i-80 Gold Corp. said it has started the underground mining program at its Granite Creek property located in Humboldt County, Nevada.
The well-financed Nevada-focused mining company noted that its 2021 drill program was successful in delineating high-grade mineralization in multiple areas proximal to the existing mine workings and two Cubex rigs are on site drilling to complete definition in advance of underground mining.
The first stoping area has been defined and mining of the stope access to this area is now underway, i-80 said, adding that it remains on target to ramp up to production in 2022. Mined material will be stockpiled on-site in preparation for trucking to Nevada Gold Mines' nearby Twin Creeks facility for processing.
READ: i-80 Gold reports impressive results from step-out drilling at Granite Creek in Nevada
"The interim processing arrangement with Nevada Gold Mines has allowed us to fast-track the development of the Granite Creek underground operation, such that it will become Nevada's newest gold mine," i-80 president and chief operating officer Matt Gili said in a statement.
"Granite Creek is one of four sites being prepared by the company for mining in advance of the restart of our Lone Tree processing facility that includes an autoclave.
"Additionally, our highly successful drill program has not only defined areas for mining but has also resulted in new discoveries including the South Pacific Zone that has the potential to materially increase resources at Granite Creek,” Gili added.
I-80 noted that the underground deposit at Granite Creek represents one of the highest-grade gold deposits in North America with resource grades above 10 grams per tonne (g/t) gold. The project hosts both open pit and underground resources and is strategically located proximal to Nevada Gold Mines' Twin Creeks and Turquoise Ridge mines at the north end of the Battle Mountain-Eureka Trend at its intersection with the Getchell gold belt in Nevada.
Owing to the success of the ongoing drilling in expanding mineralization, the company said the program has been increased to 30,000 metres in 2022.
In addition to the underground program at Granite Creek, i-80 said it continues to advance permitting for open-pit mine on the property including heap leach processing on-site.
i-80 Gold hopes to achieve mid-tier gold producer status through the development of four new open pit and underground mining operations that will process ore at the Lone Tree complex. It aims to ultimately produce more than 500,000 ounces of gold annually.
Contact the author at stephen.gunnion@proactiveinvestors.com