Good morning. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the Integra Resources third quarter 2025 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I'd like to turn the meeting over to Jason Banducci, Vice President, Corporate Development and Investor Relations. Please go ahead, Mr. Banducci.
Thank you, Operator. I would also like to welcome everyone to Integra Resources' third quarter 2025 operating and financial results conference call. Before we begin, I would like to note that we will be making forward-looking statements during today's call. I'll direct you to the second slide of the earnings presentation, which contains important cautionary notes regarding these forward-looking statements. The cautionary notes can also be found on Integra Resources' corporate website. All dollar amounts discussed today will refer to U.S. dollars unless otherwise noted. On the call today, I'm joined by Integra Resources' President, CEO, and Director, George Salamis, Chief Operating Officer, Clifford Lafleur, Chief Financial Officer, Andrée Saint-Germain, Vice President of Finance, Sean Deissner, and the General Manager of the Florida Canyon Mine, Greg Robinson. Today, we are pleased to provide an operating and financial result and financial update for the third quarter of 2025, followed by a live Q&A session.
With that, I'd like to hand the call over to George to kick things off.
Thanks, Jason. 2025 continues to be a transformative year for Integra. When the company acquired the Florida Canyon Mine in late 2024, Integra transformed overnight from gold developer to gold producer. The primary goal of acquiring Florida Canyon was to secure a consistent and reliable source of cash flow that would allow the company to advance its flagship development stage projects, Delamar and Nevada North, and remove the need for dilutive annual equity financings. For the third quarter in a row, Florida Canyon has successfully delivered on this objective. In the current gold price environment, Florida Canyon is generating significant cash flow, which has transformed the company's financial position and strengthened our ability to execute on our strategy. As anticipated, Florida Canyon will see significant reinvestment during the remainder of 2025 and into 2026 across several ongoing initiatives to support a profitable mining operation for many years to come.
The next few quarters represent a capital-intensive phase of the long-term continuous improvement plan for Florida Canyon. Major investments are underway in key areas, including a heap leach pad expansion, increased capital waste stripping, a revitalized mobile equipment fleet, process optimization, and enhanced mine planning. The goal is to sustain and grow Florida Canyon, extend its mine life, and address historical underinvestment. Integra is laying the foundation for a more efficient, longer-lived operation with an improved cost profile in the years ahead. The company's ongoing work at Florida Canyon will be incorporated into an updated life of mine plan, expected to be published in the first half of 2026, in which Integra aims to highlight the exciting future for this cornerstone asset.
Florida Canyon's ability to generate cash flow has allowed the company to expedite and bolster initiatives at the DeLamar Project, including the ongoing feasibility study and advanced mine permitting efforts. The company's enhanced financial strength has also allowed for an increased budget for the Nevada North Project to complete crucial test work to support future economic studies and permitting. Integra is well-positioned to deliver on its goals of profitability and project advancement while progressing its long-term vision of building a U.S.-focused intermediate gold producer. Turning to slide five, we have highlighted several metrics that underscore our key successes in the third quarter of 2025. As you can see, Florida Canyon is doing its job and performing as expected.
While there is still much work ahead of us, the mine is currently operating consistently and profitably, adding to Integra's cash balance to support the development and advancement of DeLamar and Nevada North. In the third quarter, Florida Canyon demonstrated consistent performance with a total of 20,653 ounces of gold produced, a cash cost of $1,876 per ounce, and mine site all-in sustaining cost of $2,647 per ounce. The average realized gold price during the quarter was $3,464 per ounce, allowing Integra to demonstrate its significant cash flow leverage to the spot gold price. Q3 revenue was a record $70.7 million, and operating cash flow generated from Florida Canyon was $35.6 million. During the quarter, Integra deployed $17.1 million of sustaining and growth capital at Florida Canyon to support important initiatives such as heap leach pad expansion, fleet refurbishments, capitalized stripping, and growth drilling.
Third quarter adjusted earnings for the company was a record $16.3 million or $0.10 per share. Integra ended the quarter with a robust cash balance of $81.2 million. This marks the strongest financial position in the history of the company, well-positioning us to execute on all of our major objectives. Integra also remains focused on advancing our flagship development stage asset, the DeLamar Project. During the quarter, we were pleased to announce the acceptance of the mine plan of operations by the Bureau of Land Management and expect to have clarity on the path ahead for federal permitting in early 2026. During the quarter, we also made significant progress on the ongoing feasibility study, which we expect to announce in Q4 2025.
