i-80 Gold Announces Positive Preliminary Economic Assessment on the Granite Creek Underground Project, Nevada; After-Tax NPV(5%) of $155 Million at US$2,175/oz Au and an After-Tax NPV(5%) of $344 Million at US$2,900/oz Au
i-80 Gold Corp (NYSE: IAUX) has announced positive results from a Preliminary Economic Assessment (PEA) for its Granite Creek Underground Project in Nevada. The project shows an after-tax NPV(5%) of $155 million at $2,175/oz gold price and $344 million at $2,900/oz gold.
Key highlights include:
- 8-year mine life with average annual gold production of ~60,000 ounces post ramp-up
- Measured & Indicated resource of 261,000 ounces at 10.5 g/t gold
- Inferred resource of 326,000 ounces at 13.0 g/t gold
- Estimated cash costs of $1,366/oz and all-in-sustaining costs of $1,597/oz
The company expects 20,000-30,000 ounces of gold production in 2025. The project's economics are expected to improve significantly after 2028 when i-80's Lone Tree autoclave facility is commissioned, increasing recovery rates from current 78% to approximately 92%.
i-80 Gold Corp (NYSE: IAUX) ha annunciato risultati positivi da una Valutazione Economica Preliminare (PEA) per il suo progetto Granite Creek Underground in Nevada. Il progetto mostra un NPV(5%) dopo le tasse di 155 milioni di dollari con un prezzo dell'oro di $2,175/oz e 344 milioni di dollari con un prezzo dell'oro di $2,900/oz.
I punti salienti includono:
- Vita mineraria di 8 anni con una produzione annuale media di oro di circa 60,000 once dopo l'aumento della produzione
- Risorsa misurata e indicata di 261,000 once a 10.5 g/t di oro
- Risorsa inferita di 326,000 once a 13.0 g/t di oro
- Costi di cassa stimati di $1,366/oz e costi totali sostenibili di $1,597/oz
L'azienda prevede una produzione di oro tra 20,000 e 30,000 once nel 2025. Si prevede che l'economia del progetto migliori significativamente dopo il 2028, quando sarà commissionato l'impianto autoclave Lone Tree di i-80, aumentando i tassi di recupero dall'attuale 78% a circa il 92%.
i-80 Gold Corp (NYSE: IAUX) ha anunciado resultados positivos de una Evaluación Económica Preliminar (PEA) para su Proyecto Subterráneo Granite Creek en Nevada. El proyecto muestra un NPV(5%) después de impuestos de $155 millones con un precio del oro de $2,175/oz y $344 millones con un precio del oro de $2,900/oz.
Los aspectos destacados incluyen:
- Vida útil de la mina de 8 años con una producción anual promedio de oro de aproximadamente 60,000 onzas después del aumento de producción
- Recurso medido e indicado de 261,000 onzas a 10.5 g/t de oro
- Recurso inferido de 326,000 onzas a 13.0 g/t de oro
- Costos de efectivo estimados de $1,366/oz y costos totales sostenibles de $1,597/oz
La empresa espera una producción de oro de entre 20,000 y 30,000 onzas en 2025. Se espera que la economía del proyecto mejore significativamente después de 2028, cuando se ponga en marcha la instalación de autoclave Lone Tree de i-80, aumentando las tasas de recuperación del actual 78% a aproximadamente el 92%.
i-80 Gold Corp (NYSE: IAUX)는 네바다의 Granite Creek Underground 프로젝트에 대한 예비 경제 평가(PEA)에서 긍정적인 결과를 발표했습니다. 이 프로젝트는 세후 NPV(5%)가 1억 5,500만 달러로, 금 가격이 $2,175/온스일 때와 3억 4,400만 달러로, 금 가격이 $2,900/온스일 때를 보여줍니다.
주요 하이라이트는 다음과 같습니다:
- 생산 ramp-up 이후 연평균 약 60,000온스의 금 생산을 가진 8년의 광산 수명
- 10.5 g/t 금으로 261,000온스의 측정 및 표시 자원
- 13.0 g/t 금으로 326,000온스의 추정 자원
- 온스당 $1,366의 예상 현금 비용과 온스당 $1,597의 전체 유지 비용
회사는 2025년에 20,000-30,000온스의 금 생산을 예상하고 있습니다. i-80의 Lone Tree 오토클레이브 시설이 가동된 이후인 2028년 이후에는 프로젝트의 경제성이 크게 개선될 것으로 예상되며, 현재 78%인 회수율이 약 92%로 증가할 것입니다.
i-80 Gold Corp (NYSE: IAUX) a annoncé des résultats positifs d'une Évaluation Économique Préliminaire (PEA) pour son projet Granite Creek Underground au Nevada. Le projet affiche un NPV(5%) après impôts de 155 millions de dollars à un prix de l'or de $2,175/oz et 344 millions de dollars à un prix de l'or de $2,900/oz.
