Integra Resources Acquires 100% of the Empire Claim Group Within the Florida Mountain Gold-Silver Project, and Lists on the OTCQB
- 100% Interest: Integra acquires a 100% royalty-free interest in the Empire Claim Group encompassing the TradeDollar – Black Jack vein system, the major historic underground producer at the Florida Mountain Project, for USD $1.6 million
- Florida Mountain Project: Significant past producing mine hosting both high grade and low-grade gold-silver, situated 8.5 kilometers east by road of Integra’s DeLamar gold-silver deposit. Historical underground mines at Florida Mountain are estimated to have produced a total of 133,000 ounces of gold and 15.4 million ounces of silver from 1883 to 1910. Open-pit mining which closed in 1998 produced an additional 124,500 ounces of gold and 2.6 million ounces of silver from the Florida Mountain Project
- Significant Exploration Potential: Project exhibits significant exploration upside, remaining open at depth, with limited historical deep drilling below 150 meters. The limited deep drill hole data available dating back to the early 1990s includes intercepts which have intersected the series of deeper high-grade veins, including:
o Hole FT10: 45.72 m grading 1.99 g/t Au and 97.13 g/t Ag, including 3.05 m grading 14.05 g/t Au and 54.85 g/t Ag
o Hole F25: 6.1 m grading 17.76 g/t Au and 50.56 g/t Ag
o Hole F125: 19.81 m grading 12.83 g/t Au and 22.69 g/t Ag
o Hole F180: 1.52 m grading 27.77 g/t Au and 8.23 g/t Ag
- Positive Metallurgy: Excellent metallurgical gold-silver recoveries in historical conventional milling during past production, and column leach test work designed to approximate potential heap-leaching, collectively demonstrates the potential viability of both options for any future development
- NI 43-101 Resource Estimation: Study underway for the Florida Mountain Project
- OTCQB Listing: Integra commences trading in the United States on the OTCQB under the stock symbol IRRZF
VANCOUVER, British Colombia, Jan. 09, 2018 (GLOBE NEWSWIRE) — Integra Resources Corp. (TSX-V:ITR) (OTCQB:IRRZF) (the “Company” or “Integra”) is pleased to announce that it has acquired a 100% interest in the Empire Claim Group that covers over 95% of the past producing Florida Mountain gold-silver Project (“Florida Mountain Project” or “Florida Mountain”) for USD $1.6 million. Integra’s newly acquired interest is free of all royalties and other types of financial encumbrances.
George Salamis, President and CEO of Integra stated, “separated by only 8.5 kilometers, the addition of Florida Mountain to our DeLamar gold-silver Project is an excellent complement to our overall strategy of consolidating a highly prospective and under-explored gold-silver district in southwestern Idaho. As with DeLamar, we view there to be significant untested potential for both low-grade and high-grade gold-silver mineralization at Florida Mountain, given the limited shallow drilling that has been conducted in the past. We are particularly impressed with the demonstrated strike-length of the vein systems at Florida Mountain, some of which are in excess of 2 kilometers long, with historically referenced vein depths in excess of 300 meters that are fully open to testing at depth. The records from this project highlight that historically some of the highest grades of gold and silver in the district were mined from Florida Mountain and we look forward to testing this concept in future exploration programs.”
Under the terms of the agreement with the owner, Integra has acquired 36 patented mining claims totaling approximately 440 acres, covering approximately 95% of the surface expression of the past producing gold-silver project.
Integra’s Florida Mountain gold-silver Project is located in southwestern Idaho in Owyhee County, 150 kilometers southwest of the city of Boise, just west of the historic mining town of Silver City. Florida Mountain is situated 8.5 kilometers east of the Company’s DeLamar gold-silver Project, which was the subject of announcements in October and November of 2017 (to view the DeLamar Acquisition press release click here: https://integraresources.com/site/assets/files/2405/17-09-18.pdf ). The two projects are connected by an all-weather haulage road that was used in the 1990s for production purposes.
Over 1,000 drill holes define the current extents of oxide mineralization that was the focus of mining by Kinross in the 1990s, but was shut down due to low gold and silver prices. Furthermore, as is the case at DeLamar, the past drilling conducted at Florida Mountain was very shallow (less than 150 m depth on average) and in some cases intersected high grade gold-silver vein mineralization, in addition to bulk-low grade intercepts (see Table 1 below).
Table 1. Highlighted Drill Intercepts Below Current Mining Surface at the Florida Mountain Project
|To (m)||Thickness (m)||Au
* The historic drill data reported in this release was developed by previous operators of the Florida Mountain Project prior to the introduction of NI43-101. Historic drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are estimated to be less than 75% of the reported widths. The historic drill data was sourced from Kinross/Nerco DeLamar Mine exploration and production data and reports. Integra Resources is providing this historic data for informational purposes only, and gives no assurance as to its reliability or relevance. Integra Resources has not completed any quality assurance program or applied quality control measures to the historic data. Accordingly, the historic data should not be relied upon.
