I-80 Gold Corp – Exponential Production And Development Growth Paired With Exploration Growth
Ewan Downie, CEO and Director of I-80 Gold Corp (TSX: IAU – NYSE: IAUX), joins us to review the Company’s 4 primary Projects that are transitioning into producing mines, with a scaled production growth strategy doubling output year over year for the next 4-5 years. We discuss the where the initial production will be coming from for the balance of 2022 and 2023 and the key ore processing agreement in place with Nevada Gold Mines (the JV between both Barrick and Newmont in NV).
Next we briefly walk through the development and production schedule as well as the exploration programs expanding resources over the next few years at the Granite Creek, Buffalo Mountain, Ruby Hill, and McCoy Cove Projects; located in the Battle Mountain and Carlin Trend of Nevada. All 4 projects are being developed into mines that will feed material to the Lone Tree processing center in 2024, host to a whole-ore autoclave, leach pad and CIC circuit, and a floatation circuit. The company’s overall resources in all categories is already 14 million ounces of gold equivalent; with 6.3 million ounces measured & indicated, plus 8.4 million ounces inferred.
Ewan discusses expansion through exploration with the ongoing 50,000 meter drill program at Granite Creek and Ruby Hill planned for 2022 as well as the 40,000 meter drill program planned for McCoy Cove for later in 2022 and into 2023.
If you have questions for Ewan regarding the ongoing work and strategy at i-80 Gold Corp, then please email us at either Fleck@kereport.com or Shad@kereport.com.
– In full disclosure, Shad is an existing shareholder of I-80 Gold corp
(IAU) (IAUX) i-80 Gold Intersects High-Grade Gold in Drilling of the Ogee Zone at Granite Creek – Provides Initial Results from 2022 Underground Program
1 Jun 2022
“Including 28.1 g/t Au over 18.7 m, 15.0 g/t Au over 14.6 m, & 33.8 g/t over 4.8m”
Fortuna(FSM) have been adding to reserves at their Seguela property. I have some long dated calls on FSM been going up and down like painted ponies in a Joni Mitchell song. Hopefully they’ll be well in the money when the time comes.
Yeah, I saw that news out for Fortuna on the good drill hits and resource expansion at Séguéla. I still really like those assets that Fortuna acquired by taking over Roxgold last year, and ultimately that is what got me back into Fortuna again, as they’ll eventually prove to be big value drivers for the company via gold production and resource growth in West Africa.
_______________________________________________________________________________________________________
(FSM) Fortuna Silver Mines drills 18.3 g/t gold over 11.9 meters at the Séguéla Project, Côte d’Ivoire
June 07, 2022
https://ceo.ca/@nasdaq/fortuna-drills-183-gt-gold-over-119-meters-at-the
I’m guessing it was 3-5 years ago while Downie was running Premier, that I noticed the top 11 people in company had salaries totaling $7.9 million all the while Premier never got to $2. May Day, Do all the diligence you can.
NKOSF( Labrador) – Added @ $.335
Yes, do all the due diligence one can on I-80 Gold Corp, and you’ll come away with the realization that they have 4 highly economic projects growing in production profile in the best Gold mining jurisdiction on the planet – Nevada.
Do some more due diligence and come to the realization that they also have one of the only 3 processing centers that can handle refractory ore in the United States (which is huge), and they have leach pads for the open pit oxide projects, and the floatation circuit if they find sulphides. They have so much extra mill capacity that they could also explore letting other mining projects process ore at their facility as Ewan mentioned in the interview.
Do more due diligence and you’ll see their goal is to take production from roughly 50,000 ounces this year, to 100,000 ounces in 2023, then to 200,000-250,000 ounces in 2024, and then 400,000-500,000 ounces by 2025, and they have the 14 million ounces of gold reserves over the 4 projects (and growing) to do so.
>> Please show me any other gold producer with that kind of exponential production growth on tap for the next 4 years.
Then do a little bit more due diligence and look at the recent best-in-class drill holes put out from Ruby Hill with recent assays returning 7.1 g/t Au over 78.6 meters including 10.1 g/t Au over 41.8 meters. Those are so much better than 99% of the exploration drill plays out there, and they have a way of monetizing them, because unlike most of the garbage explorers out there, this company is a legitimate growth oriented producer.
Then do a little bit more due diligence and realize they have 50,000 meters of ongoing drilling at both Granite Creek and Ruby hill, and then another 40,000 meters of drilling planned for expanding the McCoy Cove Project.