Les points clés incluent:
- Durée de vie de la mine de 8 ans avec une production annuelle moyenne d'or d'environ 60,000 onces après la montée en puissance
- Ressource mesurée et indiquée de 261,000 onces à 10.5 g/t d'or
- Ressource inférée de 326,000 onces à 13.0 g/t d'or
- Coûts de production estimés à $1,366/oz et coûts totaux soutenus de $1,597/oz
L'entreprise prévoit une production d'or de 20,000 à 30,000 onces en 2025. L'économie du projet devrait s'améliorer considérablement après 2028, lorsque l'installation d'autoclave Lone Tree de i-80 sera mise en service, augmentant les taux de récupération de l'actuel 78% à environ 92%.
i-80 Gold Corp (NYSE: IAUX) hat positive Ergebnisse aus einer Vorläufigen Wirtschaftlichkeitsbewertung (PEA) für sein Granite Creek Underground-Projekt in Nevada bekannt gegeben. Das Projekt weist einen NPV(5%) nach Steuern von 155 Millionen Dollar bei einem Goldpreis von $2,175/oz und 344 Millionen Dollar bei einem Goldpreis von $2,900/oz auf.
Wichtige Highlights sind:
- 8-jährige Lebensdauer der Mine mit einer durchschnittlichen jährlichen Goldproduktion von ca. 60,000 Unzen nach der Produktionssteigerung
- Gemessene und angezeigte Ressource von 261,000 Unzen bei 10.5 g/t Gold
- Geschätzte Ressource von 326,000 Unzen bei 13.0 g/t Gold
- Geschätzte Barproduktion von $1,366/oz und Gesamtkosten von $1,597/oz
Das Unternehmen erwartet eine Goldproduktion von 20,000 bis 30,000 Unzen im Jahr 2025. Es wird erwartet, dass sich die Wirtschaftlichkeit des Projekts nach 2028 erheblich verbessert, wenn die Autoklav-Anlage Lone Tree von i-80 in Betrieb genommen wird, was die Rückgewinnungsraten von derzeit 78% auf etwa 92% erhöht.
- High-grade resource with 10.5 g/t Au (M&I) and 13.0 g/t Au (Inferred)
- Strong NPV of $155M at $2,175/oz Au, increasing to $344M at $2,900/oz Au
- Recovery rates expected to improve from 78% to 92% after 2028
- Significant resource expansion potential near Turquoise Ridge Complex
- 30% lower gold payability until 2028 due to third-party processing
- Water management issues affecting development and production
- High AISC of $1,597/oz
- Required capital expenditure of $105M for development
Insights
i-80 Gold's Granite Creek Underground PEA delivers exceptional economics with an after-tax NPV(5%) of
The mine economics follow a two-phase pattern. During 2025-2027, production is constrained by third-party processing with only
With 20,000-30,000 ounces expected in 2025 and commercial production targeted for 2026, the mine is already in its ramp-up phase, meaning minimal development capital is required. The
The company has implemented comprehensive solutions to address previous water management challenges, including treatment facilities and an underground network of piping, pumps, and sumps. While this adds some operational complexity, the dewatering system now appears adequate to support planned development.
With LOM cash costs of
The Granite Creek Underground PEA provides a compelling financial blueprint for i-80 Gold's near-term production asset. The dual NPV scenarios –
Critical to understanding this asset's financial profile is the phased approach to processing. The current third-party processing arrangement through 2027 creates a significant value gap, with payability to just
The project's pre-construction status significantly de-risks the investment case, with the
The 2025 production estimate of 20,000-30,000 ounces provides meaningful near-term cash flow while development continues. Once at full production, annual output is expected to average approximately 60,000 ounces, peaking at 80,000 ounces – providing substantial operating leverage for a company with i-80's market capitalization.
The feasibility study planned for Q4 2025 will incorporate significant additional drilling data not reflected in the current resource estimate, suggesting potential for resource expansion and extended mine life. With undiscounted after-tax cash flows of
This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated August 12, 2024, to its short form base shelf prospectus dated June 21, 2024.
"Our exploration results at Granite Creek Underground to-date suggest significant potential for resource growth and expansion. As a result, an extensive drill program is planned in the coming years to realize that potential. The PEA also demonstrates that once our Lone Tree autoclave is refurbished as anticipated in 2028, production and cash flow are expected to increase materially," stated Richard Young, Chief Executive Officer.
This resource employed in this PEA does not include drilling conducted in 2023 and 2024. Further, the effects of underground water management in the 2025 mine plan are not reflected in this PEA. Due to these factors, the Company's 2025 production forecast, which is still under development, differs from what is depicted in the PEA schedule. i-80 Gold expects to produce between 20,000 to 30,000 ounces of gold at Granite Creek Underground this year.
Granite Creek Underground PEA Highlights
Mineral Estimates, Production and Mine Life
- High-grade underground gold mine with a life of mine ("LOM") of approximately 8 years.
- Average annual gold production of approximately 60,000 ounces, following production ramp up.
- Estimated LOM cash costs(1) of
$1,366 $1,597 - Updated mineral resource estimate resulting in a measured and indicated gold mineral resource of 261,000 ounces at 10.5 grams per tonne ("g/t") and an inferred gold mineral resource of 326,000 ounces at 13.0 g/t.
