Planned financing packages will complement
Company's strong balance sheet
All currencies expressed as United States dollars unless otherwise
stated
RENO, Nev., Sept. 7, 2021 /PRNewswire/ - i-80 GOLD
CORP. (TSX: IAU) (OTCQX: IAUCF) ("i-80", or the
"Company") is very pleased to announce 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") via an asset exchange in consideration for: (i) the
Company's 40% ownership in the South Arturo Property which will
consolidate 100% ownership of South Arturo in NGM, providing
NGM with flexibility to pursue potential operational synergies with
NGM's other Nevada properties; (ii) assignment of i-80's option to
acquire the adjacent Rodeo Creek exploration property; (iii)
contingent consideration of up to $50
million based on production from the Lone Tree property; and
(iv) arrangement of substitute bonding (and release of NGM bonds)
in respect of the Lone Tree and Buffalo Mountain reclamation
obligations at closing. The Company has also entered into an
acquisition agreement to acquire the Ruby Hill Mine from affiliates
of Waterton Global Resource Management ("Waterton").
Additionally, i-80 has entered into a private placement commitment
with NGM whereby, conditional on the asset exchange transaction
being completed[1], NGM will acquire from i-80 up to 9.9% interest
in new i-80 treasury common shares for aggregate proceeds not to
exceed $50 million, and a non-binding
term sheet with Orion Mine Finance ("Orion") for up to
$240 million in acquisition and
development financing. Equinox Gold Corp ("Equinox") has
also indicated that it will participate in the equity private
placement through the exercise of a portion of its anti-dilute
rights.
Highlights of the transactions are as follows:
- i-80 increases overall Inferred gold Mineral Resource more
than three and a half times and more than doubles i-80's overall
gold Measured + Indicated Mineral Resources1
- Ruby Hill deposits host more than 100 million ounces of
indicated silver mineral resources and more than 70 million ounces
of inferred silver mineral resources1
- Secures for i-80, the ability to process all types of gold
bearing mineralization at the centrally located Lone Tree
processing facility situated on Interstate 80 once the necessary
refurbishment of the facility is completed. The Lone Tree facility
includes an autoclave, carbon–in-leach (CIL) mill,
Floatation Plant, and heap leach facility
- i-80 will produce gold from the Ruby Hill open pit and
residual leaching at Lone Tree
- NGM will provide i-80 with interim processing capacity at
its autoclave facilities until the earlier of the three-year
anniversary of the asset exchange closing and such time that the
Lone Tree facility is operational and also at its roaster
facilities for a period of 10-years, subject in each case to
extension by mutual agreement
- The Company is pursuing financing arrangements that
complement the Company's strong cash position ($70.1 million as at June
30, 2021) including:
-
- Concurrent with the closing of the asset exchange, NGM will
subscribe for new i-80 treasury common shares representing up to a
9.9% interest in i-80 through a private placement for proceeds not
to exceed $50 million
- The Company has entered into a non-binding term sheet with
Orion for up to $140 million of
acquisition financing, with an additional $100 million potentially available via an
accordion feature, at the election of i-80
- At the closing of the asset exchange, NGM will reimburse
i-80 an amount of approximately $7.3
million for certain expenditures previously advanced in
relation to the South Arturo Property2
- Equinox Gold Corp., the Company's largest shareholder, is
expected to participate in the private placement financing through
the exercise of its anti-dilution rights
i-80 has entered into a definitive exchange agreement (the
"Exchange Agreement") to acquire the Lone Tree and Buffalo
Mountain gold deposits from Nevada Gold Mines LLC
("NGM"), including certain processing infrastructure, via
an asset exchange in consideration for: (i) the Company's 40%
ownership in the South Arturo Property; (ii) assignment of i-80's
option to acquire the adjacent Rodeo Creek exploration property;
(iii) contingent consideration of up to $50
million based on production from the Lone Tree property; and
(iv) arrangement of substitute bonding (and release of NGM bonds)
in respect of the Lone Tree and Buffalo Mountain reclamation
obligations at closing. The Company has separately entered into a
definitive membership interest purchase agreement (the "Ruby
Hill Agreement") to acquire the Ruby Hill Mine, which includes
multiple deposits that collectively, have the potential to
represent one of Nevada's largest gold, silver and base metal
endowments, from affiliates of Waterton Global Resource
Management ("Waterton"). These two transactions are
designed to position i-80 Gold as a prominent, stand alone, gold
producer in the state of Nevada. Closing of each of the
transactions with NGM, Waterton, Orion and the private placement
are subject to the satisfaction of a number of conditions precedent
detailed further below, including regulatory approvals and, in the
case of Orion, completion of due diligence and the negotiation and
execution of mutually satisfactory definitive documentation.
