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Integra Gold Corp
Symbol ICG
Shares Issued 210,728,198
Close 2015-02-09 C$ 0.265
Market Cap C$ 55,842,972
Recent Sedar Documents

Integra Gold increases Lamaque South resource estimates

2015-02-10 16:13 ET - News Release

Mr. Stephen de Jong reports

INTEGRA GOLD INCREASES LAMAQUE SOUTH INDICATED RESOURCE TO 1.06 MILLION OUNCES OF GOLD, TRIANGLE ZONE INDICATED RESOURCE INCREASES 173%

Integra Gold Corp. has completed updated mineral resource estimates for two of its main gold deposits at its 100-per-cent-owned Lamaque South gold project located in Val d'Or, Que. The Triangle and Parallel zones are located within a two-kilometre corridor immediately east of the city of Val d'Or. The Triangle zone and Parallel zone resources account for the majority of the resources used in the company's recently completed (see press release dated Jan. 13, 2015) preliminary economic assessment (PEA). There are a number of other high-priority gold occurrences on the property that are now being drill tested as part of the 50,000-metre drill program announced on Jan. 28, 2015. Six diamond drills are currently operating at Lamaque South.

                       LAMAQUE SOUTH RESOURCE ESTIMATE (1)
  
                     Indicated resources                Inferred resources     
Cut-off         Tonnes     Grade      Ounces      Tonnes     Grade      Ounces
                         (g/t Au)        (Au)              (g/t Au)        (Au) 
  
3 g/t Au     4,655,300       7.1   1,057,420   1,221,300       8.4     330,990 
5 g/t Au     2,657,000       9.5     811,010     788,100      10.9     276,030 

(1) Mineral resources that are not mineral reserves do not have 
    demonstrated economic viability.

Resource highlights

  • Using a three-gram-per-tonne-gold cut-off grade, the Triangle zone indicated resources increased 173 per cent from 190,760 ounces to 520,630 ounces of gold at a grade of 8.3 grams per tonne gold.
  • Using a three-gram-per-tonne-gold cut-off grade, total Lamaque South indicated resources increased by 40 per cent from 756,310 gold ounces to 1,057,420 gold ounces at a grade of 7.1 grams per tonne gold and inferred resources increased by 13 per cent from 293,710 gold ounces to 330,990 gold ounces at a grade of 8.4 grams per tonne gold.
  • Using a three-gram-per-tonne-gold cut-off grade, indicated and inferred resources represent 76 per cent and 24 per cent of all Lamaque South resources, respectively.
  • The project has excellent exploration potential at depth; nine million ounces of historical production from the adjacent mines, which produced to vertical depths of over 2,000 metres, whereas the depth of Integra's updated resources are from surface to approximately 620 metres vertical depth and open below.

"We are extremely pleased with this substantial increase in resources at the Lamaque South gold project. We are particularly encouraged by the considerable growth at our largest and highest-grade target, the Triangle zone. With future studies, we anticipate the Triangle zone will become an increasingly significant part of the mine plan at the project, beyond what we have indicated in our recent PEA update. What is particularly encouraging is the indication of larger, potentially bulk-minable gold mineralization at the Triangle zone, given the widths encountered in drilling and modelled in the new resource estimate," commented Stephen de Jong, president and chief executive officer. "This thicker style of gold mineralization is reminiscent of the zones mined at the past-producing Lamaque mine adjacent and directly north to Lamaque South, where Teck Corp. produced 4.5 million ounces of gold from a combination of narrow-vein-hosted mineralization and larger ore zones that were mined using bulk underground mining techniques.

"There are very few low-cap-ex, safe-jurisdiction, high-grade gold assets that can boast the potential for a 100,000-ounce-per-year-or-greater production profile and have the permitting ease we have experienced thus far at Lamaque South. Integra's growing technical and operations team has done a remarkable job getting the project to this point, both in their ability to consistently expand the resource through exploration and concurrently advance the asset towards production."

The updated resource estimate integrates 45,400 metres of new drilling completed on the two main gold zones at Lamaque South, the Triangle zone (33,000 metres) and the Parallel zone (12,400 metres). An additional 26,200 metres of drilling from the Fortune zone, No. 3 mine and No. 5 plug and 2015 drilling at Triangle completed so far, all of which are hosted within the same two-kilometre corridor, have yet to be modelled and included in this updated resource estimate.

