Integra Resources Outlines Initial Resource Estimate for DeLamar Gold-Silver Project and Appoints Max Baker as Vice President Exploration
Integra Resources Outlines Initial Resource Estimate for
DeLamar Gold-Silver Project and Appoints Max Baker as Vice
President Exploration
TORONTO, Oct. 10, 2017 (GLOBE NEWSWIRE) -- Integra Resources Corp. (CSE:ITR) (the “Company”
or “Integra”) is pleased to announce that it has completed an initial resource estimate on the DeLamar Gold
and Silver Project ( “DeLamar”, the “Project”, or the “Property”) located in southwestern Idaho. This
announcement follows recent notice of the proposed transaction (the “Transaction”) whereby Integra has
agreed to acquire 100% of DeLamar from a wholly -owned subsidiary of Kinross Gold Corporation (TSX:K)
(“Kinross”). Key Transaction terms of the acquisition are outlined in Integra ’s news release dated
September 15, 2017. To view the Transaction news release, please click on the following link:
http://integraresources.com/17 -09-18.pdf
The Inferred resource is defined by 1,550 historical drill holes drilled to an average depth of only 120m and
delineates the remaining ‘open-pit’ oxide, partly oxidized and unoxidized mineralization at DeLamar, which is
hosted within felsic volcanics. The resource estimate incorporates roughly 143,000m of historic drilling into
the global resource for the Property. Resource work for DeLamar was completed by Mine Development
Associates ( “MDA”) of Reno, Nevada. A sensitivity analysis of the grade and tonnage relationships at a
variety of cut -off grades (pit constrained) is shown in Table 1 of this release. A final 43 -101 Technical
Report will be filed on SEDAR in the coming weeks.
Key Highlights:
Robust initial inferred resource for DeLamar:
• 0.3 g/t AuEq cut-off grade: 117,934,000 tonnes grading 0.41 g/t gold and 24.34 g/t
silver, for a total of 1,592,000 oz of gold and 91,876,000 oz of silver, or 2,673,000 oz
of gold equivalent (“AuEq”) averaging 0.7 g/t AuEq
• As demonstrated in the included sensitivity analysis below, increasing the AuEq
cut-off grade to 0.75 g/t results in the following changes to the grade and tonnes;
33,716,000 tonnes grading 0.69 g/t gold and 48.69 g/t silver, for a total of 735,000 oz
of gold and 52,747,000 oz of silver, or 1,356,000 oz of AuEq averaging 1.26 g/t AuEq
• Au Equivalent = Au g/t + (Ag g/t ÷ 85)
Project exhibits significant exploration upside, remaining open at depth, with limited
historical deep drilling below 250 meters. The limited deep drill hole data available
dating back to the early 1990’s includes intercepts which have intersected the
series of deeper high-grade veins, including:
• 105.4 g/t Au and 41.0 g/t Ag (105.9 g/ AuEq) over 10.7 metres;
• 10.1 g/t Au and 116.6 g/t Ag (11.5 g/t AuEq) over 18.3 metres;
• 10.1 g/t Au and 188.1 g/t Ag (12.3 g/t AuEq) over 18.3 metres
Excellent metallurgical gold-silver recoveries in historical conventional milling past
production, and column leach test work designed to approximate potential heap-
leaching, demonstrate the potential viability of both options for any future
development.
Introduction of Max Baker, Ph.D., appointed as VP Exploration: Reno-based, over
35 years exploration experience in Low Sulphidation Epithermal deposits,
previously worked with Newcrest Mining, Rennison Gold Fields and Mount Isa
Mines.
In concluding comments regarding the project, MDA reported, “Exploration potential for additional bulk -
tonnage mineralization on the DeLamar project appears to be significant. Essentially all of the modeled
mineralization is open at depth, and, considering the shallow extents of a high percentage of the historical
holes, the potential to expand mineralization that is potentially mineable by open -pit methods exists. ” In
reference to high -grade gold -silver at DeLamar, MDA stated, “In addition to the bulk -tonnage potential,
there is also strong potential for the discovery of high -grade vein-type mineralization similar to that mined in
the late 19th and early 20th centuries. MDA recommends further work to investigate the amenability to
Heap Leaching, concluding that, “It is possible that some portion of the current resources, perhaps a large
portion, could be amenable to heap -leach processing. ”
George Salamis, President and CEO commented: “With the maiden resource results in hand, we are
excited by both this significant initial inferred resource estimate on the property, and the scenario that has
been laid out for current and future shareholders. It is one that highlights significant potential for further
near surface bulk tonnage low -grade resources as well as the series of high grade veins inferred from
historic drill intercepts at deeper levels, to occur beneath the lower grade open -pit resource defined by
MDA. The DeLamar Project comprises a key land position within the greater DeLamar -Florida Mountain
district, which we believe hosts one of the largest gold -silver low sulphidation epithermal systems in the
Western US. From our analysis of the database, we can clearly see where exploration needs to focus to
test both the immediate extensions of low -grade near -surface gold -silver and deeper series of high -grade
gold-silver veins, on a project that has only been drilled to an average depth of 120m from surface. ” Mr.
