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Looking for a New Producer in Nevada’s Hot Gold Market?

Stockhouse Editorial
1 Comment| July 8, 2021

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(Image via i-80 Gold Corp. Click to enlarge.)


The demand for gold is thriving more than ever.

It is no secret that under this current global crisis from the spread of COVID, investor attention has shifted in great numbersClick to enlarge to the lustrous metal as a top safe haven asset. The virus put gold further in play when it hit … but with the administration of vaccines, along with monetary and deficit-spending stimulus, will it hold firm?

According to a recent the London Bullion Market Association survey, analysts from large banks and independent consultancies forecast that gold will average $1,974 (USD) per ounce across 2021, a rise of 11.5% from last year’s record-high annual average. This is an exciting trend for investors and gold companies who have been experiencing a 55% increase in gold prices over the last five years.


(US spot price for Gold 2016 – 2021. Click to enlarge.)

Digging deeper into this story, a hot spot for gold activity is Nevada, which was recently ranked as the #1 most attractive jurisdiction in the world for gold mining by the Fraser Institute.

Unrivalled in terms of combining mineral potential and the policy required to capitalize on it, companies operating in the state are capitalizing on a jurisdiction that provides one of the best opportunities for exploration, development, and production.

Enter: i-80 Gold Corp. (TSX: IAU, OTC: IAUCF, Forum), Nevada’s newest and fastest-growing gold miner.

IAU holds a diverse portfolio of assets from exploration to production. More than 5 million Oz. of gold in reserves and resources are held by the Company in Nevada, with 350,000 ounces in proven and possible reserves, 2.6 million measured and indicated resources and 2.3 million Oz. inferred resources. The Company has one producing mine, two permitted development-stage assets, and significant resource upside with all deposits open for expansion.

High Quality Portfolio in Attractive Mining Regions:

South Arturo Mine


(South Arturo Mine image via i-80 Gold Corp.)

Located along the northern section of the productive Carlin Trend, i-80 holds a 40% interest in the South Arturo Mine Property in partnership with North America’s largest gold producer, Nevada Gold Mines (a joint venture between Barrick Gold Corporation (TSX: ABX) and Newmont Corporation (TSX: NGT)). South Arturo includes both open-pit and underground mineral reserves and resources that remain open for expansion.

In Q3 2019, the El Niño underground mine at South Arturo began commercial production and less than a year later, gold production exceeded expectations by 30%. Several additional potential development opportunities are being advancing by the partnership, including the phase 1, phase 3 and potential heap leach projects.

In a May 2021 update of Q1 2021 South Arturo production, i-80 Gold’s Chief Executive Officer Ewan Downie hailed continued positive exploration success and mining results coming out of Arturo.

“2021 will be a pivotal year for the project as we incorporate the 2020 drill results into an updated reserve estimate and the joint venture progresses its work on the phase 3 trade-off study and planning for the development of the phase 1 open pit operation.”

The Company also noted Q1 2021 production of 15,752 Oz. of gold (Au) and 1,440 ounces of silver (Ag) (100% basis).

Further highlights include: Q1 2021 cash costs of $836 /Oz. Au and all-in sustaining costs (AISC) of $926 /Oz. Au sold. An 8,000-metre drill program is currently under way and an updated mineral reserve and resource estimate is expected later this year.


Granite Creek Property


(Granite Creek image via i-80 Gold Corp.)

Located near Arturo at the Intersection of the Getchell and Battle Mountain trends is the Granite Creek Property in Humbolt County, Nevada. i-80 operatesGranite Creek, a property that is host to both high-grade open-pit and underground mineral resources that remain open for expansion.

Underground drilling commenced at Granite Creek in June 2021, which is expected to delineate sufficient resources for advancing a near–term development and mining plan. Ongoing surface drilling will also test near-surface mineralization for metallurgical purposes and open pit definition to advance permitting for open pit mining including heap leach processing on-site.

The underground mine on the Granite Creek Property is permitted, with infrastructure in place to assist in expediting the development process. This project represents one of the highest grade, fully permitted gold deposits in all of North America.


McCoy-Cove Project


(McCoy Cove image via i-80 Gold Corp.)

The McCoy-Cove property hosts one of the highest-grade undeveloped gold deposits in all of Nevada, with resource grades well in excess of 10 grams per tonne gold. Historical production from previous open-pit mining on the property totals approximately 3.3 million Oz. Au and more than 100 million Oz. Ag.

i-80 also holds 100% interest in the McCoy-Cove property, which is a large and underexplored land package of over 30,000 acres located on the Battle Mountain trend, located near Nevada Gold Mines’ Phoenix operation.

