Integra Mining increases Randalls ore reserve
THE BOURSE WHISPERER: West Australian gold producer Integra Mining has completed open pit Ore Reserve estimations for its existing and new gold deposits, including a preliminary Ore Reserve estimate for the recent Majestic discovery.
This Ore Reserves upgrade comes less than one year after the company’s first gold pour at the Randalls gold project.
Integra said the proportionally large Ore Reserves upgrade combined with the meaningful extension of mine life is consistent with its strategy of establishing a robust operation based upon, what it described as an, “initial modest yet highly profitable Ore Reserve and then progressively adding to Ore Reserves using cashflow from operations”.
The company is now targeting 100,000 ounces per year production from an upgraded processing facility at Salt Creek expected to be completed next month.
A further increase to 120,000 ounces per year of steady production – spiking at 140,000 ounces per year – is expected when high-grade underground production is established to compliment these open pit Ore Reserves.
“This Ore Reserve upgrade provides a very solid foundation for further growth and continues Integra’s track record of delivering on its promises,” Integra Mining managing director Chris Cairns said in the company’s announcement to the Australian Securities Exchange.
“While the highly profitable six year mine life on open pit Ore Reserves alone is very robust, the real value driver will be the outcome of trial underground mining at the high-grade Cock-eyed Bob gold deposit later this year.
“If successful, this would catalyse the progressive development of the high-grade Cock-eyed Bob, Santa and Maxwells gold deposits as underground operations capable of materially increasing annual gold production from the Randalls gold project and extending mine life to ten years.”
Total open pit Ore Reserves for the Randalls gold project at the beginning of July stood at six million tonnes at 2.5 grams per tonne for 480,000 ounces.
The Salt Creek processing facility is currently receiving some attention undergoing an upgrade, which is scheduled for completion in August.
This will take the facility to one million tonnes per year throughput capacity.
At the expanded process facility capacity, the Randalls gold project currently has a mine life of over six years sourced from open pits alone.
Integra intends on developing additional high-grade underground production sources, which it said will significantly extend the current open pit Ore Reserve life.
The upgrade includes:
– An updated open pit Ore Reserve for the Salt Creek gold deposit of 150,000 ounces net of production depletion of 53,000 ounces;
– A revised open pit Ore Reserve for the Maxwells gold deposit of an increase of 46,000 ounces to 144,000 ounces; and
– A preliminary Ore Reserve for the Majestic open pit of 98,000 ounces attributable to Integra and 86,000 ounces from the Harry’s Hill open pit.