i-80 Gold secures key water rights for Nevada Cove mine with property acquisition; posts 1Q revenue of $2.8M

i-80 Gold Corp. said it has acquired a strategic property package in Lander County, Nevada, including 582 acre-feet of water rights, from Baker Hughes Oilfield Operations LLC. 

The water rights are key for the development, operation and eventual closure of i-80 Gold’s Cove open pit mine, marking a major milestone for executing its Cove project dewatering strategy.

The package also includes a rail heading on the Nevada Central Railway, several advanced-stage barite deposits, full barite processing infrastructure and known gold mineralized zones, according to a statement. 

Under the terms of the deal, i-80 will own a 100% interest in the property and the associated infrastructure.

READ: i-80 Gold says key land acquisition will expand Granite Creek Property

"Acquiring the Baker Hughes property and the water rights associated with it is a significant step forward in our execution of the development of the Cove Mine,” COO Matt Gili said in a statement. "The on-site team continues to advance the project as planned and on schedule."

The McCoy-Cove property is located approximately 84 kilometers south by road of the company's Lone Tree Complex and immediately south of Nevada Gold Mines' Phoenix Mine within the Battle Mountain-Eureka Trend, the company said. 

Construction of the decline at Cove is now underway with more than 300 feet advanced to date, the company noted, and its Phase 1 program will also include construction of an initial level with multiple drill bays to provide access for upgrading resources.

Approximately 40,000 meters of underground definition and expansion drilling is expected to commence in the second half of the year, followed by a feasibility study in 2023. The Cove deposit represents one of North America's highest grade gold deposits with grades in excess of 10 grams per tonne of gold, the company said. 

First-quarter results 

Meanwhile, i-80 Gold reported first-quarter results after the bell Monday, posting revenue of $2.8 million, and an operating loss of $13.8 million. Production and sales from Ruby Hill and Lone Tree totaled 1,489 ounces for the period at cash costs per ounce sold of $1,019 and all-in sustaining cost per ounce sold of $1,249, the company said.

Exploration, evaluation and pre-development total costs were $9.3 million, an increase of $8.9 million from the same period of 2021, which is mainly due to exploration and pre-development work at Granite Creek and Ruby Hill.

"The quarter saw the company progress on plan and within our budget as we aggressively pursue our peer-best production growth strategy to achieve our plan of becoming one of the leading gold producers in the United States by advancing our exploration and development programs,” CFO Ryan Snow said in a statement.

"In addition, initial gold sales from residual leaching at Lone Tree and Ruby Hill have been as expected and we recorded our first revenue from the Ruby Hill and Lone Tree leach pads,” he added.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

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