RCKS talk

Friday, October 14, 2016 Derek Macpherson

Integra Announces Triangle’s Widest Interval to-date


Download Report

Integra Gold Corp. (TSXV:ICG) announced further results from its ongoing drill program at the Triangle zone. The results from a combination of infill and expansion drilling continue to highlight the resource growth potential of the Triangle zone and suggest continuity of the “C” zones. In our view, Integra should trade at a premium to peers because of the project’s location, grades, existing infrastructure and ongoing news flow. Upcoming catalysts, including a Triangle zone resource update (Q4 2016) and an updated PEA (Q4 2016), have the potential to re-establish a larger premium to peers.



Results include Triangle’s widest interval reported to date. The results were highlighted by 19.81 g/t Au over 19m (TM-16-130M03 – uncapped), including 40.58 g/t Au over 7.6m on the C4 structure (Figure 1). Interestingly, this wide interval was 150m outside the dioritic plug in the volcanics, highlighting that the Triangle zone is likely to have a much larger footprint than the plug, similar to the Lamaque mine. It is also worth highlighting that these results continue to demonstrate continuity of the “C” zones and support our view that resources are likely to grow with the pending update (Q4 2016).


Rig added to test first Gold Rush Target. Integra also announced that a rig has been added to test the Sigma East Extension, one of the Gold Rush Challenge’s most compelling targets. Exploration efforts by previous operators were limited as the target straddles the historic property boundary. With the properties now consolidated and historic drill results including 20.04 g/t Au over 4.42m and 9.12 g/t Au over 4.37m (Figure 2), this has become a priority target.


Integra only trading at a modest premium to developer peers, more may be warranted. Integra now trades at 0.82x NAV and C$138/oz versus peers at 0.77x and C$63/oz, respectively. Integra likely warrants a premium valuation to peers because of the project’s location, grades, existing infrastructure and due to continued positive news flow (drill results, resource and PEA updates) on the horizon.

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

Red Cloud Klondike Strike Inc.
79 Wellington St. W. Suite 1630, PO Box 148,
Toronto ON., M5K 1H1

Disclaimer
Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and the Yukon. Part of Red Cloud Klondike Strike Inc.'s business is to connect mining companies with suitable investors that qualify under available regulatory exemptions (the "Red Cloud KS Business"). Red Cloud Klondike Strike Inc., its affiliates and associates, and their respective officers, directors, representatives, researchers and members of their families (collectively, "Red Cloud KS") may hold positions in the companies mentioned in this publication and may buy or sell, or buy and sell their securities or securities of the same class on the market or otherwise. Additionally, Red Cloud KS may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.
Red Cloud KS has prepared this publication for general information purposes only, NOT as part of the Red Cloud KS Business. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided by Red Cloud KS for the purposes of this publication has been derived from sources believed to be accurate, but cannot be guaranteed. Opinions or analysis contained in this publication may be subject to change and Red Cloud KS does not undertake to advise the reader of such changes. This publication does NOT take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud KS will not treat recipients of this publication as customers or clients by virtue of having viewed this report.

Company Specific Disclosure Details


1) A member of Red Cloud KS team has visited/viewed material operations of the issuer.
2) In the last 12 months, Red Cloud KS has been retained under a service or advisory agreement by the subject issuer.
3) In the last 12 months, Red Cloud KS has received compensation for investment banking services.
4) Red Cloud KS or a member of the Red Cloud KS team or household, has a long position in the shares and/or the options of the subject issuer.
5) Red Cloud KS or a member of the Red Cloud KS team or household, has a short position in the shares and/or the options of the subject issuer.
6) Red Cloud KS or a member of the Red Cloud KS team own more than 1% of any class of common equity of the subject issuer.
7) A member of Red Cloud KS team or a member’s household serves as a Director or Officer or Advisory Board Member of the subject issuer.


 

SUBSCRIBE TO HEAR FROM US

Gain access to exclusive mining industry research reports as well as additional mining industry information, promotional materials, press releases and news.

RCKS Talk Daily Analysis
RCKS News
LATEST POST
CATEGORIES
RELATED TAGS
ARCHIVES

 

RISK WARNING:

Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer (EMD) in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and Yukon.

 

By accessing this website you agree to be bound by our Terms of Use and Privacy Policy.

 

Red Cloud Klondike Strike Inc. connects mining companies with suitable investors that qualify under available regulatory exemptions. For example, in Canada, according to National Instrument 45-106, Prospectus and Registration Exemptions. Similar laws and regulations apply in other jurisdictions. Companies presented on this website are considered to be highly speculative and, as such, are suitable only for purchasers who can tolerate the highest level of risk including the loss of their entire investment.

© Copyright 2017 Red Cloud Klondike Strike Inc. All rights reserved.