i-80 Gold Corp, a well-financed mining company, closed the second quarter with cash and equivalents of $70.1 million and no debt to advance its portfolio of projects in the goldfields of Nevada.
For the period ended June 30, 2021, the mining company produced a total of 4,972 ounces of gold, compared to 4,765 ounces of gold during the second quarter of 2020 from the South Arturo property. In the meantime, a total of 11,075 ounces of gold were produced for the six months ended June 30, 2021.
“The increase in ounces period-over-period was the result of stope sequencing in which an increased tonnage was offset by lower grade material,” said the company.
READ: Greatland Gold appoints former Newcrest mine planner as group mining engineer
i-80 holds a 40% interest in the South Arturo Mine in partnership with Nevada Gold Mines, a joint venture between Barrick Gold Corp and Newmont Corporation, which owns the remaining 60% interest.
In addition to its producing mine, El Nino at South Arturo, i-80 is beginning to plan for production growth through the addition of Phase 1 and 3 projects at South Arturo, advancing economic studies and test mining at the Granite Creek project, and planning for advanced underground exploration at its McCoy-Cove property.
"Q2 was a groundbreaking quarter for the company. We completed the spin-out from Premier Gold Mines (PIRGF), closed the acquisition of the Granite Creek project and the adjacent Christison land package, and finalized the subscription receipt financing,” i-80 Gold CEO Ewan Downie said in an earnings statement.
“With these transactions completed, the company is well-positioned, with $70 million in cash and no debt, to advance the projects within our portfolio to achieve our goal of building a mid-tier gold producer," he added.
i-80 now holds a 100% interest in the Granite Creek Mine in Nevada, which lies at the intersection of the Getchell and Battle Mountain Trends near Nevada Gold Mines’ Twin Creeks and Turquoise Ridge mining operations.
"The acquisition of the Granite Creek Project provides the company with near-term production potential from the historic underground workings and mid-term potential for an open pit project,” said Downie. “i-80 is excited to have launched an aggressive drilling campaign, with approximately 22,000 meters of drilling planned."
For the second quarter, the company reported total revenue of $10.3 million and a mine operating income of $3.4 million, compared to revenue of $10.9 million and mine operating income of $3.1 million during 2Q 2020.
“The decrease in 2Q revenue when compared to the same period in 2020 was primarily due to the sales of 576 less ounces during the period offset by an increase in the average realized gold price of $63 to $1,784 per ounce,” said the company.
Meanwhile, 1-80 pointed out that “total mine operating income of $3.4 million for 2Q 2021 compared to income of $3.1 in 2Q 2020 illustrates the consistent nature of our operating property.”
The results for the quarter were impacted by one-time restructuring costs resulting from the spin out of i-80 gold from Premier Gold Mines Ltd. (TSX:PG) and when considered resulted in an adjusted loss of $2.6 million for the quarter.
1-80 reported total revenue of $23.8 million and mine operating income of $9.6 million for the six-month period ended June 30, 2021, compared to revenue of $19.3 million and mine operating income of $4.7 million for the same period a year earlier.
i-80 said that “there has been little to no impact” on the operations at South Arturo due to the pandemic.
“The joint venture is currently assessing additional development opportunities, including the Phase 1 and Phase 3 underground and open pit projects as well as the potential for an on-site heap leach facility,” said the company.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive