i-80 Gold Corp. has shared its development blueprint for a catalyst-rich 2022 as it starts to build a comprehensive Nevada mining complex.
The well-financed mining company aims to reach mid-tier gold producer status through the development of four new open pit and underground mining operations that will ultimately process ore at the company's central Lone Tree complex that includes an autoclave.
i-80 said it aims to ultimately produce more than 500,000 ounces of gold annually.
The company did multiple strategic transactions in 2021, the first year of it being a publicly-traded company, to move towards becoming a stand-alone gold producer in Nevada. It acquired the Granite Creek, Lone Tree and Ruby Hill properties to become one of the largest holders of gold and silver resources in the Silver State.
READ: i-80 Gold announces US$135 million financing package to advance its Nevada mid-tier gold producer aim
Importantly, i-80 secured the ability to process all types of gold mineralization, including refractory gold-bearing mineralization, through the acquisition of the Lone Tree processing complex. It also has interim processing agreements with Nevada Gold Mines that give it the flexibility to process material from any of the three planned underground operations until the Lone Tree autoclave is restarted.
To execute its "Hub and Spoke" development plan, i-80 will construct four new mining operations over the next three years. It will also complete multiple large-scale drill programs, advance permitting, build a tier-one exploration, development and mining operations team, and restart the Lone Tree autoclave.
Lone Tree will be the "Hub" of i-80's Nevada operations as the central processing facility, operations office, assay lab and warehouse for all sites. “Mineralization from Granite Creek, Ruby Hill, and McCoy-Cove will feed the Lone Tree Autoclave, once restarted, and mineralization from the Buffalo Mountain (and Brooks) open pit will be processed at the Lone Tree heap leach facility,” said the company.
"With a strong balance sheet, we are concentrated on achieving our goal of becoming one of Nevada's largest gold producers", i-80 Gold CEO Ewan Downie said in a statement. "2021 was a highly successful first year for i-80 where we closed multiple strategic acquisitions that position i-80 as one of the largest holders of gold and silver resources in the state."
Meanwhile, Matt Gili, president and chief operating officer at i-80, noted that the firm is in the process of building a “tier-one management team.”
"We are targeting peer-best production growth through the development of our portfolio of permitted, road accessible deposits,” added Gili. “Additionally, the company has gained a strategic advantage as one of only three companies in the state with infrastructure to process refractory mineral resources, once the facility has been retrofitted to suit the company's deposits."
Lone Tree processing facilities
Lone Tree will be the hub of i-80's Nevada operations and the central processing facility for mineralization from the first four planned mining projects. “Lone Tree is host to infrastructure that, following successful refurbishment efforts, will allow it to process refractory and oxide mineralization,” said the firm.
The property hosts existing infrastructure that includes a whole ore autoclave with capacity of one million tonnes/year, a flotation circuit with capacity of 1.8 million tonnes a year, along with several buildings including a warehouse, maintenance shop, administration building and assay lab.
“In 1Q 2022, the company plans to award the contract to complete a detailed engineering study for the restart of the autoclave and secure key personnel to execute the restart plan,” said i-80.
In addition, permitting for the development of the Buffalo Mountain open pit mine is underway, where gold mineralization is expected to be processed at the Lone Tree leach pad facility. “An initial resource for Buffalo Mountain is expected to be complete in H1 2022,” said the company.
Lone Tree is strategically located on Interstate 80 with the Nevada Railway less than two kilometers (km) to the north.
“In 2021, i-80 closed financings that will result in it having a strong balance sheet including nearly US$200 million in cash and cash equivalents,” said the company.
Granite Creek property
The fully permitted Granite Creek underground is the firm’s most advanced project. Initial rehabilitation of the underground workings was completed in 2021 and “additional levels are now being constructed and multiple levels are being prepared for mining,” said the company.
A surface and underground drill program, expected to comprise more than 20,000 metres of drilling, is well underway with positive results. “Following the 2022 drill campaign, the company intends to complete a revised resource estimate focused on the underground mineralized zones,” said i-80.
The company’s complete development plan can be read here.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive