RENO, Nev., Aug. 10, 2021 /PRNewswire/ - i-80 GOLD
CORP. (TSX: IAU) (OTC: IAUCF) ("i-80", or the
"Company") is pleased to report its unaudited operating
and financial results for the three and six months ended
June 30, 2021. i-80's unaudited
condensed interim consolidated financial statements ("financial
statements"), as well as i-80's management discussion and analysis
("MD&A") for the three and six months ended June 30, 2021, are available on the Company's
website at www.i80gold.com and on SEDAR at www.sedar.com
2021 Second Quarter Highlights
- First quarter as a publicly traded Company
- Completed acquisition of the Granite Creek Project
- Completed C$80.4 million
financing
- Gold production of 4,972 ounces, year-to-date production of
11,075 ounces
- Gold sales of 5,745 ounces, year-to-date sales of 13,274
ounces
- Total revenue of $10.3 million,
$23.8 million year-to-date
- Mine operating income of $3.4
million and a net loss of $7.1
million for the quarter, mine operating income of
$9.6 million and a net loss of
$4.2 million year-to-date
- Adjusted loss for the quarter of $2.6
million and adjusted income of $0.2
million year-to-date
- Period end cash and cash equivalents balance of $70.1 million
"Q2 was a groundbreaking quarter for the Company. We completed
the spin-out from Premier Gold Mines, closed the acquisition of the
Granite Creek project and the adjacent Christison land package, and
finalized the subscription receipt financing. With these
transactions completed the Company is well positioned, with
$70 million in cash and no debt, to
advance the projects within our portfolio to achieve our goal of
building a mid-tier gold producer.", stated Ewan Downie, CEO.
"The acquisition of the Granite Creek Project provides the
company with near-term production potential from the historic
underground workings and mid-term potential for an open pit
project. i-80 is excited to have launched an aggressive drilling
campaign, with approximately 22,000 meters of drilling planned.",
added Mr. Downie.
Three months ended June 30,
2021
A total of 4,972 ounces of gold were produced during Q2 2021
compared to 4,765 ounces of gold during Q2 2020 from South Arturo.
The increase in ounces period over period was the result of stope
sequencing in which an increased tonnage was offset by lower grade
material.
The Company reported total revenue of $10.3 million and a mine operating income of
$3.4 million during the second
quarter compared to revenue of $10.9
million and mine operating income of $3.1 million during Q2 2020. The decrease in Q2
revenue when compared to the same period in 2020 was primarily due
to the sales of 576 less ounces during the period offset by an
increase in the average realized gold price of $63 to $1,784 per
ounce.
Total mine operating income of $3.4
million for Q2 2021 compared to income of $3.1 in Q2 2020 illustrates the consistent nature
of our operating property. A total of $2.7
million in exploration and pre-development expenses were
incurred during the quarter. These expenses along with
non-recurring restructuring costs of $4.4
million resulted in a net loss for the quarter of
$7.1 million. The results for the
quarter were impacted by one-time restructuring costs resulting
from the spin out of i-80 gold from Premier Gold Mines Ltd. and
when taken into account resulted in an adjusted loss of
$2.6 million for the
quarter.
Six months ended June 30,
2021
A total of 11,075 ounces of gold were produced for the six
months ended June 30, 2021, compared
to 11,495 ounces of gold for the prior year period.
The Company reported total revenue of $23.8 million and mine operating income of
$9.6 million for the six months ended
June 30, 2021 compared to revenue of
$19.3 million and mine operating
income of $4.7 million for the prior
year period. The reduction in production when compared to the prior
year period is the result of stope sequencing within the mine
resulting in increased waste tonnes in the current period. Revenue
and operating income increase when compared to the previous period
primarily as a result of a $139
dollar per ounce increase in average realized
price.
