RENO, Nev., Nov. 9, 2021 /CNW/ - 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 nine months ended September 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
nine months ended September 30, 2021,
are available on the Company's website at www.i80gold.com and on
SEDAR at www.sedar.com
2021 Third Quarter Highlights
- Announced Acquisition of the Ruby Hill Mine and the asset swap
for the Lone Tree Complex
- Gold production of 3,254 ounces, year-to-date production of
14,330 ounces
- Gold sales of 4,575 ounces, year-to-date sales of 17,848
ounces
- Total revenue of $8.2 million,
$32.0 million year-to-date
- Mine operating income of $3.3
million for the quarter, and $13.1
million year-to-date
- Net loss of $9.3 million for the
quarter, and $13.6 million
year-to-date
- Adjusted loss for the quarter of $10.7
million and adjusted income of $19.5
million year-to-date from continuing operations
- Period-end cash and cash equivalents balance of $51.6 million
"With the announcement of the Lone Tree and Ruby Hill transactions, we have leveraged our
non-operating interest in South Arturo to provide the company with
a foundation to become a mid-tier, stand alone, producer in the
state of Nevada", stated
Ewan Downie, Chief Executive Officer
of i-80. "The recently acquired properties will provide near-term
production to replace South Arturo".
Three months ended September 30,
2021
South Arturo was included in the Q3 results as a discontinued
operation and held for sale and was disposed of in the fourth
quarter. The Company is in the progress of valuing the asset swap
and completing the corresponding accounting.
A total of 3,254 ounces of gold were produced during Q3 2021
from South Arturo.
The Company reported total revenue of $8.2 million and a mine operating income of
$3.3 million during the third quarter
compared to revenue of $9.3 million
and mine operating income of $3.8
million during Q3 2020.
Total mine operating income of $3.3
million for Q3 2021 compared to income of $3.8 in Q3 2020 illustrates the consistent nature
South Arturo. A total of $3.7 million
in exploration and pre-development expenses were incurred during
the quarter.
Nine months ended September 30,
2021
A total of 14,330 ounces of gold were produced for the nine
months ended September 30, 2021,
compared to 18,589 ounces of gold for the prior year period.
The Company reported total revenue of $32.0 million and mine operating income of
$13.1 million for the nine months
ended September 30, 2021 compared to
revenue of $28.6 million and mine
operating income of $8.8 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, and disruptions at the
Carlin mill operations.
A total of $7.0 million in
exploration and pre-development expenses were incurred during the
nine months ended September 30,
2021.
The Company closed the quarter with cash and cash equivalents of
$51.6 million from continuing
operations.
South Arturo
The South Arturo Mine in Nevada
is a joint venture, operated by Nevada Gold Mines LLC, with Barrick
Gold Corporation ("Barrick"). Subsequent to the end of the period
this property was included in an asset exchange with NGM whereby
the Company's 40% was swapped for the Lone Tree Complex.
Table 1 - South Arturo Selected Financial and Operating
Results
|
|
Three months ended
Sep 30
|
Nine months ended Sep
30
|
(in millions of
U.S. dollars, unless otherwise stated)
(iv)
|
|
2021
|
2020
|
2021
|
2020
|
Ore &
Metals
|
|
Ore milled
|
tonnes
|
16,936
|
29,416
|
70,647
|
74,448
|
Gold
produced
|
ounces
|
3,254
|
7,095
|
14,330
|
18,589
|
Silver
produced
|
ounces
|
272
|
601
|
1,715
|
1,793
|
Gold sold
|
ounces
|
4,575
|
4,783
|
17,848
|
16,411
|
Average gold
grade
|
grams/t
|
6.90
|
8.83
|
7.21
|
8.86
|
Average gold recovery
rate
|
%
|
86.7
|
85.0
|
87.5
|
87.6
|
Realized
Price
|
|
|
|
|
|
Average realized gold
price (i,ii)
|
$/ounce
|
1,785
|
1,879
|
1,792
|
1,742
|
Non-IFRS Performance
Measures
|
|
|
|
|
|
By-product cash costs
per ounce of gold sold (i,ii,iii)
|
$/ounce
|
952
|
987
|
1,084
|
984
|
By-product all- in
sustaining costs per ounce of gold sold
(i,ii,iii)
|
$/ounce
|
1,355
|
1,148
|
1,169
|
1,065
|
Financial
Measures
|
|
|
|
|
|
Gold
revenue
|
m $
|
8.2
|
9.3
|
32.0
|
28.6
|
Mine operating income
/ (loss)
|
m $
|
3.3
|
3.8
|
13.1
|
8.8
|
Exploration,
evaluation & pre-development expense
|
m $
|
0.6
|
0.3
|
1.0
|
0.3
|
Capital
|
|
|
|
|
|
Total capital
expenditures
|
m $
|
1.1
|
0.2
|
2.2
|
0.2
|
Capital
expenditures - sustaining (i,ii)
|
m $
|
1.1
|
0.0
|
1.9
|
0.0
|
Capital
expenditures - expansionary (i,ii)
|
m $
|
(0.1)
|
0.2
|
0.3
|
0.2
|
(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.
Granite Creek
During the quarter, the Company performed 7,795 meters (m) of
surface and underground drilling bringing the nine-month total to
9,841 m. Drilling has successfully
intersected mineralization in every target area both inside and
outside of the current resource areas and initial assay results
were released on October 28, 2021.
Additional 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
is focused on delineating sufficient resources for developing a
near–term development and mining plan. Ongoing surface drilling
also tested near-surface mineralization for metallurgical and
geotechnical purposes, open pit and underground definition and
expansion, and to advance permitting for open pit mining including
on-site heap leach processing.
Orion/Equinox Financing Update
The Company continues to work with Orion Mine Finance to
complete the previously disclosed (See Press Release dated
October 8, 2021, titled "i–80 Gold
Corp. Announces Additional Details on Financing Package") financing
package of up to $140 million. The
Orion financing is contemplated to include a mix of equity,
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.
Equinox has committed to a partial exercise of its Anti-Dilution
Right and has executed a subscription agreement to subscribe for
$10 million of Common Shares at a
price of CAD $2.62 per Common Share,
which subscription remains conditional and subject to change in
connection with the receipt of all required regulatory
approvals.
Both the Orion and Equinox financing are expected to close
during the fourth quarter of 2021.
Third Quarter Financial Results Webcast
The Company will host a live conference call and webcast on
November 10th, 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:
1-866-269-4262
Confirmation
#:
3277771
Webcast Link
ClickHERE to access the webcast or visit our website at
www.i80gold.com.
Conference Call Replay
A recording of the call can be accessed until November 17, 2021.
North American Toll-free Replay:
1-888-203-1112
Replay Code:
3277771
Qualified Person
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 well-financed Nevada-focused mining company with a goal of
achieving mid-tier gold producer status. The Company is one of the
largest holders of gold and silver resources in the State of Nevada with plans to advance multiple
projects to production.
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 completion of
the Orion and Equinox Gold financings, and future production and
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.
SOURCE i-80 Gold Corp