i-80 Gold Corp has posted final drill results from first phase drilling at its Granite Creek mine project in Humboldt county, Nevada, which it said confirms the potential for a high-grade open pit mine.
Drilling in the CX-Pit area was undertaken for geotechnical and metallurgical purposes ahead of the permitting process for an open pit mine with on-site processing.
Highlight drill assays included an intercept of 51.1 metres (m) starting from a depth of 83.7m, which hit 6.8 grams per ton (g/t) of gold in one hole. Another hit 36.74 g/t of the precious metal over 9.1m from a depth of 283.5m.
"We continue to realize substantial success in numerous areas at Granite Creek, including the completion of open pit drilling in advance of permit applications", said Matt Gili, the chief operating officer (COO) of i-80 in a statement. "These successes bode well for the planned ramp-up of underground mining, planned for H1-2022 and the long-term future of this exciting property."
READ: i-80 Gold to proceed with underground program at its McCoy-Cove property in Nevada
At Granite Greek, which sits immediately south of Nevada Gold Mines' Turquoise Ridge and Twin Creeks mines, the firm has completed initial rehabilitation of the underground mine workings and is now embarked on a major underground drilling program as part of an aggressive plan to re-commence mining at the property.
Most of this program, expected to comprise over 20,000m of drilling that will extend well into 2022, is focused on defining and expanding mineralization within several high-grade target areas near to existing underground mine workings.
In November this year, the company unveiled a positive preliminary economic assessment (PEA) for the asset, which confirmed the "substantial economic opportunity" that could be realized via developing both the open pit and underground mines.
The report considered output of 1,245,900 ounces of gold over a nine-year life for the mine and showed an after-tax net present value (NPV) of US$244.9 million. The after-tax internal rate of return (IRR) was pegged at 34.2%, while the all-in sustaining cost per ounce of gold produced was US$963.40.
Contact the author at giles@proactiveinvestors.com