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Wednesday, Jun 19, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


i-80 Gold acquires Paycore Minerals, adds high-grade polymetallic deposit to its holdings

The FAD deposit boasts a historical resource of 3.5 million tonnes with an average grade of 5.14 grams per tonne of gold

i-80 Gold acquisition of Paycore Minerals adds high-grade polymetallic deposit to its holdings
Ruby Hill Property. Image via i-80 Gold.

i-80 Gold Corp.’s (TSX: IAU) (NYSE: IAUX) has acquired Paycore Minerals Inc. (TSXV: CORE) and significantly increased its holdings in the Eureka District of Nevada.

This deal closed on Monday and strengthens i-80’s involvement in a top-tier carbonate replacement deposit (CRD) area, and it also gives i-80 complete ownership of the FAD deposit, which is one of the highest-grade polymetallic deposits in North America. When the ongoing infill and expansion drill initiative is finished, the FAD deposit is predicted to boost the company’s resource portfolio.

The FAD deposit boasts a historical resource of 3.5 million tonnes with an average grade of 5.14 grams per tonne of gold, 196.46 grams per tonne of silver, 8.0 per cent zinc, and 3.8 per cent lead.

Positive results from Paycore drilling in 2022:

    • PC22-07:

      • 1.1 g/t Au, 155.5 g/t Ag, 22.0 per cent Zn and 1.5 per cent Pb over 12.5 meters and

      • 2.0 g/t Au, 231.6 g/t Ag, 6.3 per cent Zn and 3.7 per cent Pb over 44.8 meters

    • PC22-08:

      • 7.1 g/t Au, 376.3 g/t Ag, 6.3 per cent Zn and 10.3 per cent Pb over 14.8 m

    • PC22-10:

      • 8.0 g/t Au, 79.0 g/t Ag, 10.0 per cent Zn and 1.0 per cent Pb over 27.4 meters and

      • 1.8 g/t Au, 318.0 g/t Ag, 4.6 per cent Zn and 6.1 per cent Pb over 7.4 meters

Before Homestake’s discovery of Carlin-type mineralization at Ruby Hill in the 1990s, the Eureka District had a successful history from 1864 to 1966. During this time, the district produced roughly 1.6 million ounces of gold at an average grade of 0.8 ounces per ton (27.4 g/t Au) and 39 million ounces of silver at an average grade of 19.5 ounces per ton (668.6 g/t Ag) from 2.0 million tons mined.

Additionally, it has been reported that 625 million pounds of lead were produced at an average grade of 15.6 per cent lead. Most of this production came from the original Ruby Hill Mine, which is situated on the FAD property.

Read more: Steppe Gold inks definitive agreement to acquire Anacortes Mining in all share deal

Read more: Calibre Mining reports record gold production in Q1 2023

Development consolidates productive part of Eureka district

The FAD deposit represents the down-dip extension of the original Ruby Hill Mine and has been successfully expanded through a drill campaign in 2022. The mineralization at the FAD deposit remains open for expansion, providing a promising opportunity for further growth.

This development is significant for i-80, as it consolidates the most productive part of the Eureka District and gives them complete ownership of the FAD deposit, one of the highest-grade polymetallic deposits in North America. With the current infill and expansion drill program underway, the FAD deposit is expected to add to i-80’s already impressive resource base, contributing to the company’s overall success in the mining industry.

“The expanded land package at Ruby Hill will allow i-80 to aggressively pursue the optimization of the company’s multi-year development plan and to realize its goal of creating one of the largest U.S.-focused diversified mineral producers,” said Matthew Gollat, executive vice-president of i-80 Gold. “

The FAD deposit is situated in the “Hilltop Corridor,” which is roughly 2.0 kilometers south of the Hilltop discovery that i-80 made in mid-2022. Acquiring this property has extended i-80’s exposure along the favorable structure by approximately 2.5 kilometers. Currently, multiple drill rigs are actively defining and expanding mineralization at Hilltop, a group of high-grade CRD zones located on the south side of the Archimedes pit. The ongoing drilling campaign at FAD is also progressing.

In 2022, i-80 released the results from its drilling program, which revealed significant mineralization at Hilltop. Notable findings include 515.3 grams per tonne of silver, 28.9 per cent lead, 10.5 per cent zinc, and 0.9 grams per tonne of gold over 28.3 meters in hole iRH22-43 (Upper Hilltop), 1.9 grams per tonne of gold, 631.3 grams per tonne of silver, 7.4 per cent zinc, and 33.0 per cent lead over 18.3 meters in hole iRH22-53 (Upper Hilltop), 60.2 grams per tonne of gold, 908.7 grams per tonne of silver, 1.1 per cent zinc, and 15.7 per cent lead over 10.0 meters in hole iRH22-55 (Upper Hilltop), and 12.3 per cent zinc over 39.6 meters in hole iRH22-61 (East Hilltop).

Read more: Nevada King drilling campaign returns high grades at Atlanta Mine Fault Zone

Read more: New Gold and Rio Tinto mines win Towards Sustainable Mining Excellence awards for 2023

i-80 Gold made high-grade CRD discoveries in 2023

The ongoing drilling programs at FAD and Hilltop are expected to expand i-80’s impressive resource base, solidifying its position as a significant player in the mining industry. The company’s current exploration efforts are focused on unlocking the potential of these properties, which have already produced promising results.

“The FAD deposit represents one of North America’s highest-grade undeveloped deposits that fits perfectly into our 2023 exploration program where we have an expanded focus on defining polymetallic mineralization in the Eureka District to better assess the economic opportunity,” said Tyler Hill, Senior Geologist of i-80 Gold.

“High-grade polymetallic deposits like FAD are rare, with grades that are expected to rival many of the world’s premier polymetallic deposits like Agnico’s LaRonde Mine in Quebec.”

The FAD deposit is one of the several deposits located within the Hilltop Corridor, a trend spanning over 2.0 kilometers that is covered by alluvial material. It is believed that this area hosts multiple feeder fault structures that have largely gone untested by previous drilling due to the alluvial cover. The Hilltop discoveries were made in the latter half of the 2022 exploration campaign while testing one of several brownfield exploration targets that were identified in close proximity to the Blackjack (skarn) deposit. This discovery confirms i-80’s belief that the Ruby Hill Property has the potential to host multiple types of mineralization and several large-scale deposits.

During 2023, i-80 made additional high-grade CRD discoveries, which further extended the mineralization along the Hilltop fault by approximately 750 meters. The company’s current exploration efforts at the Hilltop Corridor and other target areas aim to unlock the full potential of the Ruby Hill Property, which has already demonstrated significant promise.

Recent geophysical surveys conducted at Ruby Hill have revealed several highly promising anomalies believed to indicate additional massive sulfide targets. The company intends to to investigate these anomalies further during the 2023 drilling program, and conduct additional geophysical surveys in the near future to cover the southern extension of the Hilltop Corridor and the FAD Property. These surveys aim to identify further areas of mineralization and unlock the full potential of these properties.

i-80 Gold shares dipped 4.3 per cent on Monday to trade at $3.31 on the Toronto Stock Exchange.


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