"These transformational acquisitions result in a significant
increase in the Company's mineral resource base, and position i-80
to become one of the largest gold producers in the State of Nevada with the capacity to process
refractory and oxide mineralization", stated Ewan Downie, Chief Executive Officer of i-80
Gold. "Importantly, i-80 gains a strategic advantage becoming one
of only three companies in Nevada
with infrastructure to process refractory mineral resources once
the Lone Tree facility has been retrofitted to suit the Company's
deposits. We believe that this will allow i-80 to overcome a
crucial barrier to entry that most of our peers face. In the
interim, Nevada Gold Mines has
agreed to provide processing capacity for i-80 mineral resources
from the McCoy Cove, Granite Creek and Ruby Hill mines at its
autoclave facilities until the earlier of three years from closing
of the asset exchange and the date the Lone Tree facility becomes
operational and will also provide i-80 with processing capacity for
ore produced from the McCoy Cove mine at its roaster facilities for
10 years, in each case, subject to extension by mutual agreement,
allowing i-80 to commence development of its assets on an expedited
basis".
The Lone Tree Property is being acquired from NGM, a
joint-venture between the world's two largest gold producers,
Barrick Gold Corporation and Newmont Corporation.
Lone Tree is a strategically located facility on Interstate 80, the
primary highway through northern Nevada, and proximal to the
northern Nevada railway, midway between i-80's Granite Creek and
McCoy-Cove projects (See Figure 1). The transaction with NGM will
provide i-80 with important processing infrastructure including an
autoclave, CIL mill, and a heap leach facility complete with assay
lab and gold refinery, and also includes interim processing
arrangements. NGM has further agreed to acquire up to a 9.9%
interest in i-80 through a private placement at the Issue Price (as
defined below) for proceeds not to exceed $50 million.
The producing Ruby Hill Mine is host to multiple deposits that
collectively have the potential to represent one of the largest
gold and silver resource endowments in the State of Nevada. Refractory mineralization
from Ruby Hill is expected to be trucked to the Lone Tree Complex
for processing following its refurbishment.
"The Lone Tree and Ruby Hill acquisitions will provide i-80 with
substantial gold and silver resources and an opportunity to build a
mid-tier gold producing company entirely within in the State of Nevada", stated Matthew Gili, President and Chief Operating
Officer of i-80 Gold. "Ruby Hill is host to multiple gold, silver,
and poly-metallic deposits that remain wide open for expansion and
is expected to be a major contributor to our goal of becoming the
second largest producer in Nevada".
Lone Tree Acquisition
Lone Tree represents a strategic acquisition for i-80, providing
the Company with important infrastructure that, following
successful refurbishment efforts, will allow it to process
refractory and oxide mineralization. Currently on care and
maintenance, the property hosts existing infrastructure that
includes a whole ore autoclave with capacity of 1M tonnes/year, a flotation circuit with capacity
of 1.8M tonnes/year, a CIC circuit
& leach pad with 6.5M tonnes of
remaining capacity, a tailings dam with 1.5M tonnes of remaining constructed capacity and
an additional 10M tonnes of permitted
capacity, a waste dump, along with several buildings useful for the
development of all i-80's projects including a warehouse,
maintenance shop, admin building, and assay lab. The property is
also host to substantial gold mineral resources1 and
offers excellent exploration potential. All deposits at Lone Tree
(Lone Tree, Second Chanse and Lynn) remain open for expansion.
