Integra Gold Corp. is pleased to announce that it has received the Estimate of Resources and Modeling of the Triangle Sector report for the Triangle Zone portion of the Lamaque Gold Project located in Val d'Or, Quebec. The addition of the Triangle Zone resource estimate to the existing resources as published on June 23, 2011, has increased the total resource at Lamaque to 518,643 ounces inferred and 162,962 ounces indicated; an enhancement of 40%.
The addition of high-grade ounces into our Lamaque resource estimate is an exciting milestone for Integra as it not only increases the overall value of the project, but also has the potential to positively influence the various production scenarios we are currently considering, comments Company President and CEO, John de Jong. We will continue to increase our resource as aggressively as possible and are also considering the possible benefit of recalculating the No. 4 Plug resource (315,975 ounces inferred) as the cut-off grade used in the original calculation was determined at a time when gold traded in the $400 to $500 per ounce range.
Updated Resource Estimate for Lamaque Gold Project:
* The tabulated results above show the newly calculated resource estimates and includes the 2004 Audit Report estimate for the #4 Plug prepared by Watts, Griffis and McOuat. **For the Parallel Zone, an Ordinary Kriging (OK) estimator was utilized and the Forestel zone was interpolated utilizing an IPD2 estimator *** For the Triangle Zone, an Ordinary Kriging (OK) estimator was utilized
The Estimate of Resources and Modeling of the Triangle Sector report prepared by Mr. Christian D'Amours, Professional Geologist, of Geopointcom located in Val d'Or, Quebec, documents the resource evaluation and incorporates information from diamond drilling completed on the Triangle Zone.
As presented in the following table, the total of indicated resources (in situ) below the security pillar amounts to 140,840 metric tonnes grading 13.51 g/t of gold. The total of inferred resources (in situ) below the security pillar amounts to 220,788 metric tonnes grading 18.73 g/t of gold. The Triangle Zone resource is open in all directions.
Triangle Zone Resource Table
*Indicated resources within the security pillar (60 meter rock cover between overburden and main ore body)
*The indicated and inferred resources estimates referred to and which form part of this deposit do not include the gold ounces reported in the security pillar as it is unlikely this zone will lend itself to open pit mining. The security pillar (approximately 60 meters of covering rock that is situated between the overburden and the main part of the resource) is required to provide a support cover in the event underground mining is undertaken. Resources located above the pillar should never be included except if it is shown that there exists a possibility for open pit mining.
To view a map highlighting the Triangle Zone, please click on the following link:
Planning for the Future
As has been stated in previous news releases and updates, the Company is focusing on the zones that demonstrate the greatest likelihood of open pit mining and those zones which will add to the overall gold resource most quickly. Management is undertaking a full review of the project in conjunction with SRK Consulting (Toronto), considered one of the world's top mining consulting firms, and Geologica Inc., Integra Gold's geological contractor and consultant that has been working in the Val d'Or area for many years in both the exploration and mining fields.
The zones demonstrating the greatest potential for open mining are the Parallel and Forestel Zones. It is Geologica's opinion that the #5 Plug (located approximately 1000 meters from the Lamaque Mine Main Plug where 4.3 million ounces were mined during its mine life) could potentially be the heat and mineralization source for the Parallel and Forest Zone and will therefore be drilled after the Parallel Zone drilling has been completed.
The No. 4 Plug hosting 315,975 gold ounces grading 9.43 g/t is based on a cut-off grade of 6.14 g/t at a gold value of $400 to $500 per ounce. The current value used by the majority of mining companies for the purpose of resource calculations is $1,365 gold. The Company plans to review the No. 4 resource in the context of the current gold price allowing for lower cut off grades. This will be completed in conjunction with the deep drilling program projected to start early in 2012. A drill rig capable of deep drilling is currently being built for the Company by Orbit Garant of Val d'Or, Quebec, specifically for this project and projected to be on site prior to the end of December, 2011.
