27/09/2010 - 10:12

Integra starts WA's newest gold mine

27/09/2010 - 10:12

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Integra Mining has poured the first gold at its Randalls mine, 60 kilometres east of Kalgoorlie.

Integra starts WA's newest gold mine

Integra Mining has poured the first gold at its Randalls mine, 60 kilometres east of Kalgoorlie.

The first gold bar of 1.78 kilograms was poured on September 24 at the new Salt Creek process facility which was completed on-time and under-budget.

The process facility will initially process ore mined at Integra's two Phase 1 open pits, Salt Creek and Maxwells.

In coming weeks, Integra will focus on stabilising the Salt Creek processing facility into steady-state production ramping up to annual production of 90,000 ounces per annum for the first 15 months of production on an open pit head grade of 3.6 g/t gold.
Phase 1 gold production has been forecast at a cash cost of $574 per ounce, with very modest on-going capital requirement, providing an almost $800 per ounce margin at current gold process.

Studies are underway for the commencement of early underground production from the high-grade Santa and Cock-eyed Bob gold deposits with underground production from the high-grade Maxwells gold deposit to commence after open pit production has been completed. The introduction of early underground production is expected to take annual gold production above 100,000 ounces per year without a process plant upgrade.

 

See company statement below

Integra Mining (ASX:IGR) is pleased to report that it has poured the first gold at its Randalls Gold Project located 60 kilometres east of Kalgoorlie.

The first gold bar of 1.78 kilos was poured on the afternoon of Friday 24th September at the new Salt Creek process facility which was completed on-time and under-budget.

The process facility will initially process ore mined at Integra's two Phase 1 open pits, Salt Creek and Maxwells. In coming weeks, Integra will focus on stabilising the Salt Creek processing facility into steady-state production ramping up to annual production of 90,000 ounces per annum for the first 15 months of production on an open pit head grade of 3.6 g/t gold. Phase 1 gold production has been forecast at a cash cost of A$574 per ounce, with very modest on-going capital requirement, providing an almost A$800 per ounce margin at current gold process.

Studies are underway for the commencement of early underground production from the high-grade Santa and Cock-eyed Bob gold deposits with underground production from the high-grade Maxwells gold deposit to commence after open pit production has been completed. The introduction of early underground production is expected to take annual gold production above 100,000 ounces per year without a process plant upgrade.

In the medium-term, Integra is targeting a 50% process plant throughput upgrade to 1.2Mt per year in conjunction with Phase 2 open pit production and underground production to lift total production to +140,000 ounces per year.

The strong outlook for Phase 2 has been underpinned by bumper results from drilling at the Santa deposit, which is rapidly emerging as a source of both open pit and underground production. The results, which recently included 4m at 34.1g/t gold, 4m at 17.4g/t gold and 2.1m at 46.7g/t gold, have demonstrated high-grade gold mineralisation extends over a 2km strike length and to a depth of 400m (see ASX announcement 9 September 2010). It remains open along strike and at depth.

Drilling at the Maxwells and Cock-Eyed Bob deposits has also revealed strong potential for high-grade underground production below the planned open pits. Recent results from deep drilling at Cock-Eyed Bob include 8.8m at 16.24g/t gold, 4.2m at 14.99g/t gold, 3m at 11.54g/t gold and 9m at 4.58g/t gold (see ASX announcement 24 August 2010).

Integra believes there is no geologic reason why the high-grade gold mineralisation at the Maxwells, Cock-Eyed Bob and Santa gold deposits does not continue to 1km depth or beyond.

It is anticipated that Phase 2 production will also incorporate the recent Majestic gold discovery which is demonstrating excellent potential as an additional open pit. Recent results from Majestic include 29m at 4.62g/t gold, 18m at 3.90g/t gold, 21m at 3.88g/t gold and 22m at 3.58g/t gold (see ASX announcements 3 May and 25 May 2010). The discovery area represents just a small portion of a reconnaissance aircore drilling gold anomaly measuring 2km by 2.5km, providing significant scope for further exploration success.

The host of high-grade results from Maxwells, Cock-Eyed Bob, Santa and Majestic has paved the way for a substantial resources upgrade later this year.

"The first gold pour is the culmination of what has been a fantastic exploration success story," Integra Managing Director Chris Cairns said. "The path to production has not been an easy one, the transition to producer status with the highest grade open pit production for this scale of operation in Australia is a very satisfying achievement. To have delivered the project into production on-time and under-budget is a testament to the professional abilities and hard work of our people."

"Integra also recognises the significant support of our financiers BNP Paribas and Westpac Banking Corporation and the contributions of our key contractors, Alliance Mining and GR Engineering in delivering this outcome. And to our long-term shareholders, a big thank-you for your support - may you reap the rewards."

"We believe Phase 1 is the just the beginning for the Randalls Gold Project and that there is substantially more gold to be found both in and around our existing deposits and in new discovery opportunities such as Majestic. The Company's growth trajectory has been very steep and we are now able to fund continued growth through the very strong cash flows the Randalls Gold Project will deliver."

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