Lastly, we are also extremely proud to announce the signing of a relationship agreement with the Shoshone-Paiute in August, establishing a transformative and long-term partnership for the development of Delamar. I will provide further commentary on this historic relationship agreement later on in the call. Now, I will hand the call over to our Chief Operating Officer, Cliff, to discuss the operating results for Florida Canyon in Q3.
Thanks, George. Turning to slide six, we've outlined the key operating metrics for Florida Canyon in the third quarter of 2025. We'll remind approximately 2.5 million tons of ore and 3.4 million tons of waste, resulting in a strip ratio of 1.34. The higher strip ratio reflects increased capitalized waste stripping while ramping up new mining areas, which is aligned with the company's reinvestment strategy at Florida Canyon. Additional waste was mined this quarter due to a temporary adjustment of the mine sequence for several weeks to overcome dust challenges caused by a singular water shortage in the dry summer months. The temporary water shortage was caused by a problem at a historic water well, which has been successfully replaced. Year-to-date 2025, the company mined a total of 8.6 million tons of ore and 8.2 million tons of waste, resulting in a strip ratio of 0.95.
Mining rates are expected to remain elevated in quarter four due to continued waste stripping in higher pits. The increased run-of-mine ore tons placed, and this is consistent with the company's full-year guidance. Florida Canyon produced 20,653 ounces of gold in the third quarter 2025. The increased production in Q3 was supported by the recovery of gold ounces that have recently been placed on the phase III-A heap leach pad and also by residual ounces recovered from phases I and II leach pads. We also had increased solution flow through the leach pads, and the new carbon and leach column circuit commissioned in late 2024 also helped. During the third quarter 2025, construction of the phase III-B heap leach pad at Florida Canyon continued, with commissioning expected to be completed in this quarter, quarter four.
Florida Canyon produced 58,063 ounces of gold year-to-date 2025, which is in line with the annual guidance of 70,000-75,000 ounces of gold. Q4 2025 production is expected to benefit from more ounces placed as run-of-mine tons and from improved grades from the North Pit. Additionally, we expect continued recovery of residual ounces from phase I and phase II heap leach pads. Average gold process recoveries in the quarter of 60.7% were similar to the 60.5% achieved in quarter two and is in line with the annual recovery expectations. Cash costs averaged $1,876 per gold ounce in quarter three and $1,915 per gold ounce year-to-date. Mine site AISC averaged $2,647 per gold ounce in quarter three and $2,542 per gold ounce year-to-date 2025. This is at the top end of the company's 2025 AISC guidance of $2,450-$2,550 per ounce.
Similar to many of our peers, the elevated gold prices are adding cost pressure in the form of increased royalty and tax payments. Royalty and excise taxes, which constitute a material component of cash costs and mine AISC, are directly impacted by fluctuations in the gold price. At present, a $100 per ounce change in the gold price results in an estimated $7 change to both cash costs and mine site AISC. In quarter three 2025, the company invested $15.4 million in sustaining capital, bringing total year-to-date 2025 spending to $35.6 million. This reflects the company's continued commitment to reinvesting in Florida Canyon through new leach pad construction, increased capital stripping, and mobile equipment refurbishments. The company also invested $1.8 million in non-sustaining growth capital during quarter three and $2.6 million year-to-date 2025.
This spending was focused on drill testing, lateral extensions, and in-pit infill drilling, as well as waste dump drilling. These expenditures are in line with the company's 2025 guidance. We are continuing to reinvest into the mine and allocating the capital required to support a profitable mining operation at Florida Canyon for many years to come. Moving to slide seven, we'd like to highlight Integra's 2025 production and cost guidance for Florida Canyon heading into the later part of the year. 2025 annual gold production guidance of 70,000-75,000 ounces, which we'd like to highlight the company is on track to meet. 2025 cash cost guidance at Florida Canyon was set at $1,800-$1,900 per ounce gold sold, including royalties and excise taxes. Mine site all-in sustaining cost guidance at Florida Canyon was expected to range from $2,450-$2,550 per ounce of gold sold.
