Integra to optimize Florida Canyon mine and develop projects

He said during a Dec. 12 webinar that Integra is “still very committed to moving forward with our two development projects, but it comes down to a disciplined allocation of capital,” with revenue from gold production being used to finance work on development projects.

“The bulk of the work next year will be focused on profitability and operational excellence at Florida Canyon,” said Jason Banducci, vice president of corporate development and investor relations at Integra.

Vancouver-based Integra’s development projects are DeLamar in Idaho, where the company plans to reopen a closed mine, and Nevada North in Nevada.

Florida Canyon, which is off Interstate 80 southwest of Winnemucca, is about 30 miles from northern Nevada and about three hours from DeLamar. Kosec said the three locations will be able to share suppliers, supplies and equipment, which should save the company money.

In the meantime, Kosec said, having Florida Canyon as a producing mine gives Integra “immediate exposure to the price of gold.”

Integra acquired the Florida Canyon Mine from Florida Canyon Gold Inc. The deal closed in November.

In July, Alamos Gold acquired Argonaut Gold, which operated the Florida Canyon open-pit gold mine. Alamos retained Argonaut’s Magino mine in Canada, but moved the Nevada and Mexico operations to the new Florida Canyon Gold mine. Alamos retained the Florida Canyon shares.

Florida Canyon has approximately 270 employees. About 60 percent come from Winnemucca and about 18 percent from Lovelock, according to the company’s Dec. 12 presentation, which describes Florida Canyon as a smaller operation with a “team” mentality.

Kosec said many workers have more than 20 years of experience and that general manager Greg Robinson “has done a great job” so Integra is not planning any employee changes except at the management level. ‘business. “We will have to increase the team.”

The mine produced a record volume of 71,000 ounces of gold in 2023.

Kosec said extending the life of the Florida Canyon mine through exploration would be “instantly accretive,” which is another reason the immediate focus is on Florida Canyon rather than Nevada North and DeLamar . He said Integra also hopes to reduce costs by 10 to 15 percent.

He said an optimization study on Florida Canyon is expected to be completed in the first quarter of 2025.

Florida Canyon and the two development projects form the building blocks of more than 20 years of mining, Kosec said during the webinar. The presentation shows seven years of mine life at Florida Canyon, an expected mine life of 13 years at DeLamar and an eight-year mine life at Nevada North.

The company said the latest drilling results from the Wildcat deposit in Nevada North show mineralization and data that supports the completion of a feasibility study. Wildcat is planned as an open-pit, heap-leach mine.

Kosec said the drilling program at Wildcat was a success and “we will next look at the mineralization at the margins.”

He added that “Wildcat mineralization appears directly at surface. We will essentially demolish the hill,” meaning surface disturbance will be limited and there will be no drying.

It also means it’s possible to obtain a permit from the U.S. Bureau of Land Management through an environmental assessment rather than an environmental impact statement, Kosec said.

Wildcat currently has measured and indicated mineral resources of 746,297 ounces of gold and 6.44 million ounces of silver, as well as inferred resources of 209,662 ounces of gold and 1.98 million ounces of money.

DeLamar requires an EIS, and Kosec said he expects the BLM to issue a notice of intent in 2025 to begin the EIS process. A feasibility study of the project is expected in the first quarter of the new year.

Kosec said the EIS will be conducted under the BLM’s new expedited tracking system. He said DeLamar is further along on the “permitting and engineering front” than Nevada North.

“The beauty is that all of these projects” will be open-pit heap leach operations using the same processing format, so it will be a case of “wash, rinse and repeat,” Kosec said. He also said Integra will have a “really interesting and strong portfolio to achieve mid-tier gold producer status.”

The Florida Canyon Mine was in continuous operation from 1986 to 2011, then intermittently until 2015. The mine was reopened in mid-2016 and has been in operation since then. The entire property covers 22,039.9 acres, including the closed Standard Mine south of Florida Canyon.