History of Florida Mountain Project
Florida Mountain was historically mined during two distinct phases, the first as undergound mining during the late 18th and early 19th centuries, and more recently by Kinross in the 1990’s. As stated in the company’s recent NI 43-101 report by Mine Development Associates (“MDA”) (to view full NI 43-101 Resource Estimation report click here: https://integraresources.com/site/assets/files/2407/17-10-10-nr.pdf), historical underground mining at Florida Mountain is estimated to have produced a total of 133,000 ounces of high-grade gold and 15.4 million ounces of high-grade silver from 1883 to 1910 (Bonnichsen et al. undated, cited in Gierzycki 2004a). Historical records from these historical mining operations document that stopes were mined at cut-offs of over 15 g/t Au, many of which reported average grades in excess of 30 g/t Au.
More recent mining activity at Florida Mountain commenced in the 1970s and continued through to 1994 when Kinross commenced open-pit mining. Material was mined from three areas near the crest of Florida Mountain, named the Tip Top, Stone Cabin, and Blackjack open pits as shown in the following link ( https://www.integraresources.com/site/assets/files/2468/2018-02-09-nrm1-itr.pdf ). The mineralized material from Florida Mountain, which was mined through 1998, was hauled 8.5 kilometers and processed at the DeLamar Mine’s milling complex. Gierzycki (2004) estimated that 124,500 ounces of gold and 2.6 million ounces of silver were produced from Florida Mountain through to the end of mining in 1998 during the Kinross era. In 1998, as a result of low precious metal prices, the Florida Mountain Project, as an extension of the DeLamar Project was placed on care and maintenance and since then, the site of former open pit mining has been fully reclaimed. No drilling has been conducted on the property since the mid 1990s.
Geology and Mineralization of the Florida Mountain Project
As a well-known low-sulphidation gold-silver epithermal system, the geology of the Florida Mountain Project is generally similar to that of the DeLamar Project with the important exception that the Late Cretaceous Silver City granite crops out on the flanks of Florida Mountain and was extensively penetrated by workings of the historic underground mines. Field relations demonstrate the lower basalt flows partially buried an erosional, paleo-topographic high of Silver City granite. Surface exposures and maps of the underground workings, as well as early drilling at Florida Mountain, led Lindberg (1985) to infer the granite forms a northeast-trending ridge beneath a relatively thin capping of quartz latite, tuff breccia, and one or more flows of rhyolite. As at the DeLamar area, both fissure veins and the bulk-mineable type of mineralization are present at Florida Mountain and have contributed to past gold and silver production.
Florida Mountain Metallurgy
During the 1980s, NERCO conducted extensive column-leach and agitation-leach tests on samples of mineralized drill core from the Sullivan, Stone Cabin, and Clarke areas of Florida Mountain (Statter, 1989). The results of the column-leach tests, which were run for approximately 60 days, are summarized in Table 17.2.of the DeLamar 43-101 report (to view full 43-101 Resource Estimation report click here: (https://integraresources.com/site/assets/files/2407/17-10-10-nr.pdf ). As indicated in the report, gold and silver recoveries in these tests ranged from 52% to 95% for gold, and 32% to 54% for silver on crush fractions ranging from 0.25 to 2 inches, indicating potential amenability of Florida Mountain mineralization to future low cost heap-leaching methods.
Integra plans on conducting further metallurgical test work on Florida Mountain mineralization in the future.
Next Steps: NI 43-101 Update and Resource Estimate
Florida Mountain hosts a significant drill database consisting of over 1050 holes, primarily drilled by Kinross and Nerco to define open pitable oxide mineralization.
Mine Development Associates (“MDA”) based in Reno, Nevada, has been engaged to conduct a NI 43-101 resource estimate on the Florida Mountain gold-silver Project. The resource estimate will be released in the coming months and will provide recommendations for future field work and drilling.
Commencement of Trading on the OTCQB Exchange in the United States
Integra is pleased to announce that the Company’s common shares have commenced trading in the United States on the OTCQB under the symbol “IRRZF”. The OTCQB is a premier marketplace on OTC Markets Group’s highly visible electronic trading venue in the U.S. and the OTCQB International tier is designed for non-U.S. companies listed on qualified international stock exchanges.
Dorsey & Whitney LLP served as Integra’s Sponsor on the OTCQB admission process, responsible for providing guidance on OTCQB requirements and U.S. securities laws.
The scientific and technical information contained in this news release has been reviewed and approved by Gary Edmondo of Reno, Nevada, who serves as Integra’s Chief Geologist, and is a “qualified person” within the meaning of National Instrument 43- 101 – Standards of Disclosure for Mineral Projects.
About Integra Resources
Integra Resources Corp., formerly, Mag Copper Limited, is a development-stage company engaged in the acquisition, exploration and development of mineral properties in the Americas. Its flagship asset, the DeLamar Gold and Silver project, lies in the heart of the historic Owyhee County mining district in south western Idaho. The management team comprises the former executive team from Integra Gold Corp.
A maiden inferred resource for DeLamar was made public by Integra on October 10th, 2017 (see https://integraresources.com/site/assets/files/2407/17-10-10-nr.pdf ). At a 0.3 g/t AuEq cut-off grade, a resource of 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. The AuEq grade has been estimated using an Au Equivalent = Au g/t + (Ag g/t ÷ 85).
ON BEHALF OF THE BOARD OF DIRECTORS
CEO & President
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.