#United States #Nevada #i-80 Gold #Archimedes Project

i-80 Gold Corp. Announces Positive PEA for Archimedes Project

i-80 Gold Corp., a prominent mining company, has made headlines with its latest announcement regarding the Archimedes Underground Project located in Nevada. The newly released preliminary economic assessment (PEA) sheds light on the project's potential profitability, forecasting a robust after-tax net present value (NPV) of $127 million at a gold price of $2,175 per ounce and an impressive internal rate of return (IRR) of 23%.

Project Overview

Located within the Ruby Hill Complex, the Archimedes Project is strategically positioned in the Battle Mountain-Eureka gold trend of northeastern Nevada. The PEA's findings reaffirm the project's importance in bolstering i-80 Gold's regional mining and processing strategy. As stated by Richard Young, CEO of i-80 Gold, the Archimedes Project represents a key link in their hub-and-spoke operational model, promising to contribute significantly to the company's production and economic targets despite facing higher transportation costs and relatively lower grades compared to other projects.

Key Highlights of the PEA

The evaluation highlights several noteworthy aspects:

• - The Archimedes Project boasts an approximate mine life of 10 years with an estimated average annual gold production of around 100,000 ounces post ramp-up.
• - The project's cash costs are projected at $1,769 per ounce, while all-in-sustaining costs (AISC) are anticipated at $1,893 per ounce.
• - The mineral resource estimate indicates a total of 436,000 ounces of indicated resources at a grade of 7.6 grams per tonne and 988,000 ounces of inferred resources at 7.3 grams per tonne.

Mining and Processing Plans

The primary mining method planned is long hole open stoping with delayed backfill, optimizing the cost and efficiency of operations. Approximately 90% of extracted material is expected to be processed at i-80 Gold's Lone Tree autoclave facility starting in 2028, while the remaining will go to a third-party facility between 2026 and 2027. The productive capabilities are further bolstered by the project's established infrastructure, which supports a smooth transition into mining operations.

Economic Projections

Under the assumptions made in the PEA, total undiscounted after-tax cash flows from the Archimedes Project could reach an impressive $212 million, underscoring its financial viability. In a more optimistic scenario with a higher gold price of $2,900 per ounce, the project's after-tax cash flows could soar to $902 million, while the estimated NPV would climb to $581 million, offering an astounding IRR of 75%.

The strategic capital expenditure for mine construction is estimated at $49 million, with an additional $106 million allocated for development and sustaining capital over the project's lifespan. These investments, coupled with the extensive mineral resources available, point to a promising future for the Archimedes Project.

Future Prospects and Development Plans

As the company pushes forward with its plans, it aims to extend the mine life beyond the currently projected ten years by pursuing further exploration and infill drilling, particularly in promising zones such as Ruby Deeps and 426. The management team has outlined clear steps toward initiating a feasibility study, including ongoing resource delineation, advanced metallurgical testing, and amendment of necessary environmental permits.

In conclusion, i-80 Gold Corp.'s Archimedes Project reflects a robust mineral asset with compelling economic parameters, set against the backdrop of a favorable gold market. The company's focus on efficient operations and strategic planning is expected to position them favorably as they seek to unlock the full potential of this asset.

With such promising projections and an effective operational strategy, the Archimedes Project is poised to become a cornerstone of i-80 Gold Corp.'s future endeavors in the mining landscape.