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- 75,000 ounces this year to 200,000 ounces when DeLamar comes online, and then 250,000- 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 United States, 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 two 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- 75,000 ounces per year. Our full year guidance this year is 70,000- 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, w``e 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 a nd 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. We are drilling 43,000 m this year. We drilled a lot since we have acquired it. That is where that reserve growth came from. It was not us just changing gold assumptions. We did change some geotechnical, we did update assumptions, but a lot of this was new zones that we drilled and added resource to the mine plan, added resource to the reserve statement. Where we are seeing a lot of success are in what we call the saddle.
If you think back to that picture we looked at in 360, and verify look straight up on the screen so everyone can see it, we have got these areas in between open pits, the saddles of the ridges, that have been pretty much tested very limited by previous operators. We have gone in and started to test these saddles because not only are these saddles easy to bring into a mining plan where we can sort of remove the high wall, but we are seeing some really interesting higher grades than what we are currently mining. The central Radio Tower Pit is where we are focused currently. In 2025, we drilled into this pit or into this saddle, and we got some really strong grades, significantly above what we are currently mining on the project.
Last week, we put out additional results from this area, and we are really starting to see it come together. What really is getting us excited are some of the grade profiles. You can see we are seeing 0.84 over 35 m, 0.83 over 29 m. These are grades that are two to three times what we are currently mining on the project. Bringing this into a mine plan for us is really important, and we are going to continue to grid and move north on this target because we believe the potential is there. Another really interesting target for us, and if you talk to our geologists on site, this probably is one of their favorite, is the Madre Shear Zone.
One of the things we did when we acquired the project, because they did not really have an active geological model. They were really mining off of resource shapes. We spent the last year and a half, the team, identifying the geological model, identifying the shear zones that are known to carry gold on the project. One of those shear zone is the Madre Shear Zone. The southern part of the Madre Shear Zone was mined by previous operators, but the northern extension was actually underneath the north dump. They placed the dump on top of it, sort of killed that target in the future. What we are doing now is we have included these dumps into our mine plan because these dumps are above our grade, and we can blend it with other material.
Because of that, in the future, we are going to have access to the northern extension of the Madre Shear Zone. These are some drill results that we put out last week as well. These are drilling through the north dump into the in-situ shear zone below. With some limited drilling, we are starting to get excited about what we are seeing. As we mine the north dump, we are going to be able to access this and bring this into a resource. The third really exciting drill target for us is the Standard Mine.
This is the land package that you see here. If anyone has driven I-80 in Nevada, you have driven right by the project. There is a large truck shop with a huge American flag on the side of it. When we acquired the project, we got all these claims, and we also got the Standard Mine in the south. The Standard Mine has an inferred resource. We put one on in our latest technical report based on historic drilling. For the balance of the year, we are going to do about a 7,000-m drill program there with the real goal of identifying a satellite deposit that we could then truck to Florida Canyon. It is only about 8 km to the south of the existing operation.
For us, a lot of drilling on the project moving forward because our belief is, yes, we have extended the mine life to 2033, but we believe that with continued drill success, we can extend beyond that. Where is all this capital, and what is the real next step for Integra? We are really a three-pillar company, so Florida Canyon being our production asset, and then next in line is the DeLamar Project. The DeLamar is a past producing asset. We acquired it from Kinross Gold, who is the last operator. This is the project that we started Integra Resources around.
Now fast-forward eight years later, we are actually in the NEPA permitting pipeline. In May of this year, we entered the NEPA process, which is the permitting process in the United States. We are now through our public comment period. In May, we were put in the national registry. We do work with the BLM on this, the Bureau of Land Management. We have now gone through a 30-day comment period where the public can comment on our mine plan, and we are reviewing those comments as we move towards a permit. We are a FAST-41 company, which just means there is a lot of clarity to our permit receipt date.
If you were to go to the blm.gov website, you would see that the second half of next year is when we are expected to receive our Record of Decision, which is really the most important federal permit to move towards a construction decision. DeLamar is essentially another heap leach asset, very similar to Florida Canyon. What you see on the screen is an engineering model of what the project will look like. It is two deposits, the Florida Mountain Deposit on the right side of your screen, and then the DeLamar deposit. We have broken up from the previous economic study versus having one heap leach. We have two heap leach pads, a single crushing facility, and really a strong production profile moving forward. This is the highlights from our December feasibility study. This is what really informed our mine plan of operations, which is now being permitted.
