- i-80 Gold (TSX:IAU;NYSE:IAUX) published a preliminary economic assessment (PEA) for its Archimedes underground project within its broader Ruby Hill complex in Nevada
- The PEA estimates an after-tax net present value of US$581 million (5 per cent) based on a US$2,900 per ounce gold price
- i-80 is a mineral explorer, developer and producer with the fourth-largest gold resources in the state of Nevada
- i-80 Gold stock has given back 42.61 per cent year-over-year and 59.60 per cent since inception in 2021
i-80 Gold (TSX:IAU;NYSE:IAUX) published a preliminary economic assessment (PEA) for its Archimedes underground project within its broader Ruby Hill complex in Nevada. Here are the highlights:
- Updated mineral resource estimate of 436,000 ounces of gold at 7.6 grams per ton (g/t) indicated and 988,000 ounces at 7.3 g/t inferred. Indicated resource tons and gold ounces have increased by 49 per cent and 116 per cent, respectively, compared to the 2021 resource estimate, while gold grades have increased by 46 per cent in the indicated category and 21 per cent in the inferred category.
- Life of mine (LOM) of approximately 10 years.
- Estimated LOM cash costs of US$1,769 per ounce and all-in-sustaining costs of US$1,893 per ounce.
- After-tax net present value of US$581 million (5 per cent) based on a US$2,900 per ounce gold price and US$127 million based on a US$2,175 gold price.
- After-tax LOM cash flow of US$902 million based on US$2,900 gold and US$212 million based on US$2,175 gold.
- Mine construction capital requirement of US$49 million.
- LOM development and sustaining capital estimated at US$106 million.
According to Tuesday’s news release, Archimedes offers “several exploration targets to be followed up on in the coming years to potentially extend the mine life beyond the current 10 years.” To this end, the company plans to release a feasibility study and an updated mineral resource estimate focused on the 426 zone and the Ruby Deeps area in 2028.
The Ruby Hill complex also includes Mineral Point, a large oxide gold and silver deposit with the potential to become i-80 Gold’s largest gold-producing asset. An updated PEA is expected in Q1 2025.
Leadership insights
“The release of the Archimedes PEA marks another step forward in our plan to establish i-80 Gold’s broader hub-and-spoke mining and processing strategy in northeastern Nevada,” Richard Young, i-80 Gold’s chief executive officer, said in a statement. “Based on the PEA, Archimedes is expected to contribute meaningfully to the overall production and economics of the company’s hub-and-spoke strategy in spite of higher transportation costs to our central autoclave facility and lower grades relative to the company’s two other underground projects. The PEA’s findings show that at a base-case gold price of US$2,175 per ounce, Archimedes is at the lower end of valuation compared to other underground gold projects in our portfolio, however it presents the highest leverage to gold prices.”
“The Archimedes PEA reinforces its value within i-80 Gold’s portfolio, with the potential to achieve the highest mining rate among our underground operations,” added Matthew Gili, i-80 Gold’s president and chief operating officer. “The geometry of the mineralized body supports the use of bulk mining methods, driving lower unit costs and enhancing project economics. Additionally, extensive infrastructure is already in place, and the sequential permitting approach allows us to expedite mining activities through mid-2027, while finalizing approvals for the lower section.”
About i-80 Gold
i-80 is a mineral explorer, developer and producer with the fourth-largest gold resources in the state of Nevada.
i-80 Gold stock (TSX:IAU) opened with a gain of 3.06 per cent trading at C$1.01 per share. The stock has given back 42.61 per cent year-over-year and 59.60 per cent since inception in 2021.
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(Top photo of drill core from the Archimedes project: i-80 Gold)