- The updated mineral resource estimate does not include infill drilling conducted within the Granite Creek Underground in 2023 and 2024. Further, infill and step out drilling on the South Pacific zone in 2025 is expected to be completed for inclusion in a feasibility study planned for Q4 2025.
- Based on exploration work conducted to-date, Granite Creek Underground has significant potential for resource expansion; it is located only 10 kilometers from the prolific Turquoise Ridge Complex within Nevada Gold Mines' joint venture which currently hosts approximately 20 million ounces of gold(4). An extensive drill program is planned for the coming years to test this system at depth and to the north.
Project Economics
- Based on a
$2,175 $197 million $155 million 5% discount rate. - Based on a spot gold price of
$2,900 $420 million $344 million 5% discount rate. - Mine construction is complete. LOM development and sustaining capital is estimated at
$105 million
Mining and Processing
- The primary mining method is underhand drift and fill.
- Over the next three years through to the end of 2027, refractory material mined is expected to be processed at a third-party autoclave facility, resulting in approximately
30% lower payability on gold produced, until i-80 Gold's Lone Tree facility(3) is commissioned as anticipated in 2028 (see Figure 1). - Overall average gold grade processed of 11.6 g/t with an average gold recovery of
78% , utilizing oxide processing, acidic pressure oxidation and alkaline pressure oxidation selected based on characteristics of the mineralized material. This average LOM recovery includes the58% payability factor for years 2025 - 2027. Once the Company's autoclave facility is refurbished, process recovery rates are expected to rise to approximately92% , significantly increasing production, lowering costs and improving cash flows from the Project. - The Company expects recovered gold ounces of between 20,000 to 30,000 ounces in 2025 from Granite Creek. An updated operational plan will be included in a feasibility study for Granite Creek Underground, which is currently expected to be released in Q4 2025.
A summary of key valuation, cost, and operating metrics is presented in Table 1 below. For more detailed metrics presented on an annual basis, see Granite Creek Underground Detailed Cash Flow Model in the Appendix. All amounts are in
Table 1: Summary of PEA Key Operating and Financial Metrics
Project Economics | Unit | |
Gold Price | $/oz | |
Pre-Tax NPV( | $M | |
After-Tax NPV( | $M | |
After-Tax IRR | % | 84 % |
After-Tax Cash Flow | $M | |
Production Profile | ||
Mine Life | years | ~8 |
Mineralized Material Mined | 000s | 1,441.8 |
Gold Grade of Mineralized Material Mined | g/t Au | 11.6 |
Waste Tonnes Mined | 000s | 684.4 |
Capitalized Tonnes Mined | 000s | 488.8 |
Total Tonnes Mined (incl. capitalized tonnes) | 000s | 2,615.0 |
Total Mineralized Material Processed | 000s | 1,441.8 |
Gold Grade Processed | g/t Au | 11.6 |
Average Gold Recovery | % | 78 % |
Total Gold Recovered | 000s oz | 417.5 |
Average Annual Gold Production (LOM) | 000s oz | 52.2 |
Average Annual Gold Production | 000s oz | 59.6 |
Unit Operating Costs | ||
LOM Operating Cost | ||
Mineralized Material Mined | $/t mined | |
Mineralized Material & Waste Mined | $/t mined | |
Processed | $/t processed | |
Transportation | $/t processed | |
Dewatering Electricity | $/t processed | |
G&A | $/t processed | |
LOM Total Cash Costs(1) (net of by-product credit) | $/oz | |
LOM All-in Sustaining Costs(2) (net of by-product credit) | $/oz | |
Total Capital Costs | ||
Definition & Conversion Drilling | $M | |
LOM Development & Sustaining Capital | $M | |
Closure Costs | $M | |
Total Capital & Closure Costs | $M |
"2024 ramp-up activities at Granite Creek Underground were hindered by water ingress into the underground workings, which slowed underground development and lowered production for the year. An extensive hydrology study was completed during the year to better understand the water sources and flows, and the Company was able to install a water treatment facility and permit the release of excess water into a local filtration system built by the Company. The dewatering system is expected to lower the water level in the working areas of the Project to allow development to ramp up in 2025. Despite these challenges, since ramp up began in 2023, reconciliation to the resource model has been excellent with slightly more tonnes, marginally lower grade resulting in few more ounces. The positive reconciliation is a credit to the conservatism in the model and the high level of competency of the Company's underground contractor," added Matthew Gili, President and Chief Operating Officer.
Mineral Resource Update
The PEA includes an updated mineral resource estimate with a total of 261,000 ounces of gold at 10.5 g/t Au in the measured and indicated categories and 326,000 ounces of gold at 13.0 g/t Au in the inferred category (see Table 2) hosted in the CX, Ogee, Otto and South Pacific zones (see Figures 1 and 2). The updated resource incorporates all drilling conducted on the underground zones to the end of 2022.
The resource estimate was prepared using stope optimization software resulting in additional mineralized body constraints. Stope optimization provides greater accuracy than previous estimation techniques and has become industry standard for underground deposits in
Further exploration at Granite Creek Underground includes infill drilling program in the Ogee, Otto and South Pacific zones in 2023 and 2024. Additionally, a 15,000-meter infill and step out drill program targeting the South Pacific Zone, is aimed at expanding the South Pacific resource and moving a portion of the indicated mineral resources to reserves in that zone. Construction of an underground exploration drift is underway to provide drill access to the northern and down-dip extensions of the South Pacific Zone, with completion anticipated in Q2 2025.
