Value Microcaps Junior Miners

[checkmate28]

ICG.v Integra Gold. Quite a story brewing up there. The more I dig, the more I like. First in October2014, they acquired the assets of Century Mining Corp. from a receiver for 7M in cash and stock. They got a 2200tpd fully-permitted mill and tailings facility just 2km from their deposit. It includes an underground mine and 2.5M oz resource. Before the deal,Integra already had a high IRR PEA for a tolling arraignment for their 1 million oz 7gpt resource that is in the top quartile by grade of undeveloped gold deposits globally. With a 5gpt cutoff, they get about 750k oz at well over 10gpt

January 13, 2015 Integra released a new PEA. By any standard this was a tremendous document.

pretax IRR 77 %
NPV (5% discount) $184.3-million.

Preproduction CAPEX from $69.2M down to $61.9M

Preproduction period down from 24 to 18 months

Life-of-mine cash cost of $551/oz
AISC $731 per ounce at $1,175/OZ

pre-tax cash flow of $238M over a 4.5 year mine life;

increased gold recoveries across all zones by roughly 1%.


It gets even better. 2 value drivers not in the PEA:
1) 70,000 meters of drilling since 2013 that the company claims have confirmed the continuity of mineralization in each of the Fortune, Parallel and Triangle Zones
2) THE 2.5M oz resource that came with the mill.

These 2 drivers are scheduled to be in the updated PEA due this quarter and should:

expand the volume of mineralization;
drive the all-in cash cost down even further;
convert resources to reserves;
extend the mine life
increase the after-tax cash flow;
ultimately, at a lower risk, increase the overall value of the project

They are shooting to get to production in 18mths with a total CAPEX just over $60m. They have $12 million cash now and 35m warrants priced at .30 that should get exercised for another $10.5. I've never seen an IRR that high especially at $1175 gold. Finding a good deal on the remaining CAPEX shouldn't be hard.

Do some DD on this one. MC about $59m

http://investorintel.com/gold-silver-intel/clausi-takeover-targets-part-1-integra-gold-corp/

http://www.northernminer.com/news/update-integras-sigma-purchase-a-game-changer-at-lamaque/1003435475/?&er=NA