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Wednesday, November 09, 2016 Derek Macpherson

Integra Continues to Intersect Wide Intervals at Triangle


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Integra Gold Corp. (TSXV:ICG) announced results from its ongoing and extensive drill campaign at the Triangle zone at its Lamaque project in Quebec. The results from 92 infill and exploration holes, totalling 32,800m, include the C5 structure’s widest intercept to-date and continue to highlight the “C” zones’ prospective continuity together with Triangle’s resource growth potential. In our view, Integra’s substantial premium to peers likely incorporates the expected success from the pending resource update and some premium is warranted given the project’s existing infrastructure, the widths and grades intersected to-date, and the takeout potential for this quality asset in a premium location. Upcoming catalysts, include the pending resource update for the Triangle zone (Q4 2016) followed by an updated PEA (Q1 2017), along with ongoing drill results.


The C5 Structure’s widest interval to date reported. The results were highlighted by the C5 structure’s widest interval intersected to date, which returned 40.74 g/t Au over 11m (TM-16-187 – uncapped), including 398 g/t over 1m. Of note, this interval was 50m outside the resource limits which suggest the structure’s continuity (Figure 1). The C5 zone has the potential to meaningfully add ounces in the pending resource update as it now has been defined 475m along strike by 475m-850m vertically and was previously only defined by six holes in the current resource. Similarly, results from the C4 structure, included 10.75 g/t Au over 10.45m (TM-16-187W01M02 - uncapped), which was intersected 75m outside the resource limit. These results continue to suggest meaningful resource growth is likely with the pending update.


Integra trades a significant premium to peers, pending resource update likely to backfill valuation. Integra now trades at 0.81x NAV and C$132/oz versus peers at 0.66x and C$64/oz. While this is a substantial premium to peers, some premium is warranted because of the project’s location, existing infrastructure, grades and takeout potential. As well, the current premium valuation likely incorporates the resource growth expected with the next update later this quarter.

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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