i-80 Gold Corp. Reports Positive Updated PEA for Cove Project in Nevada
i-80 Gold Corp. Reports Positive Updated PEA for Cove Project in Nevada
i-80 Gold Corp. has officially updated the Preliminary Economic Assessment (PEA) for its Cove Project located in Northern Nevada, solidifying its potential as a vital component in the company's future mining strategy. The updated assessment reflects a robust after-tax net present value (NPV) of $271 million at a discounted rate of 5%, alongside an internal rate of return (IRR) of 30% based on a projected gold price of $2,175 per ounce.
Key Highlights from the PEA
The findings from the PEA indicate a promising overview:
- - The Cove Project estimates a mine life of approximately eight years with an average annual production of 100,000 ounces of gold post-ramp-up.
- - Total undiscounted after-tax cash flows are calculated to be around $397 million, highlighting substantial financial viability.
- - Moreover, if gold prices reach $2,900 per ounce, the project could see an increase in undiscounted after-tax cash flows to $793 million and an NPV rise to $582 million.
Richard Young, CEO of i-80 Gold, emphasized that this updated PEA is an essential step in presenting new technical details across the company's asset portfolio. He stated, "The results validate our planned regional hub-and-spoke model of feeding a central processing plant with high-grade material from three underground mines, which is expected to form the production base for i-80 Gold moving forward."
Economic Analysis
The study details the project's economic framework extensively, providing insights on production costs and capital requirements:
- - The total estimated mine construction capital is projected to be $157 million.
- - Significant funds, nearly 60% of the budget, are set aside for vital dewatering activities necessary for the successful extraction of resources.
- - Operating costs are estimated at about $1,194 per ounce for cash costs and $1,303 per ounce for all-in sustaining costs (AISC).
The Cove Project's attractive economic metrics bolster its position within i-80 Gold's strategic framework and provide assurance for stakeholders regarding the expected returns.
Mining Methodology and Resource Estimates
The mining operation will utilize a combination of cut-and-fill and bench-and-fill methods, ensuring efficiency in resource extraction. The updated mineral resource estimates reveal an indicated gold resource of 311,000 ounces at a grade of 8.2 grams per tonne (g/t) and an inferred resource of 1.16 million ounces at 8.9 g/t. The revision in resource estimation is the result of adopting a more precise mining geometry and improved hydrology models, which are fundamental to planning future operations.
In addition, the PEA outlines plans for a feasibility study set for completion by Q4 2025. This study will incorporate further drilling results, aiming for an even more comprehensive understanding of the Cove resource potential.
Future Prospects and Exploration Potential
The Cove Project shows considerable exploration potential, with ongoing drilling aimed at enhancing the resource base further. Insights from geological studies and tests suggest that additional underground exploration targets could be followed up in the upcoming years, aiming to extend the mine life beyond the current 8-year outlook.
The announcement of this PEA positions i-80 Gold as a promising player within Nevada's gold mining landscape, emphasizing the ever-present opportunity in the region's resources while ensuring economic sustainability through advanced operational strategies. With continued success, the Cove Project could significantly contribute to i-80 Gold's overarching growth strategy and regional mining dominance.
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