Integra Gold Map

Integra Gold Map located very close to the town of Val-d-Or in Quebec. (Image: Integra)

A look at a couple of the mining headlines that caught my eye with some additional comments.

Integra Gold (ICG:TSXV) and Eldorado Gold (ELD:TSX) - Integra and Eldorado have announced that Eldorado will be making a $14.57 million dollar investment in Integra.  Eldorado will purchase 52 million shares of ICG at 28 cents per share and will hold 15% of Integra upon completion.

The deal comes at a slight premium of 5.7% to the closing price yesterday and 11% on the 20 day moving average.

Integra will be cashed up with $27 million following the deal and will look to increase drilling to 100,000 metres in 2015. Focus at the moment will be on development and exploration of the Triangle zone.

The Triangle zone currently has a resource of 441,580 indicated ounces at 10.4 g/t gold and 152,370 inferred ounces at 11 g/t. The resource was last updated in February 2015 and was a 164% increase from the previous resource estimate in November 2013.

Triangle is by far the largest zone on the property making up over 50% of ICG's total resource of 811,010 indicated and 276,030 inferred ounces.

"Recent drill results from the Lamaque project, and specifically the Triangle zone, continue to demonstrate the excellent upside potential of the deposit, which is situated in the world-class gold district of Val d'Or, Que. The Eldorado investment allows us to substantially increase our current program with the objective of enhancing our confidence in existing mineral resources and adding to an already substantial gold resource base. With five drill rigs operational by the end of the month and almost 100,000 metres of planned drilling in 2015, this investment provides us with the financial resources to more rapidly move forward with an active fall and winter drill program which is anticipated to include 10 operating drills at the project," commented Stephen de Jong, president and chief executive officer of Integra.

ICG 1 year chart

Integra stock has doubled since November and is slightly  higher year over year.

The team continues to move ICG forward in a tough junior gold market.

10 research analysts cover the stock with target prices ranging from $0.40 to a $1.

Read: Integra Gold Announces $14.6 Million Investment by Eldorado Gold

Related: Gold mining big data play could make you a millionaire

AuRico Metals (AMI:TSX) - AuRico Metals was spun out of the Alamos/Aurico deal and started trading on July 6th. AuRico holds the Kemess project in British Columbia and a couple royalties. News this morning was the first two drill assays from the Kemess project.

Results of the Kemess east drilling include:

  • Hole KH-15-01 intersected 305 metres of 0.625 gram per tonne (g/t) gold (Au) and 0.433 per cent Cu;
  • Hole KH-15-02 intersected 301 metres of 0.466 g/t Au and 0.394 per cent Cu (the estimated true thickness of the mineralized intervals is 70 per cent of the reported intercept length).

These are fantastic holes that extend the mineralization from previous drilling with long intersections of copper and gold.

"We're pleased with the early results from this year's Kemess drill campaign which is not only adding confidence to the inaugural Kemess east resource announced earlier this year but is also expanding the area of known mineralization. The results of the drilling are particularly encouraging given the immediate proximity to the existing processing facility and associated surface infrastructure that includes a 50,000-tonne-per-day mill, administration and camp facilities, permitted tailings storage, and full access to grid power," stated Chris Richter, president and chief executive officer of AuRico Metals.

Aurico Metals stock chart

AuRico in my opinion is an interesting play as they were spun out with cash flowing royalties and an excellent project.

The current cash position is approximately $25 million (July 2nd).

Kemess East looks like it is quickly turning a sizeable resource. The initial resource estimate out earlier this year showed a resource of 5.5 million gold equivalent ounce. 30,000m of drilling is planned for 2015.

Sandstorm Gold has had its interest peaked and owns 12% of the outstanding shares of AuRico. Transactions made by Sandstorm can be followed in the AuRico room of CEO chat at http://chat.ceo.ca/ami

Read: AuRico drills 305m of 0.62 g/t Au, 0.43% Cu at Kemess

Related: The good news at AuRico Gold keeps coming…

Thanks for reading.

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This is not investment advice. All facts are to be checked and verified by reader. As always please do your own due diligence.