RENO, Nev., April 15, 2021 /CNW/ - i-80 GOLD
CORP. (TSX: IAU) ("i-80", or the "Company") is
pleased to announce that, together with its wholly-owned
Delaware subsidiary Premier Gold
Mines USA, Inc. ("PG
USA"), it 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 is the owner of the Getchell Project in
the Getchell gold belt near Winnemucca,
Nevada ("Getchell" or the "Getchell Project")
for consideration consisting of US$50
million in cash and common shares, plus contingent value
rights and warrants as described in more detail below (the
"Transaction").
The Getchell 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 both a high grade open-pit and underground deposits
(see table 1 below) and the Pinson Mine has been in care and
maintenance since 2015.
Table 1 - Summary
of 2020 Mineral Resources at Getchell Project
|
|
|
Tonnes
000's
|
Grade
g/t
|
Au Ounces
000's
|
Measured
Resources
|
Open-Pit
Restricted
|
9,730
|
2.33
|
730
|
Underground
Restricted
|
167
|
9.91
|
53
|
Sub-Total
|
9,897
|
2.47
|
783
|
Indicated
Resources
|
Open-Pit
Restricted
|
10,730
|
1.58
|
545
|
Underground
Restricted
|
395
|
10.73
|
136
|
Sub-Total
|
11,125
|
1.92
|
681
|
Measured +
Indicated
Resources
|
Open-Pit
Restricted
|
20,460
|
1.95
|
1,275
|
Underground
Restricted
|
562
|
10.49
|
190
|
Sub-Total
|
21,022
|
2.16
|
1,465
|
Inferred
Resources
|
Open-Pit
Restricted
|
1,259
|
1.61
|
65
|
Underground
Restricted
|
1,520
|
11.90
|
581
|
Sub-Total
|
2,779
|
7.23
|
646
|
Notes:
- CIM Definition
Standards (2014) were used for reporting the Mineral
Resources.
- Ms. D.
Nussipakynova, P.Geo., of AMC takes responsibility for the Mineral
Resources.
- The Mineral
Resource COG is based on a metal price of $1,550/oz Au.
- Underground Mineral
Resources as stated are constrained within modeled underground
stope shapes using a nominal 4.57m minimum thickness, above a gold
cut-off grade of 5.14 g/t Au.
- Drilling results up
to 31 December 2015.
- Drilling database
provided 18 April 2019.
- Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability.
- Claim ownership in
the Mineral Resource area varies. Mineral Resource by claim
is provided in the January 2021 Technical Report "Getchell Project
NI 43-101 Technical Report"
- The numbers may not
compute exactly due to rounding.
Source: AMC Mining
Consultants (Canada) Ltd.
|
The Getchell Project will be the focus for the Company in 2021
with a +22,000 metre drill campaign designed to upgrade and expand
mineralization within both the underground and open pit horizons.
The Company is currently progressing work on a Preliminary Economic
Assessment for the Project that is expected to be released during
the current quarter. Permitting for the purposes of developing an
open pit at Getchell is expected to be initiated in the near
future.
Ewan Downie, Chief Executive
Officer of i-80, commented: "The Getchell Project is strategically
located proximal to the Turquoise Ridge and Twin Creeks mining
operations of Nevada Gold Mines. We
look forward to immediately commencing a major drill campaign aimed
at advancing the development of the high-grade Pinson underground
mine within the next twelve months, while at the same time
progressing permitting of the open pit, heap leach, mining
opportunity."
Consideration paid to Waterton consisted of (i) US$23,000,000 in cash, (ii) 13,036,846 common
shares of i–80, (iii) warrants to purchase 12,071,152 common shares
of i-80, with an exercise price C$3.64 per common share, for a period of 36
months following the closing date, and (iv) contingent value rights
include a payment to Waterton in the amount of US$5,000,000 upon the public announcement of a
positive production decision related to the Getchell Project
(underground or open pit), and an additional US$5,000,000 upon production of the first ounce
of gold (excluding ordinary testing and bulk sampling programs)
following a 60 consecutive day period where gold prices have
exceeded US$2,000 per ounce. The
common shares and warrants issued are subject to a statutory hold
period under applicable Canadian securities legislation expiring on
August 15, 2021.
Tim George, PE, has reviewed and approved the scientific and
technical information contained in this press release and is a
"qualified person" within the meaning of National Instrument 43-101
– Standards of Disclosure for Mineral Projects of the
Canadian Securities Administrators.
The securities referenced herein have not been, nor will they
be, registered under the United States Securities Act of 1933, as
amended, or any state securities law, and may not be offered, sold
or delivered, directly or indirectly, within the United States, or to or for the account or
benefit of U.S. persons, absent registration or an exemption from
such registration requirements. This news release does not
constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of securities in any state in
the United States in which such
offer, solicitation or sale would be unlawful.
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 and advancing the
development of the Company's Getchell and McCoy-Cove Projects.
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, the drill
program at Getchell, the benefits of the acquisition and timing of
the PEA. 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