The Triangle zone remains open in all directions, and, over the next three months, the company plans to have four drills operating on the zone, focusing on expanding the existing resource to bring additional gold ounces into an updated mine plan. Without incorporating the new resources announced in this press release, and using the closing spot gold price of $1,239 (U.S.) per ounce and exchange rate of 1.24 from Feb. 9, 2015, the Lamaque South project PEA reports a pretax internal rate of return of 106 per cent and net present value (5-per-cent discount) of $266-million, further highlighting the project's potential. (The company's base case scenario used a gold price of $1,175 (U.S.) per ounce and an exchange rate of $1.14, returning a pretax IRR of 77 per cent and NPV(5) of $184.3-million.) All new gold ounces are situated in close proximity to proposed underground infrastructure as set forth in the PEA and are situated within a similar vertical depth envelope as the previous resource estimate. The company plans to analyze accessing the expanded resources using that same underground in its continuing development studies, potentially significantly enhancing project economics.

To view an idealized cross-section of the Triangle zone, visit the company's website.

The new resource estimate incorporates 45,400 metres of drilling in 126 holes and was completed by GeoPointCom from Val d'Or, Que.; geological modelling and interpretation were completed under the supervision of Geologica, also from Val d'Or, Que. An additional 26,200 metres of drilling has been completed at the Triangle zone and on other target areas on Lamaque South that have not been included in this resource update estimate but will be included in future resource estimates. Further details on the mineral resource estimation parameters and results will be presented in an updated technical report to be filed on SEDAR within 45 days.

Substantial resource growth at the Triangle zone

  • Largest and highest-grade deposit at Lamaque South, accounting for more than 50 per cent of recovered ounces reported in the company's January, 2015, PEA;
  • Using a three-gram-per-tonne-gold cut-off, indicated resources increased by 173 per cent from 190,670 gold ounces to 520,630 gold ounces at a grade of 8.3 grams per tonne gold, and inferred resources increased by 27 per cent from 137,600 gold ounces to 174,470 gold ounces at a grade of nine grams per tonne gold;
  • All additional ounces are contained within the same vertical depth (surface to 620 metres) as the previous resource estimate;
  • The Triangle zone is open in all directions.

Increase in size and average grade of total Lamaque South resource

  • Indicated resources increased 40 per cent to 1,057,420 gold ounces at a grade of 7.1 grams per tonne gold;
  • Inferred resources increased 13 per cent to 330,990 gold ounces at a grade of 8.4 grams per tonne gold.

The resource numbers above do not include resources obtained through the recent acquisition of the Sigma-Lamaque mill and mine complex of 586,000 gold ounces of measured and indicated resources contained within 3,674,000 tonnes at a grade of five grams per tonne gold and 1,853,000 gold ounces of inferred resources contained within 9,159,000 tonnes at a grade of 6.3 grams per tonne gold, as reported in the press release dated Jan. 13, 2015.

Lamaque South mineral resource summary

Gold mineralization at the Lamaque South project starts at surface in multiple zones, all situated in close proximity to each other within a two-kilometre corridor, including some zones laterally separated by only a few hundred metres. For clarity, the resource update disclosed in this press release has not been incorporated into the PEA, nor does it include the additional resources obtained from the Sigma property.

The updated mineral resource estimate announced in this press release is limited to the Triangle and Parallel zones, as set forth in the attached table. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

    
             RESOURCE ESTIMATE FOR TRIANGLE AND PARALLEL ZONES 
                (at a three-gram-per-tonne-gold cut-off)

                     Indicated resources                Inferred resources     
                Tonnes     Grade      Ounces      Tonnes     Grade      Ounces
                         (g/t Au)        (Au)              (g/t Au)        (Au)

Triangle     1,957,100       8.3     520,630     604,700       9.0     174,470 
Parallel       766,500       7.3     180,750     250,900      10.7      86,460 

             RESOURCE ESTIMATE FOR TRIANGLE AND PARALLEL ZONES 
                  (at a five-gram-per-tonne-gold cut-off)
  
                     Indicated resources                Inferred resources     
                Tonnes     Grade      Ounces      Tonnes     Grade      Ounces
                         (g/t Au)        (Au)              (g/t Au)        (Au)

Triangle     1,323,500      10.4     441,580     429,300      11.0     152,370 
Parallel       462,900       9.6     142,890     153,700      15.0      73,880 

Please visit the company's website to view the project plan map and zones location.

Using a three-gram-per-tonne-gold cut-off, the Lamaque South indicated resources increased by 40 per cent to 1,057,420 gold ounces at a grade of 7.1 grams per tonne gold and inferred resources increased by 13 per cent to 330,990 gold ounces at a grade of 8.4 grams per tonne gold.

