US$244.9 M NPV (5%) & 34.2% After-Tax IRR
All currencies expressed as United States dollars unless otherwise stated
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 [email protected]% 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 [email protected]% 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
Table 2 – Granite Creek Mine Project Underground Mineral Resource
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.
GRE evaluated the after-tax [email protected]% sensitivity to changes in gold price, capital costs, and operating costs. The results indicate that the after-tax [email protected]% is most sensitive to gold price, moderately sensitive to operating cost, and least sensitive to capital cost.
Figure 2 – [email protected]% 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.
For further information, please contact:
Ewan Downie – CEO
Matt Gili – President & COO
Matthew Gollat – EVP Business & Corporate Development
Global Mineral Resources
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 .
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.
New Found Gold Neighbor Canstar Resources Might Be Sitting on Canada’s Next Big Gold Discovery
Canstar Resources (TSXV: ROX) might have discovered the biggest gold deposit in Canada’s hottest mining province, Newfoundland…
( ) might have discovered the biggest gold deposit in Canada’s hottest mining province, Newfoundland. The small-cap junior gold miner is currently drilling in a region that turns out to sit alongside the same tectonic boundary as another recently discovered billion-dollar gold project.
While manydiscoveries have emerged in recent years, few have remained surprisingly unnoticed by the broader mining community. One of which is the flagship gold project of , Golden Baie. In some samples, early testing has seen gold concentrations as staggeringly high as 4,485 g/t.
Despite this,is still operating under the radar at the moment. However, given the other billion-dollar gold projects located nearby in the province, it’s only a matter of time before it starts gaining a lot more attention from the mining community.
Is Newfoundland the New ‘El Dorado’ for Canadian Gold Miners?
In recent years, Newfoundland has emerged as one of the most exciting areas for gold discoveries. Millions of years of tectonic activity created geological conditions ripe for high-grade gold mineralization.
However, the area has remained largely unexplored. Whether due to a lack of technology or technical knowledge, past prospectors dismissed what would later turn out to be multiple, massive gold deposits all along the province.
There are a few notable examples, but one of the most recent was the Queensway project, a 1,510km area owned by. This was a company that went it went public back in September 2020 at just $1.4 per share.
Thanks to the excitement surrounding the Queensway project, shares quickly surged to over $10 earlier this year, with the company boasting a $1.2 billion valuation.
However, by the time most investors heard aboutand its gold project, shares had already shot up substantially. For those who felt like they missed the train on Newfound Gold, the good news is that history might be repeating itself, but this time with .
New Found’s Queensway project and Canstar’s Golden Baie are frequently compared side by side. Not only are both just a couple of hours drive away from each other, but both happen to be located on the same tectonic boundary. In layman’s terms, multiple deposits are likelier to be found on a tectonic boundary due to how plates shift over thousands and millions of years.
So far, Golden Baie is currently at an earlier stage of exploration than Queensway, which does mean it’s still a bit more of a speculative risk. However, analysis on the Golden Baie project shows that, based on surface-level gold concentrations, there’s likely a deep-seated gold system with multiple big deposits ripe for the picking.
What’s more, these early results have shown similar grades of gold as the Queensway project, which single-handedly transformedfrom a penny stock into a billion-dollar gold miner.
How Big is Canstar Resource’s Golden Baie Discovery?
At 622 square km, Golden Baie isn’t the largest project by surface area. However, over 95% of the total site remains completely unexplored.
Initial exploration attempts took place in the earlier 1980s and continued for almost 27 years, with geologists finding little at the time besides small gold deposits. It’s a common story with most Newfoundland gold discoveries, as many were initially passed over before their true potential was rediscovered.
It was only until 2019 that prospectors realized Golden Baie was likely sitting on top of a tremendous gold deposit. Some recent samples have shown incredibly high gold grades, including some rock pulp samples having as much as 4,485 g/t of gold. But even more down-to-earth results are impressive, such as over 289.3 g/t of gold at the Skidder site.
As for how large the Golden Baie gold deposit could be, that’s still to be determined. However, when you look at other nearby gold discoveries, even the most conservative estimates could make Canstar a fortungi
The smallest of nearby discoveries is owned by Anaconda Mining, whose Point Rousse project, located on the northern end of Newfoundland, contains over 119,000 ounces of gold. Marathon Gold has a closer deposit called the Valentine Lake project. These reserves are estimated at being over 3.1 million ounces of gold, the high end of what’s been found in Newfoundland.