This reflected the capital-intensive period at Florida Canyon expected in 2025 and continuing into 2026. As previously discussed, we are currently seeing material cost pressure due to increased royalties and excise taxes directly related to increased gold prices. Therefore, we expect costs for the full year to be slightly above the top end of our guidance. 2025 sustaining capital expenditures were expected to range from $48 million-$53 million, focusing on capitalized waste stripping, mobile fleet rebuild and replacement financing, heap leach pad expansion, and other sustaining items. Capital spending at Florida Canyon during the quarter was slightly below expectations due to the timing of expenses, primarily relating to mobile equipment refurbishment and replacement. We expect that the difference will be made up in the fourth quarter, and guidance on sustaining capital expenditures will be reached by the year's end.
Growth capital guidance between $8 million and $10 million at Florida Canyon is expected to be deployed on expansion projects and various studies, including drill testing oxide targets, mobile equipment financing to augment the fleet, engineering studies on potential steepening of pit wall slopes, and the possibility of increasing run-of-mine gold mineralized material to the heap leach pad. Year-to-date at Florida Canyon, approximately $2.5 million has been allocated to support the 2025 oxide growth drilling program focused on near-mine targets ahead of a resource reserve and life-of-mine plan update in 2026. At Florida Canyon, we are focused on consistent and safe production, process and cost optimization, significant capital investment, and growth. I'll now pass the call back to George to provide highlights on the ongoing growth drilling program underway at Florida Canyon.
Thanks, Cliff. We launched a growth-focused drill program at Florida Canyon in Q2 of 2025 and have continued to make significant progress during the third quarter. To remind everyone, the 2025 growth drilling program is focused on three key areas. The first one being near-surface oxide potential from historical low-grade gold mineralized waste material that was uneconomic at lower gold prices. The second area, expanding into in-situ resources between existing mine open pits. The third area, testing lateral extensions and in-pit infill drilling. Due to the success of the initial drilling, the scope of the program was increased from 10,000 meters to 16,000 meters of reverse circulation and sonic drilling. At the end of September, approximately 13,000 meters of drilling had been completed. The drilling program is designed to support an updated mineral reserve and resource statement and an updated life-of-mine plan expected in 2026.
This drill program is one of the ways we are allocating capital to enhance the value of Florida Canyon. On to slide nine. We have highlighted some of the initial success we are seeing in Nevada in the north and south dump drilling, two large volumes of historically mined low-grade gold mineralized dump material averaging below the historical mine cutoff grades. These volumes of gold mineralized material, which were historically uneconomic at low gold prices, are a product of decades of past mining and have been identified as a high-potential low-strip near-surface oxide gold target for growth. The historical dump material presents an immediate opportunity to expand reserves and resources with minimal mining cost. Initial drill results from the north and south dumps have successfully demonstrated the potential for near-term oxide growth at Florida Canyon.
Here are a few notable intercepts from the north dump, which include 0.28 grams per ton oxide gold over 68.6 meters, 0.36 grams per ton oxide gold over 71.6 meters. Notable intercepts from the south dump include 0.21 grams per ton oxide gold over 73.2 meters and 0.2 grams per ton oxide gold over 68.6 meters. Here are a few key observations and achievements of initial drilling at the north and south dumps. Drilling confirmed gold grade continuity and distribution. We're seeing grades in line with in-situ material currently being economically mined. Drilling collected material for metallurgical testing, including bottle rolls, column tests, and permeability assessments. Initial results support the potential conversion of this material into mineral resource and reserves through inclusion in an updated resource and reserve block model and mine plan.
Dump material offers potential to increase future operational flexibility by providing readily available gold mineralized material suitable for heap leaching that will not require blasting. Material could potentially improve near to medium-term ore feed without significant capital investment while potentially reducing reliance on higher strip in-situ material. Based on a combination of historical drilling and drilling as part of the 2025 Florida Canyon Oxide growth drilling program, the company developed preliminary volume and grade estimates for the north and south dumps. The north dump has an estimated potential volume of 19-32 million tons, with a grade range of 0.11-0.25 grams per ton oxide gold. The south dump has an estimated potential volume of 15-24 million tons, with a grade range of 0.11-0.25 grams per ton oxide gold.
