Integra rises on promising PEA for Wildcat, Mountain View in Nevada

Integra Resources (TSXV: ITR) has published an initial preliminary economic assessment (PEA) for its Wildcat and Mountain View projects located in western Nevada, demonstrating the potential for a low-cost, high-margin heap-leach gold-silver operation.

Together, the two projects have an after-tax net present value (at 5% discount) of US$309.6 million and a 36.9% internal rate of return, using base case metal prices of US$1,700 per oz. gold and US$21.50 per oz. silver.

The Wildcat and Mountain View projects are expected to generate combined annual production of 94,000 oz. of gold-equivalent from year 1-5, with average annual production of 80,000 oz. gold equivalent over the 13 year mine life. Life-of-mine payable metals would total 1 million oz. gold equivalent.

Integra shares gained nearly 13% on the news by mid-afternoon to $1.41 each. The company has a market capitalization of $95.4 million.

The PEA outlines a phased development approach that sees production beginning at Wildcat with an initial capex of US$115 million. Production would be expanded to Mountain View in year eight. The phased development approach allows the company to use only one fleet for mining and processing equipment, reducing total capital costs.

According to Integra, the average annual production of Wildcat and Mountain View plus the DeLamar project, on a combined basis, is expected to exceed 200,000 oz. gold equivalent, representing one of the largest heap-leach production profiles among precious metal developers in the Great Basin area.

A 2022 prefeasibility study for the DeLamar project, located in southwestern Idaho, outlined a base case after-tax NPV (at 5% discount) of US$314 million and a 33% IRR.

“The PEA strengthens Integra’s position in the Great Basin as a multi-asset developer with a pathway to become a 200,000 ounce per year gold-silver producer. To date, the company has successfully defined a large resource base at Wildcat and Mountain View despite being constrained to 5 acres of surface disturbance,” Integra’s CEO Jason Kosec stated.

Published along with the PEA is an updated resource estimate for the Wildcat and Mountain View, adding 23% and 49%, respectively, compared to November 2020 estimates.

The Wildcat project now contains measured and indicated resources totalling 829,000 oz. gold equivalent (59.9 million tonnes at 0.39 gram gold per tonne and 3.34 grams silver). Inferred resource add 235,000 oz. gold equivalent (22.5 million tonnes at 0.29 gram gold and 2.74 grams silver).

Mountain View hosts measured and indicated resources totalling 622,000 oz. gold-equivalent oz. (28.8 million tonnes at 0.63 gram gold and 3.68 grams silver) and inferred resources totalling 63,000 oz. gold-equivalent (4.2 million tonnes at 0.45 gram gold and 1.83 grams silver).

“The company has submitted an exploration plan of operations for both Wildcat and Mountain View to the Bureau of Land Management which, when received, will allow for significantly increased resource expansion drilling through planned step-out drill holes,” Kosec added.

George Salamis, executive chairman, commented: “The PEA is the first major milestone following the successful merger of Integra and Millennial Precious Metals. The next major catalysts for the company includes an updated resource estimate for the DeLamar project that will incorporate gold-silver mineralized stockpile material drilled during the 2022-2023 winter field season, as well as the filing of the DeLamar mine plan of operations in Q4 of this year.”