Monday, 20 February 2012

Integra Mining discovers new gold targets, examines potential for stand-alone mining at Aldiss

Integra Mining (ASX: IGR) has identified three new gold trends at the Aldiss Gold Project, with the potential to allow for a stand-alone mining and milling operation to be established at the project.

Aldiss, part of the Randalls Gold Project, hosts a JORC Resource of about 488,756 ounces of gold across several deposits.

Given the project’s existing gold endowment, Integra believes a relatively modest additional discovery of economic mineralisation would be sufficient to justify stand-alone mining and milling.

The latest results from aircore drilling include:

- 8 metres at 2.11g/t gold, including 4 metres at 3.37g/t gold;
- 1 metre at 2.4 grams per tonne (g/t) gold; and
- 1 metre at 1.58g/t gold.

Similar anomalies identified by wide-spaced aircore drilling at Randalls led to the discovery of the Salt Creek gold deposit, which now has JORC Reserves of 149,030.

The target area at the Aldiss Gold Project is about 60 kilometres southeast of the Randalls gold processing facility, and 20 kilometres south of the Karonie Main Zone gold deposit.

Reverse circulation drilling is planned to follow up on the new discoveries to better define the mineralisation.

Randalls progress

Earlier this month, Integra reported results from follow up drilling at the Imperial prospect in the Randalls Gold Project.

Designed to test the continuity of mineralisation intersected in late 2011, the drilling program returned highlights of:

- 6 metres at 8.64g/t gold and 1.1% copper, including 1 metre at 22.44g/t gold and 2.2% copper and 1 metre at 19.49g/t gold and 3.2% copper;
- 4 metres at 11.44g/t gold and 1.1% copper, including 1 metre at 28.94g/t gold and 3.6% copper and 1 metre at 15.94g/t gold and 0.6% copper; and
- 5 metres at 6.84g/t gold and 1.8% copper.

Gold mineralisation at the prospect is hosted within the same granodiorite unit that hosts the 260,000 ounce Majestic deposit and appears to be associated with a similar series of porphyry dykes.

Cashed up
Integra is one of Australia’s lowest cost gold producers, pouring 44,703 gold ounces in the six months to December 2011 at an impressive cash cost of $549 per ounce.

This provided unaudited revenue of $63.7 million, with a cash profit from the operations of $37.2 million.

At the end of the December quarter, Integra had $20.5 million cash in the bank.

Importantly, the company is reducing its debt with ongoing cash flows, paying off $5 million during the quarter with $16.2 million remaining.

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