All drilling conducted since the beginning of 2023 is anticipated to be included in the planned feasibility study for Granite Creek Underground.
Table 2: Granite Creek Underground Mineral Resource Estimate Statement as of December 31, 2024
Measured and Indicated Mineral Resources | |||||
Class | Zone | Tonnes | Au | Au | |
(000s) | (g/t) | (000s oz) | |||
Measured | CX | ||||
Ogee | 80 | 8.4 | 22 | ||
Otto | 53 | 8.8 | 15 | ||
Total Measured | 133 | 8.5 | 37 | ||
Indicated | CX | 7 | 13.4 | 3 | |
Ogee | 164 | 12.1 | 64 | ||
Otto | 268 | 10.8 | 93 | ||
South Pacific | 203 | 9.8 | 64.0 | ||
Total Indicated | 641 | 10.9 | 224 | ||
Total Measured & Indicated | 775 | 10.5 | 261 | ||
Inferred Mineral Resources | |||||
Class | Zone | Tonnes | Au | Au | |
(000s) | (g/t) | (000s oz) | |||
Inferred | CX | 88 | 12.0 | 34 | |
Ogee | 38 | 19.3 | 24 | ||
Otto | 170 | 13.7 | 75 | ||
South Pacific | 486 | 12.4 | 194 | ||
Total Inferred | 782 | 13.0 | 326 | ||
I. Notes to table above: II. Mineral resources have been estimated at a gold price of III. Mineral resources have been estimated using gold metallurgical recoveries ranging from 85.2 to IV. Pressure oxidation cutoff grades range from 5.40 to 7.58 Au g/t (0.157 to 0.221 opt). The cutoff grade for CIL processing under the mineralized material sales agreement is 5.85 g/t (0.171 opt); V. The effective date of the mineral resource estimate is December 31, 2024; VI. Mineral resources include drilling completed prior to December 31, 2022; VII. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant factors; VIII. An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. It is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration; and IX. The reference point for mineral resources is in situ. | |||||
Economic Analysis
The Project's NPV relation to fluctuations in the long-term gold price are outlined in Table 3.
Table 3: Granite Creek Underground Gold Price Sensitivity After-tax Analysis
Gold Price ($/oz) | ||||||||
NPV | ($M) | |||||||
Project Overview
Granite Creek Underground is a fully permitted, constructed and operating mine currently in production ramp up phase. The Granite Creek property (the "Property") also includes Granite Creek Open Pit deposit adjacent to the underground mine, currently in the permitting stage. The Property is located at the intersection of the highly prolific
Since 1980, the Property has produced approximately one million ounces of gold from both underground and open pit. The majority of underground resources are adjacent to, but independent of the past-producing open pits on the property. Additionally, the Property hosts the Mag and CX oxide open pit resources. An open pit resource estimate and associated preliminary economic assessment is currently planned for Q4 2025.
Geology and Mineralization
Mineralization at Granite Creek is
Mining and Processing
Granite Creek Underground is currently ramping up to full production and is expected to achieve commercial production in 2026. The PEA demonstrates an initial mine life of approximately 8 years with annual gold production peaking at approximately 80,000 ounces and averaging approximately 60,000 ounces of gold following ramp up. A third-party process agreement for material mined is required until the planned refurbishment of the Lone Tree autoclave is expected to be completed. As a result, annual production and cash flows are lower over the next three years until the autoclave facility is completed.
The PEA is based on a mineral resource estimate derived from drilling data through to the end of 2022 and should not be relied upon for production forecasts in 2025. The revised plan for this year, which is still under development, incorporates updated near-mine drilling information and a revised budget. The Company anticipates recovered gold ounces of between 20,000 to 30,000 ounces in 2025 from Granite Creek. An updated operational plan will be included in the feasibility study for Granite Creek Underground, which is currently expected to be released in Q4 2025.
Underground access is through portals located in the north wall of the CX pit. The main decline provides personnel and equipment access to all areas of the mine and can accommodate 30-ton haul trucks.
The majority of mining will be conducted using underhand drift and fill methods, optimized for the site's ground conditions. Drift widths will be maintained at 5 meters or less to minimize dilution and enhance recovery. Underhand drift and fill mining is well suited for the ground conditions at Granite Creek and allows for a high degree of selectivity, productivity, and safety for mine personnel. This mining method also results in backfill with superior geotechnical quality compared to the in-situ rock.
Decline development has reached the 4100-foot elevation and has developed through over 700 vertical feet of mineralization. Ultimately, the decline will extend to the 3200-foot elevation and will provide access to all four mineralized zones.
While a small component of the upper levels of the Ogee zone contains oxide mineralization, metallurgical testing has demonstrated that the Ogee, Otto and South Pacific zones of the Granite Creek Underground are generally single refractory and require an oxidation process to increase gold extraction using cyanidation of mineralized material. Additionally, testing has demonstrated that gold recovery for the Ogee and South Pacific Zone deposits have better economic recovery when an autoclave is operated in the alkaline environment, while the Otto deposit achieves better economic recovery in the acidic environment.