- Substantial open pit gold resources contained proximal to
the Lone Tree open pit1
-
- 410,000 ounces of gold indicated mineral resources within
7.2M tonnes grading 1.77 g/t
Au
- 2,764,000 ounces of gold inferred mineral resources within
50.7M tonnes grading 1.69 g/t
Au
- Resource expansion potential exists down-plunge of the main
Lone Tree deposit and in the unmined Sequoia zone discovery where
previous drilling returned multiple wide, high-grade, intercepts
(50% estimated true width) including:
-
- 9.3 g/t Au across 45.7 m, 11.7
g/t Au across 16.8 m and 9.3 g/t Au
across 15.2 m
- Buffalo Mountain is a near-term development opportunity,
located approximately 10 km southwest of Lone Tree, that has both
open pit and underground potential. Previous drilling by NGM has
outlined mineralization in two zones, with highlight intercepts
(60-80% estimated true width) of:
-
- 5.6 g/t Au across 15.2 m, 7.9
g/t Au across 10.7 m and 1.4 g/t Au
across 35.1 m in Second Chance
deposit (open pit)
- 10.3 g/t Au across 9.1 m and
16.8 g/t Au across 6.1 m in the
nearby Lynn Zone that warrants
additional drilling
The Lone Tree and Buffalo Mountain Properties are being acquired
by i-80's wholly owned subsidiaries Goldcorp Dee LLC ("Goldcorp
Dee") and Au-Reka Gold LLC ("AuReka") by way of asset exchange
pursuant to the Exchange Agreement, in for (i) Goldcorp Dee's 40%
ownership in the South Arturo Property, (ii) assignment AuReka's
option to acquire the adjacent Rodeo Creek exploration property,
(iii) contingent consideration of up to $50
million based on production from the Lone Tree property, and
(iv) arrangement of substitute bonding (and release of NGM bonds)
in respect of the Lone Tree and Buffalo Mountain reclamation
obligations at closing. Conditional on closing of the asset
exchange, NGM has also agreed to complete a private placement for
up to a 9.9% interest in i-80 for proceeds not to exceed
$50 million, described further under
"Acquisition Financing" below. At the closing of the asset
exchange, NGM will also reimburse i-80 approximately $7.3 million for amounts previously advanced by
i-80 for the autonomous truck haulage test work completed at South
Arturo and for funds advanced by i-80 that have not been used for
reclamation activities.
In the event i-80 restarts the processing of ore at Lone Tree,
NGM will be entitled to receive the following contingent payments
of up to $50 million subject to the
terms and conditions of the contingent consideration agreement:
a)
|
An amount equal to
$25.00 per recovered gold equivalent mineral reserve ounce
identified in the feasibility study (the "Feasibility Study") for
the restart of mining at the Lone Tree mine ("Initial Contingent
Consideration"), payable in two equal installments six months and
18 months following the later of commencement of commercial
production at Lone Tree and the completion of the Feasibility
Study; and
|
b)
|
An amount equal to
$25.00 per ounce of produced gold in excess of the number of
recovered gold equivalent mineral reserve ounces (the "Continuing
Contingent Consideration"), payable within five days after the end
of each calendar quarter during which a payment of Continuing
Contingent Consideration accrues, provided that the aggregate of
the Initial Contingent Consideration and the Continuing Contingent
Consideration shall not exceed $50 million.
|
i-80 considers the Lone Tree infrastructure to be a
strategically located processing facility in Nevada, located on Interstate 80 with the
Nevada Railway less than two kilometres to the north, and will be
the platform from which i-80 intends to grow its business (see
Figure 1 below).
The Lone Tree Deposit1 is host to a
substantial gold resource that includes 410,000 ounces of gold
(Indicated) at a grade of 1.77 g/t Au and 2,764,000 ounces
(Inferred) at a grade of 1.69 g/t Au and offers substantial
resource expansion potential at depth, down plunge (see Figure 2
below), and in the adjacent Sequoia zone (see Figure 3 below).
The Buffalo Mountain Property is
located approximately 10 km to the West of Lone Tree (see Figure 4
below) and is host to multiple gold zones that have returned
multiple significant intercepts including 10.3 g/t Au across
9.1 m and 16.8 g/t Au across
6.1 m at the Lynn zone and 5.6 g/t Au
across 15.2 m and 7.9 g/t Au across
10.7 m in the Second Chanse zone
(60-80% estimated true width). NGM has initiated the permitting of
Buffalo Mountain for development and i-80 expects to continue this
effort to commence mining Buffalo Mountain and processing material
on the heap leach pad at Lone Tree. The Company expects to complete
a mineral resource estimate for Buffalo Mountain in the future.
