Provides Lone Tree Cost Estimate &
Announces Multiple New Discoveries at Ruby Hill
RENO,
Nev., April 3, 2023 /PRNewswire/ - i-80
GOLD CORP. (TSX: IAU) (NYSE: IAUX) ("i-80", or the
"Company") is pleased to provide an update on the
Company's exploration and development programs at its Ruby Hill,
Granite Creek, Lone Tree, McCoy-Cove and Buffalo Mountain
Properties as well as the results of the initial cost estimate for
the refurbishment of the Lone Tree. Continued success in the early
part of the 2023 exploration campaign at the Company's 100%-owned
Ruby Hill Property ("Ruby Hill" or "the Property")
located in Eureka County, Nevada
highlights the substantial upside at the Company's flagship project
with multiple new zones of both Carlin-type gold and Carbonate Replacement
Deposit (CRD) type mineralization having been discovered in the
early part of the program.
Key initiatives for each project include:
- Ruby Hill Property – Major drill program underway,
Preliminary Economic Assessment (PEA) being completed for the
underground gold mineralization, permitting ongoing for underground
development, detailed metallurgical work and processing plan under
development
- Granite Creek Property – Underground development
progress, mining rate increasing, economic studies and revised
resource estimate being completed
- Lone Tree Property – Cost estimate for the restart of
the autoclave facility completed and work on the Class III
Engineering (detailed engineering) Study underway, Ongoing residual
leach program
- McCoy-Cove Property – Underground development progress
to more than 70% completion, ~40,000 metre underground drill
program underway
- Buffalo Mountain Property – Drilling program completed
in late 2022, assessing potential for an open pit mining
operation
"2023 is expected to be a catalyst-rich year with exploration,
development, and mining projects complemented by economic studies
and resource updates.", stated Ewan
Downie, CEO of i-80. "This work will continue to provide
information so that we can make an informed decision related to the
sequencing of the start-up of our two processing facilities to
achieve our industry-best production growth plan."
Ruby Hill Property
Four main initiatives are planned at Ruby Hill for 2023
including a large-scale exploration drilling program, initial
economic work for the planned Ruby Deeps underground gold mine,
permitting to allow for the commencement of underground development
and advanced metallurgical work for the recoveries of gold and
polymetallic base metal mineralization for mining and processing
planning.
Five drills are currently active focused on expanding
mineralization in the primary known zones and also testing several
new exploration targets on the property. New discoveries have been
made in the early part of the 2023 drilling program with
Carlin-type (gold) and CRD
(polymetallic) mineralization intersected in several new target
areas located in close proximity to the underground infrastructure
being planned for the Property.
Drilling in the Upper Hilltop Zone continues to expand
mineralization and semi-massive and massive sulphide CRD
mineralization has been discovered in the East Hilltop area (see
Figure 1 and Photo 1). Additionally, multiple horizons of
mineralization have been intersected in hole iRH23-09 (assays
pending) extending mineralization along the Hilltop structure over
a strike length of approximately 750 metres.
Hole iRH23-10 intersected a new zone of CRD type mineralization
(assays pending) in the eastern extension of the Hilltop fault
structure (see Figures 1 & 2 and Photo 1). The East Hilltop
Zone is located approximately 200 m
to the east, and along strike from, the Upper Hilltop Zone where
2022 drilling returned high-grade intercepts including 515.3 g/t
Ag, 28.9 % Pb, 10.5 % Zn & 0.9 g/t Au over 28.3 m, 1.9 g/t Au, 631.3 g/t Ag, 7.4 % Zn
& 33.0 % Pb over 18.3 m and
60.2 g/t Au, 908.7 g/t Ag, 1.1 % Zn & 15.7 % Pb over
10.0 m (see press releases dated
August 30th, 2022 and November 14, 2022).
A zone of sulphide breccia CRD mineralization was intersected in
hole iRH23-09 including appreciable sphalerite (zinc) (see Photo
2). This zone was immediately followed by a large zone of
Carlin-type mineralization
containing significant realgar and orpiment (see Photo 3). These
mineralized zones were intersected below the "Bullwhacker Sill" and
represent an area where the Lower Hilltop and Ruby Deeps Zones
converge. Polymetallic mineralization in the Lower Hilltop Zone
occurs proximal to the Bullwhacker Sill approximately 250 metres to
the east of this intercept and Carlin-type gold mineralization in the Ruby
Deeps Zone occurs proximal to the Bullwhacker Sill approximately
200 metres to the north suggesting significant upside in both
zones. A section (Figure 2) and surface plan (Figure 1) of the
upper mineralized intercepts in hole iRH23-09, displaying their
location proximal to the Ruby Deeps and Hilltop Zones.