            LAMAQUE SOUTH COMPARISON WITH PREVIOUS RESOURCE ESTIMATE 
                   (at a three-gram-per-tonne-gold cut-off)

                         Indicated resources                Inferred resources     
                    Tonnes     Grade      Ounces      Tonnes     Grade      Ounces
                             (g/t Au)        (Au)              (g/t Au)        (Au)

January, 2014    3,325,300       7.1     756,310     851,400      10.8     293,710 
February, 2015   4,655,300       7.1   1,057,420   1,221,300       8.4     330,990 

At a higher cut-off of five grams per tonne gold, the Lamaque South indicated resources increased by 42 per cent to 810,560 gold ounces at a grade of 9.5 grams per tonne gold and inferred resources increased by 7 per cent to 276,030 gold ounces at a grade of 10.9 grams per tonne gold.

            LAMAQUE SOUTH COMPARISON WITH PREVIOUS RESOURCE ESTIMATE 
                   (at a five-gram-per-tonne-gold cut-off)

                         Indicated resources                Inferred resources     
                    Tonnes     Grade      Ounces      Tonnes     Grade      Ounces
                             (g/t Au)        (Au)              (g/t Au)        (Au) 
 
January, 2014    1,812,100       9.8     569,410     582,300      13.8     258,850 
February, 2015   2,657,000       9.5     810,560     788,100      10.9     276,030 

Significant potential remains to increase the gold resources, both laterally and at depth, in most of the deposits at Lamaque South. Two additional targets drilled between 2012 and 2014, the No. 5 plug and No. 3 mine, have yet to be added to the Lamaque South resource estimate, while numerous significant exploration targets remain to be tested throughout the property. The company completed additional drilling on the No. 5 plug at the end of 2014 and will be drilling the No. 3 mine target at the beginning of 2015.

Including the resource disclosures made in September, 2013, and January, 2014 (see press release dated Sept. 25, 2013, and Jan. 28, 2014), estimates have now been completed for six separate gold deposits at the Lamaque South project:

  • Parallel zone;
  • Triangle zone;
  • Fortune zone;
  • No. 4 plug;
  • No. 6 vein;
  • Sixteen zone.

When the Sigma property resources (see press release dated Jan. 13, 2015) are added to these newly updated resources on Lamaque South, the company's global mineral resource increases to a total of 1.64 million gold ounces grading 6.2 grams per tonne gold of indicated (and measured) resources and 2.18 million gold ounces grading 6.5 grams per tonne gold of inferred resources, at the cut-off grades noted in the attached table.

     SUMMARY OF LAMAQUE SOUTH GOLD PROJECT AND SIGMA PROPERTY RESOURCES
        
                         Indicated resources                Inferred resources     
                     Tonnes    Grade      Ounces      Tonnes     Grade      Ounces
                             (g/t Au)        (Au)              (g/t Au)        (Au)
Lamaque South(1)                              
Fortune             125,500      5.8      23,600     252,300       5.6      45,220 
Triangle          1,957,100      8.3     520,630     604,700       9.0     174,470 
No. 4 plug        1,325,100      5.6     237,450           0       0.0           0    
Parallel            766,500      7.3     180,750     250,900      10.7      86,460 
Sixteen              91,700      5.2      15,440       1,800       4.2         250   
No. 6 vein          389,400      6.4      79,550     111,600       6.9      24,590 
Total             4,655,300      7.1   1,057,420   1,221,300       8.4     330,990 
                                                                            
                       Measured and indicated                                 
                            resources(2)                    Inferred resources     
                     Tonnes    Grade      Ounces      Tonnes     Grade      Ounces
                             (g/t Au)        (Au)              (g/t Au)        (Au)
Sigma property(3)                             
Sigma             3,674,000      5.0     586,000   9,159,000       6.3   1,853,000

(1) This was calculated using a three-gram-per-tonne-gold cut-off grade. 
(2) The Sigma property measured resource is 202,000 ounces grading 5.46 grams 
    per tonne gold (1,151,000 tonnes) and 384,000 ounces grading 4.73 grams 
    per tonne gold (2,523,000 tonnes).
(3) This was calculated using a one-gram-per-tonne-gold cut-off grade, 
    except for 19,000 ounces in the indicated category and 6,000 ounces 
    in the inferred category for the Lamaque No. 2 mine, for which the 
    cut-off grade is 2.1 grams per tonne gold.