Salamis added, “We are also very pleased to welcome Max Baker as Vice President of Exploration for
Integra Resources. Max ’s track -record of discovery, familiarity with deposits of this type, and more
specifically with the DeLamar deposit itself, make him the right choice to oversee exploration for Integra and
its shareholders."
Summary of the Initial Mineral Resource Estimate
Table 1. Sensitivity analysis of grade and tonnage at varying pit -constrained cut -off grades on
the DeLamar Project
1. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
2. Mineral Resources are comprised of all model blocks with gold -equivalent values greater than or equal
to 0.30 g/t that lie
within an optimized pit and below the as-mined surface.
Cutoff Tonnes g Au/t oz Au g Ag/t oz Ag g AuEq/oz Eq Au oz
0.30 117,934,000 0.41 1,592,000 24.34 91,876,000 0.7 2,673,000
0.40 94,172,000 0.48 1,418,000 27.77 84,395,000 0.81 2,411,000
0.50 71,060,000 0.51 1,200,000 32.57 74,805,000 0.89 2,080,000
0.60 51,818,000 0.58 981,000 38.74 64,691,000 1.04 1,742,000
0.70 37,637,000 0.65 791,000 45.94 55,666,000 1.19 1,446,000
0.75 33,716,000 0.69 735,000 48.69 52,747,000 1.26 1,356,000
1.00 16,028,000 0.89 451,000 69.26 35,770,000 1.7 872,000
3. Gold equivalent = g Au/t + (g Ag/t ÷ 85)
4. Rounding may result in apparent discrepancies between tonnes, grade, and contained metal content.
5. The estimate of mineral resources may be materially affected by geology, environment, permitting, legal,
title, taxation, socio-political, marketing or other relevant issues.
6. The effective date of the mineral resource estimate is October 1, 2017.
Key Resource Estimation Highlights
DeLamar project initial inferred resource: 0.3 g/t Au Equivalent Cut-Off: 117,934,000 tonnes
grading 0.41 g/t gold and 24.34 g/t Ag, for a total of 1,592,000 oz of gold and 91,876,000
oz of silver. In total, 2,673,000 oz of AuEq grading 0.7 g/t AuEq
At a 0.75 g/t Au Equivalent Cut-off: 33,716,000 tonnes grading 0.69 g/t gold and 735,000
oz of gold and 52,747,000 oz of silver ( 1,356,000 oz of AuEq grading 1.26 g/t AuEq)
The gold and silver mineral resources at DeLamar were modeled and estimated by:
• evaluating the drill data statistically;
• separately interpreting gold and silver mineral domains on sets of 320°-looking cross
sections spaced at 30.48-meter intervals;
• analyzing the modeled mineralization spatially and statistically to aid in the establishment of
estimation and classification parameters; and
• interpolating grades into a three-dimensional block model using the cross-sectional gold
and silver mineral domains to control the estimation
The reported resources have been constrained within an optimized pit shell using a gold
price of $US1,300/ounce and a silver price of $US18/ounce of silver. These metal prices
were also used to calculate gold equivalent cut-off grade and contained ounces
Additional inputs for pit-optimization include: Mining – $2.20/tonne mined, Milling –
$10.00/tonne milled, G&A – $4,000,000/yr, Tonnes per year processed – 4,760,000, Gold
Recovery – 95%, Silver Recovery – 80%
The resource estimate is based on 1,575 reverse circulation holes, conventional rotary
holes, and diamond core holes drilled from the mid 1970s to the early 1990s
The existing gold and silver resources, defined by the historic shallow drilling, are hosted in
Miocene-aged porphyritic rhyolite/latite volcanic flows that represents the upper part of a well
studied and recently re-interpreted low-sulphidation epithermal system
A technical report on the initial resource estimate will be prepared in accordance with
National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”)
and filed within 45 days of this news release on Integra’s issuer profile on SEDAR at
www.sedar.com
To view a plan map showing location of all zones on the Property, with the resource limit outlined, please
click the following link:
http://www.integraresources.com/assets/files/2017 -10-10-delamar-outline-site-map.pdf
To view an idealized cross section with geological and structural interpretation at DeLamar, please click the
following link:
http://www.integraresources.com/assets/files/2017 -10-10-delamar-cross-section.pdf
Focus of Future Drilling and Potential for Resource Expansion at DeLamar
Management’s analysis of the data used in the resource estimate supports the view that strong potential
exists for further resource expansion and new discoveries of low -grade and high -grade gold mineralization.