The combined dumps have an estimated potential volume of 34-56 million tons, with a grade range of 0.11-0.25 gram per ton gold. At this stage, the potential quantity and grade of the north and south dumps are conceptual in nature and do not constitute a compliant mineral resource or mineral reserve. Please refer to the cautionary language within this presentation and within the company's news release from October 9th. Tonnage ranges for the north and south dump are derived from an estimated minable percentage of the total dump volume calculated from three-dimensional surfaces and an approximate volume of material exceeding the current mining or grade cutoff. These assumptions are generally based on the site technical staff's knowledge of Florida Canyon geology, rock types, and metallurgical characteristics, in addition to visual inspection of the drilling sample so far.
North and south dump material was originally mined in the late 1980s to the mid-1990s when gold prices ranged from $325 per ounce to $450 per ounce, and cutoff grades were between 0.28 and 0.34 grams per ton gold, which is significantly higher than current cutoff grades used at Florida Canyon. Drilling results so far indicate that the upper end of grades in the dumps averaged slightly lower than the historical cutoff grades at 0.25 grams per ton oxide gold. Therefore, the grade range of the minable mineralized material in this historical waste dump is estimated to run from the approximate current cutoff grade of 0.11 grams per ton oxide gold on the lower end and up to 0.25 grams per ton oxide gold on the higher end.
While further work needs to be done, the drill results to date from the north and south dump, combined with initial volume and grade estimates, underscore the near-term growth potential of this material for the future of Florida Canyon. Turning now to slide 10, a secondary focus of the drill program is on gold resource expansion opportunities within saddle and ridge zones located between existing open pits. Several of the interpit areas remain sparsely drilled and offer significant upside gold potential, with historical drilling demonstrating encouraging intercepts of mineralization at or near surface. Interpit areas targeted as part of the drill program include the central and radio tower pit saddle, the Florida Canyon saddle, the north pit saddle, and within the radio tower pit itself.
Notable intercepts from these interpit areas include 0.47 grams per ton gold over 39.6 meters in the north pit, 0.78 grams per ton gold over 76.2 meters in the central and radio tower saddle. Here are a few key observations and achievements of initial drilling conducted in the interpit areas. Confirmed gold grade continuity and distribution within targeted zones. Collected material for metallurgical testing, including bottle rolls, column tests, and permeability assessments. Initial results support potential pit expansion, specifically between the central and radio tower pits, two of the largest areas of known gold mineralization at Florida Canyon itself. Success within the identified interpit areas has the potential to meaningfully increase mineral resources and reserves by extending existing pit limits within the current Florida Canyon mine plan of operations.
The 2025 drill program at Florida Canyon and supporting analysis is expected to support a mineral resource and reserve update and a revised life-of-mine plan in 2026. I will now hand the call over to Cliff to provide an update on third-quarter activities at the company's development assets. Over to you, Cliff.
Thank you, George. In Q3 2025, the company continued to advance and de-risk its flagship development asset, the DeLamar Project, which is located in Idaho. From a permitting perspective, the mine plan of operation, or MPO, for Delamar was submitted for review to the BLM and cooperating federal and state agencies early in 2025. In a letter dated August 19th, 2025, the BLM notified Integra that the MPO met the content requirements and therefore was determined to be administratively complete. The BLM, its third-party NEPA consultant, SWCA, and cooperating agencies will now proceed with environmental review of the project in accordance with the NEPA. Concurrently, Integra is working with federal, state, and local regulatory authorities to obtain all necessary permits for mine construction, operations, and reclamation. The company expects to have further visibility on the permitting schedule and timeline for DeLamar in early 2026.
During the quarter, the company advanced the feasibility study for DeLamar by completing pit optimizations and resizing. The final mine design was started this quarter, which will then be followed by mine sequencing, production planning, and costing. This information will be used to update the metal recovery and economic models, and the feasibility is expected to be released in late 2025. Lastly, in the third quarter, a historic relationship agreement was executed with the Shoshone-Paiute Tribe, establishing a transformative and long-term partnership for the development of DeLamar. I will now pass the call back to George for further comments on the importance of this relationship agreement.