Triangle zone

The majority of the increase in the gold resources announced in this press release have been added within or in close proximity to the limits previously established by drilling within the existing Triangle zone resource. Using a three-gram-per-tonne-gold cut-off, the indicated resource at the Triangle zone increased by 173 per cent from 190,670 gold ounces to a total of 520,630 gold ounces at a grade of 8.3 grams per tonne gold, while inferred resources increased by 27 per cent from 137,600 gold ounces to a total of 174,470 gold ounces at a grade of nine grams per tonne gold.

To view an idealized cross-section of the Triangle zone, visit the company's website.

This significant increase in resources is a result of:

  • The incorporation of more than 33,000 metres of new drilling information on the Triangle zone resource database;
  • Better defined geological controls;
  • Lateral, downdip and updip extensions beyond the previous resource envelopes;
  • The incorporation of wider and higher-grade zones, often in excess of 10 metres in true thickness, in the lower portion of the Triangle zone (between 450 metres to 620 metres vertical depth).

It is important to note that the wider zones discovered in the lower half of the Triangle zone appear to mimic the lower sections of the neighbouring Lamaque mine, which historically produced 4.5 million ounces of gold with the most productive years coming from bulk mining techniques in the lower, bulk zones. Some of the widest and highest-grade intercepts reported are from the lower mineralized zones at Triangle, which were discovered in 2014 and remain open laterally and at depth.

These wider zones of mineralization dip to the south at greater than 45 degrees, suggesting these zones could be mined using more-productive bulk-mining methods, such as long-hole mining. This is a significant discovery and should positively impact mining costs as these mining methods are more efficient and cost-effective than traditional shallow-dipping, narrow-vein mining techniques.

Mineralized intervals from the lower zone at Triangle discovered in 2014 drilling include:

  • 14.2 grams per tonne gold over 11 metres in TM-14-32, starting at 604 metres;
  • 10.5 grams per tonne gold over 13 metres in TM-14-33, starting at 583 metres;
  • 15.9 grams per tonne gold over four metres in TM-14-33, starting at 631 metres;
  • 8.2 grams per tonne gold over 10 metres in TM-14-26, starting at 626.9 metres;
  • 17.7 grams per tonne gold over three metres in TM-14-27, starting at 636 metres;
  • 26.5 grams per tonne gold over six metres in TM-14-43, starting at 573 metres;
  • 38.2 grams per tonne gold over seven metres in TM-14-19, starting at 554 metres.

The company's current 2015 drill program includes step-out drilling on these zones and testing for lateral and depth extensions of the wider, high-grade zones. There is also excellent potential to increase the resource laterally and at depth, as the model used in the estimate announced in this press release is limited to a vertical depth of 620 metres, the same depth as the previous estimate. Two drill holes completed in 2013, down to a vertical depth of 900 metres, intersected significant mineralization, including an intercept grading 10.5 grams per tonne gold over six metres in hole TMS-13-07 (see press release dated Nov. 18, 2013). In 2014, the company focused its drill efforts on defining resources between surface and 620 metres vertical depth, with no drilling testing beyond this depth. As part of the 2015 drill program, the company will be extending a number of holes to 900 metres to 1,000 metres vertical depth.

Parallel zone

Using a three-gram-per-tonne-gold cut-off, indicated resources decreased slightly by 14 per cent from 209,570 gold ounces to 180,750 gold ounces at a grade of 7.3 grams per tonne gold. The inferred resources remained unchanged at 86,460 gold ounces at a grade of 10.7 grams per tonne gold. The resource variation is a result of the additional 13,500 metres of infill drilling, primarily in the upper zones of the mineralized envelopes. Drilling has better defined the outer limits of the Parallel zone, decreasing the contained ounces slightly while increasing the global tonnage. The drill spacing, which is now reduced to an average of 25 metres, has greatly increased the confidence level in the Parallel modelling and resources. It should be noted that, when the company conducted its previous PEA, the grade of deeper inferred resources was reduced to 10 grams per tonne gold due to the lack of drilling having been completed in those areas. The grade of the updated inferred resource announced in this press release is consistent with the previous 10-gram-per-tonne-gold estimate.

The potential to increase the resource at the Parallel zone remains excellent as the deeper, higher-grade vein arrays, which occur at approximately 375 metres vertical depth, have yet to be sufficiently drill tested; this is where the majority of the Parallel zone inferred resources are located. Further testing and resource delineation for those zones will likely wait until underground access is available.

