Integra Mining (ASX: IGR) transitioned from gold explorer to producer in September 2010 after pouring first gold from its flagship Randalls Gold Project.
The company has steadily built up its mineral portfolio through a series of acquisitions, joint ventures and strategic alliances, and now controls a consolidated tenement package of approximately 1,500km2 in the heart of the Eastern Goldfields of Western Australia.
Integra Mining (ASX: IGR) has returned spectacular intersections, including 39.39 grams per tonne gold from the Maxwells gold deposit at its Randalls Gold Project near Kalgoorlie.
The high-grade drilling results, and there were a number, at the Maxwells gold deposit, provide fodder for Chris Cairns, managing director of Integra to turn Randalls into a 140,000+ ounces per year gold producer.
Construction at Randalls is underway. First production is still on schedule, according to Cairns for September this year.
Initial annual production will likely average 75,000 ounces.
Best assays received from most recent drilling at Maxwells include:
- 2.95 metres at 39.29 g/t gold from 221 metres drill depth
- 4.6 metres at 21.36 g/t gold from 189 metres drill depth
- 2.7 metres at 27.87 g/t gold from 120 metres drill depth
- 1.45 metres at 32.01 g/t gold from 227 metres drill depth
- 5.6 metres at 8.03 g/t gold from 139 metres drill depth
- 3.35 metres at 12.75 g/t gold from 150 metres drill depth
- 2.45 metres at 17.06 g/t gold from 180 metres drill depth
The high-grade gold mineralisation remains open at depth, more than 200 metres below the existing Mineral Resource. With the deepest hole returning an assay of 2.2m at 9.86g/t at 400 metres depth.
Integra is currently studying options to increase production from 100,000 oz-a-year, using existing production capacity, with a further rise to 140,000 oz-a-year or more based on a plant upgrade to increase throughput by 50%.
This would come, initially, from the development of high-grade underground operations at the Maxwells and Santa gold deposits and then an open pit - part of Phase 2.
There is further production potential from recent Majestic gold discovery located some 22 kilometres north of the Salt Creek process facility.
Based on current progress, and drilling results, current valuation for Integra against its peers, appears very light.