Closing of the transactions contemplated by the Exchange
Agreement is subject to the satisfaction of a number of conditions
precedent, including clearance under the Hart-Scott-Rodino
Antitrust Improvement Act of 1976, as amended (the "HSR Act"),
arrangement of substitute sureties (and release of existing NGM
bonds) in respect of the Lone Tree and Buffalo Mountain reclamation
obligations, and the approval of the Toronto Stock Exchange
("TSX"), among other customary conditions to closing. The NGM
equity private placement (described under "Equity Financing" below)
is expected to close concurrently with, and subject to, the closing
of the transactions under the Exchange Agreement. The transactions
contemplated under the Exchange Agreement and the Ruby Hill
Agreement are not inter-conditional or conditional on the
completion of the Orion financing transaction. The Orion financing
is conditional upon, among other things, the completion of the
transactions under the Exchange Agreement and the Ruby Hill
Agreement.
Ruby Hill Acquisition
Ruby Hill represents one of Nevada's premier mining projects
with existing production from the Archimedes open pit, and a large
property that is host to multiple gold, gold/silver, and
polymetallic gold deposits, making it one of the largest and
highest-grade, permitted, gold deposits in Nevada.
- Substantial open pit gold and silver resources1
within the Mineral Point Trend
-
- Indicated Mineral Resource of 203.2 Mt with an average grade
of 0.49 g/t Au and 14.9 g/t Ag containing 3.2 million ounces of
gold and 97.5 million ounces of silver
- Inferred Mineral Resource of 157.3 Mt with an average grade
of 0.37 g/t Au and 14.3 g/t Ag containing 1.9 million ounces of
gold and 72.4 million ounces of silver
- High-grade underground gold mineralization at the 426
Zone
-
- Indicated Mineral Resource of 1.2 Mt with an average grade
of 5.2 g/t Au containing 0.2 million ounces of gold
- High-grade underground gold mineralization at the Ruby Deeps
Zone that remains open along strike to the north
-
- Inferred Mineral Resource of 8.2 Mt with an average grade of
6.0 g/t Au containing 1.6 million ounces of gold
- High-grade poly-metallic mineralization has been defined
within the Blackjack
i-80 is acquiring a 100% interest in the Ruby Hill mine and
property for consideration of up to $150
million, including milestone payments that are subject to an
early payment option that could reduce total consideration to
$130 million as follows:
a)
|
$75 million cash and
$8 million in shares of i-80 at closing, priced based on the market
price of i-80's shares at the time of closing;
|
b)
|
$17 million in cash
and/or shares of i-80 payable on the earlier of 60 days following
the issuance of a press release by the Company regarding the
completion of a new or updated Mineral Resource estimate for the
Ruby Hill Property or 15 months after closing, priced based on the
market price of i-80's shares at the time of such payment (the
"First Milestone Payment");
|
c)
|
$15 million in cash
and/or shares of i-80 payable on the earlier of 60 days following
the issuance of a press release by the Company regarding the
completion of a Feasibility Study for the Ruby Hill mine or 24
months after closing, priced based on the market price of i-80's
shares at the time of such payment (the "Second Milestone
Payment");
|
d)
|
$15 million in cash
and/or shares of i-80 payable on the earlier of 30 months after
closing and 90 days following the announcement by the Company of a
construction decision related to a deposit on any portion of the
Ruby Hill Properties that is not currently being mined, priced
based on the market price of i-80's shares at the time of such
payment (the "Third Milestone Payment"); and
|
e)
|
$20 million in cash
and/or shares of i-80 payable on the earlier of 36 months after
closing and 90 days following the announcement by the Company of
achieving Commercial Production related to a deposit on any portion
of the Properties that is not currently being mined, priced based
on the market price of i-80's shares at the time of such payment
(the "Fourth Milestone Payment").