A revised drill plan predicated on the direction the Company has adopted and taking into consideration the current Triangle Zone and pending Sixteen Zone resource estimates, will be released when fully determined. The resource estimate for the Sixteen Zone is in progress with management anticipating its release shortly. In addition, it is anticipated that the 31 holes presently being drilled on the Parallel Zone will initiate a further resource update for this zone. The No. 4 plug review may also mandate a need to initiate a new updated resource estimate calculation as will several zones reporting non-compliant historical resource estimates (104,848 Inferred ounces (uncut), June 23, 2011 NI 43-101 Technical Report) which will require further drilling to confirm accuracy.
The potential for the Lamaque Gold Project to reach its milestones appears to be well within reach. The company is well financed and currently has 50,937,465 shares outstanding. Management is focused on exploiting the potential of the Lamaque Gold Project to its fullest extent, doing so in a geologically prudent manner and with strong fiscal oversight, says John de Jong, CEO and President.
Geopointcom's Conclusions and Recommendations
The study of the Triangle Zone allowed the author to present the following conclusion and recommendations:
High auriferous values should not be limited.
Composites length should be 1.0 meter.
By using a 3g/t Cut-off, the indicated resource in situ located below the pillar is estimated at 140,840 metric tonnes grading 13.51 g/t Au. The resources located above the pillar are excluded from this estimate.
The inferred resources non-diluted reach 220,788 metric tonnes grading 18.73 g/t Au. The resources located above the pillar are excluded from this estimate. The degree of confidence linked to this category of resources is insufficient to allow the significant implementation of the technical and economic parameters or to allow an assessment of the economic viability. The mineral inferred resources must be excluded from these estimations forming the basis of these feasibility studies or other economic studies.
In order to increase the level of confidence, to increase the resources and to demonstrate the attitude of the tension veins, the author proposed to perform a series of the following drillings.
Company and Gold Project Location
Integra's Lamaque Gold Project is located in the Val d'Or gold camp in the Province of Quebec, Canada, which is rated one of the best mining jurisdictions in the world. Infrastructure, human resources and mining expertise is readily accessible.
The Company's shares are tightly held by number of private investors, institutions and a major gold producer, Shandong Gold International Mining Ltd. The Company's focus is to advance gold zones demonstrating potential for open pit mining and where gold resources can be added quickly to the reported gold resource of 2,335,530 metric tons, average grade 6.91 g/t gold for 518,643 ounces troy inferred and 800,799 metric tons, average grade 4.80 g/t gold for 162,962 ounces troy indicated.
The gold project shares its northeastern border with the producing Sigma Mine which has produced 4.7 million ounces of gold to date and has reported significant gold resources and reserves. On its northwest border the Main Plug produced the majority of its 4.7 million ounces of gold for the historic Lamaque Mine. The Agnico-Eagle Goldex Mine located approximately 6 kilometers west reports reserves of 3.5 million gold ounces, and directly west of Goldex is the producing Osisko Mine reporting reserves of 15.9 million ounces of gold.
The Lamaque Property is located about 550 km northwest of Montréal, Quebec. The property consists of four (4) contiguous mining concessions and twenty (20) mining claims for a total of 1,459 hectares, owned 100% by Integra.
QUALITY ASSURANCE - QUALITY CONTROL
Thorough quality assurance and quality control program (QA/QC) protocol was utilized on the project including duplicate, blank and standard samples for all the holes. The core samples were submitted directly to ALS Laboratory Group and Bourlamaque Labs in Val-d'Or for preparation and analysis. Analysis was conducted on 1 assay ton samples. Analysis of gold was by fire assay, with a gravimetric finish on samples exceeding 5 g/t gold. The gravimetric assay results were used for the reported composite intervals. The Lamaque project exploration is under the direct supervision of Alain Beauregard, P.Geol. of Geologica Inc., an independent qualified person as designated by National Instrument 43-101, who has reviewed the technical content of this release.
John de Jong CEO & President