i-80 Gold Reports Q3 2023 Operating Results
i-80 Gold Reports Q3 2023 Operating Results
RENO, Nev.
,
Nov. 1, 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 nine months ended
September
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 nine months ended
September 30, 2023
, are available on the Company's website at
www.i80gold.com
, on SEDAR at
www.sedarplus.ca
, and on EDGAR at
www.sec.gov
.
Unless otherwise stated, all amounts referred to herein are in U.S. dollars.
Highlights
Third Quarter
Gold sales of 4,585 ounces at a realized gold price of
$1,895
1
.
16,059 tons of oxidized mineralized material sold for proceeds of
$4.5 million
.
Commenced shipping of refractory stockpiles to a third party for processing.
September 30
cash balance of
$38 million
and
$44 million
in restricted cash.
Continued expansion of gold and polymetallic mineralization at Ruby Hill.
Continued underground core drilling delineation of the CSD Gap and Helen zones at McCoy-Cove
(16,789 feet).
Continued drilling infill holes at South Pacific Zone at Granite Creek (16,144 feet).
Completed the initial underground exploration drift at McCoy-Cove.
Completed 3,329 feet of horizontal advance at Granite Creek.
Completed an equity private placement for gross proceeds of
$27.7 million
.
Completed additional financing by extending the Gold Prepay agreement with Orion for gross
proceeds of
$20 million
.
Year to Date
Gold sales of 11,262 ounces at a realized gold price of
$1,924
1
.
Completed 2,644 feet of exploration ramp development at McCoy-Cove.
Completed 5,481 feet of horizontal development at Granite Creek.
39,
732 wet
tons of mineralized material hauled from Granite Creek to third parties for processing
under ore processing and toll milling agreements.
A total of 162,033 feet (core and RC) drilled by the end of the third quarter with multiple positive
results to expand mineralization further at Ruby Hill, Granite Creek, McCoy-Cove and the FAD
project.
"In the third quarter the Company continued to see impressive drill results from Ruby Hill and McCoy-
Cove. In addition, the Company saw an increase in revenue gold ounces sold and tons of mineralized
material sold under the Ore Purchase and Sale Agreement. This increase coupled with the completion of
the Amended and Restated Gold Prepay Agreement positions the Company to continue to execute on
it's plans", stated
Ryan Snow
, Chief Financial Officer of i-80. "We continue to advance exploration and
definition drilling at Granite Creek, McCoy-Cove and Ruby Hill and permitting activities at our projects
allowing the Company to advance our projects towards the ultimate goal of building a mid-tier
Nevada
focused producer."
Three months ended
September 30,
Nine months ended
September 30,
(in thousands of U.S. dollars, unless otherwise noted)
2023
2022
2023
2022
Revenue
13,215
16,065
29,073
25,311
Cost of sales
(1)
(12,244)
(9,834)
(30,975)
(15,331)
Depletion, depreciation and amortization
(1)
(1,444)
(2,126)
(5,589)
(2,949)
Mine operating income (loss)
(473)
4,105
(7,491)
7,031
Expenses
Exploration, evaluation, and pre-development
10,014
10,798
30,088
32,184
General and administrative
4,136
4,743
13,724
12,581
Property maintenance
2,763
350
7,992
1,139
Share-based payments
244
471
2,455
2,460
Operating loss
(17,630)
(12,257)
(61,750)
(41,333)
(1) For the three and nine months ended September 30, 2023, includes an inventory impairment of nil and $8.5 million, respectively
Production and sales totaled 4,585 gold ounces for the quarter and 11,262 gold ounces year to date
(YTD) at a realized gold price of
$1
,895 and
$1,924
per ounce sold
1
, respectively. Additionally,
mineralized material sales totaled 16,059 tons for the quarter and 22,710 tons YTD for proceeds of
$4.5
million
and
$7.3 million
, respectively.
Exploration, evaluation, and pre-development costs were
$10.0 million
and
$30.1 million
for the three and
nine months ended
September 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.
The Company advanced the autoclave engineering study to a level three estimate (FS level). Value
engineering on all aspects of projects will commence over the next three months.
Lone Tree
produced and sold from its residual leaching activities 1,775 ounces of gold during the quarter
and 5,138 ounces of gold YTD at a realized gold price of
$1,925
and
$1,961
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"). The contractual initial tonnage of
refractory mineralized material has been delivered. 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 16,059 tons of mineralized material under the Ore
Sale Agreement for proceeds of
$4.5 million
.
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.
Expenditures continued during the quarter on the exploration ramp and hydrology studies, and
engineering of de-watering and mining options. During the third quarter the remaining 143 feet of the
exploration decline was completed and is being used to drill in the Helen and Gap zones.