|
Up to 50% of the foregoing Milestone Payments may consist of
i-80 shares, provided that the number of i–80 shares then held by
Waterton after giving effect to the share issuance shall not exceed
9.99% of then issued and outstanding shares of i-80 calculated on a
partially diluted basis. i-80 shall have the right to prepay the
Second Milestone Payment by paying to Waterton, on or before 15
months following closing, $10 million
provided that up to $7.5 million of
such amount may be satisfied, at i-80's option, in common shares of
the Company, priced based on the market price of i-80's shares at
the time of such prepayment and i-80 shall have the right to prepay
the aggregate of the Third and Fourth Milestone Payments by paying
to Waterton, on or before 24 months following closing $20 million provided that up to $10 million of such amount may be satisfied, at
i-80's option, in common shares of the Company, priced based on the
market price of i-80's shares at the time of such prepayment,
provided that the number of i-80 shares then held by Waterton after
giving effect to the share issuance shall not exceed 9.99% of then
issued and outstanding shares of i-80 calculated on a partially
diluted basis.
Ruby Hill includes an open pit mine and related infrastructure
(mill/heap leach) and is located immediately west of the town of
Eureka proximal to Highway 50.
The Ruby Hill Property is host to multiple gold, silver and base
metal deposits that collectively comprise one of Nevada's largest
mineral endowments that offer substantial upside. Open pit oxide
and transitional resources occur in the Mineral Point, Archimedes
West and Archimedes East Zones. Underground sulfide Mineral
resources occur in the 426, Ruby Deeps and Blackjack Zones (Figure
5)
Multiple gold and polymetallic exploration targets exist on the
property and i-80 will begin an aggressive exploration program
immediately following closing. The Company will begin permitting
for the construction of a decline to access the high-grade Ruby
Deeps deposit and the Blackjack Zone with the intent of trucking
refractory mineralization for processing at Lone Tree. Completion
of the current mine plan at the Ruby Hill pit will continue with
processing at the heap leach facility on the property. Ruby
Hill also includes crushing and CIL processing infrastructure (see
Figure 6)
Closing of the transactions contemplated by the Ruby Hill
Agreement are subject to the satisfaction of a number of conditions
precedent, including regulatory approvals, and the approval of the
TSX. i-80 expects to close the Orion financing transaction
concurrently with the transactions contemplated by the Ruby Hill
Agreement.
Acquisition Financing
In connection with the transactions contemplated by the Exchange
Agreement, NGM has agreed to subscribe for new common shares from
treasury at a price per share equal to C$2.62 (the "Issue Price"), (being the
five day volume weighted average trading price of i-80's common
shares ending on the trading date prior to this announcement) in an
amount equal to the lesser of $50
million and the amount that would result in NGM holding 9.9%
of the issued and outstanding common shares of i-80 on a
non-diluted basis, but after giving effect to the private placement
(including any participation by other subscribers, including
Equinox. upon exercise of its pre-emptive rights and any shares
issued to Waterton on or prior to the private placement). The
private placement with NGM is part of larger non-brokered private
placement offering of common shares by i-80, which includes Orion,
of up to $90 million at the Issue
Price, not including any shares that may be issued to Equinox upon
the exercise of their anti-dilute rights.
The Company has also entered into a non-binding term sheet with
Orion for a comprehensive $140
million financing package, complementing the Company's
existing strong balance sheet. The Orion financing is contemplated
to include a mix of equity and convertible securities, warrants as
well as secured instruments, and has a target size of $140 million and, at the election of i-80, an
accordion feature of up to an additional $100 million. The equity, convertible securities
and the warrants will be priced based on the Issue Price subject to
TSX approval.
"The financing packages secured and being pursued with
Nevada Gold Mines and Orion,
combined with interim processing arrangements, are meant to provide
i-80 with the ability to immediately begin development of its
substantial portfolio of advanced stage deposits located in one of
the world's most favourable jurisdictions for mining", stated
Matthew Gollat, EVP Business &
Corporate Development for i–80. "The financing packages were
structured to limit dilution to our shareholders while providing
the Company with potential capacity to aggressively grow our
business."
