i-80 Gold delivers positive economics for Granite Creek underground, open pit in Nevada

i-80 Gold (TSX: IAU) (NYSE: IAUX) delivered two separate preliminary economic assessments for its Granite Creek project in Nevada this week: one for the fully permitted underground mine, and another for the potential open pit mine.The Granite Creek project is located at the intersection of the Getchell and Battle Mountain Trends, proximal to the Twin Creeks and Turquoise Ridge mining operations run by Nevada Gold Mines (NGM), the Barrick-Newmont joint venture.Underground mineGranite Creek Underground mine is the first property within the company’s pipeline of assets to be redeveloped and is currently ramping up to full production. The PEA highlighted an eight-year gold operation with annual production of 60,000 oz. following ramp-up. However, for the first three years through 2027, its payable gold production would be approximately 30% lower as the mine will use a third-party autoclave for processing. i-80 Gold expects full production to be reached once its Lone Tree facility is commissioned as anticipated in 2028.Under a $2,175/oz. base-case gold price, the underground project’s after-tax net present value (discounted at 5%) is estimated at $155 million, with an internal rate of return of 84%. The NPV would more than double to $344 million if a spot gold price of $2,900/oz. is applied.The underground PEA is based on an updated mineral resource estimate showing 261,000 oz. in the measured and indicated categories and 326,000 oz. in the inferred category. This estimate excludes results of infill drilling conducted in 2023 and 2024, as well as the upcoming drilling of the South Pacific zone.Based on exploration work conducted to date, i-80 Gold believes Granite Creek Underground has significant potential for resource expansion, pointing out that it is located just 10 km from NGM’s Turquoise Ridge complex, which currently hosts approximately 20 million oz. of gold.“Our exploration results at Granite Creek Underground to-date suggest significant potential for resource growth and expansion. As a result, an extensive drill program is planned in the coming years to realize that potential,” said CEO Richard Young.An updated resource for Granite Creek Underground, along with a new operational plan, will be included in a feasibility study that is expected to be completed in the fourth quarter.Open pit projectThe Granite Creek Open Pit deposit is adjacent to the underground mine, and is currently in the permitting stage.The new PEA envisions a large open-pit carbon-in-leach gold mine with a 10-year mine life, producing approximately 130,000 oz. annually following ramp-up. The on-site CIL process plant is expected to have a processing rate of approximately 3.5 million tonnes per year during steady state.At the base-case gold price and the same discount rate, the open-pit project’s after-tax NPV comes to $421 million, generating a 30% internal rate of return. The NPV would also double to $866 million at the spot gold price, generating an IRR of 50%.Commenting on the robust project economics, i-80 chief executive Young said Granite Creek Open Pit “has all the markings of a top-tier project.” The project on its own could be a company maker and it’s only one of five projects within the i-80 Gold portfolio, he added.The open-pit PEA incorporates an updated mineral resource estimate of 1.44 million oz. indicated, plus 80,000 oz. inferred, from the four main zones from west to east.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com