i-80 Gold is advancing its projects in Nevada to achieve the goal of becoming a mid-tier gold producer
- i-80 Gold gets to work on underground test mining program at Granite Creek; completes initial rehabilitation of underground mine workings
- Stifel raises target price for i-80 Gold Corp to C$6.20 per share, repeats 'Buy' following "transformative" acquisitions of Lone Tree and Ruby Hill
Quick facts: i-80 Gold Corp.
Price: 3.19 CAD
Market Cap: $608.5 m
About the company
i-80 Gold Corp is a well-financed gold producer and developer holding an impressive portfolio of advanced-stage gold projects in the State of Nevada.
The company’s primary goal is to build a self-sustaining, multi-asset, mining company with a peer-best growth platform by employing a methodical, capital disciplined and staged approach to minimize risk while also assessing and monitoring for accretive growth opportunities.
The board and management teams bring extensive technical, financial, legal, ESG and entrepreneurial expertise with proven track records of aligning their interests with shareholders and creating value.
How it is doing
I-80 Gold Corp announced it has finished initial rehabilitation of the underground workings at its Granite Creek mine property in Nevada.
An underground test mining program is currently underway, the company said in a statement.
Reno-based i-80 is hoping to advance underground drilling and test mining on the property, which is one of the highest-grade gold deposits in North America with resource grades of over 10 grams per ton (g/t) gold.
Granite Creek hosts both open pit and underground resources and is located close to the Twin Creeks and Turquoise Ridge mines owned by Nevada Gold Mines (NGM). The area lies at the north end of the Battle Mountain-Eureka Trend, intersecting with the Getchell gold belt.
i-80 Gold Corp. revealed that it has entered into definitive agreements to create a comprehensive Nevada mining complex through an asset exchange agreement to acquire certain processing infrastructure, including an autoclave, and the Lone Tree and Buffalo Mountain gold deposits from Nevada Gold Mines LLC (NGM).
The Nevada-focused mining company said the deal will work through an asset exchange in consideration for the company's 40% ownership in the South Arturo Property which will consolidate 100% ownership of South Arturo to NGM, providing NGM with flexibility to pursue potential operational synergies with NGM's other Nevada properties.
i-80 Gold Corp. has announced that assay results for the first hole drilled at its Granite Creek Property in Nevada confirmed the high-grade open-pit opportunity.
In a statement, the company said hole iGM21-01, drilled from the bottom of the historic CX-Pit, intersected two zones of mineralization grading 3.17 grams per ton (g/t) Au over 7.5 meters (m) and 6.80 g/t Au over 51.1m.
What the brokers say
Stifel GMP has raised its target price for i-80 Gold Corp to C$6.20 per share, up from C$4.25 per share previously, and reiterated its 'Buy' rating on the stock following the miner's recent "transformative" acquisitions of Lone Tree and Ruby Hill.
In a note to clients, Stifel's analysts noted that i-80 is to acquire the Lone Tree processing facility and resources from Nevada Gold Mines for the remaining 40% stake in South Arturo, cash and bonding obligations. Concurrently, they noted, the company i-80 is acquiring the Ruby Hill project from Waterton for up to US$150 million.
The analysts pointed out that the transactions are to be financed by a US$50 million private placement from Nevada Gold Mines (NGM) and up to US$240 million from Orion.
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