So while the team may have pulled a solid salary when they were with Premier, they also had that company successfully taken over by Equinox Gold, and also successfully spun out these Nevada assets to form I-80 Gold Corp and have then growth through acquisitions in Nevada to pick up the other projects like Ruby Hill, and the incredibly valuable Lone Tree Processing Center. I’d say management is earning their keep, and (IAU) fits the definition of a “holy grail” “growth-oriented gold producer” with substantial exploration upside.
Those processing centers sitting there ready to go are a big deal, when others are faced with rising costs to get their mills into production.
Incidentally, FSM doesn’t seem to be having any issues completing their Seguela facility and getting it into production in 2023.
That’s a good point too Terry, regarding the costs to build (much less permit) a new processing center as diverse in capacity as the Lone Tree Processing Center that I-80 picked up from Nevada Gold Mines (Barrick/Newmont JV). The market has not really woken up to just how big of a win that was for IAUX, nor just how much it will allow them to springboard from a Junior producer in 2022 and 2023, into a true Mid-tier Producer in 2024 and 2025. Again the ability for them to process so many different types of ore, but in particular, the refractory ore is a really big deal.
Yeah, Fortuna is doing good moving ahead with their Séguéla Project, but that is because the prior team from Roxgold already greased the skids on getting everything cued up for them.
Despite some of the hesitance from investors to leave North American projects, I’d submit that the West African projects often get commissioned and become mines far easier, on time, and on budget than most of the US or Canadian or even Mexican mines do. Many have a warped view of the actual risks in West Africa although is does shift country by country and down to the local community level. Likewise many resource investors have a warped view of how good Canada or the US is for moving projects further, with so many that have been stalled in a number of states or provinces.
Interesting article on the opportunities in refractory gold.
Thanks for sharing that link Terry, regarding the refractory ore statistics. Very insightful and good to know.
Great interview, maybe the best and most comprehensive, free flowing back & forth since your time at KER. Congrats! Hard to believe Nevada Gold was so accommodative with release of the C&M mill. I’d say Downie earned his keep with that deal alone.
32% in cash and holding.
Thanks for that kind feedback Marty. Yes, apparently Barrick didn’t want to give that processing center up, but they really wanted the South Arturo property, so both parties found middle ground, and they seem to have a symbiotic working relationship on the ore processing.
Honestly, it wouldn’t surprise me if Nevada Gold Mines just flat out acquired I-80 Gold Corp in 2024-2025 when they kick on the Lone Tree Processing Center full tilt.
Marty, that is a much better cash position than I’ve got, and should be quite advantageous for you to scoop up deals. Ever Upward!
A good discussion should come of what will happen once the big up move comes for gold and silver. If we are to have what I believe and many others do from a cycles point of view an 8 year cycle low in the 4th quarter of 2023 or first quarter of 2024 then are we topping at the 2200/2220 target I have first and then dropping or are we heading to 2500-3000 first and then dropping? It’s a good question.
I believe if it’s the latter then we need to really start moving soon and if not then are we putting in an intermediate top at that 2200/2220 region and dropping into 8 year cycle low. Some have mentioned we have a 3 year cycle low to deal with. Could that 3 year cycle low coincide with 2200 top and down into that low?
For myself timeline and charts and fundamentals will be key. I do believe the bigger number is in play and if so the miners should have a big big run and then double top at there highs. This to me would make more sense having them double and then move down into that 8 year cycle would create that bearish sentiment to finally go into that parabolic run that would have us go up 2/3 years and into new all time highs for the miners.
Food for thought
Glenfidish – Thanks for sharing your technical outlook with the KER crew. Much appreciated.
reaction to friday inflation and employment numbers is now the big wait. Any sense of moderation will likely give equities another pop and opposite with gold/commodities. Virtually everyone, public, pundits, all expect runaway prices to continue into oblivion.
Nothing to do here except watch the paint dry.
https://tinyurl.com/mt2berap
Not so with NatGas.
Wednesday?
(IAU) (IAUX) i-80 Gold Drilling Intersects 7.1 g/t Au over 78.6 m including 10.1 g/t Au over 41.8 m at Ruby Hill
10 May 2022
https://www.i80gold.com/i-80-gold-drilling-intersects-7-1-g-t-au-over-78-6-m-including-10-1-g-t-au-over-41-8-m-at-ruby-hill/