This news release does not constitute an offer to sell or a
solicitation of an offer to buy the common shares described herein
in the United States or in any
other jurisdiction, nor shall there be any sale of the common
shares in any state in which such offer, solicitation or sale would
be unlawful. The common shares have not been and will not be
registered under the U.S. Securities Act, or any state securities
laws, and accordingly, may not be offered or sold in the United States except in compliance with
the registration requirements of the U.S. Securities Act and
applicable state securities requirements or pursuant to exemptions
therefrom.
Financial & Legal Advisors
For the Lone Tree acquisition and financing, RBC Capital Markets
is acting as financial advisor to i-80 and Bennett Jones LLP and
Davis Graham & Stubbs LLP are
acting as legal advisors.
For the Ruby Hill acquisition, Sprott Capital Partners is acting
as financial advisor to i-80 and Dorsey & Whitney LLP is acting
as lead legal advisor.
Conference Call & Webcast
The Company will host a live conference call and webcast on
September 7, 2021, commencing at
8:30 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: 1-800-437-2398
Local: 1-647-792-1240
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 September 14, 2021.
North American Toll-free Replay:
1-888-203-1112
Replay Code: 8375917
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. The Company expects to
close the acquisitions of the Lone Tree Complex and the Ruby Hill
Project in H2 2021 and is advancing an underground development
program for the 100%-owned Granite Creek Project and intends to
advance the McCoy-Cove Property. i-80 is well financed with more
than $70.1 million (as at
June 30, 2021) in cash and has
recently signed financing agreements with Nevada Gold Mines and non–binding term sheet
with Orion to provide access to as much as $240 million.
Table 1 - Lone Tree, Open Pit Mineral Resources (effective
date 31 July, 2021)
Mineral Resources
above
a Au Cut-off Grade
0.65 g/t
|
Tonnes
(Mt)
|
Au
(g/t)
|
Au
(K ozs)
|
Mineral
Point
|
|
|
|
Indicated Mineral
Resources
|
7.2
|
1.77
|
410
|
Inferred Mineral
Resources
|
50.7
|
1.69
|
2,764
|
Notes to accompany
the Mineral Resource table for Ruby Hill Oxide Heap Leach
mineralization:
|
|
|
1.
|
Mineral Resources
have an effective date of 31 July, 2021.
|
2.
|
Mineral Resources are
not Mineral Reserves and do not have demonstrated economic
viability.
|
3.
|
Mineral resources are
shown above a 0.65 g/t Au cut-off grade.
|
4.
|
Mineral Resources are
constrained to oxide and transitional oxide-sulfide mineralization
inside a conceptual open pit shell. The
parameters for pit shell construction are a gold price of $1,650/oz
Au, 90% recovery for gold, open pit mining costs of
$2.20/tonne,
average processing cost of $27.55/tonne processed, general and
administrative costs of $3.31/tonne processed, a 3% NSR royalty
and
pit slopes of 40° to 45°.
|
5.
|
Mineral Resources are
stated as in situ with no consideration for planned or unplanned
external mining dilution.
|
6.
|
The contained gold
estimates in the Mineral Resource table have not been adjusted for
metallurgical recoveries.
|
7.
|
Units shown are
metric tonnes.
|
8.
|
Numbers have been
rounded as required by reporting guidelines and may result in
apparent summation differences.
|
Table 2 - Ruby Hill, Open Pit Oxide Heap Leach Mineral
Resources (effective date 31 July,
2021)
Mineral Resources
above
a Cut-off Grade of
0.1 g/t Au
|
Tonnes
(Mt)
|
Au
(g/t)
|
Ag
(g/t)
|
Au
(k ozs)
|
Ag
(k ozs)
|
Mineral
Point
|
|
|
|
|
|
Indicated Mineral
Resources
|
203.2
|
0.49
|
14.9
|
3,217
|
97,457
|
Inferred Mineral
Resources
|
157.3
|
0.37
|
14.3
|
1,872
|
72,370
|
Archimedes
West
|
|
|
|
|
|
Indicated Mineral
Resources
|
1.4
|
0.61
|
0.5
|
28
|
23
|
Inferred Mineral
Resources
|
0.1
|
0.24
|
0.1
|
0.6
|
0.4
|
Archimedes
East
|
|
|
|
|
|
Indicated Mineral
Resources
|
16.2
|
0.80
|
9.4
|
417
|
4,915
|
Inferred Mineral
Resources
|
5.3
|
1.10
|
6.4
|
189
|
1,101
|
Total
|
|
|
|
|
|
Indicated Mineral
Resources
|
220.8
|
0.54
|
14.4
|
3,662
|
102,395
|
Inferred Mineral
Resources
|
162.7
|
0.39
|
14.0
|
2,061
|
73,471
|
Notes to accompany
the Mineral Resource table for Ruby Hill Oxide Heap Leach
mineralization:
|
|
|
1.
