- Oxide Processing - US$15.65/t at DeLamar and
US$9.45/t at Florida Mountain; G&A - US$0.40/t processed by Heap Leaching and $0.50/t for processing of Non-Oxide materials; Heap
Leach Gold Recoveries – 85% / 45% for Au / Ag Oxide and 80% / 40% for Mixed at DeLamar, 90% / 65% for Au / Ag Oxide and 85% /
55% for Mixed at Florida Mountain; and Non Oxide Recoveries - 78% / 78% for Au / Ag at Glen Silver area of DeLamar, 87% / 87% for
all other DeLamar areas, and 95% / 92% for Au / Ag at Florida Mountain.
(8) Gold equivalent grades are calculated using the formula g/t AuEq = g/t Au + (g/t Ag/Factor), with the factor reflecting the meta l
recoveries by oxidation and metal prices provided above. The gold equivalen t grades were used solely in the application of the
resource cut-offs.
(9) The effective date of the Mineral Resource estimate is March 1, 2021.
(10) Rounding as required by reporting guidelines may result in apparent discrepancies between tonnes, grades, and contained metal
content.
(11) The estimate of Mineral Resources may be materially affected by geology, environment, permitting, legal, title, taxation, sociopolitical,
marketing, or other relevant issues.
Mineral Reserves
Table 3 shows the proven and probable reserves for both Heap L each and M ill ore by deposit. The
reserves were estimated using block value calculated based on metal price and recoveries by area and
oxidation. The cost to process the material was then used as a cut- off grade. The metal prices used to
calculate the block values were $1,600 per ounce gold and $21.00 per ounce silver, though the final cash-
flow model used $1,700 per ounce gold and $21.50 per ounce silver. The block value calculation equation
is shown in Equation 1 in the footnotes. The block value was calculated for both gold and silver and then
each was added together to provide an overall value for each block.
Recoveries used for the block value calculations are shown in Table 2 and were provided by Jack
McPartland a member of MMSA, with a special expertise in metallurgy/process ing, of McClelland
Laboratories of Reno, Nevada. The recoveries for Florida Mountain Non-Oxide material used grade
dependent equations shown in Equations 2 and 3 in the footnotes for gold and silver respectively.
Table 2 – Reserve Gold and Silver Recoveries
T
able 3: Mineral Reserves
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Notes:
(1) All estimates of Mineral Reserves have been prepared in accordance with National Instrument 43 - 101 – Standards of Disclosure for
Mineral Projects (“NI 43-101”).
(2) Thomas L. Dyer, PE, MDA a division of RESPEC of Reno, Nevada, is a Qualified Person as defined in NI 43-101, is responsible for reporting
Proven and Probable Mineral Reserves for the DeLamar Project. Mr. Dyer is independent of the Company.
(3) Mineral Reserves are based on prices of $1,650 per ounce Au and $21.00 per ounce Ag. The reserves were defined based on pit designs
that were created to follow optimized pit shells created in Whittle. Pit designs followed pit slow recommendations provided by RESPEC.
(4) Reserves are reported using block value cut-off grades representing the cost of processing:
Florida Mountain Oxide Leach cut-off grade of used is $3.55/t.
Florida Mountain Mixed Leach cut-off grade of used is $4.20/t.
Florida Mountain Non-Oxide Mill cut-off grade of used is $10.35/t.
DeLamar Oxide Leach cut-off grade of used is $3.65/t
DeLamar Mixed Leach cut-off grade of used is $4.65/t.
DeLamar Non-Oxide Mill cut-off grade of used is $15.00/t.
(5) The Mineral Reserves point of reference is the point where is material is fed into the crusher.
(6) The effective date of the Mineral Reserves estimate is January 24, 2022.
(7) All ounces reported herein represent troy ounces; “g Au/t” represents grams of gold per tonne and “g Ag/t” represents grams of silver
per tonne.
(8) Columns may not sum due to rounding.
(9) The estimate of Mineral Reserves may be materially affected by geology, environment, permitting, legal, title, taxation, sociopolitical,
marketing, or other relevant issues
(10) Energy prices of US$2.50 per gallon of diesel and US$0.065 per kWh were used.
(11) Additional supporting details regarding the information in this news release will be provided in the pre-feasibility study to be available
on SEDAR within 45 days of this news release.
(12) Additional supporting details regarding the information in this news release will be provided in the pre-feasibility study to be available
on SEDAR within 45 days of this news release.
