i-80 Gold's Mineral Point Project Shows Promising Economic Potential with High NPV and Robust IRR
i-80 Gold's Mineral Point Project: A Comprehensive Economic Assessment
On February 21, 2025, i-80 Gold Corp. (TSX: IAU, NYSE: IAUX) unveiled promising results from a preliminary economic assessment (PEA) of its Mineral Point Project located in Nevada. This project stands to become a cornerstone of i-80 Gold's portfolio due to its robust economic metrics and substantial gold resources.
Project Overview
The Mineral Point Project is part of the Ruby Hill Complex, situated along the rich Battle Mountain-Eureka Trend in Northern Nevada. The assessment projects a remarkable after-tax net present value (NPV) of $614 million with an internal rate of return (IRR) of 12% based on a gold price of $2,175 per ounce. The project is designed as a large open-pit heap leach operation with an estimated lifespan of approximately 17 years, projecting an annual production of around 280,000 ounces of gold equivalent following a ramp-up period.
Key Financial Highlights
The findings of the PEA reveal impressive economic indicators:
- - Total Cash Flow: Estimated undiscounted after-tax cash flows reach approximately $1.47 billion, with a life of mine cash cost forecasted at $1,270 per ounce.
- - High-Grade Mineral Resources: The total indicated mineral resource contains 3.4 million ounces of gold at an average grade of 0.48 grams per tonne, alongside a significant silver resource of 104.3 million ounces.
- - Significant Upside Potential: Should gold prices soar to $2,900 per ounce, the project’s IRR could rise to an impressive 27%, highlighting the operational leverage available to i-80 Gold.
Mining and Processing Details
The proposed mining strategy involves conventional open-pit methods utilizing a fleet of 24 trucks and four shovels, with an annual movement of approximately 100 million tonnes of material. The heap leach facility will process crushed material at a rate of approximately 23 million tonnes per year. The project also utilizes a Merrill Crowe circuit for silver recovery, dexterously blending technology and resource management.
Economic Metrics
| Metric | Value |
|---|---|
| ----------- | ---- |
| After-tax NPV (5% discount) | $614 million |
| Average annual production | 280,000 ounces |
| Total capital expenditure | $708 million |
| Sustaining capital for the entire operation | $388 million |
| Ore grade (gold) | 0.39 g/t |
| Average gold recovery rate | 78% |
Capital Costs
The total estimated capital cost stands at approximately $1.38 billion. Initial construction capital is estimated at $707.5 million, which includes essential equipment and initial fleet acquisitions. Notably, a contingency of 15% has been applied to ensure comprehensive risk management throughout the project phases.
Future Steps and Feasibility Study
As part of its growth strategy, i-80 Gold aims to advance toward a feasibility study scheduled for 2029. Initially commencing baseline work in late 2024, the company anticipates integrating extensive geotechnical drilling and metallurgical testing to augment its resource understanding. The resulting feasibility study will align with expected permitting approvals, which is a strategic move to secure financing and construct the necessary infrastructure.
Conclusion
The recent PEA for the Mineral Point Project showcases i-80 Gold's potential as a mid-tier gold producer with an impressive economic profile and operational foundation. As the company moves forward with its growth initiatives, stakeholders can look forward to a well-developed pathway towards realizing the value inherent in its substantial mineral assets. Through careful management and innovative mining practices, i-80 Gold is well-positioned to navigate the complexities of the mining industry while optimizing its operations for long-term success.
Topics Energy）
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