i-80 Gold Reports Q2 2023 Operating Results
i-80 Gold Reports Q2 2023 Operating Results
RENO, Nev.
,
Aug. 2, 2023
/CNW/ -
i-80 GOLD CORP.
(TSX: IAU) (NYSE: IAUX)
("i-80", or the
"Company")
reports its operating and financial results for the three and six months ended
June 30,
2023
. i-80's Consolidated Interim Financial Statements ("financial statements"), as well as i-80's
Management's Discussion and Analysis of Operations and Financial Condition ("MD&A") for the
three and six months ended
June 30, 2023
, are available on the Company's website at
www.i80gold.com
, on SEDAR at
www.sedar.com
, and on EDGAR at
www.sec.gov
.
Unless otherwise stated, all amounts referred to herein are in U.S. dollars.
Highlights
Second Quarter
Gold sales of 4,329 ounces at a realized gold price of
$1,952
1
.
6,651 tons of mineralized material sold for proceeds of
$2.8 million
.
Continued expansion of gold and polymetallic mineralization at Ruby Hill.
Received approval of workplan for additional Ruby Hill exploration.
Continued underground core drilling delineation of the CSD Gap ore body at McCoy-Cove
(13,350 feet).
Began drilling infill holes at South Pacific Zone at Granite Creek (4,800 ft).
Completed 1,193 feet of development at McCoy Cove, with 143 feet remaining to complete the
exploration ramp.
Completed 3,578 feet of horizontal advance at Granite Creek.
Entered into an oxide ore sale and purchase agreement ("Ore Sale Agreement") with a third
party.
13,650 tons of material hauled to a third party from Granite Creek for processing under the Ore
Sale Agreement.
Increased the size of the land package at Ruby Hill by more than 34% with the FAD property
acquisition.
Year to Date
Gold sales of 6,678 ounces at a realized gold price of
$1,943
1
.
Completed 2,501 feet of exploration ramp development at McCoy-Cove.
Completed 5,481 feet of horizontal development at Granite Creek.
19,966 tons of material hauled to a third party from Granite Creek for processing.
A total of 112,728 feet (core and RC) drilled by the end of the second quarter, with multiple
positive results to expand mineralization further.
"In the second quarter we continued to develop and completed "proof of concept" mining on multiple
zones at the Granite Creek mine, completed the acquisition of Paycore Minerals to further
consolidate the Eureka District, negotiated an Ore Sale and Purchase agreement for oxide
mineralization and recently completed an equity raise to bolster the Company's balance sheet,"
stated
Ryan Snow
, Chief Financial Officer of i-80. "We continue to generate revenue from the Lone
Tree and Ruby Hill residual leach programs as we advance exploration and definition drilling at
Granite Creek, McCoy-Cove and Ruby Hill. With the additional capital raise, we will continue to
advance i-80's projects towards our ultimate goal of building a mid-tier
Nevada
focused producer."
Three months ended
June 30,
Six months ended
June 30,
(in thousands of U.S. dollars, unless otherwise noted)
2023
2022
2023
2022
Revenue
11,310
6,383
15,859
9,247
Cost of sales
(1)
(12,188)
(3,966)
(18,731)
(5,498)
Depletion, depreciation and amortization
(1)
(2,724)
(655)
(4,145)
(823)
Mine operating income (loss)
(3,602)
1,762
(7,017)
2,926
Expenses
Exploration, evaluation, and pre-development
11,095
12,132
20,074
21,386
General and administrative
4,397
4,565
9,588
7,838
Property maintenance
2,781
464
5,230
789
Share-based payments
903
547
2,211
1,989
Operating loss
(22,778)
(15,946)
(44,120)
(29,076)
(1) For the three and six months ended June 30, 2023, includes an inventory impairment of 4.5 million and 8.5 million, respectively.
Production and sales totaled 4,329 gold ounces for the quarter and 6,678 gold ounces year to date
(YTD) at a realized gold price of
$1
,952 and
$1,943
per ounce sold
1
, respectively, additionally,
during the second quarter the Company sold 6,651 tons of mineralized material for proceeds of
$2.8
million
.
Exploration, evaluation, and pre-development costs were
$11.1 million
and
$20.1 million
for the three
and six months ended
June 30, 2023
. This expenditure mainly reflects the exploration and pre-
development work at McCoy-Cove and Ruby Hill.
Lone Tree
Lone Tree is expected to become the hub of i-80's
Nevada
operations and the central processing
facility for gold mineralization from the Granite Creek, McCoy-Cove and Ruby Hill underground gold
deposits. Importantly, Lone Tree is host to infrastructure that, following successful refurbishment
efforts, will position i-80 as one of only three companies in
the United States
capable of processing
both oxide and refractory mineralization.
