US$244.9 M
NPV (5%) & 34.2% After-Tax IRR
All currencies expressed as United States dollars unless otherwise
stated
RENO, Nev., Nov. 9, 2021 /PRNewswire/ - i-80 GOLD
CORP. (TSX: IAU) (OTCQX: IAUCF) ("i-80", or the
"Company") is very pleased to announce the results of a
Preliminary Economic Assessment ("PEA") for the Company's Granite
Creek Project located in Humboldt County,
Nevada. The technical report has also been filed with
Canadian Securities regulators and can be found at
www.i80gold.com and under the Company's profile at
www.sedar.com.
Highlights of the Granite Creek PEA (Base Case @ US$1,650/oz Au) include:
- After-Tax NPV@5% of US$244.9
Million
- After-Tax IRR of 34.2%
- Initial Capital of US$69.9
Million
- All-in Sustaining Cost (per oz Au produced) of US$963.40
- Life of Mine Gold Production of 1,245,900 ounces
"The Granite Creek PEA confirms the substantial economic
opportunity that can be realized through the development of both
open pit and underground mines on the Property", stated
Matthew Gili, President and Chief
Operating Officer of i-80. "This study contemplates constructing
heap leach and CIL facilities on the property for the open pit and
trucking refractory material for third party processing. The recent
acquisition of the Lone Tree site will allow for the optimization
of these facilities as we progress to a Feasibility Study,
potentially leading to changes in the ultimate processing plans
versus what is presented in the study".
Granite Creek is one of four projects being advanced within
i-80's portfolio and the Company has made significant progress
advancing the project since it was acquired in April of 2021. A
major surface and underground drill program (~20,000 metres) is
underway and the Company is completing additional underground
development and commencing test mining in advance of making a
production decision for the underground mine.
Granite Creek Preliminary Economic Assessment
Global Resource Engineering Ltd. (GRE) was retained by i-80 Gold
Corp. (i-80) to complete Preliminary Economic Assessment (PEA)
Technical Report on the Granite Creek Mine Project ("Granite Creek
Mine" or "the Property" or "the Project"). Granite Creek is located
within the Getchell Trend immediately south of the Turquoise Ridge
and Twin Creeks mining operations of Nevada
Gold Mines (see Figure 1).
Figure 1 – Granite Creek Property Location
The project economics shown in the PEA are favorable, providing
positive NPV values at varying gold prices, capital costs, and
operating costs. For the open pit at Granite Creek, the study
envisions the construction of a heap leach facility and a CIL plant
on-site. For the fully permitted underground operation,
trucking of mined material is assumed to processed at an off-site,
third-party processing facility. Future economic work will
consider processing at the Lone Tree facility that was recently
acquired from Nevada Gold Mines and
located 43 miles (by road) to the south.
Based on the current resource estimates for the Property, the
study envisions a mine-life of nine years, producing 1,245,900
ounces of gold with life-of-mine all-in sustaining costs of
US$963.40 per ounce of gold.
This generates NPV@5% of US$244.9
million and After-Tax IRR of 34.2%.
Mineral Resource Estimate
Updated mineral resource estimates were completed on the
property for the purposes of this PEA incorporating the current
drill hole database, previously mined out volumes, and backfilled
volumes. Table 1 shows the pit-constrained open pit Mineral
Resource at a gold grade cutoff of 0.35 grams/tonne (gpt), and
Table 2 shows the underground Mineral Resource at a gold grade
cutoff of 5.0 gpt. The ongoing drill program is targeting the
continued expansion of resources at Granite Creek.