The PEA incorporates mineralized material sales arrangements and associated over-the-road trucking costs for the years 2025 through 2027. Starting in 2028, the anticipated processing costs and recoveries associated with hauling to and processing at the Company's Lone Tree autoclave(3) in the acidic or alkaline environment have been incorporated into this Study. Processing materials in the acidic environment increases per tonne processing costs by approximately
Granite Creek Hydrology Update
i-80 Gold has dedicated significant resources to understand and resolve challenges encountered due to ground water at the Granite Creek Underground mine which has negatively impacted mining development. In Q3 2023 a water treatment plant was constructed to treat water from the lower dewatering wells and underground contact water, and the plant is now successfully treating dewatering water for deleterious content. Further, in 2024 an extensive underground network of piping, pumps, and sumps were installed to handle the underground contact water.
Going forward the extensive hydrological studies conducted should enable the Company to execute on its mining development plans. In February 2025, a predictive groundwater model was completed for the mine. The groundwater model is expected to allow i-80 Gold to assess various predictive scenarios prior to installing dewatering wells and the required infrastructure to meet its dewatering needs.
Capital Cost Summary
The Project is a former producing mine with a large portion of the necessary infrastructure in place. LOM sustaining capital is estimated at
Granite Creek Underground is expected to generate an estimated
Table 4: LOM Capital Cost Estimates
Sustaining Capital | |
($M) | |
Dewatering | |
Mine Development | |
Mine Facilities & Overhead | |
Definition & Conversion Drilling | |
Contingency | |
Total |
Operating Cost Summary
The PEA estimates cash costs(1) of
The annual cash waterfall above in Figure 5 demonstrates the importance of the planned refurbishment of the Company's Lone Tree autoclave which is expected to increase production and cash flows in 2028 following its planned commissioning.
Figure 6 illustrates these operating costs over the Project's estimated production profile.
Table 5: Total and Unit Operating Costs
Total Costs | Unit Cost | Cost per Ounce | |
($M) | ($/t milled) | ($/oz Au) | |
Mining | |||
Transportation & Processing | |||
G&A, Royalties(5) & Net Proceeds Tax | |||
Total Operating Cost/Cash Costs(1) | |||
Closure & Reclamation | |||
Sustaining Capital (includes contingency)(6) | |||
All-in Sustaining Costs(1) (excludes Definition & Conversion Drilling) |
Table 6: Development Cost Per Foot
Total | Cost | |
(feet) | ($/foot) | |
Primary Capital Drifting | 21,515 | |
Capital Raising | 2,350 | |
Total/Weighted Average | 23,865 | |
Excludes Contingency |
Permitting
The Granite Creek Underground mine is fully permitted. The primary focus for the Granite Creek Underground operations remains compliance and reporting requirements associated with existing site permits. Other than potential minor modifications to existing site permits for operational purposes, no other major permitting actions are expected in the foreseeable future.
Next Steps to Feasibility Study
A feasibility study in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and Subpart 1300 of Regulation S-K ("S-K 1300") with an updated mineral resource estimate which is currently expected to be completed in Q4 2025. In addition to the infilling drilling conducted in 2023 and 2024, the updated resource is expected to include 15,000 meters of infill and step out drilling targeting the South Pacific Zone. Below is a summary of additional work to be conducted.
Resource Delineation and Exploration
- Begin resource conversion and step out drilling as the exploration drift advances and drill platforms become available. Incorporate this data into an updated resource model.
Technical Disclosure and Qualified Persons
The PEA was prepared in accordance with NI 43-101. The PEA will be filed within 45 days of the press release under the Company's issuer profile on SEDAR+ at www.sedarplus.ca. An Initial Assessment for the Granite Creek Underground ("S-K 1300 Report") was also prepared in accordance with S-K 1300 and Item 601 of the Regulation S-K and the S-K 1300 Report will be filed on EDGAR at www.sec.gov. Both reports will be available on the Company's website at www.i80gold.com. The mineral estimates and project economics are the same under the PEA and the S-K 1300 Report.
The technical information contained in this press release has been prepared under the supervision of, and has been reviewed and approved by Dagny Odell, P.E., (NV 13708 & SME No. 2402150) Practical Mining LLC, and Tyler Hill CPG., Vice President Geology for the Company, who are all qualified persons within the meaning of NI 43-101 and S-K 1300.
For a description of the data verification, assay procedures and the quality assurance program and quality control measures applied by the Company, please see the Company's Annual Information Form dated March 12, 2024 filed under the Company's profile on SEDAR+ at www.sedarplus.ca and filed with the Company's Form 40-F under the Company's profile on EDGAR at www.sec.gov. Further information about the PEA referenced in this news release, including information in respect of data verification, key assumptions, parameters, risks and other factors, will be contained in the PEA.
The PEA is preliminary in nature and includes an economic analysis that is based, in part, on inferred mineral resources. Inferred mineral resources that are considered too speculative geologically to have for the application of economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the results of the PEA will be realized. Mineral resources do not have demonstrated economic viability and are not mineral reserves.
