Integra Resources Mining Forum Americas 2026

Really change the trajectory of the company moving forward. No longer needing to go to the markets to raise that capital year after year. We were now looking to self-fund our growth, self-fund our permitting, and really grow from now a single asset producer in Nevada at Florida Canyon, to then bringing on Delamar, and then the Nevada North projects. Essentially growing our production from what is now 70,000 to 75,000 ounces this year to 200,000 ounces when Delamar comes online, and then 250,000 to 300,000 ounces when Nevada North comes online. For those of you that aren't familiar with the Florida Canyon Mine, it has been around for quite a while. All of our assets are located in the Great Basin of the U.S., arguably one of the best places to mine. Florida Canyon's had quite a few owners over the year.

It's been an asset that's been notoriously under-invested, some might say a little unloved over the years. What we sought to do when we acquired Florida Canyon was to really reimagine the future. Take it for something that was a relatively limited mine life when we acquired it, not something that was known for being a very high margin producer, and really think about how we can re-engineer, reevaluate, and show a mine that will continue to produce beyond the existing mine life. For those of you that aren't familiar with Florida Canyon, this is what it looks like. It's located about 2 hours north of Reno, just south of Winnemucca. It's been on and off in operations over the last two decades. When we acquired it was a producing asset.

We've continued to produce there, build our cash flow, and use that to fund growth at the other assets. I really show this picture because what's really interesting about Florida Canyon is I often call it the ice cream scoop open pit approach to mining. You'll see there's multiple open pits, haul roads around them. When we came in, we really identified that there was key things that we could change to make the operation more efficient and to grow the resource base. This year, in the summer, we put out the first technical report on the project under the Integra umbrella. This technical report really demonstrated how we've changed this mine and how it's going to produce far into the future. When we acquired the mine, it only had a six-year mine life.

In the updated technical report, we've essentially replaced those two years that we've operated it and extended the mine life for eight years moving forward. So producing to 2033. We saw a significant increase in the reserve, and this was really driven by our background in exploration. We believe that there was a lot of low-hanging fruit on the project that with some drilling we could bring into a resource, and then because it's located a lot of these targets immediately adjacent to operations, we could quickly convert them into mine plan. The other key for us here is an increase in production. This mine historically was anywhere from 60,000 to 75,000 ounces per year. Our full year guidance this year is 70,000 to 75,000 ounces.

But one of the real key changes in this study is that we're going to actually increase it to a life of mine to an average of about 82,000 ounces. So call it 80,000-85,000 ounces over life of mine the next eight years. As I mentioned earlier, we really acquired this mine to help us generate cash flow to advance our development projects. So obviously a big number for us was the cash flow that this would generate moving forward. So in the updated technical report, the next eight years on average will produce about $90 million of free cash flow, cash that we can then use to help build Delamar, to advance it through permitting, as well as the Nevada North project. And what's really driving that free cash flow is a reduction in operating costs.

We've not hidden the fact that this year is an expensive year for us. When we acquired the mine, we knew that 2026 was going to be expensive, really driven by three things. We're in the middle of an extensive pre-stripping campaign at the Central pit, which is arguably the best ore body on the project. So we're pushing back walls, and we're essentially setting it up to accommodate this longer life to support us as we move forward. The second real contributor to our AISC this year is equipment. When we bought the mine, a lot of the equipment was nearing the end of its life. The joke was you had to walk behind the trucks to collect screws that were falling off of it. So we've now bought eight 785 trucks from Caterpillar. We're leasing those. And those have actually also helped us with our efficiency.

So we were going from a fleet of 777 100-ton trucks to now 150-ton trucks. We also replaced two shovels, so we're now not loading these trucks with a loader. We're using shovels, which has just increased our efficiency as we mine. The third real reason that our AISC is high this year is heap leach expansion. So there's multiple heap leach on the project. We had some money allocated for 2027 to expand those heap leaches. We're pulling that capital into 2026 so that we can set up for a longer mine life. Really what we're doing here is being proactive miners. Historically, this was a more reactive mine. You're reacting to gold price. You're reacting to your operations. We're trying to establish a very proactive, predictable mine that will continue to produce in the future and support our development across the portfolio.

Quickly, we went over this, but I think the key on the free cash flow moving forward, yes, this year is a high-cost year for us, but moving forward life of mine, you're really going to see those costs decrease. So our AISC will decrease to just over $2,300, which will really support the cash flow as we move forward Year to date, our production Q1 and Q2 were on the smaller side because we were into some pits. As we stripped the central pit, we were pulling material from different areas, we were blending it. We are maintaining our annual guidance of 70,000-75,000. So the expectation is that the remaining two quarters of the year will see an increased production moving forward.

The other really exciting part about Florida Canyon, especially for any of the geologists in the crowd, I see a few of them, is the upside potential here.