Ryan Walker, an analyst with Echelon Wealth Partners, reported in a Feb. 6 research note that recent drill results from Integra Resources Corp.'s (ITR:TSX.V; IRRZF:OTCQB) DeLamar project in Idaho expanded one zone and delineated a new anomaly. "We contend that the latest results tend to support the regional prospectivity of the land package assembled by Integra Resources," Walker commented.
The analyst reviewed the results.
Drilling, for one, extended the 1.2 kilometer (1.2 km)-long, gold-silver mineralized zone on the War Eagle property in the southeast corner of DeLamar another 300 meters (300m), Walker indicated. Mineralization in the War Eagle zone remains open.
Two, about 3 km to the west of War Eagle and due east of Florida Mountain, Integra outlined a "new, 1,400m by 600m, high-intensity, gold-silver-arsenic-molybdenum in-soil anomaly," relayed Walker. Because it shares roughly the same size and intensity as the resource envelope at Florida Mountain, the anomaly "represents potential to add shallow oxide and transitional mineralized material amenable to heap leaching," he commented.
Walker also provided the recent highlight assays from DeLamar, which were 5.4 grams per ton (5.4 g/t) gold and 45.85 g/t silver over 3.05m (from 227.99m downhole) in Hole IWE19-06. Hole IWE19-04 returned 2.98 g/t gold and 7.27 g/t silver over 3.05m (160.93m). Hole IWE19-05 showed 3.29 g/t gold and 155.57 g/t silver over 0.30m (319.13m).
Regarding the two primary findings at DeLamar, Walker wrote, Integra plans to drill another 5,000m in the War Eagle zone this year to define high-grade shoots there and to have an induced polarization survey over the anomaly carried out this summer.
Echelon increased its target price on Integra Resources to CA$2.25 per share from CA$1.50 because it moved to a valuation based on discounted cash flow. The target includes a 1.0x multiple representing a premium to peers, which is warranted because Integra's DeLamar project is of a strategic size, substantial exploration remains there and the project is in a geopolitically stable and mining friendly jurisdiction. In comparison, Integra, rated Speculative Buy, is trading now at around CA$1.24 per share.[NLINSERT]
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Disclosures from Echelon Wealth Partners, Integra Resources Corp., February 6, 2020
Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.
I, Ryan Walker, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report.
Is this an issuer related or industry related publication? Issuer.
Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? No
The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer. No
Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No
Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer? No
During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer? Yes
During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes
Has the Analyst had an onsite visit with the Issuer within the last 12 months? Yes. DeLamar mine site in Idaho, including mine office, core facility, truck shop, etc. (Feb. 11, 2019)
Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No
Has the Analyst received any compensation from the subject company in the past 12 months? No
Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No