Table 1 – Granite Creek Mine Project Open Pit Mineral
Resource
Class
|
Zone
|
Total Process
Material (1000s Tonnes)
|
Total Contained Au
(1000s t. oz)
|
Au Grade
(ppm)
|
Measured
|
Pit B
|
2,584
|
119
|
1.44
|
Pit A
|
281
|
15
|
1.61
|
CX
|
9,447
|
436
|
1.44
|
MAG
|
8,546
|
418
|
1.52
|
Total
|
20,857
|
988
|
1.47
|
Indicated
|
Pit B
|
272
|
12
|
1.34
|
Pit A
|
504
|
14
|
0.89
|
CX
|
2,393
|
107
|
1.39
|
MAG
|
4,279
|
171
|
1.24
|
Total
|
7,448
|
304
|
1.27
|
Measured +
Indicated
|
Pit B
|
2,856
|
131
|
1.43
|
Pit A
|
785
|
29
|
1.14
|
CX
|
11,840
|
543
|
1.43
|
MAG
|
12,824
|
588
|
1.43
|
Total
|
28,306
|
1,291
|
1.42
|
Inferred
|
Pit B
|
23
|
1
|
0.74
|
Pit A
|
120
|
2
|
0.62
|
CX
|
1,100
|
46
|
1.29
|
MAG
|
288
|
13
|
1.42
|
Total
|
1,531
|
62
|
1.26
|
1) The effective
date of the Mineral Resources Estimate is May 4, 2021.
2) The Qualified
Persons for the estimate are Terre Lane QP-MMSA and Hamid Samari
QP-MMSA of GRE.
3) Mineral
resources are not Mineral Reserves and are not demonstrably
economically recoverable.
4) Mineral
resources are reported at a 0.35 g/t cutoff, an assumed gold price
of 1,800 $/tr. oz, using variable recovery, a slope angle of 41
degrees, 6% royalty, heap leach processing cost $9.92 per tonne
(includes admin), CIL processing cost of $17.63 per tonne (includes
admin).
|
Table 2 – Granite Creek Mine Project Underground Mineral
Resource
Resource
Class
|
Tonnage
(1000s of
tonnes)
|
Gold
Grade
(g/t)
|
Gold
Oz
(1000s t.
oz)
|
Measured
|
483
|
10.07
|
156
|
Indicated
|
525
|
10.70
|
181
|
M&I
|
1,008
|
10.40
|
337
|
Inferred
|
741
|
13.41
|
319
|
1) Mineral Resources are not
Mineral Reserves, and as such, do not have demonstrated economic
viability.
2) Cut-off is 5 gpt based on
Mining Cost of $100/ton, Process Cost of $106/ton, recovery of 92%,
and a gold price of $1600/t. oz.
3) Effective Date is May 4,
2021.
4) Figures are rounded and
may show apparent errors in subtotals.
|
Mining Methods
Mine plans for the resource areas were designed and planned
using conventional open pit mining method for the low grade, widely
distributed gold. The open pit areas are suitable for phased
designs. Mechanized over-hand cut and fill underground mining
method was selected for the narrow, high-grade deposits. This
method was chosen for its ability to mine narrow vein deposits
while minimizing dilution and reducing labor cost. The underground
area utilizes the previous mine development and includes new
development to replace the current access which will be destroyed
when the CX pit is mined.
Sensitivity Analysis
GRE evaluated the after-tax NPV@5% sensitivity to changes in
gold price, capital costs, and operating costs. The results
indicate that the after-tax NPV@5% is most sensitive to gold price,
moderately sensitive to operating cost, and least sensitive to
capital cost.
Figure 2 - NPV@5% Sensitivity to Varying Gold Price, Capital
Costs, and Operating Costs
Conclusions and Next Steps
GRE concluded that the project economics shown in the PEA are
favorable, providing positive NPV values at varying gold prices,
capital costs, and operating costs.
The current underground trial mining program is aimed at gaining
a better understanding of the optimal mining cycle required for the
project and to advance development of the underground workings to
provide for more working faces to mine from in a commercial
production scenario. The ongoing drill campaign is designed
to delineate and expand the underground deposits and to better
understand the metallurgy and geotechnical characteristics of the
open pit opportunity. The Company has initiated preliminary
permitting studies required for open pit mining. Expansion drilling
is stepping out at depth and along strike where the deposit remains
open and results from this program will be released throughout the
balance of 2021 and well into 2022 with the target of completing a
Feasibility Study in the future.