A total of $3.3 million in
exploration and pre-development expenses were incurred during the
six months ended June 30, 2021. These
expenses along with $4.4 million of
non-recurring restructuring costs contributed to a net loss of
$4.2 million reported for the
year-to-date period. When Adjusted for the restructuring costs
resulted in adjusted earnings of $0.2
million year-to-date.
The Company closed the quarter with cash and cash equivalents of
$70.1 million.
South Arturo
The South Arturo Mine in Nevada
is a joint venture, operated by Nevada Gold Mines LLC, with Barrick
Gold Corporation ("Barrick"). Several opportunities exist on the
property including the recently developed El Nino underground
mine. El Nino is the second mine to be developed at South Arturo
and as with the Phase 2 open pit it has delivered consistent
results.
Table 2: South Arturo Selected Financial and Operating
Results
|
|
Three months ended
June 30
|
Six months ended June
30
|
(in millions of
U.S. dollars, unless otherwise stated)
(iv)
|
|
2021
|
2020
|
2021
|
2020
|
Ore &
Metals
|
|
Ore milled
|
tonnes
|
25,089
|
17,863
|
53,711
|
45,032
|
Gold
produced
|
ounces
|
4,972
|
4,765
|
11,075
|
11,495
|
Silver
produced
|
ounces
|
867
|
567
|
1,443
|
1,192
|
Gold sold
|
ounces
|
5,745
|
6,321
|
13,274
|
11,628
|
Average gold
grade
|
grams/t
|
7.05
|
9.32
|
7.30
|
8.24
|
Average gold recovery
rate
|
%
|
87.4
|
89.0
|
87.8
|
87.4
|
Realized
Price
|
|
|
|
|
|
Average realized gold
price (i,ii)
|
$/ounce
|
1,784
|
1,721
|
1,795
|
1,656
|
Non-IFRS Performance
Measures
|
|
|
|
|
|
By-product cash costs
per ounce of gold sold (i,ii,iii)
|
$/ounce
|
1,143
|
990
|
969
|
983
|
By-product all- in
sustaining costs per ounce of gold sold
(i,ii,iii)
|
$/ounce
|
1,337
|
1,026
|
1,104
|
1,031
|
Financial
Measures
|
|
|
|
|
|
Gold
revenue
|
m $
|
10.2
|
10.9
|
23.8
|
19.3
|
Mine operating income
/ (loss)
|
m $
|
3.4
|
3.1
|
9.6
|
4.7
|
Exploration,
evaluation & pre-development expense
|
m $
|
0.3
|
0.0
|
0.5
|
0.0
|
Capital
|
|
|
|
|
|
Total capital
expenditures
|
m $
|
0.5
|
0.5
|
1.1
|
0.0
|
Capital
expenditures - sustaining (i,ii)
|
m $
|
0.7
|
0.0
|
0.7
|
0.0
|
Capital
expenditures - expansionary (i,ii)
|
m $
|
(0.3)
|
0.5
|
0.4
|
0.0
|
(i) A
cautionary note regarding Non-IFRS financial metrics is included in
the "Non-IFRS Measures" section of this Management's Discussion and
Analysis.
|
(ii) Cash costs, all-in sustaining
costs, sustaining and expansionary capital expenditures as well as
average realized goldsilver price per ounce are Non-IFRS metrics
and discussed in the section "Non-IFRS Measures" of this
Management's Discussion and Analysis.
|
(iii) Given the small nature and
timing of South Arturo silver output, no silver by-product credits
are reported.
|
(iv) May not add due to
rounding.
|
There has been little to no impact on the operations at South
Arturo due to COVID-19 pandemic. Measures were successfully
implemented by the operator to control the risk to the employees
and communities.
The joint venture is currently assessing additional development
opportunities, including the Phase 1 and Phase 3 underground and
open pit projects as well as the potential for an on-site heap
leach facility. The Company expects to complete an updated
technical report for South Arturo during the third quarter with the
goal of providing a long-term view of the opportunity presented by
this project.
