#USA #Nevada #i-80 Gold #i-80 Gold Corp #Lone Tree Plant

i-80 Gold Announces Lone Tree Plant Refurbishment Update

i-80 Gold Corp., a key player in the Nevada gold mining sector, has recently disclosed an engineering study detailing plans for the refurbishment of its Lone Tree Plant. This initiative represents an essential step in the company's broader growth strategy, aiming to transform it into a mid-tier gold producer. The Lone Tree Plant, the only such facility among two in Nevada equipped with an autoclave processing system, is expected to play a pivotal role in processing refractory materials from the company's three underground mines: Granite Creek, Archimedes, and Cove.

Project Overview

According to Richard Young, the President and CEO of i-80 Gold, the refurbishment project is crucial for the company's transition from a toll-milling operation to a direct owner-operated processing model. This shift is projected to significantly enhance profit margins and free cash flow. The study conducted by Hatch Ltd. evaluated the engineering design and estimated the refurbishment costs to be approximately $430 million, accounting for inflation and engineering complexities.

The Lone Tree Plant is set to operate at a capacity of 2,268 tonnes per day, feeding both refractory and non-refractory materials through its integrated processing circuits. Major upgrades will include refurbishing the autoclave to a modern setup, environmental systems enhancements, and the installation of new equipment to comply with environmental standards.

Financial Outlook

The expected return on investment for this refurbishment is promising, with a potential payback period of just 12 to 24 months, influenced by the processed gold grade and market prices. This projection is based on the anticipated increase in production margins, which are expected to rise by $1,000 to $1,500 per ounce of gold. This increase will be supported by a modernized operational model that aims to reduce processing costs significantly.

Construction Timeline

Early works have already begun, authorized by the Board of Directors at i-80 Gold. The detailed engineering designs are set to conclude by the end of 2025, with the submission of permit applications scheduled for early 2026. If timely approvals are received, construction activities can potentially commence within the second half of 2026. Commissioning of the refurbished plant is targeted for late 2027, where it will begin processing materials from the Granite Creek and Archimedes mines.

Environmental Considerations

I-80 Gold emphasizes commitment to environmental compliance with plans to replace outdated equipment and implement a modern mercury abatement system. The company's move towards a filtered tailings system is also aligned with sustainable mining practices, allowing for increased water recovery and a reduced environmental footprint.

Local Impact and Future Prospects

The refurbishment of the Lone Tree Plant signifies not only a technological upgrade but also a boost for the local economy, which is expected to benefit from the influx of construction jobs. With its experienced management team and advanced engineering partnership with Hatch, i-80 Gold is well-positioned to execute this ambitious growth strategy effectively.

In summary, the refurbishment of the Lone Tree Plant is a landmark initiative for i-80 Gold Corp., with anticipated improvements in operational efficiency, cost reduction, and profitability, paving the way for future successes in Nevada’s competitive mining landscape.