Overview

The DeLamar project, located in southern Idaho, includes Kinross’ DeLamar Mine that closed in 1998 due to low precious metal prices. The historic mine produced 1.6 million ounces of gold and 100 million ounces of silver1. Located 80 km south of Boise, the state capital, the DeLamar Project constitutes roughly 5,300 acres of patented and unpatented claims, and a further 4,100 acres of leased lands with approximately 1,575 historic drill holes and 145,940 meters of drilling outlined in historic databases. The DeLamar site includes all necessary infrastructure and existing on-site facilities, including all-season road access, grid power, a lined water treatment pond, workshop, and an office building.

Integra will commence a $10 million drill program at DeLamar in 2018. The drill program will be the first major exploration work completed at DeLamar in the last 25 years. The 2018 exploration program will include:

  • Aggressive Drilling: Over 20,000 meters of drilling, consisting of 18,000 meters of reverse circulation (“RC”) and 2,000 meters of diamond drilling, is planned for 2018. Drilling will target both potentially-bulk-mineable low-grade gold-silver mineralization as well as historically mined bonanza grade gold-silver mineralization located beneath the low-grade cap.

  • Metallurgical Testing: Bench-scale metallurgical test work designed to identify if partially-oxidized lower-grade near-surface mineralization is potentially amenable to milling and lower cost heap-leaching. Bench-scale gravity, flotation and leaching test work will also be undertaken on any higher-grade intercepts resulting from the targeting of deeper high-grade veins which were mined historically.

  • Geophysical Surveys: Induced Polarization (“IP”) / Resistivity surveys have been recently completed at DeLamar. These surveys were designed to detect the structures and the clay-pyrite alteration halos surrounding the depth extensions to the higher-grade vein zones which were mined underground between 1889 and 1914. The IP / Resistivity survey is also expected to highlight potential areas of near surface lower-grade mineralization which would may have be been missed in historic drilling.

  • Field Sampling, Mapping and Prospecting: Field reconnaissance is planned to evaluate and generate drill targets on known areas of gold-silver mineralization, many of which were identified in the 1970’s and remain only partially tested.

  • A Technological Approach to Targeting: Integra has commissioned Goldspot Discoveries Inc. (http://www.goldspot.ca/) to analyze the extensive database of historic data from DeLamar and identify new drill targets using its newly developed algorithms.

Catalysts 2018:

  • Drill Results: Monthly

  • Updated Resource Estimate: Q4 2018

  • Preliminary Economic Assessment (“PEA”): 2019

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Maps

The 100% owned DeLamar Project was acquired from a wholly-owned subsidiary of Kinross Gold Corporation (“Kinross”) for C$7.5 million in cash and the issuance of Integra shares that is equal to 9.9% of all of the issued and outstanding Integra shares upon closing of the transaction (November 3, 2017).

The Delamar Project key highlights include:

  • Established production history: Over 100 years of prior open pit and underground mining operations, with total historic production of 1.6 million ounces of gold and 100 million ounces of silver. Typical recoveries for dominantly oxidized ores processed through the DeLamar agitated leach mill between 1990 and 1998 ranged between 85% to 95% for gold and 70% to 80% for silver. Recoveries for mixed oxide ore typically ranged between 77% to 90% for gold and 65% to 75% for silver1.

  • “Under the radar” opportunity with multiple untested targets: The mine has remained relatively unknown since it was put on care and maintenance in 1998 following low metal prices, and no exploration work has taken place on multiple high conviction targets in over two decades.

  • Robust resource potential: As a result of limited exploration work during DeLamar’s operating mine life and no exploration post closure, the potential to expand existing mineralization and outline further near-surface bulk tonnage resources is high, as well as the opportunity to employ modern techniques to explore high grade underground targets.

  • Excellent infrastructure and existing on-site facilities: All-season road access, grid power, a lined water treatment pond, workshop, and an office building.

The DeLamar project is subject to a retained variable net smelter return (“NSR”) royalty payable to Kinross.

  1. NI 43-101 Technical Report and Estimated Gold – Silver Resources, DeLamar Project, Integra Resources Corp. Effective Date October 1, 2017.

Summary of the Initial Mineral Resource Estimate

Sensitivity analysis of grade and tonnage at varying pit-constrained cut-off grades on the DeLamar Project

CutoffTonnesg Au/toz Aug Ag/toz Agg AuEq/ozEq Au oz
0.30117,934,0000.411,592,00024.3491,876,0000.72,673,000
0.4094,172,0000.481,418,00027.7784,395,0000.812,411,000
0.5071,060,0000.511,200,00032.5774,805,0000.892,080,000
0.6051,818,0000.58981,00038.7464,691,0001.041,742,000
0.7037,637,0000.65791,00045.9455,666,0001.191,446,000
0.7533,716,0000.69735,00048.6952,747,0001.261,356,000
1.0016,028,0000.89451,00069.2635,770,0001.7872,000
  1. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  2. Mineral Resources are comprised of all model blocks with gold-equivalent values greater than or equal to 0.30 g/t that lie within an optimized pit and below the as-mined surface.
  3. Gold equivalent = g Au/t + (g Ag/t ÷ 85)
  4. Rounding may result in apparent discrepancies between tonnes, grade, and contained metal content.
  5. The estimate of mineral resources may be materially affected by geology, environment, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.
  6. The effective date of the mineral resource estimate is October 1, 2017.
  7. Gary Edmondo, P.Geo, of Reno, Nevada, is a Qualified Person within the meaning of NI 43-101 - Standards of Disclosre for Mineral Projects. Mr. Edmondo has reviewed and verified that the scientific and technical information contained herein. Mr. Edmondo is independent of Integra Resources Corp..