i-80 Gold Projects $105M in LOM Sustaining Capital for Granite Creek Underground Project

Overview of the Granite Creek Underground Project

i-80 Gold, a U.S.-based mining company, has announced its preliminary economic assessment (PEA) for the . This project is located where the Battle Mountain-Eureka and Getchell gold trends intersect. It is the first redevelopment initiative in i-80 Gold’s portfolio. The company projects life of mine (LOM) sustaining capital costs at $105 million. The project continues to move toward full operational capacity.

Key Project Highlights and Economic Projections

The PEA outlines important details for the Granite Creek Underground Project. The company expects the project to have an eight-year lifespan, with annual production averaging around 60,000 ounces of gold after ramp-up. Estimated LOM cash costs are $1,366 per ounce, and all-in-sustaining costs stand at $1,597 per ounce.

The updated mineral resource estimate shows 261,000 ounces of measured and indicated gold at 10.5 grams per tonne (g/t) and 326,000 ounces of inferred gold at 13.0 g/t.

These estimates exclude drilling data from 2023 and 2024. i-80 Gold plans further exploration in the South Pacific zone. This will be included in a feasibility study by Q4 2025.

Gold Production and Future Plans

i-80 Gold expects gold production at the Granite Creek Underground site to reach 20,000 to 30,000 ounces in 2025. The company uses the underhand drift and fill mining method and anticipates an average gold grade of 11.6g/t with a recovery rate of 78%. Following the refurbishment of the company’s autoclave facility, recovery could rise to 92%.

Once i-80 Gold’s Lone Tree facility is operational in 2028, it will process refractory material externally. This could lower payability on gold by around 30%. However, the company expects the refurbishment of the Lone Tree autoclave to increase production and cash flow.

Economic Outlook and Market Sensitivity

The economic projections for the Granite Creek Underground Project are based on a gold price of $2,175 per ounce. Under these assumptions, i-80 Gold expects after-tax cash flows of $197 million and an after-tax net present value (NPV) of $155 million, using a 5% discount rate. If the gold price increases to $2,900 per ounce, cash flows could reach $420 million, with an NPV of $344 million.

Conclusion

i-80 Gold’s Granite Creek Underground Project plays a key role in the company’s growth. With strong mineral resources and significant production potential, it promises a positive future. The company plans further exploration and upgrades, increasing the likelihood of greater resource growth.