Endnotes
- This is a non-IFRS/non-GAAP measure. Please see the section titled "Non-IFRS Performance Measures/Non-GAAP Financial Performance Measures" below.
- Cash flow and NPV are calculated as of January 2025.
- Following the completion of a planned refurbishment class 3 engineering study, a series of trade-off scenarios will be considered comparing full autoclave refurbishment to alternate toll milling and purchase agreement options that could potentially be available to the Company.
- Turquoise Ridge Complex gold mineral resource estimate of approximately 20 million ounces (110 Mt at 5.42 g/t Au) as at December 31, 2023 based on publicly filed technical reports of Barrick Gold Corporation available on SEDAR+ at www.sedarplus.ca and www.barrick.com. No qualified person of the Company has independently verified any mineral resource information in respect of the Turquoise Ridge Complex contained in this news release and such information is not necessarily indicative of the mineralization on the property subject to such technical reports.
- Royalties include a
10% net profits interest to Gold Royalty Corp. - Includes contingency of
$15 million
About i-80 Gold Corp.
i-80 Gold Corp. is a
Forward-Looking Information
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including but not limited to, statements regarding the updated results of the PEA on the Project, such as future estimates of internal rates of return, net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, estimates of capital and operating costs, timing for permitting and environmental assessments, timing, completion and results of feasibility studies, and the size and timing of phased development of the Project. Furthermore, forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. With respect to this specific forward-looking information concerning the development of the Project, the Company has based its assumptions and analysis on certain factors that are inherently uncertain. Uncertainties include: (i) the adequacy of infrastructure; (ii) geological characteristics; (iii) metallurgical characteristics of the mineralization; (iv) the ability to develop adequate processing capacity; (v) the price of gold, silver and other commodities; (vi) the availability of equipment and facilities necessary to complete development; (vii) the cost of consumables and mining and processing equipment; (viii) unforeseen technological and engineering problems; (ix) natural disasters and/or accidents; * currency fluctuations; (xi) changes in regulations; (xii) the compliance by and/or key suppliers with terms of agreements; (xiii) the availability and productivity of skilled labour; (xiv) the regulation of the mining industry by various governmental agencies, including permitting and environmental assessments; (xv) the ability to raise sufficient capital to develop such projects; (xiv) changes in project scope or design; and (xv) political factors.
Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the Company's current expectations regarding future events, performance and results and speak only as of the date of this release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release.
This release also contains references to estimates of mineral resources. The estimation of mineral resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation (including estimated future production from the Project, the anticipated tonnages and grades that will be mined and the estimated level of recovery that will be realized), which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral resource estimates may have to be re-estimated based on: (i) fluctuations in commodities prices; (ii) results of drilling, (iii) metallurgical testing and other studies; (iv) proposed mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licenses or changes to existing mining licenses.
Forward-looking statements and information involve significant known and unknown risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results expressed or implied by such forward-looking statements or information, including, but not limited to: the Company's ability to finance the development of its mineral properties; assumptions and discount rates being appropriately applied to the PEA and S-K 1300 Report, uncertainty as to whether there will ever be production at the Company's mineral exploration and development properties; risks related to the Company's ability to commence production at the Project and generate material revenues or obtain adequate financing for its planned exploration and development activities; uncertainties relating to the assumptions underlying resource and reserve estimates; mining and development risks, including risks related to infrastructure, accidents, equipment breakdowns, labour disputes, bad weather, non-compliance with environmental and permit requirements or other unanticipated difficulties with or interruptions in development, construction or production; the geology, grade and continuity of the Company's mineral deposits; the uncertainties involving success of exploration, development and mining activities; permitting timelines; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; prices for energy inputs, labour, materials, supplies and services; uncertainties involved in the interpretation of drilling results and geological tests and the estimation of reserves and resources; unexpected cost increases in estimated capital and operating costs; the need to obtain permits and government approvals; material adverse changes, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to i-80 Gold's filings with Canadian securities regulators, including the most recent Annual Information Form, available on SEDAR+ at www.sedarplus.ca.
Non-IFRS/Non-GAAP Financial Performance Measures
The Company has included certain terms or performance measures in this news release that commonly used in the gold mining industry that are not defined under International Financial Reporting Standards ("IFRS") or United States Generally Accepted Accounting Principles ("US GAAP"). This includes: all-in sustaining costs per ounce and cash cost per ounce. Non-IFRS/Non-GAAP financial performance measures do not have any standardized meaning prescribed under IFRS or US GAAP, and therefore, they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS US GAAP and should be read in conjunction with the Company's financial statements. Because the Company has provided these measures on a forward-looking basis, it is unable to present a quantitative reconciliation to the most directly comparable financial measure calculated and presented in accordance with IFRS or US GAAP without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various reconciling items that would impact the most directly comparable forward-looking IFRS or US GAAP measure that have not yet occurred, are outside of the Company's control and/or cannot be reasonably predicted.
