Integra Gold (ICG-V) worth considering a long position
miningmarketwatch.net
Integra Gold has built-up significant ounces at its 100% owned high-grade Lamaque Gold Project located in Val-d'Or, along the prolific Cadillac Trend in Québec. The Lamaque Project is one of the highest-grade advanced exploration-stage gold projects in Québec, the majority of Indicated resources are above 600 meters vertical, and ICG.V is now positioned for a near-term underground mining gold production scenario. The current resource is 756,280 ounces Gold Indicated (3,325,300 Tonnes @ 7.1 g/t) + 293,710 ounces Gold Inferred (851,400 Tonnes @ 10.8 g/t). This resource was based off ~105,000 m of drilling, however ICG.V has completed over 55,000 m more (>50% more) that has not yet been incorporated into a new resource. An updated resource is planned for Q3 2014 and is expected to be impressive as intercepts to date have been stellar high-grade. Integra is currently in the midst of a 45,000 m definition and exploration drill program (just finishing up 25,000 m on the Triangle Zone) and the assays reported to date have been outstanding.
Integra Gold appears to presents exceptional opportunity for investors seeking exposure to precious metals. Integra is approaching critical mass with all it has in its favor, and given the extra 55,000+ m of drilling its done, given all the results it has coming up (currently 35 drill holes pending), given an updated resource estimate on the way incorporating that additional drilling, and then factoring in the geophysics indicating a number of high priority targets are highly prospective for even more new high-grade discovery -- we see ICG.V as a much bigger company by the end of this year, when the production ramps as per the PEA take center-stage. Especially as the PEA built on the existing regarding, not including any of the additional drilling, provides a very attractive scenario as is.
With 134.2 million shares outstanding (~166M fully diluted) it appears ICG.V is on sale trading with a market cap under $35M; ICG.V has a sizeable high-grade resource (set to grow larger in Q3), is funded to meet current program goals and obligations with ~C$4.5 million cash in the bank (as of April 2014), has a PEA that shows >110,000 ounces per annum with numbers that make sense even at $1,000 gold (the PEA estimates a cash-cost + sustaining cost of CAD$805 per ounce and gold is currently at ~CAD$1,425 per ounce), and also has >C$30 million loss carry forward sitting on its balance sheet from accrued efforts to date (this carry forward alone represents at least ~C$10 million additional intrinsic value). No doubt ICG.V is positioned for potential extraordinary share price appreciation over the coming months and years as the reality of the large inherent value that the Company possesses is understood by the market.. |
