After releasing an excellent maiden PEA on the Wildcat/Mountain View projects in Nevada, Integra Resources (ITR.V, ITRG) released yet another batch of stockpile drill results on its DeLamar project in Idaho. The company has provided some highlights below, but what mainly matters is the consistent grade over pretty much the entire thickness of the stockpiles and backfill material. And while the grade is low, the potential mining and processing costs will be low as well (based on the cost per tonne estimates as provided in the 2022 pre-feasibility study on the project).
The drill program was completed in April, but there still is a backlog of results that have to be released. Including the most recent update, Integra has now released the assay results from 155 of the 321 drill holes completed, and once all data will have been received, its consultants will work on an updated resource estimate for the DeLamar project. As the stockpiles and backfill material should be amenable to heap leach processing, the resource update will likely lift the total NPV of the project.
Integra will also file the complete NI43-101 document on the Wildcat/Mountain View projects within the next few weeks and that will for sure be an interesting read as well. As a reminder, based on a gold price of $1700/oz the after-tax NPV5% of the Nevada assets came in at US$310M while at the same gold price, the 2022 pre-feasibility study on DeLamar indicated a US$314M NPV5% at the same gold price. The combination of the value both projects (excluding the potential resource expansion on both DeLamar and Wildcat/Mountain View) compares favorable with the US$70M market cap (and US$80M enterprise value) of the company at the current share price.
New CEO Jason Kosec and the Integra team are ticking all the boxes in orderly fashion in an attempt to unlock value for its shareholders.
Disclosure: The author has a long position in Integra Resources. Integra is a sponsor of the website. Please read our disclaimer.