Global Lamaque South mineral resources

Resources for all others zones presented in this resource update, namely for the No. 4 plug, Fortune zone, No. 6 vein and Sixteen zone, remain unchanged from previous disclosures. Modelling work and estimation work are still continuing at the Fortune zone and No. 5 plug, with results to be disclosed at a later date in 2015. Additional drilling at the No. 3 mine is to be completed this winter before modelling and estimation can proceed.

The two attached tables give a summary, by zones, of updated indicated and inferred mineral resources at the selected disclosure cut-off of three grams per tonne gold.

             INDICATED MINERAL RESOURCES BY ZONES 
           (at a three-gram-per-tonne-gold cut-off)

                                             Grade               Ounces      
Zone                      Tonnes           (g/t Au)                 (Au)       

Fortune(1)               125,500               5.8               23,600     
Triangle(2)            1,957,100               8.3              520,630      
No. 4 plug(3)          1,325,100               5.6              237,450      
Parallel(4)              766,500               7.3              180,750      
Sixteen(5)                91,700               5.2               15,440      
No. 6 vein(6)            389,400               6.4               79,550      
Total                  4,655,300               7.1            1,057,420     

              INFERRED MINERAL RESOURCES BY ZONES 
            (at a three-gram-per-tonne-gold cut-off)

                                             Grade               Ounces      
Zone                      Tonnes           (g/t Au)                 (Au)       

Fortune(1)               252,300               5.6               45,220      
Triangle(2)              604,700               9.0              174,470      
No. 4 plug(3)                  0               0.0                    0         
Parallel(4)              250,900               0.7               86,460      
Sixteen(5)                 1,800               4.2                  250        
No. 6 vein(6)            111,600               6.9               24,590      
Total                  1,221,300               8.4              330,990      

(1) Specific gravity of 2.8 grams per cubic metre; individual gold
    values uncap; two-metre minimum true thickness;
(2) Specific gravity of 2.8 grams per cubic metre; capping of 
    55 grams per tonne on composites when composites are more than 
    10 metres from estimated cell (composites are one metre); 
    two-metre minimum true thickness;
(3) Specific gravity of 2.8 grams per cubic metre; individual 
    gold values capped to 300 grams per tonne gold; no minimum 
    true thickness;
(4) Specific gravity of 2.8 grams per cubic metre; composites are 
    gradually capped when the gold value is over 90 grams per 
    tonne gold plus (0.55 multiplied by (gold minus 90)); 
    two-metre minimum true thickness;
(5) Specific gravity of 2.8 grams per cubic metre; individual gold 
    values gradually capped when the gold value is over 40 grams 
    per tonne using the formula 40 grams per tonne gold plus 
   ((x minus 40) multiplied by 0.53)); two-metre minimum 
    true thickness;
(6) Specific gravity of 2.8 grams per cubic metre; individual gold 
    values are capped at 35 grams per tonne; two-metre minimum 
    true thickness.

Global Lamaque South mineral resource -- individual deposits at alternative gold cut-off grades

The mineral resources were also compiled using variable cut-offs, with results presented at a five-gram-per-tonne-gold cut-off for all zones, as shown in the attached tables. Tables at multiple cut-off grades will be available in the updated National Instrument 43-101 technical report, which will be published and filed on SEDAR. Cut-off grades used in the recently disclosed PEA for selection of potential stopes vary on an individual zone basis, depending on mining method; cut-offs used were between four and five grams per tonne gold. The high-grade nature of the deposits is clearly illustrated at the five-gram-per-tonne-gold cut-off in the attached table.

              INDICATED MINERAL RESOURCES BY ZONES 
            (at a five-gram-per-tonne-gold cut-off)

                                             Grade               Ounces      
Zone                      Tonnes           (g/t Au)                 (Au)    

Fortune(1)                60,700               8.0               15,610      
Triangle(2)            1,323,500              10.4              441,580      
No. 4 plug(3)            522,900               8.3              140,280      
Parallel(4)              462,900               9.6              142,890      
Sixteen(5)                41,800               6.9                9,250       
No. 6 vein(6)            245,200               7.8               61,400      
Total                  2,657,000               9.5              811,010      

              INFERRED MINERAL RESOURCES BY ZONES 
            (at a five-gram-per-tonne-gold cut-off)

                                             Grade               Ounces      
Zone                      Tonnes           (g/t Au)                 (Au) 
  
Fortune(1)               111,300               7.7               27,470      
Triangle(2)              429,300              11.0              152,370      
No. 4 plug(3)                  0               0.0                    0         
Parallel(4)              153,700              15.0               73,880      
Sixteen(5)                   400               6.4                   90        
No. 6 vein(6)             93,400               7.4               22,220      
Total                    788,100              10.9              276,030      

