i-80 Gold Corp. (TSX:IAU, OTCQX:IAUCF) said it has entered into an agreement to acquire strategic land sections adjoining its Granite Creek Property in Nevada’s Humboldt County from Nevada Gold Mines LLC.
The company said the new property sections provide it with approximately 3.2 kilometres (km) of additional exposure along the Getchell/Range Front fault structure that is intimately associated with the Granite Creek and Turquoise Ridge gold deposits.
Importantly, it noted that the property section to the north of Granite Creek is immediately on-strike with the recently discovered South Pacific Zone where high-grade mineralization is being defined along strike to the north of its Granite Creek Mine.
READ: i-80 Gold reveals fresh positive drill results from underground drill program at Granite Creek
“Granite Creek is the first of four properties that i-80 is advancing towards production over the next several years, and where mining has recently commenced”, the company's executive vice-president Matt Gollat said in a statement.
“Given the substantial success of our ongoing drill program in expanding mineralization, increasing our property holdings is extremely important in providing significant exposure to potential upside both to the north and south of our current property," he added.
The company said the acquired property section will increase the size of the Granite Creek Property package by approximately 1,280 acres (518 hectares), extending exposure approximately 1.6 km north towards Nevada Gold Mines' Turquoise Ridge Mine, and 1.6 km south of Granite Creek along the favourable Getchell/Range Front fault structure.
Additionally, it provides a 100% interest in the potential northern extension of the South Pacific Zone where recent drilling has identified significant high-grade mineralization including:
- 16.3 grams per tonne (g/t) gold over 7.1 metres (m) in hole iGS21-03
- 14.7 g/t gold over 10.2m in hole iGS21-04
- 17.2 g/t gold over 3.8m and 22.0 g/t gold over 3.4m in hole iGS21-07
- 25.5 g/t gold over 5.5m in hole iGS21-11
- 11 g/t gold over 9.1m in hole iGS21-12
- 16.3 g/t gold over 15.7m in hole iGS21-18
- 15.3 g/t gold over 10.5m in hole iGS21-19
i-80 said the total consideration for the purchase of the property sections, which include surface and mine rights, consists of a cash payment of $4 million and the inclusion of the acquired sections into the existing 10% net profits royalty (NPI) that Nevada Gold Mines currently holds on the existing property. Barrick Gold Corporation will also retain a 0.5% NSR (net smelter return) on the new property sections.
At Granite Creek, the company said it is currently completing a surface and underground drill program with multiple drills that is expected to consist of approximately 30,000m of drilling. The program has been very successful in confirming the significant upside opportunity at Granite Creek both proximal to the underground mine workings including the expansion of mineralization along strike and at depth where the deposit remains open, it said.
The South Pacific Zone is one of the primary targets of the 2022 program and future drilling will continue to step-out to the north towards the newly acquired property.
The company noted that high-grade mineralization at Granite Creek occurs in a near-identical geological setting to that of the multi-million-ounce Turquoise Ridge Mine that is located immediately to the north; proximal to a major regional fault on the eastern edge of the large Osgood Mountains intrusive complex.
The Granite Creek deposit remains open at depth and along strike from the existing underground workings.
i-80 said it will host an investor day presentation in person at the Toronto Board of Trade on May 10, 2022, commencing at 4.30pm Eastern Time, providing the opportunity for analysts and investors to ask questions of its executive team.
A live conference call and webcast will also be available to those that are unable to attend in person.
Conference Call
North American Toll-free: 1-888-204-4368
Confirmation #: 3896886
Webcast Link
i-80 Gold is a well-financed mining company with the goal of achieving mid-tier gold producer status. The firm’s portfolio now has five projects — Lone Tree, Brooks/Buffalo Mountain, Granite Creek, McCoy-Cove, and Ruby Hill. Lone Tree will act as the hub of i-80 Gold’s operation, providing integrated processing infrastructure for all types of ore.
Contact the author at stephen.gunnion@proactiveinvestors.com