This view is underpinned by a myriad of apparent factors including: a) the lack of overall deeper drilling
(current average depth: 120m), b) the project was last drilled approximately 25 years ago and has not
seen any modern exploration techniques employed, and c) past exploration focus was solely on near
surface, bulk-tonnage low-grade mineralization despite the fact that the historical mining record at DeLamar
reported underground high grade mining of a series of moderate to steeply dipping veins with reported
gold-silver cut-offs above 15 g/t and average mined gold -silver contents sometimes in excess of 60 g/t.
With respect to this high -grade potential, numerous past near surface drill holes designed to test for low -
grade open -pitable material in fact pieced through the rhyolitic host rock and into underlying basalt units,
reporting high gold and silver grades within less than 200 meters of surface as seen in Table 2 below.
Table 2. Highlighted Drill Intercepts Below Current Mining Surface at the DeLamar Project
*Drill intercept lengths only are reported in the tabulations; it is estimated that true width will be
approximately 60% or less of the reported drill intercept length.
Assuming completion of the Transaction, the Company will use a significant portion of the proceeds on a
20,000 meter (predominantly RC) drill program, tentatively scheduled to commence in Q1 2018, aimed at
specifically targeting low -grade and high grade gold -silver mineralization on extension from previous drill
intercepts in areas such as Sommercamp, Sullivan Gulch, South Wahl, and elsewhere. In addition to
ground geophysical surveys, surface sampling, and reconnaissance work, Integra will conduct further
metallurgical test work on near surface, low -grade material designed to further highlight DeLamar ’s
potential amenability to Heap Leaching. Data from metallurgical Column Leach testing conducted on
neighbouring mineral claims in the past points to high gold leach extraction from oxidized and partially
oxidized mineralization and suggests that heap leaching of crushed and/or run of mine mineralization may
be a viable option to look at in future studies. Previous column leach test work conducted on surface
mineralization from these claims (presumably partially or fully oxidized) yielded recoveries of up to 85% gold
and 35% silver.
Assuming completion of the Transaction, planned extensive drilling campaigns and other technical studies
will form the basis of future periodical resource estimate updates and development analyses that the
company contemplates undertaking in the next 18 to 24 months at DeLamar. Given the past mining and
Hole_IDFrom (m) To (m) Interval* (m) Ag g/t Au g/t AuEq g/t Area
D387 82.296 85.344 3.0 972.9 0.4 11.8 DeLamar
SG39 149.352 160.02 10.7 41.0 105.4 105.9 Sullivan Gulch
OH1 28.956 47.244 18.3 116.6 10.1 11.5 Ohio
OH22 73.152 76.2 3.0 320.5 8.9 12.7 Ohio
OH34 67.056 73.152 6.1 631.3 8.5 15.9 Ohio
OH62 53.34 54.864 1.5 1493.9 1.7 19.3 Ohio
OH85 83.82 85.344 1.5 681.5 1.0 9.0 Ohio
R111 27.432 45.72 18.3 188.1 10.1 12.3 South Wahl
R112 25.908 35.052 9.1 204.9 10.9 13.3 South Wahl
R112 57.912 68.58 10.7 58.2 4.4 5.1 South Wahl
R119 25.908 33.528 7.6 108.3 4.9 6.2 South Wahl
R120 57.912 60.96 3.0 33.8 13.2 13.6 South Wahl
R147 62.484 77.724 15.2 124.5 7.4 8.9 South Wahl
R98 33.528 36.576 3.0 148.1 12.8 14.5 South Wahl
conventional milling history of the project with economic recoveries derived from oxide, transitional and
sulphide mineralization in the historical milling record and in test work, the company will undertake
additional technical studies on both conventional milling and heap leaching.