Definitions
"All-in sustaining costs" is a non-IFRS or US GAAP financial measure calculated based on guidance published by the World Gold Council ("WGC"). The WGC is a market development organization for the gold industry and is an association whose membership comprises leading gold mining companies. Although the WGC is not a mining industry regulatory organization, it worked closely with its member companies to develop these metrics. Adoption of the all-in sustaining cost metric is voluntary and not necessarily standard, and therefore, this measure presented by the Company may not be comparable to similar measures presented by other issuers. The Company believes that the all-in sustaining cost measure complements existing measures and ratios reported by the Company. All-in sustaining cost includes both operating and capital costs required to sustain gold production on an ongoing basis. Sustaining operating costs represent expenditures expected to be incurred at the Project that are considered necessary to maintain production. Sustaining capital represents expected capital expenditures comprising mine development costs, including capitalized waste, and ongoing replacement of mine equipment and other capital facilities, and does not include expected capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements.
"Cash cost per gold ounce" is a common financial performance measure in the gold mining industry but has no standard meaning under IFRS or US GAAP. The Company believes that, in addition to conventional measures prepared in accordance with IFRS or US GAAP, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Cash cost figures are calculated in accordance with a standard developed by The Gold Institute. The Gold Institute ceased operations in 2002, but the standard is considered the accepted standard of reporting cash cost of production in North America. Adoption of the standard is voluntary, and the cost measures presented may not be comparable to other similarly titled measures of other companies.
For a more detailed breakdown on how these measures were calculated, please see the table below:
Total Costs | Unit Cost | Cost per Ounce | |
($M) | ($/t milled) | ($/oz Au) | |
Mining | |||
Transportation & Processing | |||
G&A, Royalties(5) & Net Proceeds Tax | |||
Total Operating Cost/Cash Costs(1) | |||
Closure & Reclamation | |||
Sustaining Capital (includes contingency)(6) | |||
All-in Sustaining Costs(1) (excludes Definition & Conversion Drilling) |
APPENDIX
Granite Greek Underground Project Detailed Cash Flow Model
Granite Creek Underground | UNITS | TOTAL LOM | 2025E | 2026E | 2027E | 2028E | 2029E | 2030E | 2031E | 2032E | 2033E | 2034E | 2035+1 |
MINING | |||||||||||||
Mine Life | Years | ~8 | |||||||||||
Mineralized Material Mined (incl. marginal) | k tonnes | 1,442 | 192.7 | 187.6 | 201.3 | 219.7 | 248.9 | 186.5 | 152.2 | 53.0 | - | - | - |
Waste Moved | k tonnes | 684 | 104.3 | 90.6 | 100.9 | 100.6 | 112.7 | 81.2 | 68.6 | 25.4 | - | - | |
Total Moved | k tonnes | 2,126 | 297.0 | 278.2 | 302.3 | 320.3 | 361.6 | 267.7 | 220.8 | 78.5 | - | - | - |
Daily Mining Rate | tpd | 494 | 527.9 | 513.8 | 551.6 | 602.0 | 681.9 | 510.8 | 416.9 | 145.3 | - | - | - |
Backfill Placed | k tonnes | 1,442 | 192.7 | 187.6 | 201.3 | 219.7 | 248.9 | 186.5 | 152.2 | 53.0 | - | - | |
Capitalized Mining | k tonnes | 489 | 163.5 | 182.9 | 105.6 | 35.0 | 1.0 | 1.0 | - | - | - | ||
PROCESSING | |||||||||||||
Total Material for Processing | k tonnes | 1,442 | 193 | 188 | 201 | 220 | 249 | 186 | 152 | 53 | - | - | - |
Gold Average Grade | g/t Au | 11.6 | 11.26 | 13.51 | 11.71 | 11.87 | 11.11 | 10.84 | 10.83 | 12.13 | - | - | - |
Contained Gold | '000 oz Au | 538 | 69.7 | 81.4 | 75.8 | 83.9 | 88.9 | 65.0 | 53.0 | 20.7 | - | - | - |
Toll Mill Processing | |||||||||||||
Total Tonnes Processed | k tonnes | 573 | 192 | 180 | 201 | ||||||||
Gold Grade | g/t Au | 12.09 | 11.25 | 13.44 | 11.67 | ||||||||
Contained Gold | '000 oz Au | 223 | 69.4 | 77.9 | 75.2 | ||||||||
Gold Average Recovery | % | 58 % | 58 % | 58 % | 58 % | ||||||||
Recovered Gold | '000 oz Au | 129 | 40.3 | 45.2 | 43.6 | ||||||||
Autoclave Processing | |||||||||||||
