Integra Gold (ICG.V) has released an update on its Lamaque gold project in Québec. The proposed mine site at the Triangle Zone has been cleared and all permits to start an underground exploration and bulk sampling program have been issued by the provincial government. This allowed Integra Gold to start blasting the portal at the Triangle zone and this should enable the company to start constructing the ramp for future underground exploration later this year, or early in 2016.
Before starting its underground exploration potential, Integra will release an updated resource estimate which will also include the C-structures. This updated estimate will be the basis for a new PEA that will be released in H1 2016. 2016 will be an important year for Integra as it’s also aiming to convert the exploration licenses at Triangle into mining leases before the end of next year.
Some might be disappointed to see another PEA instead of Integra advancing to a pre-feasibility study, but the company wants to hold off on a PFS until it has done some underground exploration work. Once the geological models are further refined, a PFS will be completed although we cannot exclude Integra could fast-track the Lamaque project to a feasibility study, skipping the PFS-stage.
Meanwhile, Teck Resources (TCK) has sold a royalty portfolio to Osisko Gold Royalties (OR.TO). The block of royalties sold to Osisko also contains the 2% NSR on the Lamaque property so Osisko is reaffirming its focus on Québec. Keep in mind Integra Gold has the option to repurchase 1% of this NSR for C$2M in cash, and we would definitely expect the company to do so, once a construction decision will have been made.
We had several meetings with Integra Gold’s senior management team in Vancouver last week, and we will release an update report within the next few weeks.
> Click here to go to Integra’s website
Disclosure: The author holds a long position in Integra Gold. Integra is a sponsor of the website. Please see our disclaimer for current positions.
