i-80 Gold expands processing capacity with long-term agreements and Lone Tree autoclave refurbishment

i-80 Gold Corp. (TSX: IAU) (NYSE: IAUX) has secured two key third-party processing agreements that will remain in effect through December 31, 2027, ensuring access to toll milling and ore sales for both refractory and oxide material. These deals provide a critical bridge for the company as it continues the refurbishment of its Lone Tree autoclave facility, a major initiative that is expected to transform its Nevada operations.

With these agreements in place, i-80 Gold can advance two of its three underground gold mines while maintaining flexibility in its operational and financial strategy. Once completed, the refurbished Lone Tree autoclave facility will allow the company to process all of its Nevada-sourced material in-house, solidifying its position as a key mid-tier gold producer.

The economic impact of these agreements has been reflected in i-80 Gold’s recently disclosed life-of-mine cash flow models for the Archimedes Underground Project and the Granite Creek Underground Project, released in press updates on February 18, 2025, and March 5, 2025, respectively.

How Will the Lone Tree Autoclave Facility Transform i-80 Gold’s Nevada Operations?

i-80 Gold’s long-term strategy revolves around establishing Lone Tree as the central hub for processing multiple ore types from its Nevada mining projects. The facility, located within the highly productive Battle Mountain Trend, was acquired from Nevada Gold Mines (NGM) in 2021. Historically, the site produced approximately 4.2 million ounces of gold and contains extensive infrastructure, including a permitted whole-ore autoclave, leach pad, carbon-in-column (CIC) circuit, and flotation circuit.

The planned refurbishment of the Lone Tree autoclave facility represents a significant investment in Nevada’s gold processing capacity. A Class III engineering study is currently underway, with completion expected by the third quarter of 2025. The study will provide further clarity on the refurbishment’s cost, timeline, and technical requirements.

Once fully operational, the Lone Tree complex will allow i-80 Gold to efficiently process refractory ore from the Granite Creek mine, Ruby Hill Complex, and McCoy-Cove, eliminating the need for third-party processing in the long run. By consolidating operations around this facility, the company aims to reduce costs and increase production efficiency, reinforcing its position as Nevada’s fourth-largest holder of gold mineral resources.

What Are the Challenges and Opportunities for i-80 Gold’s Open Pit Project?

While the underground mining operations and processing agreements are advancing, i-80 Gold has acknowledged that its Lone Tree open pit project faces multiple challenges. Although the property contains significant gold resources across its 12,000-acre land package, development hurdles include financial, technical, environmental, and social considerations.

Given these obstacles, i-80 Gold anticipates that open-pit operations at Lone Tree will likely remain deferred for another decade. However, management remains optimistic that advances in mining technology and potential regulatory shifts could eventually make the project more viable. If future conditions allow for the development of the open pit mine, it could provide substantial long-term value to i-80 Gold’s asset portfolio.

How Has i-80 Gold’s Stock Performed Amid These Developments?

The company’s strategic initiatives come at a time of notable fluctuations in its stock performance. As of March 19, 2025, i-80 Gold’s stock (NYSE: IAUX) closed at $0.75, marking a 48.75% decline over the past 12 months. However, the stock has shown strong momentum in recent months, gaining 54.27% year-to-date. This sharp recovery suggests growing investor confidence in i-80 Gold’s long-term mining strategy and upcoming production milestones.

The company’s market capitalization currently stands at approximately $295.75 million, with 395.6 million shares outstanding. Over the past year, the stock has traded within a 52-week range of $0.34 to $1.51, reflecting considerable volatility. Despite these fluctuations, analysts remain cautiously optimistic about i-80 Gold’s outlook.

Recent stock upgrades further signal improving sentiment. On March 7, 2025, Cormark upgraded i-80 Gold from ‘Market Perform’ to ‘Buy’, citing the company’s expanding processing capacity and the long-term value of its Nevada operations. The average one-year price target for i-80 Gold is currently $1.71, with estimates ranging from a low of $1.06 to a high of $2.93.

From a technical perspective, i-80 Gold’s stock is currently rated as a ‘Buy’, indicating positive short-term momentum. However, given the broader gold market’s volatility and pending developments at Lone Tree, some investors may prefer a ‘Hold’ approach, monitoring the company’s progress before making further decisions.

Why Does i-80 Gold’s Nevada Strategy Matter to Investors?

i-80 Gold’s execution of its hub-and-spoke processing model is central to its long-term vision. With the Lone Tree autoclave facility positioned as its processing core, the company aims to streamline its Nevada operations, reducing reliance on external processors while optimizing production efficiency.

By securing third-party processing agreements through 2027, i-80 Gold ensures that its mining operations remain on track, even as it undertakes a complex infrastructure refurbishment. This approach minimizes short-term risk while maintaining revenue generation and operational stability.

Furthermore, Nevada remains one of the world’s most attractive gold mining jurisdictions due to its regulatory stability and abundant mineral resources. i-80 Gold’s presence in key mining districts strengthens its growth potential, particularly as global demand for gold remains resilient.

With its strategic asset portfolio, growing production capabilities, and strong regional positioning, i-80 Gold is steadily advancing toward its goal of becoming a leading mid-tier gold producer. While challenges remain—particularly with the Lone Tree open pit project—the company’s ongoing investments in infrastructure and operational efficiency are setting the stage for long-term growth.