Thanks, Cliff. In August, Integra announced that it had entered into a relationship agreement with the Shoshone-Paiute, whose traditional territories cover much of the tri-state area of Idaho, Nevada, and Oregon. This groundbreaking agreement established a transformative and long-term partnership for the development of the DeLamar Project on Shoshone-Paiute traditional homelands. This agreement is unprecedented in the lower 48 states, in both recognizing tribal sovereignty and collaboratively advancing sustainable long-term economic development for a project located on federally managed lands. The agreement is the result of five years of collaboration between the Shoshone-Paiute and Integra and will serve to guide the partnership throughout the entire life of mine for the DeLamar Project.
The agreement provides a framework to foster collaboration and co-management of various aspects related to the DeLamar Project, including indigenous recognition, economic empowerment and participation, cultural and environmental protection, consensus-based regulatory collaboration, and community investment and performance monitoring. Integra is incredibly proud to enter this partnership with the Shoshone-Paiute Tribes as we work hard to build long-lasting, respectful, trusting, and collaborative relationships that drive tangible value. Through this partnership, we are establishing durable and long-term predictability while providing the foundational platform for local and regional economic opportunities to thrive. I will now pass the call back to Cliff to provide an update on Nevada North on slide 13.
Thanks, George. During the quarter, the company also continued to advance the Nevada North Project, which consists of the Wildcat and Mountain View deposits. Metallurgical testing continued on core from Wildcat in Q3 2025, which will be crucial for future economic studies and permitting. The environmental analysis for the Wildcat Exploration Plan of Operations, or EPO, was completed during the quarter, and decision documentation will be complete pending a memorandum of agreement with the State Historical Preservation Office and tribal governments. Once received, the EPO for Wildcat will allow for more flexible and significantly expanded future exploration and drilling campaigns. Hydrogeological drilling at Wildcat will begin in quarter four under an existing notice to gather important data for future project permitting and development. The Reclamation Permit for Nevada Division of Environmental Protection, NDEP, Bureau of Mining Regulation and Reclamation, BMRR, is also in process and anticipated in Q4 2025.
We take a look at Mountain View. Environmental analysis for the Mountain View EPO was completed during the quarter. The EPO has undergone a 30-day public comment period, and a final environmental assessment will be published in Q4 2025. The NDEP, BMRR, Reclamation Permit is anticipated on a similar timeframe. Similar to Wildcat, the EPO for Mountain View will allow for significantly greater flexibility for future exploration and drilling efforts at Mountain View. With greater financial resources available to the company than ever before, we are working fast on these initiatives to develop the projects at Nevada North. In 2026, we will begin work on an updated technical report for Nevada North, which we will aim to release in early 2027. The continued advancement of Nevada North remains a key part of Integra's growth strategy and crucial for the company to achieve its goal of becoming a mid-tier producer.
I will now pass the call to our CFO, Andrée, to provide an overview of the Q3 financial results.
Thanks, Cliff. Integra closed Q3 in our strongest financial position to date, with a cash balance of $81 million. The increase in cash versus Q2 2025 is a result of strong mine operating earnings, partially offset by roughly $15 million in sustaining capital expenditures at Florida Canyon and $4.6 million in expenditures at our development projects. The company reported Q3 revenues of $70.7 million and cost of sales of $42.1 million, resulting in $28.6 million in mine operating earnings, which equates to a strong 40% operating profit margin or year-to-date operating profit margin of 37%. We realized this quarter an average gold price of $3,464 per ounce and $3,228 per ounce year-to-date. Q3 adjusted earnings were $16.3 million, and adjusted earnings per share were $0.10, for a total year-to-date adjusted earnings of $32.5 million or $0.19 per share.
The stronger adjusted earnings this quarter are mostly a result of a meaningful increase in average realized gold price. I will now pass the call back to George to discuss strategic objectives for the remaining of 2025.
Thanks a lot, Andrée. Looking forward, our priorities for the remainder of 2025 remain clear. At Florida Canyon, we aim to optimize production, grow cash flow, and continue to demonstrate growth potential through the completion of the 2025 drilling program in support of an updated mineral resource estimate and life-of-mine plan in 2026. We believe that this updated technical report for Florida Canyon will be a game changer for the company and demonstrate to the market that this mine has a long and profitable future ahead. At DeLamar, we continue to refine the feasibility study with an expected release late in 2025. We're very excited to share this long-awaited updated study for our flagship development asset. On the permitting front, we continue to work closely with the Bureau of Land Management to determine the project permitting schedule, which we expect to receive clarity on in early 2026.