About i-80 Gold Corp.
i-80 Gold Corp. is a well-financed Nevada-focused mining company
with a goal of achieving mid-tier gold producer status. The Company
is one of the largest holders of gold and silver resources in the
State of Nevada with plans to
advance multiple projects to production.
Global Mineral Resources
|
Tonnes
|
Au
Grade
|
Ag
Grade
|
Au
Ounces
|
Ag
Ounces
|
|
(kt)
|
(Au
g/t)
|
(Ag
g/t
|
(Koz)
|
(Koz)
|
|
|
|
|
|
|
Measured
|
|
|
|
|
|
Granite Creek - Open
Pit
|
20,857
|
1.47
|
|
988
|
|
Granite Creek -
Underground
|
483
|
10.07
|
|
156
|
|
Lone Tree - Open
Pit
|
|
|
|
|
|
McCoy-Cove -
Underground
|
|
|
|
|
|
Ruby Hill - Open
Pit
|
|
|
|
|
|
Ruby Hill -
Underground
|
|
|
|
|
|
|
|
|
|
|
|
Indicated
|
|
|
|
|
|
Granite Creek - Open
Pit
|
7,448
|
1.27
|
|
304
|
|
Granite Creek -
Underground
|
525
|
10.70
|
|
181
|
|
Lone Tree - Open
Pit
|
7,223
|
1.77
|
|
410
|
|
McCoy-Cove -
Underground
|
1,007
|
10.90
|
29.1
|
351
|
943
|
Ruby Hill - Open
Pit
|
224,400
|
0.54
|
14.3
|
3,874
|
103,335
|
Ruby Hill -
Underground
|
1,200
|
5.22
|
0.6
|
202
|
22
|
Measured &
Indicated
|
263,144
|
0.76
|
12.33
|
6,465
|
104,300
|
|
|
|
|
|
|
Inferred
|
|
|
|
|
|
Granite Creek - Open
Pit
|
1,531
|
1.26
|
|
62
|
|
Granite Creek -
Underground
|
741
|
13.41
|
|
319
|
|
Lone Tree - Open
Pit
|
50,734
|
1.69
|
|
2,764
|
|
McCoy-Cove -
Underground
|
3,867
|
10.90
|
20.6
|
1,353
|
2,565
|
Ruby Hill - Open
Pit
|
162,700
|
0.39
|
14.0
|
2,062
|
73,472
|
Ruby Hill -
Underground
|
8,210
|
6.02
|
1.7
|
1,588
|
439
|
Inferred
|
227,783
|
1.11
|
10.4
|
8,148
|
76,476
|
Notes:
- MCOY-COVE:
Mineral Resources were calculated at a gold price of
US$1500/oz, cut-off grade 0.141 opt Au. and is based on the
Preliminary Economic Assessment issued by i-80 on April 13, 2021.
Practical Mining LLC, under the supervision of Dagny Odell, P.E.,
Laura Symmes, SME, and Robert Raponi, P. Eng., each being Qualified
Persons within the meaning National Instrument (NI) 43-101, was the
lead consultant for the Project PEA.
- GRANITE CREEK:
Mineral Resources have an effective date of May 4, 2021 and are
based on the mineral resource technical report issued by i-80 on
October 29, 2021. The Qualified Persons for the estimate are
Terre Lane QP-MMSA and Hamid Samari QP-MMSA of GRE. Open Pit
Mineral resources are reported at a 0.35 g/t cutoff, an assumed
gold price of 1,800 $/tr. oz, using variable recovery, a slope
angle of 41 degrees, 6% royalty, heap leach processing cost $9.92
per tonne (includes admin), CIL processing cost of $17.63 per tonne
(includes admin). Underground mineral resources are reported
at a cut-off grade of 5 gpt based on Mining Cost of $100/ton,
Process Cost of $106/ton, recovery of 92%, and a gold price of
$1600/t. oz
- LONE TREE: Mineral
Resources were calculated at a gold price of US$1650/oz, cut-off
grade of 0.1 g/t Au and are based on the mineral resource technical
report issued by i-80 on October 21, 2021. Mr. Abani Samal, Ph.D.,
CPG, RM- SME, Fellow-SEG a GeoGlobal, LLC Principal is the
Qualified Person responsible for the Mineral Resource
estimate.
