i-80 Gold Revised PEA Outlines $271 Million NPV For Cove Project
i-80 Gold (TSX: IAU) has updated a preliminary economic assessment for its Cove Project, found in Northern Nevada. The updated assessment follows a remodeling of the deposit using more confined mining geometry, advancement of the hydrology model, as well as updated costing and metals pricing.
The revised model outlines a net present value of $271 million and an IRR of 30% on an after-tax basis, using a 5% discount rate and a gold price of $2,175 an ounce. At a spot price of $2,900, the NPV is said to claim to $582 million, while the IRR sits at 52%.
The prior version comparatively had outlined an NPV of $178 million and an IRR of 36% on an after-tax basis, using $1,400 an ounce gold.
The assessment is based on a mine life of 8 years, which would see average annual gold production of 100,000 ounces from an underground mine. Estimated life of mine all-in sustaining costs sit at $1,303 per ounce.
The PEA notably however does not include infill drill results from exploration conducted over the last two years. An updated mineral resources estimate outlines indicated resources of 311,000 gold ounces at 8.2 g/t, along with inferred resources of 1.16 million ounces at 8.9 g/t gold.
“The 2025 PEA for the Cove Project represents an important first step in delivering updated technical information across i-80 Gold’s asset portfolio. The results validate our planned regional hub-and-spoke model of feeding a central processing plant with high-grade material from three underground mines, which is expected to form the production base for i-80 Gold moving forward. In the coming weeks, we look forward to releasing updated PEAs for Granite Creek (both open pit and underground) and the Ruby Hill Complex (Archimedes underground and Mineral Point open pit),” commented Richard Young, CEO of i-80.
A feasibility study is currently slated to be released in the fourth quarter of 2025.
i-80 Gold last traded at $0.92 on the TSX.
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