DeLamar remains one of the very few large-scale precious metal projects in the U.S. at a feasibility stage that is actively being advanced through federal mine permitting, underscoring the scarcity of value of this project. At Nevada North, we continue to de-risk the project and lay the foundation for future development. On the capital markets side, we also continue to bolster our profile and investor awareness, leading to enhanced trading liquidity and index inclusion. In recent months, we have seen a significant benefit from our New York Stock Exchange listing, which has provided a significant increase to our overall liquidity and investor appeal. Given our increased market capitalization and liquidity, we expect to be eligible for several more indices, including the GDXJ, over the next few months.
From a corporate perspective, we are intently focused on disciplined capital allocation, and on a longer-term horizon, we will continue to evaluate strategic and accretive M&A opportunities that support our strategic goal of becoming a leading mid-tier gold producer. I would like to end the formal part of this presentation with slide 16, as it captures our strategy: production, growth, scale, jurisdiction, and team. We now produce gold and generate cash flow to advance our high-quality U.S.-focused development portfolio, supporting our peer-leading growth profile. We hold one of the largest inventories of gold and silver in the Great Basin of the U.S., not controlled by a major mining company. Our pipeline of development projects is being efficiently de-risked without dilution. We operate in Idaho and Nevada, two of the best mining jurisdictions globally. Lastly, our people are most important to us as an asset.
We have a handpicked team with a track record of success and deep industry experience. Integra is a U.S. gold producer with a growth runway and a clear strategy to become a mid-tier. At this point, I would like to turn the call back to the operator to begin the Q&A session.
At this time, I would like to remind everyone, in order to ask a question, please press star, followed by the number one on your telephone keypad. Your first question comes from the line of Allison Carson with Desjardins. Please go ahead.
Thank you. Good morning, George and team, and thanks for taking my questions today. My first question is on the residual ounces that have been sort of boosting production. How should we think about this going forward? Is this something we can expect to continue into 2026 as well?
Thanks, Allison. Good morning, by the way. I will pass that question over to Greg and Cliff.
Yeah. I'll start the—yeah, go ahead, Greg. You know more about it than I do.
Oh, no, it's fine. Yes, we're still producing. Roughly half our production is residual. We expect that to continue for quite some time. It will kind of taper off over time, but that's a period of months and years that that will happen. Right now, though, it's producing pretty well.
Okay, great. Then just one question on DeLamar. I was just curious if the U.S. government shutdown had affected permitting at all. The NOI is a bit delayed. Do you expect the delay in the NOI to impact your development timeline at all?
Yes. Interesting point here, Allison, which is because we have something in place with the Bureau of Land Management called a cost recovery program, where we're essentially funding the BLM and the people involved in the BLM permitting on our file specifically to work on our file. We're paying their salaries, and we're paying for their time. What that meant is literally during the government shutdown, those people working on our file were still working, and were still paid. Short answer is no, no delay in permitting timelines as a result of the government shutdown, which has now obviously concluded, but it did not set us back.
That's great. Great to hear. That's all the questions I have today, and congratulations on a good quarter.
Thanks, Allison.
Your next question comes from the line of Brian MacArthur with Raymond James. Please go ahead.
Good morning, and thank you for taking my question. Obviously, you're getting a lot more material at Florida Canyon. When you do these studies for Florida Canyon and even for DeLamar, what sort of gold price are you going to use going forward? Have you figured that out yet?
Cliff, I'm going to pass that one on to you.
Yeah, it's a good question. The old methodology of using the three-year moving average is kind of out the window in the last, call it, year period. We're keeping an eye on consensus, obviously trying to stay under consensus for our economic models while we compare to peers that are releasing studies. We're seeing studies coming out in the $2,500 range all the way up to $3,000 range. We haven't selected a final price yet that will come out in the technical report as we wait for a few other studies to come out. We're trying to remain within the realm of what the market is doing. For cut-off grades and things like that, we're staying within the range of what other people are putting out there to remain consistent.