Total Tonnes Processed | k tonnes | 853 | 217 | 246 | 184 | 152 | 53 | - | - | - | |||
Gold Grade | g/t Au | 11.21 | 11.79 | 11.04 | 10.82 | 10.83 | 12.13 | - | - | - | |||
Contained Gold | '000 oz Au | 307 | 82.4 | 87.5 | 63.9 | 53.0 | 20.7 | - | - | - | |||
Gold Average Recovery | % | 92 % | 92 % | 92 % | 92 % | 92 % | 92 % | - | - | - | |||
Recovered Gold | '000 oz Au | 283 | 75.0 | 79.7 | 59.0 | 49.4 | 19.5 | - | - | - | |||
CIL Processing | |||||||||||||
(Third-party purchase agreement) | |||||||||||||
Total Tonnes Processed | k tonnes | 16 | 1 | 7 | 1 | 2 | 3 | 3 | - | - | - | - | |
Gold Grade | g/t Au | 15.95 | 13.99 | 15.17 | 20.84 | 19.64 | 17.44 | 12.72 | - | - | - | - | |
Contained Gold | '000 oz Au | 8.4 | 0.3 | 3.5 | 0.5 | 1.4 | 1.4 | 1.1 | - | - | - | - | |
Gold Average Recovery | % | 68 % | 68 % | 68 % | 68 % | 68 % | 68 % | 68 % | - | - | - | - | |
Recovered Gold | '000 oz Au | 6 | 0.22 | 2.4 | 0.4 | 1.0 | 1.0 | 0.7 | - | - | - | - | |
Total Tonnes Processed | k tonnes | 1,442 | 192.7 | 187.6 | 201.3 | 219.7 | 248.9 | 186.5 | 152.2 | 53.0 | - | - | - |
Total Gold Production(3) | '000 oz Au | 417.5 | 40.5 | 47.6 | 44.0 | 76.0 | 80.7 | 59.8 | 49.4 | 19.5 | - | - | - |
Recoverable Ag ounces remaining (BOP) | |||||||||||||
REVENUE | |||||||||||||
Gold Price | US$/oz Au | ||||||||||||
Silver Price | US$/oz Ag | ||||||||||||
Revenues | US$M | - | - | - | |||||||||
OPERATING COSTS | |||||||||||||
Mining Costs (Mineralized Material incl. Backfill) | US$M | - | - | - | |||||||||
Mining Costs (Waste) | US$M | - | - | - | |||||||||
Processing Autoclave | US$M | - | - | - | - | - | - | ||||||
Transportation | US$M | - | - | - | |||||||||
Electrical Power | US$M | - | - | - | |||||||||
G&A | US$M | - | - | - | |||||||||
Total Operating Cost | US$M | - | - | - | |||||||||
Refining & Sales | US$M | - | - | - | |||||||||
Royalties & State Taxes(4) | US$M | - | - | - | |||||||||
Mining Costs (Mineralized Material) | US$/t mined | - | - | - | |||||||||
Mining Costs (Waste) | US$/t mined | - | - | - | |||||||||
Mining Costs (Mineralized material & Waste ) | US$/t mined | - | - | - | |||||||||
Processing (Heap leach) | US$/t milled | - | - | - | - | - | - | - | - | - | - | - | |
Processing (Autoclave) | US$/t milled | - | - | - | - | - | - | ||||||
Transportation | US$/t milled | - | - | - | |||||||||
Electrical Power | US$/t milled | - | - | - | |||||||||
G&A | US$/t milled | - | - | - | |||||||||
Total | US$/t milled | - | - | - | |||||||||
CAPITAL EXPENDITURES | |||||||||||||
Construction Capital | US$M | ||||||||||||
Definition & Conversion Drilling | US$M | - | - | - | - | - | |||||||
Sustaining Capital | US$M | - | - | - | - | - | |||||||
Total Capital | US$M | - | - | - | - | - | |||||||
Reclamation | US$M | ||||||||||||
CASH COSTS & AISC | |||||||||||||
Total Cash Costs (Inc. Royalty)(1) | US$/oz | - | - | - | |||||||||
All-in Sustaining Costs(1)(5) | US$/oz | - | - | - | |||||||||
CASH FLOW ANALYSIS | |||||||||||||
Revenue | US$M | - | - | - | |||||||||
Operating Costs and Royalties(4) | US$M | ( | ( | ( | ( | ( | ( | ( | ( | ( | - | - | - |
Reclamation Accrual | US$M | ( | ( | ( | ( | ( | ( | ( | ( | ( | - | - | - |
Depreciation | US$M | ( | ( | ( | ( | ( | ( | ( | ( | ( | - | - | - |
Net Operating Income | US$M | ( | - | - | - | ||||||||
Income Taxes | US$M | ( | ( | ( | ( | ( | ( | ( | ( | ( | - | - | - |
Net Income | US$M | ( | - | - | - | ||||||||
Depreciation | US$M | - | - | - | |||||||||
Reclamation | US$M | - | ( | ( | ( | ( | |||||||
Working Capital | US$M | ( | ( | ( | ( | - | - | ||||||
Operating Cash Flow | US$M | ( | ( | ||||||||||
Capital Expenditures | US$M | ( | ( | ( | ( | ( | ( | ( | - | - | - | - | - |
NET CASH FLOW(2) | US$M | ( | ( | ( | |||||||||
Cumulative CF | |||||||||||||
PROJECT ECONOMICS | |||||||||||||
After-tax NPV discounting(2) | US$M | ||||||||||||
84 % | |||||||||||||
Notes to table above: (1) This is a non-IFRS/non-GAAP measure. Please see the section titled "Non-IFRS Performance Measures/Non-GAAP Financial Performance Measures" above.
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SOURCE i-80 Gold Corp
FAQ
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