i-80 Closes Acquisition of the Ruby Hill Mine Launches Nevada Focused Mining Complex All currencies expressed as
i-80 Closes Acquisition of the Ruby Hill Mine
Launches Nevada Focused Mining Complex
All currencies expressed as
United States
dollars unless otherwise stated
RENO, Nev.
,
Oct. 18, 2021
/CNW/ -
i-80 GOLD CORP.
(TSX:IAU) (OTCQX:IAUCF)
("i-80", or the
"Company")
is very pleased to announce the Closing of the Ruby Hill Mine acquisition from Waterton
Nevada Splitter, LLC and
Waterton Nevada Splitter II, LLC (Collectively "Waterton")
and with the
previously announced closing of the Lone Tree complex, launch of a Nevada focused growth Company.
Ruby Hill, which includes multiple deposits that collectively represent one of Nevada's largest gold, silver
and base metal endowments, was acquired from Waterton and i-80 has taken over operating the
current open pit mine. When combined with the acquisition of the Lone Tree and Buffalo Mountain gold
deposits, that were acquired from
Nevada Gold Mines LLC ("NGM")
, including certain processing
infrastructure, i-80 Gold is one of the largest holders of gold and silver resources in the State and is
positioned to become a prominent, stand alone, growth-oriented gold producer. The Company now
embarks on its plan to advance multiple projects to production over the next several years.
Highlights of the transactions are as follows (see press release dated
September 7, 2021
):
i-80 becomes one of the largest holders of gold and silver resources in
Nevada
:
6.3 M
ounces of overall measured + indicated gold resources and
104.5 M
ounces of
overall measured + indicated silver resource1 (256.6 Mt of 0.76 g/t Au and 12.7 g/t Ag)
8.4 M
ounces of overall inferred gold resources and
76.5 M
ounces of overall inferred
silver resources (228.3 Mt of 1.15 g/t Au and 10.4 g/t Ag)
Secures for i-80, the ability to process multiple types of gold bearing mineralization at a
centrally located and permitted processing facility situated on Interstate 80. The Lone Tree
facility includes an autoclave, CIL mill, floatation mill and heap leach facility
Interim processing agreements with NGM provide i-80 with the ability to immediately
advance its project portfolio – a test mining program at Granite Creek is underway, Buffalo
Mountain is currently being permitted, and the Company is advancing plans to commence
an underground development program at McCoy-Cove
Working to close financing arrangements totaling
~US$227 million
with access a further
$100 million
complement the Company's strong cash position. Major participants in the
equity financing, which closed on
October 14, 2021
, of
~US$102 million
include NGM
subscribing to acquire a 9.9% interest in i-80 through the private placement, Orion
subscribing to top up to a 9.9% interest in i-80, and participation from several members of
the board and management
"The recent transactions to acquire Ruby Hill, Lone Tree and Buffalo Mountain not only make i-80 one of
the largest holders of gold and silver resources in
the United States
, but also positions the Company to
become one of Nevada's most prominent producers with substantial processing infrastructure including
an autoclave", stated
Ewan Downie
, Chief Executive Officer of i-80. "We are now in a position to begin
accelerating mine development at multiple sites with the interim processing agreements entered into
with
Nevada Gold Mines
and will focus on executing our plan to build a mid-tier gold producing
company."
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 package that is host to multiple gold, gold/silver, and
polymetallic gold deposits, that collectively comprise one of the largest and highest-grade, permitted,
gold deposits in
Nevada
(see Figure 1).
Substantial open pit gold and silver resources
1
within the Mineral Point open pit deposit
3.2 million ounces of gold and 97.5 million ounces of silver Indicated Resources within
203.2 Mt with an average grade of 0.49 g/t Au and 14.9 g/t Ag
1.9 million ounces of gold and 72.4 million ounces of silver Inferred Resources within
157.3 Mt with an average grade of 0.37 g/t Au and 14.3 g/t Ag
High-grade gold mineralization at the Ruby Deeps deposit that remains wide open along
strike to the north
1.59 million ounces of gold in inferred mineral resources of 8.2 Mt with an average
grade of 6.02 g/t Au
High-grade poly-metallic mineralization has been defined within the Blackjack target that
remains open along strike and at depth
Pursuant to a membership interest purchase agreement with Waterton, on
October 15, 2021
the
Company acquired all of the membership interests of the Ruby Hill Mining Company, LLC which owns
the Ruby Hill Mine for a purchase price of
US$75 million
in cash and 3,191,358 i-80 common shares at
closing (valued at
US$8 million
), and future milestone payments of up to
US$67 million
. The milestone
payments are subject to an early payment option that could reduce total milestone payments to
US$47
million
, and the Company may satisfy a portion of the milestone payments with i-80 common shares
under certain circumstances described in more detail in the
September 7th
press release.
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.
Figure 1 – Surface Plan of the Ruby Hill Deposits (*Denotes mineralized zone and not mineral resource)
(CNW Group/i-80 Gold Corp)
Multiple gold and polymetallic exploration targets exist on the property and i-80 will begin an aggressive
exploration program beginning immediately. 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 2).