(13) Equation 1: Block value calculation:
(14) Equation 2: Florida Mountain Non-Oxide Gold Recovery (Where the maximum gold recovery = 87%)
(15) Equation 3: Florida Mountain Non-Oxide Silver Recovery (Where the maximum silver recovery = 77%)
Leach Mill Total
Florida Mountain Proven Probable P&P Proven Probable P&P Proven Probable P&P
K Tonnes 5,789 39,919 45,708 1,306 9,249 10,555 7,095 49,168 56,263
g Au/t 0.50 0.42 0.43 0.48 0.54 0.53 0.50 0.44 0.45
K Ozs Au 94 541 635 20 160 180 114 701 815
g Ag/t 16.02 10.73 11.40 12.24 12.27 12.26 15.32 11.02 11.56
K Ozs Ag 2,981 13,768 16,749 514 3,648 4,162 3,495 17,417 20,911
Block Value 24.75$ 20.18$ 20.76$ 26.72$ 29.37$ 29.04$ 25.12 21.91 22.31$
DeLamar Deposit
K Tonnes 5,247 41,285 46,533 6,016 14,672 20,688 11,263 55,958 67,221
g Au/t 0.41 0.35 0.36 0.69 0.63 0.65 0.56 0.43 0.45
K Ozs Au 69 471 540 133 299 432 202 770 972
g Ag/t 31.24 22.07 23.10 62.03 52.86 55.52 47.69 30.14 33.08
K Ozs Ag 5,270 29,290 34,560 11,998 24,934 36,931 17,268 54,223 71,491
Block Value 19.83$ 16.19$ 16.60$ 42.07$ 36.62$ 38.20$ 31.71 21.54 23.25$
Total DeLamar Project
K Tonnes 11,036 81,205 92,241 7,321 23,921 31,243 18,358 105,126 123,483
g Au/t 0.46 0.39 0.40 0.65 0.60 0.61 0.54 0.44 0.45
K Ozs Au 163 1,012 1,175 153 459 612 316 1,471 1,787
g Ag/t 23.25 16.49 17.30 53.15 37.16 40.91 35.18 21.20 23.27
K Ozs Ag 8,251 43,058 51,310 12,511 28,582 41,093 20,763 71,640 92,403
Block Value 22.41 18.15 18.66$ 39.33 33.81 35.11$ 29.16 21.71 22.82$
𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵𝐵 = 𝑀𝑀𝐵𝐵𝑀𝑀𝐵𝐵𝐵𝐵𝑔𝑔/𝑀𝑀 ∗ 𝑀𝑀𝐵𝐵𝑀𝑀𝐵𝐵𝐵𝐵𝑃𝑃𝑃𝑃𝑃𝑃𝐵𝐵𝐵𝐵
31.10348 ∗ 𝑀𝑀𝐵𝐵𝑀𝑀𝐵𝐵𝐵𝐵𝑅𝑅𝐵𝐵𝐵𝐵𝐵𝐵𝑅𝑅𝐵𝐵𝑃𝑃𝑅𝑅 ∗ (1 − 𝑃𝑃𝐵𝐵𝑅𝑅%)
- 6 -
The resources are supported by 258,318 meters of drilling, 131,271 meters at the DeLamar Deposit and
127,047 meters at the Florida Mountain Deposit. This drilling is a combination of historical drilling and
drilling completed by Integra Resources.
2. Stage 1 and 2 Development: PFS Overview - Heap Leach and Mill
The PFS contemplates an open pit mine with on-site treatment of Oxide and Mixed ores via a 35,000 mtpd
Heap Leach facility at 80% passing 12.7 mm (0.5 inch) , and treatment of a portion of the Non -Oxide
mineralization through a 6,000 mtpd Mill utilizing conventional grind, flot ation, re -grinding and
cyanidation of the concentrate. In year 1, Heap Leaching of Florida Mountain ore will commence, with
Mill construction beginning in year 1 and production starting in year 3 . In year 2, Oxide and Mixed ore
from the DeLamar Deposit will be mined with the Non-Oxide ore being accessed from the DeLamar and
Florida Mountain Deposits starting in year 3. In total, the Project will process 123,483,000 tonnes of ore
over a 16-year mine life producing 1,154,431 oz Au and 49,995,640 oz Ag (1,786,729 oz AuEq). The strip
ratio over LOM, waste-to-ore, is 2.21.
The PFS is derived from the Company’s pit -constrained Mineral Reserve estimate with an effective date
of January 24, 2022 and does not include results from drilling completed in 2021. The effective date of
the PFS is January 24, 2022 and a technical report will be filed on the Company’s website and SEDAR within
45 days of this news release.
DeLamar Project Heap Leach and Mill PFS Highlights:
• Year 1 to Year 8 average annual production of 121,000 0 oz Au and 3.3 million oz Ag (163,000 oz
AuEq).
• LOM (Year 1 to Year 16) average annual production of 71,000 oz Au and 3.1 million oz Ag
(110,000 oz AuEq).
• After-tax IRR of 27%.
• After-tax NPV (5%) of US$412 million.
• US$695 million after-tax LOM cumulative cash flow.
• 35,000 mtpd open pit/Heap Leach production rate with an initial mine life of 16 years, sourcing
Oxide and Mixed ore from both the Florida Mountain and DeLamar Deposits.
