Four Active Mining Companies You Should Be Watching

We talked to CFO Vincent Metcalfe and he confirmed that if an additional mineralized block could be confirmed at the Western extension of Horne 5, a part of the sustaining capex could be deferred, which would improve the overall economics of the project.

TGR: Québec has been the hot spot for "recycling" old projects. Horne 5 is a past-producing mine, but there's another company taking another look at an "old" project, right?

TL: Yes, that's correct. Integra Gold Corp. (ICG:TSX.V; ICGQF:OTCQX) has been releasing some extraordinary drill results lately and is gearing up to release an updated PEA after the summer.

This will be a very important step forward as the previous PEA was based on a mine plan covering just a fraction of the total resources at the Lamaque project. This new PEA will incorporate many more ounces, and I would expect the NPV to triple or quadruple, and perhaps the company will also reconsider its development plans.

The nameplate capacity of the mill it acquired in 2014 is 2,200 tonnes per day, so there definitely is plenty of capacity to increase the mining rate at Lamaque by mining satellite deposits (like the No. 4 Plug zone). I wouldn't be surprised to see an updated mine plan incorporating a scenario to produce 200,000–250,000 ounces per year to maximize the operating efficiencies.

TGR: You follow a company that released a second prefeasibility study (PFS) within five months of releasing the initial PFS. Why would it do that?

TL: Yes, Focus Ventures Ltd. (FCV:TSX.V) just released its second PFS. It's a pity the company had to release the inferior first PFS, as the updated version is definitely much better. Focus' consultants now had enough time to revisit every possibility to improve the economics, and this really has paid off. The IRR was boosted from 17% to over 26% while the payback period was reduced from approximately seven years to four years.

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Disclosure: 

1) Patrice Fusillo compiled this interview for Streetwise Reports LLC and ...

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