I-80 Gold Corp T.IAU

Sprott Report

[Ridgeback]

Today’s Ruby Hill drilling continues I-80’s discovery momentum with a number of potential new discoveries. 1) Hole 23-10 hit 13.4m @ 8.2g/t AuEq (15-22-16-45% Au-Ag-Pb-Zn) between East Hilltop and Hilltop Upper, potentially adding 200-250m of strike, potentially ~500kt assuming ~8m width, 75m vertical extent, and 250m strike (but requiring additional infill to confirm). 2) Hole 23-09 hit 3.9m @ 6.9g/t AuEq (52-2-47% Au-Ag-Zn) from 564m – potentially a continuation of Lower Hilltop or a new zone; and 5.8m @ 9.9g/t Au – interpreted as a continuation of Ruby Deeps, would represent a ~100m step out. 3)

Not prominent in today’s release but intriguing to us was Hole 23-04A’s hit 50.3m @ 1.2g/t testing a deep MT target before the hole deviated. We think this is highly intriguing as I-80 has flagged their increasing confidence in MT target testing, useful for the numerous larger-than-Hilltop MT anomalies elsewhere on their property.

Today’s hits require more infill to model with confidence so we maintain our estimates today, including our BUY recommendation and our C$6.00/sh price target based on 0.60xNAV5%-1850. With updated PEA studies at Ruby Deeps and Granite Creek SPZ, an updated Granite Creek Ogee zone DFS both due this quarter, plus an increasing rate of drilling results at Ruby Hill / Hilltop, we see numerous value driving catalysts for I-80 this quarter to advance the company towards our thesis of a 400-500kozpa AuEq high grade Nevada producer capable of generating US$250-400m/year of FCF.

The combination of domestic premium, liquid mid-tier end point and NAV accretion through new discoveries makes I-80 a must-own in our view.

Figure 1. (A) plan and (B) cross-section of today’s Ruby Hill poly-metallic drilling Source: I-80 Gold I-80 hits 8.4m @ 12.1g/t AuEq from new high-grade CRD zone at Ruby Hill I-80 reports results for 14 diamond drill holes at Ruby Hill targeting polymetallic carbonate replacement deposits (CRD) and skarn mineralization. Excluding four deviated holes, today’s average hit was 7.1m @ 5.1g/t AuEq (28-17-10-44% Au-Ag-Zn-Pb) totalling 19-intercepts (7 Blackjack, 7 East Hilltop, 3 Upper Hilltop, 1 Ruby Deeps and 1 unknown to the west).

Highlights from East Hilltop drilling includes 8.4m @ 12.1g/t AuEq (44-28-22-4-1; Zn-Pb-Ag-Au-Cu) within 13.4m @ 8.9g/t AuEq (42-26-23-7-2; Zn-Pb-Ag-AuCu) from a new zone of mineralization, in addition to 2.3m @ 9.2g/t AuEq (83-8-6-3; Zn-Ag-Pb-Au), and 2.3m @ 6.9g/t AuEq (36-31-30-2; Pb-Ag-Au-Zn). Other drilling along the western extension of the Hilltop fault structure hit 4.6m @ 11.3g/t AuEq (63-35-2; Zn-Au-Ag) within 18.3m @ 7.3g/t AuEq from Hilltop West.

Other highlights include 4.7m @ 10.2g/t AuEq (38-36-14-12; Zn-Au-Ag-Pb) from Blackjack, 13.1m @ 13.1g/t AuEq (93-7; Au-Zn) from Lowerjack, 5.8m @ 9.9g/t Au from Ruby Deeps. Exploration and delineation drilling are ongoing with five drills turning at Ruby Hill (East Hilltop followed by Upper Hilltop pending permits). Assays pending.

[FuddleDuddle07]

I really like these comments "we see numerous value driving catalysts for I-80 this quarter to advance the company towards our thesis of a 400-500kozpa AuEq high grade Nevada producer capable of generating US$250-400m/year of FCF. The combination of domestic premium, liquid mid-tier end point and NAV accretion through new discoveries makes I-80 a must-own in our view."

[goldstd69]

Excellent report...the results reported today by IAU were very supportive...more results to follow...a certain takeover target for a number of reasons.  I intend to hold my shares....please do your own diligence.

[Dormie18]

https://sprott.com/media/6407/230425-iau-scp-hilltop.pdf