DeLamar Project Resource: History of the DeLamar Data
The DeLamar Mine closed in 1998 due to low precious metal prices (below US$300/oz Au) after producing
more than 1.6M oz of gold and 100M oz of silver within the district. Roughly half of the historic gold -silver
production was produced from the underground mining of a series of high -grade veins between the mid
1800s to early 1900s, in stopes mined at a cut -off of over 15 g/t Au. The remaining half of DeLamar ’s
historical production was derived from near -surface low -grade bulk -mining and conventional milling of
oxidized material and transitional mineralization which took place between 1977 and 1998. In 1998, as a
result of low precious metal prices, the DeLamar Project was placed on care and maintenance. No drilling
has been conducted on the Property since 1998 and substantial resources, as demonstrated in today ’s
news release, remain on the Project.
To view a DeLamar property location map, please click the following link:
http://www.integraresources.com/assets/files/2017 -10-10-delamar-location.pdf
The DeLamar Property is located in southwestern Idaho in Owyhee County, 80 kilometers southwest of the
city of Boise, just west of the historic mining town of Silver City. The Property constitutes roughly 5,300
acres of patented and unpatented claims, and a further 4,100 acres of leased lands. MDA ’s estimated
resource was constructed using approximately 1,550 drill holes and 143,660m of drilling, where average
drill hole depth was less than 120m, with only four holes deeper than 350m. This database was created by
MDA using original DeLamar mine digital database files obtained from the current mine site. The original
mine-site information was then subjected to various verification measures, the primary one consisting of
auditing of the digital data by comparing the drill -hole collar coordinates, hole orientations, and analytical
information in the MDA constructed database against historical paper records in the possession of Integra.
Geology and Mineralization of DeLamar
The DeLamar project is situated in the Owyhee Mountains near the east margin of the mid -Miocene
Columbia River – Steens flood basalt province and the west margin of the Snake River Plain. The Owyhee
Mountains comprise a major mid-Miocene eruptive center, generally composed of mid -Miocene basalt flows
and younger, mid -Miocene rhyolite flows, domes and tuffs, developed on an eroded surface of Late
Cretaceous granitic rocks.
The mine area and mineralized zones are situated within an arcuate, nearly circular array of overlapping
porphyritic and banded rhyolite flows and domes that overlie cogenetic, precursor pyroclastic deposits
erupted as local tuff rings. The porphyritic and banded rhyolite flows and domes were interpreted to have
been emplaced along a system of ring fractures developed above a shallow magma chamber that supplied
the erupted rhyolites. This magma chamber was inferred to have been intruded within a northwest flexure
of regional north -northwest trending Basin and Range faults, related to the North Nevada Rift.
Two styles of gold -silver mineralization have been recognized: 1) relatively continuous, quartz -filled fissure
veins that were the focus of late 19 th and early 20 th century underground high -grade gold -silver mining,
and 2) broader, bulk -mineable low-grade gold -silver zones of closely -spaced quartz veinlets and quartz -
cemented hydrothermal breccia veinlets. This second type of typically low -grade gold and silver
mineralization was bulk mined in the open pits of the late 20 th century DeLamar and Florida Mountain
operation, and was processed using conventional milling methods (crushing, gravity, agitated leach).
The gold and silver mineralization at the DeLamar project is best interpreted in the context of the volcanic -
hosted, low -sulfidation type of epithermal model. Various vein textures, mineralization and alteration
features, and the low contents of base metals in the district are typical of low -sulfidation epithermal deposits
world-wide.
Appointment of Max Baker as Vice -President Exploration
Integra Resources is very pleased to announce the appointment of E. Max Baker, Ph.D., as the company ’s
Vice President of Exploration. Max has led a 35 -year career in the field of mineral exploration world -wide,
and has been a key figure on many well -know resource discoveries. Max, based in Reno Nevada, holds a
Ph.D. degree in geology from James Cook University in Queensland, Australia. His career includes work
with Renison Goldfields, Mount Isa Mines, and Newcrest Mining, throughout regions including Australia,
Southeast Asia, South America, and Europe, following which he moved to North America to work on mineral
deposits in the Western US and Canada. Max has a specific wealth of experience with respect to DeLamar,
having worked as a consult to Kinross on the operation.
Details of the DeLamar and Florida Mountain Acquisition
On September 17, 2017, Integra announced that it will acquire 100% of the DeLamar Gold and Silver
Project from a wholly -owned subsidiary of Kinross for C$7.5 million in cash and the issuance of Integra
shares that is equal to 9.9% of all of the issued and outstanding Integra shares upon closing of the
Transaction. The DeLamar Project is subject to a retained variable net smelter return ( “NSR”) royalty
payable to Kinross. Concurrent to the DeLamar transaction, Integra has also signed binding letters of intent
(“LOIs”) with two private entities to acquire patented claims in the past -producing Florida Mountain area
(“Florida Mountain”), which borders DeLamar to the east.