Deeper in iRH23-09, a zone of massive sulphide mineralization
(see Figure 2 & Photo 4) was intersected representing a second
polymetallic intercept in an area of no previous drilling in the
footwall of the Holly fault structure. This mineralization occurred
at the contact of the Secret Canyon shale with the underlying
Geddes limestone.
"The success we have realized early in our 2023 drill program
continues to confirm the world-class potential of the Ruby Hill
project.", stated Tyler Hill, Chief
Geologist of i-80. "We are advancing permitting to provide the
ability to expand exploration to test the Hilltop Corridor further
south toward the FAD deposit and for the ability to test two of our
priority exploration targets defined by geophysical surveys."
Final deposit modeling and mine planning are being completed in
advance of the release of a PEA for the Ruby Deeps and 426 gold
deposits. This initial economic study is being planned for release
in Q2.
Permit submissions are in progress related to the commencement
of underground development being constructed from the Archimedes
pit. This underground development will provide improved access for
definition drilling of the multiple gold, polymetallic and base
metal deposits, test mining and advanced economic studies prior to
mining.
A detailed metallurgical testing program is being completed for
both gold and polymetallic base metal mineralization at Ruby Hill.
This work will be utilized in economic studies for the processing
both types of mineralization from the Ruby Hill Mine including
advancing plans for the potential construction of a floatation
plant on the property.
Granite Creek Property
Three sublevels have now been completed and are being mined on
the Ogee Zone at Granite Creek. A fourth sublevel is currently
being developed to increase mining rates as the Company continues
to prioritize the development of five levels on the Ogee Zone
followed by the construction of infrastructure to the north to
provide access for definition drilling and development of the South
Pacific Zone. These initiatives are expected to accelerate the
delivery of high-grade refractory mineralization for processing at
Nevada Gold Mines' "Sage Plant" at its Turquoise Ridge / Twin
Creeks Mine located to the north (See Figure 3).
Installation of a sixth dewatering well is nearing completion
that is expected to drop the water level and contribute to
accelerated development and mining rates. A Feasibility Study for
the Ogee underground mine is nearing completion along with an
initial resource and PEA for the South Pacific Zone that is
expected to be the primary zone at the Granite Creek Mine starting
in 2024. These studies are expected to be released in Q2.
Lone Tree Property
Oxide material from the Granite Creek mine is being placed on a
dedicated section of the Lone Tree leach pad for high intensity
leaching. Realized recoveries match the estimated leaching curves.
Alternate processing options are being investigated as significant
high-grade oxide mineralization continues to be mined from the Ogee
zone at Granite Creek.
i-80 has completed an initial cost estimate at a pre-feasibility
level and schedule study for recommissioning of the Lone Tree
Autoclave facility. The purpose to this study was to review the
requirements to recommission the Autoclave and CIL plant to its
nameplate operating capacity, modify the plant for processing in
the alkaline environment and to update it in order to meet modern
permitting requirements. The study also included an updated cost
estimate (with an expected accuracy of -20% to +30%, and an
effective date of September 2, 2022)
and several key studies focused on reducing capital, improving
safety and/or reducing operating costs. Detailed cost estimates are
provided in Table 1 below.
Table 1 – Cost Estimate for the Restart of the Autoclave
Processing Facility
Direct
Cost
|
Total
Cost
|
Earthworks,
Concrete, Structural, Architectural
|
$20,820,545
|
Mechanical
|
$70,012,285
|
Piping
|
$18,955,197
|
Instrumentation
|
$10,575,030
|
Electrical
|
$12,577,930
|
Direct Sub-total
|
$132,940,987
|
Indirect
Costs
|
$74,793,339
|
Direct and Indirect Sub-total
|
$207,734,326
|
Contingency
|
$40,386,453
|
Total Project Cost (Excluding Owner's Cost)
|
$248,120,779
|
*Does not include
critical spares or first fills
|
The study was completed by Hatch and a 3rd Party peer review was
completed to better understand means and methods and conclusions,
evaluate risks and to confirm the Study is consistent with industry
standards. The project teams are now advancing a Class III
Engineering Study to further refine the refurbishment plan to
provide sufficient enough detail for potential future project
financing. The final Hatch report is expected to be completed in
2023.