• 6,000 mtpd Mill, commencing in Year 3, primarily sourcing Non-Oxide ore from the Florida
Mountain Deposit and then from the DeLamar Deposit over a 15-year period.
• LOM site level AISC of US$547/oz net of silver by-product or US$955/oz on an Au Eq co-product
basis.
• LOM strip ratio of 2.21 (Waste: Ore).
• Low pre-production Capex of US$282 million (excluding working capital/bonding; assuming
mobile equipment financing).
• LOM capital expenditures (pre-production + expansion/sustaining capital) of US$576 million
• After-tax payback period of 3.3 years.
• Mill expansion capital expected to be financed with internal cash flows.
𝐴𝐴𝑔𝑔𝑃𝑃𝐵𝐵𝐵𝐵 = �
13.021∗ln �𝐴𝐴𝑔𝑔𝑔𝑔𝑃𝑃𝑔𝑔 �+48.447
100 � ∗ 0.88
- 7 -
Table 4: DeLamar Project Heap Leach and Mill PFS Detailed Assumptions:
Contained Metals
Contained Gold ounces (000's oz) 1,787
Contained Silver ounces (000's oz) 92,403
Contained AuEq ounces (000's oz) 2,955
Mining
Mine Life 16 years
Strip Ratio (Waste: Ore) 2.21
Total Tonnage Mined (000's mt) 396,701
Total Ore Mined (000's mt) 123,483
Processing
Processing Throughput: Heap-Leaching/Milling 35,000 mtpd / 6,000 mtpd
Average Diluted Gold Grade (g/t) - HL 0.40
Average Diluted Silver Grade (g/t) - HL 17.30
Average Diluted AuEq Grade (g/t) - HL 0.62
Average Diluted Gold Grade (g/t) - Milling 0.61
Average Diluted Silver Grade (g/t) - Milling 40.91
Average Diluted AuEq Grade (g/t) - Milling 1.13
Production
Heap Leach Recovery
Florida Heap Leach Recovery (%) - Gold 76%
DeLamar Heap Leach Recovery (%) - Gold 66%
Florida Heap Leach Recovery (%) - Silver 47%
DeLamar Heap Leach Recovery (%) - Silver 32%
Mill Recovery
Florida Mill Recovery (%) - Gold 83%
DeLamar Mill Recovery (%) - Gold 37%
Florida Mill Recovery (%) - Silver 72%
DeLamar Mill Recovery (%) - Silver 75%
Payable Metals
LOM Payable Gold ounces (000's oz) 1,149
LOM Payable Silver ounces (000's oz) 49,746
LOM Payable AuEq ounces (000's oz) 1,778
Years 1-8 Avg Annual Production - Gold (000's oz) 121
Years 1-8 Avg Annual Production - Silver (000's oz) 3,312
Years 1-8 Avg Annual Production - AuEq (000's oz) 163
Years 1-16 Avg. Annual Production - Gold (000's oz) 71
Years 1-16 Avg. Annual Production - Silver (000's oz) 3,085
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Years 1-16 Avg. Annual Production - AuEq (000's oz) 110
Costs per Tonne
Mining Costs ($/t mined) $1.89
Mining Costs ($/t processed) $6.08
Processing Costs ($/t heap leached) – HL $3.74
Processing Costs ($/t milled) – Milling $12.57
Processing Costs ($/t processed) – Combined $5.99
G&A Costs ($/t processed) $0.86
Total Site Operating Cost ($/t processed) $12.92
Cash Costs1
LOM Cash Cost ($/oz) Au, net-of-silver by-product $497
LOM Cash Cost ($/oz) AuEq, co-product $923
LOM Site Level AISC ($/oz) Au, net-of-silver by-product $547
LOM Site Level AISC ($/oz) AuEq, co-product $955
Capital Expenditures
Initial Capital Expenditures ($ MM)2 $281.9
Working Capital / Reclamation Bond ($ MM)3 $25.6
Non-Ox Mill (Plant & Tailing LOM) ($ MM) $194.6
Other Sustaining Capex / Equipment Financing Pmts ($ MM) $99.9
Reclamation Cost ($ MM) $30.8
Salvage Value ($ MM) ($23.7)
Economic Assumptions
Gold Price $1,700
Silver Price $21.50
Exchange Rate (US$/C$) 1.25
Economics4
After-Tax IRR 27%
NPV (5%) (US$ million) $412.3
NPV (5%) (C$ million) $515.4
Payback period 3.33
Average Annual net free cash flow (US$ million) $60.2
LOM net after-tax free cash flow (US$ million) $695.0
Notes:
(1) Cash costs and AISC are non-GAAP measures. See reference below regarding non-GAAP measures.
(2) Assumes equipment financing for primary equipment only (10% cash deposit)
(3) Working capital and reclamation bonding returned in year 17. Reclamation bond assumes 20% cash collateral.
(4) Free cash flow is a non-GAAP measure. See references below regarding non-GAAP measures.