- RUBY HILL: Mineral
Resources were calculated at a gold price of US$1650/oz, cut-off
grade 0.1 g/t Au. and are based on the mineral resource technical
report issued by i-80 on October 22, 2021. Mr. Christopher Wright,
P. Geo, a Wood Canada Ltd. employee, is the Qualified Person
responsible for the Mineral Resource estimate.
- Figures are rounded
and may show apparent errors in subtotals.
- Mineral resources
are not mineral reserves and do not have demonstrated economic
viability.
|
Qualified Person
Global Resource Engineering, Ltd., under the supervision of
Terre Lane, MMSA 01407QP, SME Registered Member 4053005,
Todd Harvey, PhD, PE, SME Registered
Member 4144120, Rick Moritz, MMSA,
Hamid Samari, PhD, MMSA and Larry
Breckenridge, P.E., all Qualified Persons within the meaning of
National Instrument 43-101 ("NI 43-101"), are the Qualified Persons
responsible for the Granite Creek Mine Project Preliminary Economic
Assessment NI 43-101 Technical Report. A technical report detailing
the mineral resource estimate has been filed with Canadian
Securities regulators and can be found .
Technical Information
Tim George, PE, Manager of Engineering Services, reviewed the
technical and scientific information contained in this press
release and is a Qualified Person within the meaning of NI
43-101.
|
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, financing
transaction with Orion, completion of refurbishment and development
activities at the Lone Tree project, commencement of mining
operations at the Lone Tree and Buffalo Mountain projects or
exploration and development activities the Ruby Hill mine. Such
statements and information involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of the company, its projects, or
industry results, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements or information. 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.
|
|
Forward-looking
statements and information involve significant 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 discussed in the forward-looking statements or
information, including, but not limited to: failure to satisfy of
the relevant conditions to the completion of the transactions
described herein, failure to obtain the relevant regulatory
approvals, material adverse changes, exercise of termination rights
by any relevant party, unexpected changes in laws, failure to
complete the Orion financing transaction on satisfactory terms,
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, refurbishment, development
or mining programs or studies to deliver anticipated results or
results that would justify and support continued exploration,
studies, development or operations.
|
|
Cautionary Note to
U.S. Investors Concerning Estimates of Resources: This press
release uses the term "inferred resources." "Inferred resources"
have a great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. Under
Canadian rules, estimates of inferred mineral resources may not
form the basis of a feasibility study or prefeasibility study,
except in rare cases. Information contained in the press release
containing descriptions of any mineral deposits may not be
comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements under the
United States federal securities laws and the rules and regulations
thereunder that disclose mineral reserves and mineral resources in
accordance with Industry Guide 7 or the SEC's new mining disclosure
rules in Regulation S-K 1300. SEC Industry Guide 7 does not
recognize the existence of resources. Under Regulation S-K 1300,
reserve and resource definitions are substantially similar to the
corresponding CIM Definition Standards; however, there are
differences between NI 43-101 and Regulation S-K 1300 and therefore
information contained in the press release may not be comparable to
similar information made public by public U.S. companies pursuant
to the Regulation S-K 1300 or SEC Industry Guide 7.
|
1.
|
Mineral resources are
not mineral reserves and do not have demonstrated economic
viability. See Global mineral resources table at the end of this
press release for global mineral resource estimates and
qualifiers.
|
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SOURCE i-80 Gold Corp