That makes sense. Just on that, with DeLamar coming in Q4 and Florida Canyon next year, are there going to be different prices potentially, or are you going to kind of set it based on what you see in Q4?
Potentially could be different prices depending on timing. I do not know through the crystal ball what the gold price will be in H1 2026, but if it is significantly different than where we are when we select the price for DeLamar, we will reconsider a new price.
Cliff, I can just add here, it's Jason Banducci on the line. What I would say is we're trying to strike a balance with keeping cost assumptions from the gold price perspective, price assumptions in line with where our peers are. I think whatever we choose to use for DeLamar and Florida Canyon, the difference in prices will be captured in both of the sensitivity tables. Again, we're trying to do this in line with what everyone else is doing. If you look back over the last two years, average gold price is just above $2,700, and over the last three years, average gold price is just above $2,400. I think you'll see something in and around one of those two ranges.
Great. Thanks. That's very helpful.
Thanks, Brian.
Your next question comes from the line of Phil Ker with Ventum Financial. Please go ahead.
Morning, George and Integra team. Congrats on everything, especially with Florida Canyon since its acquisition around this time last year. You've definitely steered the right ship with that operation and showing up on your balance sheet through free cash flow. My question today is I can really appreciate the need for various capital investments at Florida Canyon, but at what point or where in your timeline do you see these major investments behind you and enable Integra to really start ratcheting up free cash flow? To build on that, should we continue to see elevated gold prices and strong margins, what items could need capital at the mine that currently are not in your current operating scope?
Cliff, do you want to take a shot at the capital expenditure or sort of maybe outlook for 2026?
Right. In the current plan of operations, the capital was to be curtailing at the end of 2026 and rightly into 2027. What's on the table right now with the additional drilling and slightly increasing the gold price is you start looking at things like mine expansions and more stripping. That could have an impact on some more capital stripping. Of course, looking at the fleet, if you're going to extend the mine life with, say, a pit expansion, then some of the equipment needs to be refurbished, replaced. I don't have a hard and fast answer on when the capital will stop yet. We still need to do the work on updating the resource with the new drilling and including the waste dumps and see how we can best arrange that mining for growth, not only long-term growth, but potentially annual production growth.
It's hard to give a definite this much capital by this time right now, other than it's going to be different than what we put out for end of we were thinking end of 2026, early 2027. That could get pushed out.
Yeah. So maybe I can add to that as well. I mean, the feasibility study with the updated resource and reserve and mine plan expected for sometime in H1 next year, I think that'll be, obviously, we're pretty confident that's going to be a really robust study. I think it's going to put a, it's going to put a really nice new coat of paint on an asset that'll show a much longer mine life than we currently have in the existing mine plan. Along with that, as you know, we're doing a lot of optimization studies looking at trade-offs, trade-offs when it comes to processing, trade-offs when it comes to mining, pit expansions, etc., at higher gold prices. That study will be very revelatory when it comes to future capital requirements to expand production, to expand mine life.
I think looking at that study will be something that you'll want to focus on in H1 of next year.
Yeah, that's great. I definitely think that'll help. Just to expand on the mine equipment fleet, could you give us a sense of the scheduling or how you're attacking the trucks and other items across the fleet on a quarter-by-quarter basis? Is it refurbish one truck, purchase one truck, or how can we anticipate this moving forward?
There's eight new trucks.
Yeah, there's eight new trucks that have been purchased, and they're coming in starting in November. We had some come in in December and January. Two, two, two, and two. Those are going to be replacing directly 777 trucks, the oldest trucks we have in the fleet. It comes in at about two 785 trucks, which we've purchased for three 777 trucks. Think of that ratio. The remaining truck fleet bought in 2021, some of them are coming up on second PCRs in 2026 and 2027. They're in the plan right now to just be refurbished. They're being done at a rate to keep pace with mining. You sit one truck while you refurbish it, it's not hurting the fleet.
As George mentioned, there's optimizations that need to be done for the technical report with growth and just making sure that we have the right capital outlay for the fleet in the future. If things go, that's perfect.
Yeah. Right now, we think the plans we've come up with were good with the refurbishment. If we grow, we're doing work to make sure that we're still okay or need to purchase.