You can see a strong production profile to start a low-cost mine, so our AISC is quite low. Really strong economics both at base and spot metal prices. The cost to build this is about $390 million. This, again, was done in December. We are spending about $50 million this year and next year on what we call state of good repair works on the project. We bought a ranch in March, so we're now also Integra steaks will be coming soon. That ranch was key for us because it provided two key elements that we were looking for. Grazing rights. It's 6,500 acres. We do have active grazing on the project now. With the grazing rights at the new ranch, we can offset those grazing rights there. It came with some water rights.
We do have enough water to operate the mine, but if we were to have multiple years of drought, we wanted to have a backup source. There were some senior water rights associated with the ranch as well, and some air quality. It was a really important purchase for us. It's adjacent to the property. It's really helped the ranching community, who's one of our key stakeholders. They've been very supportive of it because we're now getting a lot of exposure to their business. From a permitting perspective, we also did something pretty unique as a company. We signed an impact benefit agreement with our other key stakeholder, the tribal nations, who are the Shoshone-Paiute . This impact benefit agreement was multiple years in the making.
For us, it made a lot of sense as being a good community partner, but also a good business decision. We wanted them to be part of our mine plan. We wanted them to understand the impacts that we were going to have, the reclamation plan. As part of this impact and benefit agreement, which we signed earlier this year, we've seen a lot of strong support from the tribal nations as we move forward. We saw multiple op-eds being written when we did go into permitting from the Shoshone-Paiute . It's been a really good partnership for us moving forward, and we really hope that it will reduce our permitting risk when it comes to potential litigation in the future.
Of that $50 million that we're spending this year, it's really, as I mentioned, to get the site prepared. Essentially, a state of good repair works. The key three things that we're spending money on besides the ranch, which was part of that, is some long lead items. We do need to upgrade power lines, so we've been ordering things like transformers, which take a bit of time to get. We've actually started doing some crushing on-site. That's really to just essentially ensure our assumptions that have gone into all of our technical reports are worked. It's a smaller version of the crusher that we will have when in commercial production.
We're also refurbishing a few buildings on site. This was a past producer, so we did acquire some infrastructure. We're refurbishing the truck shop to accommodate mining into the future. Really what this sets us up for is, again, a permit, which is expected in the second half of next year, and then a construction decision to follow. Lastly, the third pillar of the company is Nevada North. Nevada North, as I mentioned, is two separate deposits, Wildcat and Mountain View. They are located relatively close to Florida Canyon. Wildcat is within sight distance. It is about 35 miles away. We are now working at Wildcat and Mountain View to update our economics.
We did do a PEA on this in 2023. Of course, we are in a different cost environment. We are in a different gold environment. What we are working on here is getting the permitting underway. We would like this to start the permitting process on the back of DeLamar. We have the team there to do it. Then we are also going to work on updating the economics. We are doing some geotechnical drilling at the moment on the project to just really inform an updated economic study, which we expect to put out next year.
What that means is, as a company, we are growing from what is now 70,000- 75,000 ounces to 200,000 ounces when DeLamar comes online and is built, and then an additional 80,000 ounces from the Nevada North projects. Really building ourselves into a mid-tier producer nearing the 300,000 ounce per year production profile. With that said, I will leave a few minutes if anyone has any questions, but I will also be around if anyone wants to chat. We will be here for the next two days. But I really appreciate you taking the time to learn more about Integra and our real interesting path from being a single asset developer to now a producer with two development assets in the Great Basin of the Unites States.
We do have a minute or two for questions. If you have a question, please raise your hand so a microphone can be brought forward.
[inaudible] Wildcat.
Yes. We are doing some geotechnical drilling now to inform an updated economic study, which will be out next year. Then we have kicked off the permitting and the community relations process so that we can get into. We would like to get it into the NEPA process before the end of 2030 so that we can look for production in the next decade.
Are there any other questions from the audience? Maybe just a quick one from me then. Wanted to dig a little bit more into the changes that you've had at Florida Canyon to raise the production profile there. You mentioned you're doing a lot of pre-strip this year, but is there an increase in mining rate? You mentioned there was no drop in cut-off grade. Is it a reinterpretation of the resource? Is it the grade? What has driven that?
Yeah. We're in a bit of a lower grade environment right now, which we knew of. We're moving the most tons the mine has ever moved. We're doing about 70,000 tons per day. Going into next year, as we get into the Central Pit, we're going to see higher grades, and we'll be moving not as large amount of tons this year. We've been able to do the tonnage this year because we've integrated those new trucks with the existing fleet. But the idea is to essentially get into a better gold grade environment and get that production up to where we expect in the 80,000-85,000 ounce range.
I think that takes us right to the end of time. Please join me in thanking John.
Thank you.