i-80 Gold’s Granite Creek Underground Project poised for strong returns with $155m after-tax NPV

i-80 Gold Corp has released a preliminary economic assessment (PEA) for the Granite Creek Underground project, revealing a strong financial outlook for the Nevada-based gold mine. The assessment highlights an after-tax net present value (NPV) of $155 million at a gold price of $2,175 per ounce, with the potential to rise significantly if gold prices increase. At $2,900 per ounce, the after-tax NPV is projected to reach $344 million, underscoring the profitability of the project under favourable market conditions.

Strategically located at the Battle Mountain-Eureka and Getchell gold trends, the Granite Creek Underground mine is a key part of i-80 Gold’s broader strategy to develop high-grade assets in Nevada. With production ramping up and long-term expansion plans in place, this project is positioned to contribute significantly to the company’s future cash flow and growth objectives.

What Are the Key Financial and Production Highlights of the Granite Creek Underground Project?

The PEA outlines a compelling financial case for Granite Creek Underground, with mine construction already complete and operations transitioning to full production. The projected mine life is approximately eight years, with annual gold output expected to reach an average of 60,000 ounces after the initial ramp-up phase.

The financial forecast includes an all-in sustaining cost (AISC) of $1,597 per ounce, positioning the mine as a cost-competitive operation within the industry. In the base-case scenario, the after-tax cash flow is estimated at $197 million, reflecting the project’s ability to generate strong returns. If gold prices trend higher, the financial outlook becomes even more favourable, with projected after-tax cash flows of $420 million at $2,900 per ounce gold.

How Does Granite Creek Underground Compare to Other High-Grade Gold Mines?

The Granite Creek Underground deposit is recognized for its high gold grades, a critical factor in determining a mine’s economic viability. The updated mineral resource estimate includes 261,000 ounces of gold at 10.5 grams per tonne (g/t) in the measured and indicated categories, along with 326,000 ounces at 13.0 g/t in the inferred category. These grades place the project among the higher-grade underground gold mines in Nevada, a region known for its prolific gold production.

Importantly, the current resource estimate does not incorporate drilling conducted in 2023 and 2024, meaning additional resource growth is expected. The company is advancing a comprehensive drill program in 2025, particularly focusing on the South Pacific zone, which has shown promising high-grade potential. The next phase of development will involve a feasibility study scheduled for Q4 2025, incorporating the latest drilling results and refining production forecasts.

How Will Processing and Infrastructure Impact Production Efficiency?

In the initial years of production, refractory ore from Granite Creek Underground will be processed at a third-party autoclave facility, which will result in lower payability on gold sales. This is expected to change in 2028, when i-80 Gold plans to bring its Lone Tree autoclave facility into operation. Once operational, the Lone Tree facility is projected to significantly improve processing efficiency, with expected gold recovery rates rising from 78% to approximately 92%.

Processing at the company-owned facility will not only enhance gold recovery but also reduce operational costs over the life of the mine. The shift is expected to result in higher production volumes and improved cash flow, positioning Granite Creek Underground as a stronger revenue contributor to i-80 Gold’s portfolio.

What Challenges Has the Project Faced and How Are They Being Addressed?

Despite the strong economic potential, Granite Creek Underground has faced operational challenges, particularly due to water ingress affecting underground development. The company has implemented a water treatment facility and a local filtration system to manage excess water, improving conditions for mining operations. Additionally, extensive hydrology studies conducted in 2024 have provided key insights into groundwater management, allowing the company to refine its dewatering strategies.

With these measures in place, i-80 Gold expects underground development to accelerate in 2025, enabling a smoother ramp-up to full production. The company remains focused on minimizing operational risks while maximizing gold recovery and resource expansion opportunities.

Why Is Granite Creek Underground a Key Asset in i-80 Gold’s Expansion Strategy?

As the first project in i-80 Gold’s redevelopment pipeline, Granite Creek Underground plays a central role in the company’s Nevada-focused expansion strategy. With its high-grade resource base, improving processing efficiencies, and strong financial metrics, the project is positioned to be a significant cash flow generator.

The upcoming feasibility study in Q4 2025 will be a crucial milestone, providing greater clarity on long-term production potential, cost efficiency, and resource expansion. Additionally, the project’s location near Nevada Gold Mines’ Turquoise Ridge Complex, which hosts approximately 20 million ounces of gold, underscores the geological potential of the district.

Investors will be watching closely as i-80 Gold advances Granite Creek Underground toward full production, with the expectation that the project will contribute meaningfully to the company’s goal of becoming a mid-tier gold producer in the coming years.