en.Wedoany.com Reported - Integra Resources, a gold producer operating in the western United States and listed on the New York Stock Exchange and TSX Venture, has released a feasibility study for its Florida Canyon Mine in Nevada. Company President and CEO George Salamis discussed the results in an interview, stating that the report establishes the mine as a strategic financial pillar for the company, capable of generating cash flow to advance other development assets without heavy reliance on external capital markets.
The feasibility study shows an after-tax net present value of $601 million at a 5% discount rate over an eight-year mine life. Salamis emphasized that what truly matters to shareholders is the cumulative free cash flow expected from the operation, approaching $800 million over the eight-year mine life. The study assumes no upfront capital expenditure, as the mine is already built, permitted, and operating.
Compared to previous estimates, the study shows a 78% increase in reserves and a 128% increase in resources. Salamis attributed this partly to higher gold price assumptions but also highlighted an 18-month internal effort involving approximately 16,000 meters of drilling, geotechnical work, and revised mine sequencing. Historically, the deposit was mined based on grade shells; the company gained a better understanding of the ore body by studying the interaction between structural and lithological controls. Additionally, the decision to process more ore through the crusher rather than placing it directly on the heap leach pad improved recovery rates.
Over the next two quarters, mining activities will primarily focus on stripping waste rock to expose the higher-grade Main C pit. Capital expenditures during this period include additional mining equipment and a fleet replacement of haul trucks. Salamis expects costs to decline as stripping activities are completed, with average all-in sustaining costs (AISC) slightly above $2,300 per ounce over the mine life. The study also reports a blended recovery rate of 57% over the mine life, with run-of-mine recovery ranging from approximately 40% to just over 50%, and crushed ore recovery in the low to mid-60% range. The company is evaluating options to expand crushing capacity to improve the blended recovery rate.
The company plans a 42,500-meter exploration program, focusing on drilling ridges and saddles between existing pits, as well as historical standard targets outside the mine area that have not been drilled for about 15 years. Salamis noted that the market still has a "prove it to me" attitude toward Florida Canyon, and the company needs to demonstrate sustained production capacity of 80,000 to 85,000 ounces between 2027 and 2029. He also mentioned that, according to the study, Integra's acquisition of the DeLamar project for $65-66 million is expected to generate a return of approximately 11 times the initial investment.
Free cash flow from Florida Canyon will first be used to sustain operations, then to build a funding pool to finance the DeLamar project construction, which the company hopes to start in about two years, with debt expected to supplement that construction financing. In addition to DeLamar, the company is advancing the Nevada North project, located 25 miles west of Florida Canyon. Salamis stated that these two assets could eventually operate in parallel, with Florida Canyon's cash flow funding Nevada North's development, while the combined cash flow from DeLamar and Florida Canyon would ultimately support it directly. This structure aims to reduce the company's reliance on equity issuance, thereby minimizing shareholder dilution.
From a macro perspective, Integra's update reflects the current high input costs and a more sustained high gold price environment. Fuel and explosives costs remain elevated industry-wide, while stronger gold prices support larger reserve and resource estimates and wider margins. Salamis said that if gold prices remain high for an extended period, the company will have more profits to build funding pools and cash flow to cover other future matters.
