Integra Resources Corp. outlined a maiden resource estimate for the DeLamar gold project in Idaho that it is acquiring from Kinross Gold Corp.
The inferred resource is 117.9 million tonnes grading 0.41 g/t of gold and 24.34 g/t of silver at a cutoff grade of 0.3 g/t of gold equivalent, Integra said. The update was based on 1,575 historical drillholes, with most at an average depth of 120 meters. Using this data, the project contains an estimated 1.6 million ounces of gold and 91.9 million ounces of silver.
The drilling was performed by past operators of the project and delineates the remaining open pit oxide, partly oxidized and unoxidized mineralization at DeLamar.
"Essentially all of the modeled mineralization is open at depth, and, considering the shallow extents of a high percentage of the historical holes, the potential to expand mineralization that is potentially mineable by open-pit methods exists," said Mine Development Associates, who completed the resource work.
When the deal closes, Integra is to pay C$7.5 million and 9.9% of its shares for DeLamar and, among other things, must also succeed in raising at least C$25 million.
Once the deal closes, Integra is planning a 20,000-meter reverse circulation drilling program at the property, roughly expected to start in the first quarter of 2018, as exploration data on the property comes from drilling from the mid-1970s to the early 1990s.