|
Mineral Resources
have an effective date of 31 July, 2021.
|
2.
|
Mineral Resources are
not Mineral Reserves and do not have demonstrated economic
viability.
|
3.
|
Mineral Resources are
the portion of the Mineral Point, Archimedes West and Archimedes
East that are within a conceptual resource
pit shell constructed using mining, processing and economic
assumptions for open pit mining and by oxide gold heap
leaching.
|
4.
|
Mineral Resources are
below final design topography for Phase 8 expected to be completed
in August 2021.
|
5.
|
Mineral resources are
shown above a 0.1 g/t Au cut-off grade.
|
6.
|
Mineral Resources are
constrained to oxide and transitional oxide-sulfide mineralization
inside a conceptual open pit shell. The main
parameters for pit shell construction are a gold price of $1,650/oz
Au, 75% recovery for gold for oxide and transitional
mineralization,
open pit mining costs of $2.03/tonne, heap leach processing costs
of $2.32/tonne, general and administrative costs of $0.72/tonne
processed, and a 3% royalty.
|
7.
|
Mineral Resources are
stated as in situ with no consideration for planned or unplanned
external mining dilution.
|
8.
|
The contained gold
estimates in the Mineral Resource table have not been adjusted for
metallurgical recoveries.
|
9.
|
Units shown are
metric tonnes.
|
10.
|
Numbers have been
rounded as required by reporting guidelines and may result in
apparent summation differences.
|
Table 3 - Ruby Hill Underground Sulfide Mineral Resources
(effective date 31 July,
2021)
Mineral
Resources Above
a Cut-off grade of
3.6 g/t Au
|
Tonnes
(Mt)
|
Au
(g/t)
|
Ag
(g/t)
|
Au
(k ozs)
|
Ag
(k ozs)
|
426
Underground
|
|
|
|
|
|
Indicated Mineral
Resources
|
1.2
|
5.22
|
0.58
|
202
|
22
|
Ruby Deeps
Underground
|
|
|
|
|
|
Inferred Mineral
Resources
|
8.21
|
6.02
|
1.66
|
1,588
|
439
|
Notes to accompany
Mineral Resource table for Underground Sulfide Gold
mineralization:
|
|
|
1.
|
Mineral Resources
have an effective date of 31 July, 2021
|
2.
|
Mineral Resources are
not Mineral Reserves and do not have demonstrated economic
viability.
|
3.
|
Mineral Resources are
the portion of the 426 and Ruby Deeps deposits that are within a
conceptual underground stope outlines
constructed based on mining, processing and economic assumptions
for underhand drift and fill mining and by sulfide gold toll
processing.
|
4.
|
Mineral Resources are
below final design topography for Phase 8 expected to be completed
in August 2021.
|
5.
|
The gold price used
for cut off grade calculation is $1,650/oz Au.
|
6.
|
Mineral Resources are
constrained to gold mineralization inside conceptual drift and fill
stope outlines using a gold price of $1,650/oz
Au, 77% gold recovery, underground mining costs of $121/tonne,
sustaining capital, general and administrative and other onsite
costs
of $21.00/tonne processed, toll autoclave treatment costs of
$72/tonne and a 3% royalty.
|
7.
|
Mineral Resources are
stated assuming 5% external dilution and mining recovery of
95%.
|
8.
|
The contained gold
estimates in the Mineral Resource table have not been adjusted for
metallurgical recoveries.
|
9.
|
Units are metric
tonnes. Numbers have been rounded as required by reporting
guidelines and may result in apparent summation
differences.