Okay. That's great. Thank you very much. Congrats again.
Thanks, Phil.
Your next question comes from the line of Heiko Ihle with H.C. Wainwright. Please go ahead.
Hey there. I assume you guys can hear me okay?
Yeah, I think we can hear you fine.
Perfect. Perfect. Hey, thanks so much for taking my questions. The first one's been answered, but you talked about some of the north and south bump material and then the inner pit areas. Maybe give a bit of color on how much drilling was actually done there, what you've been seeing, and probably most importantly, what, if anything, you've been seeing that you didn't expect.
Yeah. I mean, there has been drilling done in the past in these areas. In some cases, it's sparse, Heiko. In some cases, it's closer spaced, specifically focusing on the north and south dump material. What we're doing right now, very similar to the approach that we used at DeLamar, if you recall, we drilled off a lot of that historical sort of low-grade stockpile material that was left behind by Kinross. Getting the grade of that material down right and done properly is mission number one for that material. We've established volumes, right? Just nailing down the grade is key. What we're doing as an approach on that material is we're doing a combination of RC and sonic drilling, again, exactly as we did at DeLamar, and it worked very well, just to compare the two.
So far, on a very preliminary basis, the two methodologies of drilling that material off using those two techniques seems to be correlating really well. In addition, it's correlating very well to some of the historical drilling that's been done in those areas as well. It's an ongoing process, I guess, for the dumps, but so far, so good on that material. On the interpit areas, again, we're drilling close to areas that have been drilled previously. However, in those interpit areas, in the past, these areas were not drilled sufficiently to pull a pit in those directions. We're essentially filling in some gaps so that we could potentially pull pits into those interpit areas. Who knows, maybe at some stage later on, those pits start to connect up, we start to push high walls back, etc., and connect those pits up.
Again, so far, the results, as I alluded to on this conference call, were really encouraging. I mean, great widths of mineralization and really decent grades in some of those areas.
Building on all of that, you want to maybe provide just a touch of color on how much drilling that area should see?
Yeah. We are in the process right now, Haikel, of kind of working out our drill budgets for next year. I think they are going to be quite substantial. We have not come out with a number on that yet, but we have sufficient indication of mineralization in these areas to really warrant more drilling next year. Whether that looks like five, 10, 15, 20 thousand meters, we are still yet to be determined on that, but we are working on that now.
Okay. Fair enough. I'll get back to you. Thank you.
Thanks, Heiko.
Your next question comes from the line of Brian MacArthur with Raymond James. Please go ahead.
Good morning. Sorry, can I just follow up on all these discussions for Florida Canyon? When you come out with the new study to extend mine life, is all this material within permitted areas, or is there going to be are we talking something that's going to be longer and bigger that requires new permitting and things like that?
Yeah. From a drilling perspective, we've kind of broken things down into two different buckets there, Brian, which is what I would call kind of traditional mine X exploration. The things like the north dumps, for example, are all within the mine plan of operations. There's no new permitting required for that. The interpit areas, same thing. It's all within the boundaries of the mine plan of operations. No new permitting for that material.
If you step outside of the mine plan of operations and you look more regionally to the north and to the south for many miles all the way down to the Standard deposit, for example, if you were to look at a map of it, and sorry, I can't put a map in front of you right now, but the Standard area, for example, has a mine plan of operations already on it. If we're going to be drilling the Standard deposit, which is about five miles to the south of Florida Canyon, no additional permitting required there. There are other areas where we have exploration permits within that block. Certain other areas will require permitting. Probably on a five-acre notice would be sufficient for that purpose, which is not an onerous process.
Yeah, just to recap, everything that's within sight of the crusher on the mine plan of operations, no permitting required for that.
Okay. Great. Thank you.
There are no further questions at this time. I would now like to turn the call back over to George Salamis for closing remarks. Please go ahead.
Thank you, operator. I'd like to sort of finish off by thanking everyone for attending the call. Obviously, a very exciting time for Integra Resources, and we appreciate everybody's support. I also would like to say, please do not hesitate to reach out to either myself or Jason Banducci or anyone on this call on the Integra team if you have any follow-up questions. Thanks to everyone.
Ladies and gentlemen, this concludes today's call. Thank you all for joining, and you may now disconnect.