Issue link: http://resourceworld.uberflip.com/i/294363
www.resourceworld.com 27 A P R I L / M A Y 2 0 1 4 within the immediate vicinity. Base Case Assumptions used in the PEA are as follows: Gold Price – US $1,275/oz Exchange Rate - $1.05 (CAD$-US$) Average annual gold production 112,400 oz Pre-Production Capital Costs - $69.2 million Life of Mine sustaining capital - $66.8 million Pre production period – 2 years Mining Costs - $83/tonne Processing Costs - $46/tonne G&A - $30/tonne Refining Costs – $0.73/tonne Royalties - $3/tonne Sustaining costs – $34/tonne Cash Costs + Sustaining costs - $196/tonne or CAD$805/oz The Pre-Tax Life-of-Mine Net Present Value (using a 5% discount rate) works out to $146 million with an Internal Rate of Return of 51% and a payback period of 1.5 years. The after tax NPV (5% discount) is $88.5 million with a 38% IRR and a pay - back period of 1.8 years. Keep in mind that this PEA is prelimi- nary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the eco- nomic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized. As of February 28 th 2014, the company had drilled an additional 29,500 metres on the Lamaque Project. None of the results received to date from this drilling were incorporated into the PEA. The most recent assay results released were from the Parallel Zone, one of the highest grade zones located in the northern part of the Lamaque Project. Highlights from the last 20 holes of this drill program are shown below. • PV-13-22 intersected three zones of mineralization; the first cut 23.94 g/t gold over 1.00 metre starting at 151 metres down-hole (DH); the second cut 15.16 g/t gold over 4.00 metres (224 metres DH); and the third cut 16.98 g/t gold over 2.00 metres (231 metres DH). • PV-13-25 intersected 23.79 g/t gold over 3.00 metres (125 metres DH). This was followed by a 1-metre interval averaging 10.36 g/t gold (188 metres DH). • PV-13-26 intersected three, 1-metre wide intervals of gold mineralization averaging 19.72 g/t gold (133 metres DH); 73.75 g/t gold (159 metres DH) and 12.46 g/t gold 182 metres DH) • PV-13-33 intersected 14.93 g/t gold over 1.00 metre (39 metres DH). All of the drill results reported above were intersected above a 300-metre verti - cal depth. Integra Gold reports that these results confirm the continuity of high- grade mineralization between existing drill holes and prove that its geological model is correctly predicting the loca - tion of mineralized structures within the Parallel Zone. Integra Gold has about 134 million shares outstanding (166 million fully diluted) and a market capitalization of $43 million. n MINING