|
Lone Tree Qualified Person
GeoGlobal LLC., under the supervision of Abani R. Samal, Ph.D., RM- SME,
Fellow-SEG., a Qualified Person within the meaning of National
Instrument 43-101 ("NI 43-101"), is the Qualified Person
responsible for the Lone Tree mineral resource estimate. A
technical report detailing the mineral resource estimate will be
filed with Canadian Securities regulators within 45 days. Historic
assays were most commonly sent to internal company labs of Newmont,
Santa Fe, and Battle Mountain
before being switched to ALS Chemex (now "ALS Minerals"), an
independent, ISO 9001 accredited commercial mineral assay lab at
the time. Common analytical methods used include fire assay, atomic
absorption, gravimetry, and screen fire.
Ruby Hill Qualified Person
Mr. Christopher Wright, P. Geo.,
a Qualified Person within the meaning of NI 43-101, is the
Qualified Person responsible for the Ruby Hill mineral resource
estimate. Mr. Wright is an employee of Wood Canada Ltd. A technical
report detailing the mineral resource estimate will be filed with
Canadian Securities regulators within 45 days. Historic assays were
commonly sent to a mix of ALS Minerals, ALS Chemex, and Chemex
Labs, all independent labs. ALS Minerals complies with the
requirements for the International Standards ISO 9001 and ISO
17025. ALS Chemex complied with ISO 9001. Assays by Chemex Labs
were conducted before ISO standards were in place. Historic
assaying practices included fire assays with gravimetric finish for
samples over 10 grams per tonne.
Technical Information
Tim George, PE, is the Qualified Person for the information
contained in this press release and a Qualified Person within the
meaning of NI43-101.
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,
completion of the transactions contemplated by the Exchange
Agreement, completion of the transactions contemplated by the Ruby
Hill Agreement, completion of the equity private placement with
NGM, Equinox Gold Corp. and/or other subscribers, completion of the
financing transaction with Orion, completion of refurbishment and
development activities at the Long Tree project, commencement of
mining operations at the Lone Tree project or the Ruby Hill mine or
mineral resource and reserve estimates and exploration, development
and production potential. 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: failure to satisfy of
the relevant conditions to the completion of the transactions
described herein, failure to obtain the relevant regulatory
approvals, material adverse changes, exercise of termination rights
by any relevant party, unexpected changes in laws, failure to
complete the Orion financing transaction on satisfactory terms,
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, refurbishment, development
or mining programs or studies to deliver anticipated results or
results that would justify and support continued exploration,
studies, development or operations.
Cautionary Note to U.S. Investors Concerning Estimates of
Resources: This press release uses the term "inferred resources."
"Inferred resources" have a great amount of uncertainty as to their
existence, and great uncertainty as to their economic and legal
feasibility. Under Canadian rules, estimates of inferred mineral
resources may not form the basis of a feasibility study or
prefeasibility study, except in rare cases. Information contained
in the press release containing descriptions of any mineral
deposits may not be comparable to similar information made public
by U.S. companies subject to the reporting and disclosure
requirements under the United
States federal securities laws and the rules and regulations
thereunder that disclose mineral reserves and mineral resources in
accordance with Industry Guide 7 or the SEC's new mining disclosure
rules in Regulation S-K 1300. SEC Industry Guide 7 does not
recognize the existence of resources. Under Regulation S-K 1300,
reserve and resource definitions are substantially similar to the
corresponding CIM Definition Standards; however, there are
differences between NI 43-101 and Regulation S-K 1300 and therefore
information contained in the press release may not be comparable to
similar information made public by public U.S. companies pursuant
to the Regulation S-K 1300 or SEC Industry Guide 7.
1.
|
Mineral resources are
not mineral reserves and do not have demonstrated economic
viability. See Tables 1, 2 & 3 at the end of this press release
for Ruby Hill and Lone Tree mineral resource estimates and
qualifiers. Ruby Hill effective date July 31, 2021, gold price
$1,650/oz Au., Open pit cut-off grade 0.1 g/t Au. Lone Tree
effective date July 31, 2021, gold price $1,650/oz Au, Open-pit cut
off grade 0.65 g/t Au.
|
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