Underground delineation drilling continued during Q3 with 16,789 feet of core drilled yielding extremely
positive results including from the most recent press release:
iCHU23-10:
14.9 g/t Au over
32.7 m
, including 22.8 g/t Au over
14.8 m
iCHU23-11 :
15.7 g/t Au over
22.5 m
, including 21.8 g/t Au over
11.5 m
; and
18.9 g/t Au over
29.3 m
, including 27.8 g/t Au over
14.9 m
iCHU23-12A:
27.0 g/t Au & 9.2 g/t Ag over
8.0 m
iCHU23-14:
13.3 g/t Au & 29.2 g/t Ag over
4.0 m
10.6 g/t Au & 5.2 g/t Ag over
38.8 m
12.8 g/t Au & 7.2 g/t Ag over
2.6 m
11.1 g/t Au & 3.4 g/t Ag over
20.6 m
iCHU23-16:
6.9 g/t Au & 3.9 g/t Ag over
8.8 m
11.1 g/t Au & 3.4 g/t Ag over
3.3 m
12.5 g/t Au & 6.5 g/t Ag over
11.5 m
Ruby Hill
During the third quarter of 2023, drilling at Ruby Hill was focused on advancing exploration and
delineation of multiple CRD mineralized discoveries. Definition and expansion drilling of high-grade
polymetallic mineralization along the Hilltop fault structure remains a priority. 7,565 feet of core drilling
and 780 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. Drilling highlights for the quarter include:
Tyche Discovery
iRH23-18A: 45.4 g/t Au & 50.2 g/t Ag over
17.5 m
including 95.9 g/t Au & 65.6 g/t Ag over
7.6 m
East Hilltop Skarn
12.5 % Zn & 5.7 g/t Ag over
5.0 m
(iRH23-16)
12.8 % Zn & 4.6 g/t Ag over
10.7 m
(iRH23-16A)
11.6 % Zn & 5.8 g/t Ag over
6.1 m
AND 14.7 % Zn & 3.7 g/t Ag over
4.6 m
(iRH23-27)
20.8 % Zn & 15.0 g/t Ag over
11.6 m
(iRH23-30)
Blackjack
10.7 % Zn & 37.0 g/t Ag over
47.9 m
(iRH23-41 – skarn)
15.6 % Zn, 8.7 % Pb, 420.4 g/t Ag & 0.6 g/t Au over
40.4 m
(iRH23-41 - CRD)
Gold Mineralized Zones
6.9 g/t Au over
50.7 m
including 8.0 g/t Au over
24.9 m
(iRH23-40) – Ruby Deeps
9.1 g/t Au over
10.2 m
(iRH23-41) – Lower Jack
Residual leaching activities at Ruby Hill produced and sold 1,910 ounces of gold during the quarter and
4,781 ounces of gold YTD at a realized gold price of
$1,860
and
$1,885
per ounce sold
1
, respectively.
The Company will hold a conference call and webcast on
November 2, 2023
, commencing at
10:00 am
ET
to discuss its third quarter results and answer questions from participants.
Conference Call Participant Details
Webcast URL:
https://app.webinar.net/lj3rwk6AaKq
https://app.webinar.net/lj3rwk6AaKq
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 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
September 30,
Nine months ended
September 30,
(in thousands of U.S. dollars, unless otherwise noted)(i)
2023
2022
2023
2022
Nevada production
Revenue per financial statements (ii)
$
8,758
16,065
21,796
25,311
Silver revenue from mining operations
$
(70)
(83)
(131)
(123)
Gold revenue from mining operations
$
8,688
15,981
21,665
25,188
Ounces of gold sold
ounce
4,585
9,332
11,262
14,328
Average realized gold price
$/ounce
1,895
1,712
1,924
1,758
Lone Tree
Revenue per financial statements
$
3,417
6,189
10,092
9,647
Silver revenue from mining operations
$
—
(10)
(19)
(27)
Gold revenue from mining operations
$
3,417
6,179
10,073
9,620
Ounces of gold sold
ounce
1,775
3,513
5,138
5,298
Average realized gold price
$/ounce
1,925
1,759
1,961
1,816
Ruby Hill
Revenue per financial statements
$
3,623
9,876
9,125
15,664
Silver revenue from mining operations
$
(70)
(74)
(112)
(96)
Gold revenue from mining operations
$
3,553
9,802
9,013
15,568
Ounces of gold sold
ounce
1,910
5,819
4,781
9,030
Average realized gold price
$/ounce
1,860
1,685
1,885
1,724
Granite Creek
Revenue per financial statements
$
1,718
—
2,579
—
Silver revenue from mining operations
$
—
—
—
—
Gold revenue from mining operations
$
1,718
—
2,579
—
Ounces of gold sold
ounce
900
—
1,344
—
Average realized gold price
$/ounce
1,910
—
1,919
—
(i) May not add due to rounding.
(ii) Does not include revenue from mineralized material sales.
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 nine months
ended
September 30, 2023
and 2022, to the net earnings / (loss) for each period.
Three months ended
September 30,
Nine months ended
September 30,
(in thousands of U.S. dollars, unless otherwise noted)(i)
2023
2022
2023
2022
Net income / (loss) for the period
$ (4,199)
$ (11,272)
$ (33,278)
$ (15,260)
Adjust for:
Gain on warrants
7,357
849
17,532
9,749
Gain / (loss) on convertible loans
13,574
(1,112)
24,037
9,101
Gain on convertible debenture
—
—
900
—
Loss on deferred consideration
(357)
(806)
(1,135)
(2,442)
Gain / (loss) on fair value measurement of gold prepay
2,190
3,036
(63)
7,121
Gain on fair value measurement of silver purchase
822
2,297
1,274
11,422
Loss on Gold Prepay Agreement modification
(1,831)
—
(1,831)
—
Inventory net realizable value adjustment
—
—
(8,531)
—
Total adjustments
$ 21,755
$ 4,264
$ 32,183
$ 34,951
Adjusted loss for the period
$ (25,954)
$ (15,536)
$ (65,461)
$ (50,211)
Weighted average shares for the period
287,128,970
240,368,617
266,207,340
239,992,077
Adjusted loss per share for the period
$ (0.09)
$ (0.06)
$ (0.25)
$ (0.21)
(i) May not add due to rounding.
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.
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SOURCE
i-80 Gold Corp
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%SEDAR: 00052022E
For further information:
Ewan Downie - CEO; Ryan Snow - CFO; Matt Gili - President & COO;
Matthew Gollat - Executive Vice-President, 1.866.525.6450, [email protected], www.i80gold.com
CO: i-80 Gold Corp
CNW 19:50e 01-NOV-23