Granite Creek
The Granite Creek Project is located at the intersection of the
Getchell gold belt and the Battle Mountain–Eureka trend immediately
south of Nevada Gold Mines'
Turquoise Ridge operation. Open pit mining occurred on the property
between 1980 and 1999 and underground test mining (the Pinson Mine)
was conducted in the early 2010s. The Project currently hosts
high-grade open-pit and underground deposits (see table 1 below)
and the underground mine workings have been in care and maintenance
since 2015.
On April 15, the Company completed
the previously announced purchase agreement with affiliates of
Waterton Global Resource Management, Inc. ("Waterton") to acquire
from Waterton all of the outstanding membership interests of Osgood
Mining Company LLC ("Osgood"). Osgood was the owner of the Granite
Creek for consideration consisting of US$50
million in cash and common shares, plus contingent value
rights and warrants.
During the quarter, the Company completed the rehabilitation of
underground drill bays and performed 2,046 meters of surface and
underground drilling as part of a program that is expected to
consist of approximately 22,000 meters of drilling. Drilling
has successfully intersected mineralization in every target area
both inside and outside of the current resource areas and initial
assay results are expected to be released in the near future.
The primary goal of the 2021 drill program is to advance the
underground deposit to production, and advance permitting and
feasibility work on the open pit opportunity. Underground drilling
will be focused on delineating sufficient resources for developing
a near–term development and mining plan. Ongoing surface drilling
will also test near-surface mineralization for metallurgical and
geotechnical purposes, open pit definition and expansion, and to
advance permitting for open pit mining including on-site heap leach
processing.
Second Quarter Financial Results Webcast
The Company will host a live conference call and webcast on
August 11th 2021,
commencing at 10:00 am ET, providing the opportunity for
analysts and investors to ask questions of i-80 Gold's executive
team.
Conference Call
North American
Toll-free:
1-866-248-8441
Webcast Link
Click HERE to access
the webcast or visit our website at www.i80gold.com.
Conference Call Replay
A recording of the call can be
accessed until August 18, 2021.
North American Toll-free
Replay:
1-888-203-1112
Replay Code:
3652970
The scientific and technical information contained in this press
release was reviewed by Tim George, PE, Manager of Engineering
Services, and a Qualified Person within the meaning of National
Instrument 43–101.
About i-80 Gold Corp.
i-80 Gold Corp. is a Nevada-focused mining company with a goal
of achieving mid-tier gold producer status. In addition to its
producing mine, El Nino at South Arturo, i-80 is beginning to plan
for future production growth through the potential addition of the
Phases 1 & 3 projects at South Arturo, advancing the Granite
Creek Project through economic studies and then on to development,
and the advanced exploration for the 100%–owned McCoy-Cove
Property.
Certain statements in this release constitute "forward-looking
statements" or "forward-looking information" within the meaning of
applicable securities laws, including but not limited to, actual
production results and costs, outcomes and timing of updated
technical studies and future exploration results. Such statements
and information involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or
achievements of the company, its projects, or industry results, to
be materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements or information. Such statements can be identified by the
use of words such as "may", "would", "could", "will", "intend",
"expect", "believe", "plan", "anticipate", "estimate", "scheduled",
"forecast", "predict" and other similar terminology, or state that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. These statements reflect
the Company's current expectations regarding future events,
performance and results and speak only as of the date of this
release.
Forward-looking statements and information involve significant
risks and uncertainties, should not be read as guarantees of future
performance or results and will not necessarily be accurate
indicators of whether or not such results will be achieved. A
number of factors could cause actual results to differ materially
from the results discussed in the forward-looking statements or
information, including, but not limited to: material adverse
changes, unexpected changes in laws, rules or regulations, or their
enforcement by applicable authorities; the failure of parties to
contracts with the company to perform as agreed; social or labour
unrest; changes in commodity prices; and the failure of exploration
programs or studies to deliver anticipated results or results that
would justify and support continued exploration, studies,
development or operations.
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SOURCE i-80 Gold Corp