(1) Specific gravity of 2.8 grams per cubic metre; individual gold
    values uncap; two-metre minimum true thickness;
(2) Specific gravity of 2.8 grams per cubic metre; capping of 
    55 grams per tonne on composites when composites are more than 
    10 metres from estimated cell (composites are one metre); 
    two-metre minimum true thickness;
(3) Specific gravity of 2.8 grams per cubic metre; individual 
    gold values capped to 300 grams per tonne gold; no minimum 
    true thickness;
(4) Specific gravity of 2.8 grams per cubic metre; composites are 
    gradually capped when the gold value is over 90 grams per 
    tonne gold plus (0.55 multiplied by (gold minus 90)); 
    two-metre minimum true thickness;
(5) Specific gravity of 2.8 grams per cubic metre; individual gold 
    values gradually capped when the gold value is over 40 grams 
    per tonne using the formula 40 grams per tonne gold plus 
   ((x minus 40) multiplied by 0.53)); two-metre minimum 
    true thickness;
(6) Specific gravity of 2.8 grams per cubic metre; individual gold 
    values are capped at 35 grams per tonne; two-metre minimum 
    true thickness.

Exploration drilling program and resource potential

As recently disclosed (see press release dated Jan. 28, 2015), the company has commenced a 2015 drilling program consisting of 50,000 metres in approximately 120 holes. This year's program will utilize up to eight drill rigs during the winter months and one to two drill rigs during the summer and fall months. The proposed targets and metreage for the coming year are as follows:

  • Triangle zone extension -- 20,000 metres;
  • No. 3 mine definition -- 6,500 metres;
  • No. 6 vein definition -- 7,500 metres;
  • No. 4 plug south extension -- 4,000 metres;
  • Parallel zone ramp condemnation -- 1,500 metres;
  • North Flats vein exploration -- 5,000 metres;
  • New target exploration -- 5,500 metres.

The majority of this drilling will focus on increasing the gold resources at Lamaque South by concentrating on definition and extension drilling on four of its main gold deposits while aggressively continuing its search for new gold-bearing zones within the Lamaque South project area.

Project profile

Integra's Lamaque South gold project and Sigma-Lamaque mill and mine complex are located directly east from the city of Val d'Or, along the prolific Abitibi greenstone belt in the province of Quebec, Canada, approximately 550 kilometres northwest of Montreal. Quebec is rated one of the best mining jurisdictions in the world. Infrastructure, human resources and mining expertise are readily available.

The company's primary focus is on production planning for its high-grade Lamaque South project. The Lamaque South property is divided into three clusters: the north, south and west clusters. The primary targets are the high-grade Parallel zone in the north cluster and the Triangle zone in the south cluster. The acquired Sigma mill, located one kilometre from the Parallel zone and three kilometres from the Triangle zone, is a fully permitted, 2,200-tonne-per-day mill and tailings facility. The Sigma-Lamaque mill and mine complex include the historic Sigma and Lamaque mines, which operated for 75 years and 52 years, respectively, and produced more than nine million ounces of gold in total.

Qualified person

The Lamaque South exploration project and Sigma-Lamaque mill and mine complex, jointly known as the Lamaque project, are under the direct supervision of Herve Thiboutot, Eng, senior vice-president of the company, and Francois Chabot, Eng, manager of operations/engineering of the company. Both Mr. Thiboutot and Mr. Chabot are qualified persons as defined by NI 43-101. Alain-Jean Beauregard, PGeo; Daniel Gaudreault, Eng, Geo, of Geologica Inc.; and Christian D'Amours, PGeol, OGQ, of GeoPointCom are responsible for the completion of the 2015 geological modelling and resource updates; all three are independent qualified persons as defined by NI 43-101. The company's qualified persons have reviewed the technical content of this release.

Quality assurance/quality control

Thorough quality assurance/quality control protocols are followed on the project, including insertion of duplicate, blank and standard samples in all drill holes. The core samples are submitted directly to Bourlamaque Assay Laboratories in Val d'Or for preparation and analysis. Analysis is conducted on one-assay-tonne aliquots. Analysis of gold is performed using fire assay method with atomic absorption finish, with a gravimetric finish completed for samples exceeding five grams per tonne gold or a metallic sieve assay for all samples containing visible gold. When available, the gravimetric or metallic sieve assay results are used for the reported composite intervals.

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