During the first half of 2023, the Company continued leaching the residual material on the pads as
planned and shipped approximately 3,459 ounces of gold on loaded carbon from site for further
processing. Additionally, the Company continued to advance the engineering study and cost estimate
for the restart of the autoclave.
Lone Tree produced and sold from its residual leaching activities 2,700 ounces of gold during the
quarter and 3,363 ounces of gold YTD at a realized gold price of
$1,983
and
$1,979
per ounce
sold
1
, respectively.
Granite Creek
Refractory material has been shipped to the Twin Creeks facility for processing under the toll milling
agreement that is in place with Nevada Gold Mines LLC ("NGM"). Processing of refractory material
delivered to NGM will commence once the contractual initial tonnage of refractory mineralized
material is delivered. Mining to date has encountered significantly more oxide (non-refractory)
mineralized material than expected leading to less refractory tons delivered to NGM. Starting in Q2
2023, the oxide mineralized material from Granite Creek has been stockpiled and subsequently
shipped to a third party as part of the Ore Sale Agreement. During the quarter the Company sold
6,651 tons of mineralized material under the Ore Sale Agreement for proceeds of
$2.8 million
.
1
Specified financial measure which is not a standardized measure under IFRS and may not be comparable to similar specified financial measures used by other entities. Please see
"Non-IFRS Financial Performance Measures" for the composition of such specified financial measure, an explanation of how such specified financial measure provides useful
information to a reader and the purposes for which management of i-80 uses the specified financial measure, and where required, a reconciliation of the specified financial
measure to the most directly comparable IFRS measure.
McCoy-Cove
The Cove deposit and the McCoy-Cove Property is expected to be the core asset in the Company's
"hub and spoke" business plan and likely the highest-grade gold deposit in i-80's portfolio.
Underground delineation drilling continued during Q2 with 13,350 feet of core drilled yielding
extremely positive results including the previously released assay results for hole iCHU23-11 which
indicated 15.7 g/t Au over 22.5 meters and 18.9 g/t Au over 29.3 meters.
Expenditures continued during the quarter on the exploration ramp and hydrology studies, and
engineering of de-watering and mining options. During the three and six month periods of 2023,
development footage completed was 1,193 feet and 2,501 feet, respectively. As of the second
quarter, the remaining footage development to complete the exploration ramp at McCoy-Cove was
143 feet.
Ruby Hill
During the second quarter of 2023, drilling at Ruby Hill was focused on advancing exploration and
delineation of multiple CRD mineralized discoveries. Including the previously released assay results
of hole iRH23-10 which indicated 0.6 g/t Au, 165.6 g/t Ag, 6.7% Zn, and 6.6% Pb, over 13.4 meters
(East Hilltop CRD discovery). Definition and expansion drilling of high-grade polymetallic
mineralization along the Hilltop fault structure remains a priority. 13,439 feet of core drilling and
13,275 feet of RC drilling was completed during the quarter. In addition to drilling at Hilltop, multiple
holes are being drilled for infill of the Blackjack Zone. A workplan was approved late in Q2 that will
allow for additional exploration drill pads and roads to be built south of the current Hilltop drilling.
Residual leaching activities at Ruby Hill produced and sold 1,629 ounces of gold during the quarter
and 2,871 ounces of gold YTD at a realized gold price of
$1,899
and
$1,901
per ounce sold
1
,
respectively.
The Company will hold a conference call and webcast on
August 3, 2023
, commencing at
10:00 am
ET
to discuss its second quarter results and answer questions from participants.
Conference Call Participant Details
Webcast URL:
https://app.webinar.net/Z6rA1Gg1JW5
Phone Number Information:
North American Toll-free: 1-888-664-6383
Local Toronto: 1-416-764-8650
Qualified Persons
Tyler Hill
, CPG-12146, Chief Geologist, and Tim George, PE, Mining Operations Manager, at i-80
have reviewed this press release and are the Qualified Persons for the information contained herein
and are 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 through the development of multiple deposits within the Company's advanced-stage
property portfolio with processing at i-80's centralized milling facilities. i-80 Gold's common shares
are listed on the TSX and the NYSE American under the trading symbol IAU:TSX and IAUX:NYSE.
Further information about i-80 Gold's portfolio of assets and long-term growth strategy is available
at
www.i80gold.com
or by email at
.
Forward-looking information
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, results of operation outcomes and timing of updated technical studies
at the Company's mineral projects, timing to advance mineral projects to production and advance
permitting and feasibility work on the on its mineral projects and future production, development 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 labor 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. For a more detailed discussion of
such risks and other factors that could cause actual results to differ materially from those expressed
or implied by such forward-looking statements, refer to i-80's filings with Canadian securities
regulators, including the most recent Annual Information Form, available on SEDAR at
www.sedar.com
.
