Drill results suggest C5 is likely to grow
. The C5 structure was expanded at depth and 50m to the West (Figure 1) by hole TM-16-169AM01
that intersected 12.33 g/t Au over 2.10m (uncapped), and hole TM-16-170W01M01 that returned 6.33 g/t Au over 4.50m (uncapped). These new results are
encouraging in our view and continue to suggest the potential for further resource growth beyond Lamaque’s recently updated resource of 1.9M oz Au
(6.8M tonnes at 8.83 g/t Au - all categories at 5 g/t cut-off). In addition, Integra announced that the underground exploration ramp at C1 and C2 has
been advanced by 400m towards the first zone selected for bulk sampling.
Integra’s premium valuation to peers likely warranted. Integra now trades at 0.55x consensus NAV and C$95/oz versus peers at 0.46x
and C$44/oz. While still trading at premium to peers, we believe this is warranted because of the project’s location, existing infrastructure,
takeout potential, active drill program and above-average grades. Upcoming catalysts include ongoing drill results and an updated PEA (Q1 2017).
Company description: Integra Gold (TSXV:ICG) is a junior gold exploration company with advanced stage projects in Val d’Or Quebec.
The company’s main asset is its high-grade Lamaque South project. In 2014 Integra acquired the Sigma Mill and Mine Complex, which is a fully permitted
mill and tailings facility.
Derek Macpherson | VP Mining Analysis
Sunneva Bernhardsdottir | Associate, Mining Analysis
Victoria Ellis Hayes | Associate
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