i-80 Gold (TSX: IAU) closed its private placement and overallotment of 69.7 units at CAD$1.65, and raised CAD$115 million for its Nevada-based projects.
Each unit includes a share and one-half of a share purchase warrant. The warrants are exercisable for four years at CAD$2.15 each.
i-80 owns the Lone Tree property. It includes the former mine with the same name in the Battle Mountain trend. The mine produced 4.2 million ounces of gold and still possesses all the processing infrastructure. A few examples include a whole-ore autoclave, leach pad, carbon circuit and flotation circuit and the company intends on making this the hub of its operations in Nevada.
Additionally, the company plans to permit an underground mine at the Ruby Hill site, which also has leftover infrastructure in place. This includes a gold oxide processing plant, leach pad, and carbon circuit. The company will truck ore to the Lone Tree property for processing.
The Granite Creek project is located at the intersection of the Getchell and Battle Mountain trends. It contains both high-grade open pit and underground resources. Authorities have permitted the underground mine, and i-80 has started development for mining this year.
i-80 also owns the McCoy-Cove project on the Battle Mountain trend. This is a historic mining operation that produced approximately 3.3 million ounces of gold and over 100 million ounces of silver in its lifetime. This property hosts one of the highest-grade gold-silver deposits in Nevada. i-80 completed a preliminary economic assessment (PEA) in 2021 and has transitioned to underground exploration drilling. The company is preparing a full feasibility study.
Read more: Calibre Mining pulls high value gold and silver in Nicaragua
Read more: What are the top 5 companies in the Battle Mountain Eureka Trend in Nevada?
High gold prospects in Lander County
This deal comes directly after i-80 posted a strong month at its property in Lander County, Nevada.
In the middle of April, the company posted strong drilling results from its 2023 drill campaign in the Helen Zone at the McCoy-Cove property.
The most recently received results from the Helen Zone include up to 22.6 g/t Au over 19.1 m in hole iCHU23-37, 32.9 g/t Au over 14.9 m in hole iCHU23-38. Drilling targeted the Upper Helen mineralized horizon with three new holes, which typically contains thinner mineralized zones compared to the Lower Helen.
Highlights from drilling at McCoy-Cove include:
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iCHU23-41: 37.2 g/t Au over 3.7 m (Upper Helen Zone)
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iCHU23-42: 29.6 g/t Au over 7.2 m (Lower Helen Zone)
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iCHU23-43: 9.2 g/t Au over 5.3 m (Upper Helen Zone)
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and 12.3 g/t Au over 6.6 m (Lower Helen Zone)
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and 18.7 g/t Au over 8.3 m (Lower Helen Zone)
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The Cove project is primarily operated by Nevada Gold Mines and is located immediately south of the Phoenix operation in the Battle Mountain trend. This trend is famous for its rich gold mineralization and resources.
Since 2017, Calibre Mining Corp (TSX: CXB) (OTCQX: CXBMF) has been working on the Battle Mountain trend at its Pan mine. This mid-tier miner will also start production at the neighbouring Gold Rock project this year.
The Battle Mountain trend is notable for its rich Carlin-style deposits, which are among the richest in the world. These deposits feature an abundance of microscopic gold particles in areas with thicker mineralization.
U.S. Gold Corp (Nasdaq: USAU) is also searching for Carlin gold on the Cortez Trend in Nevada. The trend is one of the world’s most prolific gold mining trends and the location of some of North America’s largest mines.
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