Figure 2 - Ruby Hill Infrastructure (CNW Group/i-80 Gold Corp)
Acquisition Financing
The Company is continuing to work with Orion to complete the remaining
$125 Million
financing
package, which is expected to also close in the near term. The remaining Orion financing is
contemplated to include a pre-pay gold loan, convertible loan and, at the election of i-80, an accordion
feature of up to an additional
$100 million
. The financing is subject to completion of due diligence by
Orion and the execution of definitive agreements.
Share Capitalization
Following the financing and acquisitions, the current share capitalization of the Company is 233,064,019
shares issued and outstanding.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities
described herein in
the United States
or in any other jurisdiction, nor shall there be any sale of the
securities in any state in which such offer, solicitation or sale would be unlawful. The securities 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.
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.
www.i80gold.com
Global Mineral Resources
Tonnes
Au Grade
Ag Grade
Au Ounces
Ag Ounces
(kt)
(Au g/t)
(Ag g/t)
(Koz)
(Koz)
Measured
Granite Creek - Open Pit
9,733
2.33
730
Granite Creek - Underground
167
9.87
53
Lone Tree - Open Pit
5,368
1.17
6.6
200
1,145
McCoy-Cove - Underground
Ruby Hill - Open Pit
Ruby Hill - Underground
Indicated
Granite Creek - Open Pit
10,734
1.58
545
Granite Creek - Underground
396
10.69
136
Lone Tree - Open Pit
7,223
1.77
410
McCoy-Cove - Underground
1,007
10.90
29.1
351
943
Ruby Hill - Open Pit
224,400
0.54
14.3
3,874
103,335
Ruby Hill - Underground
1,200
5.22
0.6
202
22
Measured & Indicated
260,228
0.78
12.6
6,501
105,445
Inferred
Granite Creek - Open Pit
1,260
1.60
65
Granite Creek - Underground
1,521
11.88
581
Lone Tree - Open Pit
50,734
1.69
2,764
McCoy-Cove - Underground
3,867
10.90
20.6
1,353
2,565
Ruby Hill - Open Pit
162,700
0.39
14.0
2,061
73,471
Ruby Hill - Underground
8,210
6.02
1.7
1,588
439
Inferred
228,291
1.15
10.4
8,412
76,475
Notes:
1.
MCOY-COVE: Mineral Resources were calculated at a gold price of US$1500/oz, cut-off grade 0.141 opt Au. and is based on the Preliminary
Economic Assessment issued by i-80 on April 13, 2021. Practical Mining LLC, under the supervision of Dagny Odell, P.E., Laura Symmes, SME,
and Robert Raponi, P. Eng., each being Qualified Persons within the meaning National Instrument (NI) 43-101, was the lead consultant for the
Project PEA.
2.
GRANITE CREEK (Getchell): Mineral Resources were calculated at a gold price of US$1550/oz cut-off grade 0.014 opt Au and is based on the
mineral resource technical report issued by i-80 on April 13, 2021. AMC Mining Consultants (Canada) Ltd., under the supervision Dr. Paul
Greenhill FAusIMM (CP), MAICD, and Dinara Nussipakynova, P.Geo., each being Qualified Persons within the meaning National Instrument (NI)
43-101, was the lead consultant for the Project mineral resource estimate
3.
LONE TREE: Mineral Resources were calculated at a gold price of US$1650/oz, cut-off grade of 0.1 g/t Au and is based on the news release
issued by i-80 on September 7, 2021. Mr. Abani Samal, Ph.D., CPG, RM- SME, Fellow-SEG a GeoGlobal, LLC Principal is the Qualified Person
responsible for the Mineral Resource estimate. A NI 43-101 technical report detailing the update will be filled within 45 days of the news release.
4.
RUBY HILL: Mineral Resources were calculated at a gold price of US$1650/oz, cut-off grade 0.1 g/t Au. and is based on the news release issued b
y i-80 on September 7, 2021. Mr. Christopher Wright, P. Geo, a Wood Canada Ltd. employee, is the Qualified Person responsible for the
Mineral Resource estimate. A NI 43-101 technical report detailing the update will be filled within 45 days of the news release.
5.
Mineral resources are not mineral reserves and do not have demonstrated economic viability.
Technical Information
Tim George, PE, Manager of Engineering Services, reviewed the technical and scientific information
contained in this press release and is a Qualified Person within the meaning of NI 43-101.
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, financing
transaction with Orion, completion of refurbishment and development activities at the Lone Tree project,
commencement of mining operations at the Lone Tree and Buffalo Mountain projects or exploration and
development activities the Ruby Hill mine. 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.
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i-80 Gold Corp
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For further information:
Ewan Downie - CEO, Matt Gili - President & COO, Matthew Gollat - EVP
Business & Corporate Development, 1.866.525.6450, [email protected]
CO: i-80 Gold Corp
CNW 06:20e 18-OCT-21