i-80 Gold Corp. (NYSE: IAUX) (TSE: IAU) said Tuesday that refurbishment work at its Lone Tree processing plant in Nevada remains on schedule and on budget, keeping the company on track for its planned transition to owner-operated gold processing by the end of 2027.
The company said early site work, engineering and procurement continue to advance ahead of major construction, which is expected to begin in the fourth quarter of 2026. Additionally, the project remains on schedule for its first gold pour in late 2027.
Lone Tree is one of only two autoclave processing plants in Nevada. Once refurbished, it will become the central processing hub for i-80 Gold’s underground mining operations across the state.
The company currently relies on toll milling, which involves paying another operator to process mined material. However, its December 2025 engineering study estimated that operating its own processing facility could reduce costs and improve cash margins by between an estimated USD$1,000 and USD$1,500 per ounce of gold, depending on ore grade and gold prices.
Early works have continued through the second and third quarters. These activities include mobilizing the engineering, procurement and construction management contractor, demolishing plant components scheduled for replacement and advancing detailed engineering work alongside procurement and contract awards.
Meanwhile, procurement remains on schedule. About 50 per cent of procurement packages by value had been awarded by mid-July, while approximately 40 per cent of project capital had already been committed.
The company also said project spending remains within expectations. Capital expenditures continue to align with both its December 2025 engineering study and its 2026 guidance of between USD$140 million and USD$160 million.
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Refurbishment carries low execution risk
The overall refurbishment carries an estimated capital cost of USD$430 million. That figure includes roughly 12 per cent contingency funding, owner costs and capital spares.
Executive vice-president and chief operating officer Paul Chawrun said the project has progressed as planned since management approved construction earlier this year.
He said engineering, procurement, staffing, demolition and other early activities have advanced according to schedule. Additionally, he described the start of demolition as an important milestone while maintaining that the company expects commissioning in late 2027.
Chawrun also said the refurbishment carries relatively low execution risk because much of the engineering work was completed years before construction. Hatch Ltd. began substantial engineering roughly three years before refurbishment started, allowing the company to refine project plans before work began.
Furthermore, he said the owner and management teams bring extensive experience building, commissioning and operating autoclave facilities at several of Nevada’s largest gold mines. That experience should help support the company’s broader strategy of becoming a mid-tier gold producer.
Demolition officially began in mid-June after crews completed equipment cleaning and prepared buildings for construction work. The demolition phase is expected to continue into the fourth quarter of 2026.
Safety preparations also advanced before major construction activities. Health and safety personnel have mobilized to the site, emergency response planning continues and contractor onboarding remains underway.
Additionally, environmental testing has nearly finished. The company said crews have not encountered any material requiring special handling during demolition activities to date.
Workers have also completed lighting upgrades throughout the processing plant as part of the early refurbishment program.
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Upgraded plant will include carbon-in-leach processing
Engineering work continues alongside construction preparation. Hatch has expanded both its global engineering team and its site-based personnel to support the project.
Detailed engineering had reached approximately 30 per cent completion by mid-July. Meanwhile, the company said progress remains consistent with its overall construction and commissioning schedule.
The refurbishment will modernize several major systems throughout the facility. The work includes replacing portions of existing infrastructure while upgrading other components to improve efficiency, operating flexibility and environmental performance.
A key part of the project involves refurbishing the existing autoclave into a modern pressure oxidation, or POX, circuit. Pressure oxidation uses heat, pressure and oxygen to treat refractory gold ore, which traps gold inside sulfide minerals and cannot be processed efficiently using conventional methods.
Additionally, the upgraded plant will include carbon-in-leach, or CIL, processing. This system dissolves gold into solution before activated carbon captures the metal for later recovery.
The combination of POX and CIL circuits will allow Lone Tree to process both refractory and non-refractory ores. Oxide material will bypass the POX circuit after grinding and move directly into carbon-in-leach processing.
That flexibility gives operators more options when blending ore from different mines. Consequently, the company expects to optimize recoveries while reducing overall processing costs.
The company also continues to advance regulatory approvals. Existing operating components at Lone Tree already hold permits, the company submitted additional environmental and design permit applications during the first quarter of 2026.
Several permits have already been issued. However, others remain under review before certain construction activities can begin later this year.
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Lone Tree occupies strategic location in Nevada
Major construction is still expected to begin during the fourth quarter of 2026 after the required approvals arrive.
The company outlined several upcoming project milestones over the next 18 months. i-80 anticipates construction to start during the fourth quarter of 2026, while detailed engineering should finish by the end of the first quarter of 2027.
Additionally, management expects the filtration plant to reach completion early in the fourth quarter of 2027. The company continues to target its first gold pour before the end of that year.
Lone Tree occupies a strategic location immediately beside Interstate 80 in Nevada. The site already contains much of the infrastructure needed to support centralized processing for the company’s underground operations.
Based on planned operating conditions, company expects the facility to achieve about 85 per cent plant availability. It should process roughly 2,250 tonnes of material each day, resulting in annual throughput of approximately 825,000 tonnes.
The processing plant also provides a competitive advantage because few comparable facilities operate in Nevada. Besides Lone Tree, the only other autoclave processing plant in the state belongs to Nevada Gold Mines Inc., a joint venture between Newmont Corporation (TSE: NGT) (NYSE: NEM) (FRA: NMM) and Barrick Mining Corp (TSE: ABX) (NYSE: B) (ETR: ABR0).
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