A Preliminary Economic Assessment (PEA) for McCoy-Cove completed in 2020 indicates strong economic potential.


Prospective Organic Growth:

Investors take note: i-80 Gold Corp. is in a very solid financial position, having just received a top-up subscription from Equinox Gold Corp.(TSX: EQX) for roughly 5.4 million shares, which brought in more than $14 million (CAD) for i-80 Gold, bringing the Company’s cash reserves up to $70 million (CAD) with no debt on record.

Since predecessor Premier Gold Mines arrived on the Nevada scene in2014, i-80 has managed to expand this resource base tenfold through exploration efforts and merger and acquisition (M&A) success. This success can be traced back to the Company’s solid management team, who have demonstrated success in advancing these projects in Nevada’s competitive landscape.

From exploration, mining, production, and M&A, management at i-80 is made up of experienced leaders in several key areas and industry-specific entrepreneurship. Growth has been rapid as this team is proficient in mining operations and business. Let’s meet the team ….


Disciplined Capital Allocation executed by Operational Excellence:

Click to enlargeChief Executive Officer and Director - Ewan Downie: An accomplished company builder and entrepreneur with more than 25 years’ experience in the mining sector, Ewan Downie served as founder, President & CEO of Premier Gold Mines Ltd. and was also the founder President & CEO of Wolfden Resources Inc. Both companies saw a significant appreciation in value, which led to their acquisition with spinout vehicles to the benefit of shareholders.

Click to enlargePresident and Chief Operating Officer - Matthew Gili: A professional mining engineer who previously served as Executive General Manager for the Cortez District, leading one of Barrick’s top mining operations in Nevada. He was then promoted to Chief Technical Officer for Barrick Gold Corporation.

Additional operational experience includes roles with Rio Tinto as the Managing Director of its Palabora Mining Company in South Africa and Chief Operating Officer of Oyu Tolgoi in Mongolia. Most recently, he was the Chief Executive Officer of Nevada Copper Corporation.

Click to enlargeExecutive Vice President of Business and Corporate Development - Matt Gollat: With more than 12 years experience working with public companies, he is an accomplished executive in many aspects of the mine development cycle. Previously, he held was Vice-President Business Development at Premier Gold Mines and participated in multiple corporate and strategic development projects (including the of Premier acquisition, as well as the spin out of i-80 Gold Corp and the creation of Premier Royalty Corp.)

Click to enlargeChief Financial Officer - Ryan Snow: He is a mining finance professional more than over 15 years of experience in financial management and reporting in both Canada and the United States (IFRS and US GAAP), internal controls, M&A, risk management, and taxation. Before joining i-80 Gold, he was Vice-President of Finance for Nevada Copper, and helped to secure project financing and restructure debt during the construction and production ramp up of the Pumpkin Hollow mine. He was also the Vice-President, Finance and Controller for Tahoe Resources before that.

Click to enlargeExecutive Vice-President Projects & Evaluations - Brent Kristof: A professional engineer with 40 years of leadership and team-building successes in technical, operations, maintenance, and business improvement across the globe, he was formerly the Senior Vice-President, Operations for Premier Gold Mines. It was there that he was responsible for operations and project development in Mexico and Nevada. Before that he was the Chief Operating Officer for junior gold producer Klondex Mines. His experience in Nevada runs deep, having spent five years as General Manager for Barrick at the Turquoise Ridge Mine located immediately north of the i-80’s Getchell Project and eight years as a General Manager for Newmont at the Midas Gold and Deep Post Mines, as well as the Holloway and Golden Giant Mines in Ontario.


Investment summary:

The future looks promising for i-80 Gold, both in the near term and farther out on the horizon. As the team works to mine its various projects, a catalyst for the Granite Creek property would see a processing agreement to help with extrapolating underground resources. By this time next year, we could be looking at a very different Company with an even more rich valuation.

From proven past-production, large yields, pro-mining regulations, and everything in between, few regions can compare to the conditions that exist in Nevada when it comes to gold. Boasting a unique opportunity to stake a claim in multiple sectors of the gold industry, investors would be wise to deepen their due diligence into what i-80 Gold Corp offers, especially as Nevada continues to play a key role in the surging gold markets. i-80 Gold’s location is primed for growth in exploration and production.

Speaking with Stockhouse Editorial, EVP Matt Gollat summed up what i80 Gold is all about - “We’ve got this clean, very easy to understand vehicle focused entirely in Nevada going forward. I truly think it's going to be a one-of-a-kind Company.”


For more on this Company, visit i80gold.com.



FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.


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