Two other big projects include Matador Mining’s Cape Ray project, with 526,000 ounces of gold, and‘s Hope brook project, with around 844,000 ounces.
Given that all of these discoveries are within a couple of hundred kilometers of the Golden Baie project, we think the odds are that we’ll see similar results when further drilling data comes in. A rough estimate of between 500,000 and a million ounces of gold seems realistic, although it’s possible Golden Baie is even larger than that.
To put that into perspective, one million ounces of gold, at current spot prices, is just under $1.8 billion in mineable reserves. In contrast,is worth just $25.3 million at the moment.
Just like how the Queensway project catapulted Newfound Gold into a billion-dollar stock, so could Golden Baie transforminto a billion-dollar mining company, or around 40 times higher than its current market capitalization.
Some of the world’s top mining analysts agree. Billionaire mining investor Eric Sprott, one of Newfound Gold’s biggest backers, also owns a 32% stake in. While not every junior mining pick from Sprott turns into a billion-dollar success story, the odds are looking pretty good that Canstar might just be one of them.
What Should Investors Expect fromin 2022?
Given how undervalued and ignoredis at the moment, it’s a prime candidate for investors looking for a mining stock with exponential growth potential. The key, however, is to buy in before the market catches wind of it.
In other words, early investors looking for triple-digit gains should stock up on shares before further news about Golden Baie gets announced. The company is in the process of raising an extra $6 million to finance further drilling after releasing early drilling results in early November. Results were largely encouraging, suggesting that further, potentially larger gold deposits remain to be discovered.
Canstar has been focusing primarily on an 8km strike length, which is still just a small portion of the expected 95km gold corridor that’s at the heart of the Golden Baie property.
It’s also worth noting that, besides its flagship gold project,also has a couple of other operations. This includes the Buchans-Mary March project, another Newfoundland site, which has historically ranked as some of the world’s highest grade volcanogenic massive sulfide (VMS) deposits. VMS deposits are one of the richest sources of copper, lead, and zinc, but the Buchans-Mary March project has found gold and silver as well as those other metals.
While Canstar’s other projects remain promising, its main catalyst for future price growth is still big gold project. Investors should expect more drilling results in 2022, news that could quickly transform Canstar into a nine-or-ten-figure valuation for lucky investors.
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NEO Lithium’s Closest Neighbor Gets Ready to Drill
If you believe in the old adage, “the best place to find a deposit is near an existing one,” you should consider Portofino Resources (TSX-V: POR)…
When Neo Lithium started early stage exploration they recovered surface lithium grades of 190 mg/L compared to 373 mg/L for Portofino Resources adjacent Yergo property.
If you believe in the old adage, “the best place to find a deposit is near an existing one,” you should consider Portofino Resources (TSX-V: POR). This Vancouver-based company holds an option to acquire a 100% interest in the Yergo lithium brine project located in Argentina, in the heart of the Lithium Triangle, along with the Allison Lake North lithium and rare elements property. Portofino also owns five gold projects in Canada, and is overseen by an exceptional management team with deep experience in the resources industry.
One of the reasons that all eyes are on the Yergo project is the growing demand for lithium to support the green revolution. As one of the world’s lightest metals, lithium is playing one of the largest roles in our green and clean future. Demand is predicted to increase seven times over the next 10 years, reaching a total global demand of 1.79 million metric tons. Furthermore, for every 1% surge in battery electric vehicle (BEV) market penetration, the world’s need for lithium will rise by an estimated 70,000 tonnes per year.
This has industry experts asking – where will the supply come from?
Sharing a similar geological history with a world class asset
Argentina, Chile, and Bolivia comprise what is known as the Lithium Triangle, and these countries host a whopping 75% of the world’s lithium resources. Portofino’s Yergo project is a salar located approximately 15 kilometres southeast of Neo Lithium’s 3Q project – one of the largest and highest-grade lithium brine deposits in the world. It was initially discovered in late 2015 and took only five years to advance to the construction phase. In October of this year, Neo Lithium announced it had received an all cash, takeover offer of $960 million for all its outstanding equity from Zijin Mining.