i-80 Gold Releases PEAs for Cove and Archimedes Projects in Nevada

In the past week, i-80 Gold (TSX:IAU,NYSEAMERICAN:IAUX) has announced preliminary economic assessment (PEA) results for both its Cove and Archimedes underground gold projects in Nevada, US.

According to the company, the PEAs confirm that the assets will be able to play key roles in a hub-and-spoke mining and processing strategy that will leverage i-80's Lone Tree autoclave facility.

Cove, located along the Battle Mountain-Eureka trend, is expected to operate for about eight years, producing an average of 100,000 ounces of gold annually following ramp-up activities.

Mine construction capital for the property is estimated at US$157 million, with life-of-mine sustaining capital projected to come in at US$49 million. The company expects production to ramp up during 2029.

Meanwhile, Archimedes, which is part of the Ruby Hill Complex, is projected to operate for approximately 10 years, producing an average of 100,000 ounces of gold annually after it ramps up.

Mine construction capital is estimated at US$49 million, with life-of-mine sustaining capital of US$106 million.

According to CEO Richard Young, the positive PEAs for Cove and Archimedes validate i-80's strategy of developing multiple high-grade underground mines that will supply ore to a central processing facility at Lone Tree.

“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,” he said in the Cove PEA announcement, which was came out on February 12.

The CEO also said Cove is expected to be the first of these underground deposits to enter production, delivering high-margin ounces at a relatively low cash cost. Transportation costs from Archimedes to the autoclave facility will be higher, and grades will be lower compared to i-80's other underground assets, but its contribution is expected to be meaningful.

Young added that the projects provide significant gold price leverage and offer substantial exploration upside.

Both assets will utilize long-hole open stoping with delayed backfill as the primary mining method.

Permitting at Cove is well advanced, with activities expected to take around three years. The company continues to work closely with regulators to finalize operational permits ahead of the planned development schedule.

At Archimedes, a phased permitting approach is being implemented.

The first phase, covering mining activities above the 5,100 foot elevation, is nearing completion and will allow for mining through June 2027. The second phase, covering deeper mining activities, is expected to be approved by mid-2027.

Moving forward, i-80 is looking to complete infill drilling and advanced metallurgical work at Cove, with plans for a feasibility study by the fourth quarter of this year. At Archimedes, the company is aiming to release an updated resource estimate in 2028. The plan is to include 50,000 meters of drilling targeting the 426 zone and the Ruby Deeps deposit.

"In the coming weeks, we look forward to releasing updated PEAs for Granite Creek (both open pit and underground) and the Ruby Hill Complex (Archimedes underground and Mineral Point open pit)," Young also said.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.