i-80 Gold shares surge as underground construction begins at Archimedes

Visible gold in core samples taken from the Ruby Hill Complex, Nevada, USA. Photo credit: i-80 Gold

Gold

i-80 Gold shares surge as underground construction begins at Archimedes

Stock hit a 6-month high after the Nevada miner obtained construction permits

Rowan Dunne

Published

7 hours ago

I-80 Gold Corp (TSE: IAU) (NYSEAMERICAN: IAUX) (FRA: 8JI) has commenced construction of the newest underground mine at its Ruby Hill complex. It is expected to boost the company’s precious metal yield immensely with production beginning in late 2026.

Shares ascended by 3.5 per cent during pre-market hours on Friday and ended the trading session 9.3 per cent higher on the Toronto Stock Exchange as a result. The stock hit the highest point since February as market observers considered the implications of the news going forward.

Early-stage development of the Archimedes asset follows i-80 obtaining crucial environmental permits from the Bureau of Land Management and Nevada Division of Environmental Protection. The mine is projected to have an initial lifespan of one decade.

“Phase One is expected to increase annual gold output from less than 50,000 ounces to a target range of 150,000 to 200,000 ounces of gold by 2028,” said chief executive, Richard Young, in the news release on Sept. 5.

He described the milestone as a major development for i-80 as it seeks to become a gold major.

The yellow metal producer claims that mining at Archimedes combined with additional Nevada expansion plans are anticipated to increase production to 600,000 ounces per annum by the early 2030s.

i-80 has an infill drilling program planned for Archimedes that is scheduled to begin by the end of the year. Results will contribute to a feasibility study slated for completion in early 2027.

A preliminary economic assessment has shown that the underground operation at Ruby Hill will yield an 81 per cent internal rate of return. It has an after tax net present value of US$644 million, the assessment determined.

Phase One is expected to increase annual gold output from less than 50,000 ounces to a target range of 150,000 to 200,000 ounces of gold by 2028

Layout of Archimedes. Image credit: i-80 Gold

i-80 contributes to renowned industry convention

After the company laid out its future plans in a press release last week, Chief Financial Officer Ryan Snow fittingly helped put on a “Looking Ahead” workshop at a staple Nevada mining industry event. He discussed the future of the state’s industry alongside other figures like Kinross Gold Corp (TSE: K) (NYSE: KGC) (FRA: KIN2) Vice President Joseph Kemp and Nevada Division of Minerals Administrator Robert Ghiglieri.

The Nevada Mining Association’s annual convention started on Friday and is concluding on Monday.

i-80 is an association member and has been an active participant in the yearly showcase since 2022. That year, the gold miner received four safety awards from the organization for its efficient operations at Ruby Hill and the Lone Tree Complex.

Multiple safety awards were given to i-80 during the following years as well.

Per estimates, i-80’s Nevada properties are estimated to hold about 14 million gold ounces and 200 million ounces of silver. As the price of both precious metals soars, the company focuses on bringing past-producing mine sites back into full tilt operations.

i-80 is on track to become the state’s second largest gold producer behind Nevada Gold Mines if its expansion plans go smoothly.