1. DeLamar study shows $774M NPV with 46% IRR at base metal prices. 2. Production of 1.1 million ounces over a 10-year mine life projected. 3. Initial capital cost is $389 million, with strong cash flow prospects. 4. Community support includes creation of 300 jobs; strong tribal partnerships established. 5. Federal permitting expected to progress favorably in a strong metals market.
FAQ
Why Very Bullish?
The feasibility study indicates strong return metrics and favorable cash flows, possibly boosting investor confidence.
How important is it?
With solid financial projections and significant potential for job creation, the article's implications could substantially influence ITRG's share value.
Why Long Term?
The project success largely depends on permitting and market conditions, which may take time to materialize.
Integra Resources Corp. Announces Feasibility Study Results for DeLamar Gold-Silver Project
Integra Resources Corp. (NYSE American: ITRG, TSXV: ITR) has unveiled the results of its Feasibility Study (FS) for the development of the DeLamar Gold and Silver Heap Leach Project, located in southwestern Idaho. This comprehensive assessment demonstrates improved economics and reduced development risk for the project, which encompasses the DeLamar and Florida Mountain deposits.
Highlights of the Feasibility Study
- Robust Project Returns: After-tax net present value (NPV) of $774 million at 5% and a 46% internal rate of return (IRR) using base metal prices of $3,000 per ounce for gold and $35 per ounce for silver. If evaluated at current market prices, the after-tax NPV rises to $1.7 billion with an IRR of 89%.
- Extended Mine Life: Incorporating additional stockpile material, the project boasts a 10-year mine life and total life-of-mine (LOM) production of 1.1 million ounces of gold equivalent (AuEq).
- Consistent Production Profile: Average production of 119,000 ounces of AuEq in the first five years, with a cash cost of $1,179 per ounce AuEq and all-in sustaining costs (AISC) below the industry average at $1,480 per ounce AuEq.
- Capital Efficiency: Initial capital expenditure estimated at $389 million, which includes $38 million in owners' costs, alongside a sustaining capital of $305 million over the life of the project.
Financial Metrics and Community Benefits
The project demonstrates competitive financial metrics with a base case NPV-to-capital expenditure (capex) ratio of 2.0 and a payback period of just 1.8 years. Under current market conditions, these numbers improve significantly with ratios of 4.4 and a payback of 1.1 years.
Integra anticipates strong free cash flow in the early years of operation, averaging $165 million from year one to five. The development of the DeLamar project is expected to lead to the creation of approximately 300 direct permanent jobs, indicating meaningful benefits for local communities.
Tribal Engagement and Environmental Commitment
Integra Resources has established a Relationship Agreement with the Shoshone-Paiute Tribes of the Duck Valley Indian Reservation to foster a long-term partnership in the development of the DeLamar project. The company is also engaging with other Tribal Nations in the area, demonstrating a commitment to inclusive project development.
As one of the few large-scale precious metals projects in the U.S. advancing towards National Environmental Protection Act (NEPA) permitting, DeLamar is poised to benefit from favorable regulatory conditions.
Future Growth and Strategic Positioning
Looking ahead, the Feasibility Study positions the DeLamar project for significant growth opportunities, leveraging large Measured and Indicated sulphide resources that are not part of the current mine plan. The project's extensive land package remains largely underexplored, promising various expansion targets both at depth and along strike.
George Salamis, CEO and President of Integra Resources, emphasized, "The feasibility study confirms what we have long believed: DeLamar is one of the most compelling and capital-efficient heap leach projects in the U.S. preparing to enter federal permitting." With federal permitting expected to commence in early 2026, Integra is strategically positioned to capitalize on favorable market conditions as the project advances.