The Company is currently reviewing its project development
timeline by assessing the value of its gold and polymetallic
resources, permitting timelines and financing requirements for the
sequencing of the of the Lone Tree autoclave and a potential
floatation plant at Ruby Hill. The Company remains committed to
growing its business in a capital conscience manner with a focus on
maximizing shareholder value. A decision will be made on the
optimal path forward once it has more thoroughly defined its
mineral resources to advance economic studies and technical
reports.
McCoy-Cove Property
Progress on the construction of the initial decline and
exploration drift for the future development of the Cove
underground mine is now more than 70% complete and underground
drilling is underway. The underground definition drill campaign of
approximately 40,000 metres will be completed over the next 18
months to upgrade resources in advance of a Feasibility Study.
Installation of piezometers for detailed water flow studies is
also being completed for full mine permitting and long-term
dewatering plans. Cove represents one of North America's highest-grade
development-stage gold projects with existing resources displayed
in Table 2.
Table 2 – Cove Mineral Resources*
|
Tonnage
|
Au
Grade
|
Ag
Grade
|
Gold
|
Silver
|
|
(kt)
|
(g/t)
|
(g/t)
|
(koz)
|
(koz)
|
Indicated
|
1,007
|
10.9
|
29.1
|
351
|
943
|
Inferred
|
3,867
|
10.9
|
20.6
|
1,353
|
2,565
|
* 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.
|
Buffalo Mountain
Property
An initial drill campaign was completed at the Buffalo Mountain
Property in H2-2022. The results of this program, that include
intercepts of 1.0 g/t Au over 134.1
m and 1.2 g/t Au over 40.8
m, will be incorporated into a revised resource estimate
and economic plan regarding a potential open pit operation with
mineralization processed at Lone Tree. Of particular note is
step-out iBM22-03 that intersected 1.0 g/t Au over 134.1 m in the Second Chanse Zone that opens
up the potential to expand mineralization to the southeast where it
remains open.
The Buffalo Mountain Property is located immediately west of
Lone Tree, and i-80's substantial infrastructure, and northwest of
SSR Mining's Marigold Mine (See Figure 4).
Please click here for further information on abbreviations and
conversions referenced in this press release.
QAQC Procedures
All samples were submitted to ALS Minerals (ALS) of Sparks, NV, which is an ISO 9001 and 17025
certified and accredited laboratory, independent of the Company.
Samples submitted through ALS are run through standard prep methods
and analysed using Au-AA23 (Au; 30g fire assay; ALS) and ME-ICP61a
(33 element suite; 0.4g Four Acid/ICP-AES; ALS). Overlimit samples
of Ag, Pb, and Zn are analyzed by ore-grade methods comprising
HF-HNO3-HClO4 Digest, HCl leach and ICP-AES. Additional samples
overlimit ore–grade methods are analyzed by acid dissolution and
titration. ALS also undertakes their own internal coarse and pulp
duplicate analysis to ensure proper sample preparation and
equipment calibration. i-80 Gold Corp's QA/QC program includes
regular insertion of CRM standards (gold and polymetallic),
duplicates, and blanks into the sample stream with a stringent
review of all results.
Qualified Person
Tyler Hill, CPG-12146, Chief
Geologist at i-80 is the Qualified Person for the information
contained in this press release and is a Qualified Person within
the meaning of National Instrument 43-101.
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 through the development of
multiple deposits within the Company's advanced-stage property
portfolio with processing at i-80's centralized milling facility
that includes an autoclave.
www.i80gold.com
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, the
proposed exploration and development programs at its Ruby Hill,
Granite Creek, Lone Tree, McCoy-Cove and Buffalo Mountain
Properties, the cost estimate for the refurbishment and
recommissioning of the Lone Tree autoclave facility expansion or
mineral resources at each of the Company's mineral projects, the
timing of the completion of the economic studies in respect of the
Company's mineral projects, and the potential of the Company's
mineral projects. 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: 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.
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SOURCE i-80 Gold Corp