NON-IFRS FINANCIAL PERFORMANCE MEASURES
The Company has included certain terms or performance measures commonly used in the mining
industry that are not defined under IFRS in this document. These include: adjusted net earnings and
average realized price per ounce. Non-IFRS financial performance measures do not have any
standardized meaning prescribed under IFRS, and therefore, they may not be comparable to similar
measures employed by other companies. The data presented is intended to provide additional
information and should not be considered in isolation or as a substitute for measures prepared in
accordance with IFRS and should be read in conjunction with the Company's Financial Statements.
Definitions
Adjusted earnings / (loss) and adjusted earnings / (loss) per share
excludes from net earnings /
(loss) significant write-down adjustments and the gain / (loss) from financing instruments.
Average realized gold price
represents the sales price of gold per ounce before deducting mining
royalties, treatment and refining charges and gains or losses derived from the offtake agreement
with Orion.
Average realized gold price per ounce of gold sold
Average realized gold price per ounce of gold sold is a non-IFRS measure and does not constitute a
measure recognized by IFRS and does not have a standardized meaning defined by IFRS. It may
not be comparable to information in other gold producers' reports and filings.
Three months ended
June 30,
Six months ended
June 30,
(in thousands of U.S. dollars, unless otherwise noted)(i)
2023
2022
2023
2022
Nevada production
Revenue per financial statements
$
8,490
6,382
13,038
9,246
Silver revenue from mining operations
$
(41)
(32)
(62)
(39)
Gold revenue from mining operations
$
8,449
6,350
12,976
9,207
Ounces of gold sold
ounce
4,329
3,507
6,678
4,996
Average realized gold price
$/ounce
1,952
1,811
1,943
1,843
Lone Tree
Revenue per financial statements
$
5,371
1,827
6,675
3,459
Silver revenue from mining operations
$
(15)
(10)
(19)
(17)
Gold revenue from mining operations
$
5,356
1,818
6,656
3,442
Ounces of gold sold
ounce
2,700
941
3,363
1,785
Average realized gold price
$/ounce
1,983
1,931
1,979
1,928
Ruby Hill
Revenue per financial statements
$
3,119
4,555
5,502
5,788
Silver revenue from mining operations
$
(26)
(22)
(42)
(22)
Gold revenue from mining operations
$
3,093
4,533
5,460
5,765
Ounces of gold sold
ounce
1,629
2,565
2,871
3,211
Average realized gold price
$/ounce
1,899
1,767
1,901
1,795
Granite Creek
Revenue per financial statements
$
—
—
861
—
Silver revenue from mining operations
$
—
—
—
—
Gold revenue from mining operations
$
—
—
861
—
Ounces of gold sold
ounce
—
—
444
—
Average realized gold price
$/ounce
—
—
1,938
—
(i) May not add due to rounding.
Adjusted Earnings / (Loss)
Adjusted earnings / (loss) and adjusted earnings / (loss) per share are non-IFRS measures that the
Company considers to better reflect normalized earnings because it eliminates non-recurring items.
Certain items that become applicable in a period may be adjusted for, with the Company
retroactively presenting comparable periods with an adjustment for such items and conversely, items
no longer applicable may be removed from the calculation. Neither adjusted earnings / (loss) nor
adjusted earnings / (loss) per share have any standardized meaning prescribed by IFRS and are
therefore unlikely to be comparable to similar measures presented by other companies.
The following table shows a reconciliation of adjusted earnings / (loss) for the three and six months
ended
June 30, 2023
and 2022, to the net earnings / (loss) for each period.
Three months ended
June 30,
Six months ended
June 30,
(in thousands of U.S. dollars, unless otherwise noted)(i)
2023
2022
2023
2022
Net income / (loss) for the period
$ (15,962)
$ 19,276
$ (29,078)
$ (3,988)
Adjust for:
Gain on warrants
4,607
12,004
10,175
8,900
Gain on convertible loans
2,097
16,307
10,463
10,214
Gain on convertible debenture
900
—
900
—
Loss on deferred consideration
(351)
(792)
(778)
(1,636)
Gain / (loss) on fair value measurement of gold prepay
838
4,084
(2,252)
4,084
Gain on fair value measurement of silver purchase
1,309
9,125
452
9,125
Inventory net realizable value adjustment
(4,506)
—
(8,531)
—
Total adjustments
$ 4,894
$ 40,728
$ 10,429
$ 30,687
Adjusted loss for the period
$ (20,856)
$ (21,452)
$ (39,507)
$ (34,675)
Weighted average shares for the period
265,433,411
240,312,422
255,573,142
239,800,687
Adjusted loss per share for the period
$ (0.08)
$ (0.09)
$ (0.15)
$ (0.14)
(i) May not add due to rounding.
SOURCE
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], www.i80gold.com
CO: i-80 Gold Corp
CNW 17:35e 02-AUG-23