To view the news release dated September 17, 2017, outing all details of the Transaction, please click on
the following link:
http://integraresources.com/17 -09-18.pdf
Qualified Person
Unless otherwise indicated, the scientific and technical information contained in this news release has been
reviewed and approved by E. Max Baker Ph.D. M. AustIMM, of Reno, Nevada who is a "qualified person"
within the meaning of National Instrument 43 -101 – Standards of Disclosure for Mineral Projects and is
independent of Integra.
About Integra Resources
Integra Resources Corp., formerly, Mag Copper, is a development -stage company engaged in the
acquisition, exploration and development of mineral properties in the Americas. The management team
comprises the former executive team from Integra Gold Corp.
ON BEHALF OF THE BOARD OF DIRECTORS
George Salamis
CEO & President
CONTACT INFORMATION
Corporate Inquiries: Chris Gordon, [email protected]
Or visit the company website: www.integraresources.com
82, Richmond St East, Suite 200
Toronto, Ontario, Canada
M5C 1P1
This news release contains "forward -looking information" and "forward -looking statements" (collectively,
"forward-looking statements") within the meaning of the applicable Canadian securities legislation. All
statements, other than statements of historical fact, are forward -looking statements and are based on
expectations, estimates and projections as at the date of this news release. Any statement that involves
discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions,
future events or performance (often but not always using phrases such as "expects", or "does not expect",
"is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates",
"believes" or "intends" or variations of such words and phrases or stating that certain actions, events or
results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of
historical fact and may be forward -looking statements. In this news release, forward -looking statements
relate, among other things, to: the completion of the Transaction and the acquisition of the Florida
Mountain claims; the anticipated benefits of the Transaction (including the acquisition of the Florida
Mountain claims and the Private Placement) to Integra and its shareholders; the timing and receipt of the
required stock exchange and regulatory approvals for the Transaction; the timing and ability of Integra to
satisfy the conditions precedent to completing the Transaction and the acquisition of the Florida Mountain
claims; completion of the Private Placement; anticipated use of proceeds from the Private Placement;
statements about the estimation of mineral resources; magnitude or quality of mineral deposits; anticipated
advancement of mineral properties or programs; future operations; future exploration prospects; the
completion and timing of mineral resource estimates; the length of the current market cycle and
requirements for an issuer to survive in the current market cycle; future growth potential of Integra; and
future development plans.
These forward-looking statements are based on reasonable assumptions and estimates of management of
Integra at the time such statements were made. Actual future results may differ materially as forward -
looking statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Integra to materially differ from any future results,
performance or achievements expressed or implied by such forward -looking statements. Such factors,
among other things, include: satisfaction or waiver of all applicable conditions to the completion of the
Transaction and the acquisition of the Florida Mountain claims (including receipt of all necessary stock
exchange and regulatory approvals or consents, and the absence of material changes with respect to the
parties and their respective businesses, all as more particularly set forth in the stock purchase agreement
relating to the Transaction which is available under the Company ’s issuer profile on SEDAR); possible
variations in mineralization, grade or recovery rates; actual results of current exploration activities; actual
results of reclamation activities; conclusions of future economic evaluations; ability to close the Private
Placement on the proposed terms or at all, the synergies expected from the Transaction and the
acquisition of the Florida Mountain claims not being realized; business integration risks; fluctuations in
general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward
prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as
the Canadian dollar to United States dollar exchange rate); change in national and local government,
legislation, taxation, controls, regulations and political or economic developments; risks and hazards
associated with the business of mineral exploration, development and mining (including environmental
hazards, industrial accidents, unusual or unexpected formations pressures, cave -ins and flooding); inability
to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may
impose restrictions on mining; employee relations; relationships with and claims by local communities and
indigenous populations; availability of increasing costs associated with mining inputs and labour; the
speculative nature of mineral exploration and development (including the risks of obtaining necessary
licenses, permits and approvals from government authorities); and title to properties. Although the forward -
looking statements contained in this news release are based upon what management of Integra believes,
or believed at the time, to be reasonable assumptions, Integra cannot assure its shareholders that actual
results will be consistent with such forward -looking statements, as there may be other factors that cause
results not to be as anticipated, estimated or intended.
Readers should not place undue reliance on the forward -looking statements and information contained in
this news release. Except as required by law, Integra assumes no obligation to update the forward -looking
statements of beliefs, opinions, projections, or other factors, should they change, except as required by
law.