ScotiaBank: Results Confirm Continuity of High-Grade MineralBy Ovais Habib
OUR TAKE: Mild Positive. i-80 Gold announced results from its ongoing underground drilling at McCoy-Cove Property. Key intercepts include 10.6 g/t Au over 38.3m; 27.0 g/t Au & 9.2 g/t Ag over 8.0m; 49.3 g/t Au & 21.0 g/t Ag over 2.2m and 37.1 g/t Au & 19.1 g/ t Ag over 3.6m. The Company noted that Phase 1 development program, consisting of the decline and exploration platform, is now complete. The drill program is expected to comprise ~40,000m, in advance of an updated resource estimate and economic study related to the construction of mining operation at McCoy-Cove. In addition, the Company is also advancing development plans and the approvals required for a mining operation at Cove. Cove currently has 351 koz (1.0 Mt at 10.9 g/t) and 1,353 koz (3.9 Mt at 10.9 g/t) in the indicated and inferred category respectively. We view the results as a mild positive for IAU shares as the drill results continue to confirm high-grade mineralization, which are relatively above the current resource grade. We look forward to the release of an updated mineral resource estimate (MRE) and a Feasibility Study at McCoy-Cove. IAU shares are rated SO with a C$4.50 PT