Three Phases to Gold Dominance: i-80's Systematic Path to Mid-Tier Status

• New management led by CEO Richard Young & COO Paul Chawrun brings 35+ years mining engineering experience, previously built mid-tier producer at Teranga Gold acquired by Endeavour Mining
• Phase 1 focuses on refurbishing Lone Tree Autoclave and developing high-grade underground mines; Phase 2 adds Cove underground and Granite Creek open pit; Phase 3 centers on flagship Mineral Point open pit targeting 600,000+ ounces annually
• Currently operating Granite Creek mine with well-understood Carlin trend geology, high-grade underground resources (10+ g/t), and 17-year mine life at Mineral Point
• Lone Tree Autoclave refurbishment completion by end-2027 will eliminate $1,000-1,200/oz margin loss from current toll milling arrangement
• Recent equity raise addressed balance sheet, targeting self-funded Phase 3 development with potential FAD asset divestiture to fund growth

i-80 Gold (TSX:IAU) represents an interesting opportunity to participate in the development of Northern Nevada's next mid-tier gold producer. Under new leadership, the company is executing a well-defined three-phase development strategy designed to achieve production exceeding 600,000 ounces per year at competitive costs in one of the world's most amenable mining jurisdictions.

Experienced Leadership Driving Execution

The company's transformation began with the arrival of Chief Executive Offie Richard Young approximately a year ago, followed in April 2025 by Chief Operating Officer Paul Chawrun, who brings over three decades of mining engineering expertise. Chawrun's background is particularly relevant, having previously served as COO at Centerra Gold and working alongside current leadership at Teranga Gold, where they successfully "built up a small producer there into a mid-tier producer which was then purchased by Endeavour Mining."

This experience in scaling operations is crucial given i-80 Gold's current position. The management team quickly moved to strengthen the balance sheet through a raise, and then they moved quickly to strengthen the organisation below the senior management team. The additions include "structural geologists, resource geologists, mining engineers, and assistants on the permitting side to execute"

Well-Understood Geology in Proven Jurisdiction

A key differentiator for i-80 Gold is the quality and predictability of its asset base. Contrary to common perceptions about complex Nevada geology, Chawrun emphasizes that 

"the geology is well understood. This is Carlin Trend. It's epithermal that's been mineralised inside a sediment host." 

This geological understanding provides confidence in resource conversion and mine planning.

The company currently operates the Granite Creek mine, which has been producing for two years and serves as proof of concept for the broader development strategy.

Interview with Paul Chawrun, COO of i-80 Gold

Three-Phase Development Strategy

The company's systematic approach to development is structured around three distinct phases, each designed to build upon previous successes while minimizing capital requirements and execution risk.

Phase One: Autoclave Refurbishment and Underground Development

The cornerstone of Phase 1 involves refurbishing the company-owned Lone Tree Autoclave, which operated until 2006. Currently, Granite Creek ore must be shipped to the Turquoise Ridge Autoclave under a toll milling arrangement that costs the company significant margins. Chawrun explains, 

"we are losing the margin of $1,000 to $1,200 per ounce that we could be getting once Lone Tree's in operation."

The underground resources feeding the autoclave are exceptionally high-grade, with "resource estimates in north of 10 grams per ton for the measured and indicated at Granite, 13 grams a ton for the inferred." These grades make toll milling economically suboptimal and justify the autoclave investment.

Phase 1 also includes development of the Archimedes underground mine at the Ruby Hill complex, where the company recently received permits to initiate the first drift. A comprehensive drill campaign beginning late this year will support conversion of resources to higher-confidence categories.

Phase Two: Expanding Production Base

Phase 2 encompasses two additional assets: the Cove underground mine and the Granite Creek open pit. The Cove underground offers "good grades" with completed drilling and feasibility study targeted for completion by Q1 2026. All-in sustaining costs are projected at "$1,400 to $1,500 per ounce" where "the grades make up for the volume."

The Granite Creek open pit represents a different mining approach, featuring "1.2 g per ton in the range of 1.4 million ounces" of oxide material suitable for heap leach and CIL processing. Preliminary economic assessments indicate "costs in the range of $1,200 to $1,300 per ounce," providing excellent margins at current gold prices.

Phase Three: Flagship Development

The culmination of the development strategy centers on Mineral Point, the company's flagship asset. This open pit operation alone targets "280,000 ounces per year from the Mineral Point" at "all in sustaining cost in the range of $1,200 to $1,300 per ounce" with a substantial 17-year mine life.

Mineral Point's resource base includes "3 million ounces of measured indicated and another 2 million ounces of inferred," providing significant production visibility and potential for resource expansion. The asset represents the highest value component of i-80 Gold's portfolio and the primary driver toward achieving 600,000+ ounce annual production.

Technical Execution with Risk Management Focus

i-80 Gold has engaged Hatch Engineering, recognised as "world-class experts at Autoclave Technology," to manage the Lone Tree refurbishment. The feasibility study is "nearly complete" and the company has begun "ordering the long lead equipment" after receiving limited notice to proceed from the board. The autoclave refurbishment, while technically complex, benefits from existing infrastructure.

Risk mitigation extends beyond technical execution to operational continuity. The company maintains current toll milling arrangements to preserve cash flow during development, with plans to evaluate stockpiling strategies as the Lone Tree Autoclave approaches completion by end-2027.

Regulatory Advantages in Northern Nevada

Operating in Northern Nevada provides significant jurisdictional advantages, with supportive regulatory frameworks and established mining infrastructure. Chawrun notes that "these projects are what everybody wants to move forward" across federal, state, and local regulatory agencies.

The company emphasises stakeholder engagement, particularly for the Mineral Point development. This proactive approach to social license reduces development risk and supports long-term operational sustainability.

Strategic Financial Approach to Capital Allocation

i-80 Gold's financial strategy emphasises measured capital deployment with each phase designed to generate cash flow supporting subsequent development. The company recently completed an equity raise to address immediate balance sheet needs. Looking ahead, the company targets self-funded development for Phase 3, with potential asset divestiture providing additional capital flexibility. Specifically, "one of the options we're evaluating is divesting that [the FAD deposit] to be able to fund this growth plan."

This approach minimises dilution while maintaining development momentum, particularly important given the substantial capital requirements for achieving mid-tier producer status.

The Investment Thesis for i-80 Gold

• Experienced Management Team: Proven track record of building and scaling mining operations, with over 35 years of relevant experience in Nevada geology and mine development
• High-Grade Resource Base: Exceptional underground grades exceeding 10 g/t gold with well-understood Carlin trend geology providing predictable resource conversion potential
• Systematic Development Strategy: Three-phase approach minimises execution risk while building toward 600,000+ ounce annual production target with clear value inflection points
• Margin Enhancement Opportunity: Lone Tree Autoclave refurbishment eliminates $1,000-1,200/oz margin loss from current toll milling, providing immediate operational leverage
• Favorable Jurisdiction: Northern Nevada's supportive regulatory environment and established mining infrastructure reduce development risks and permitting timelines
• Self-Funding Pathway: Phased development approach designed to generate cash flow supporting subsequent phases, minimising dilution and external funding requirements
• Long Mine Life: 17-year mine life at flagship Mineral Point asset provides production visibility and potential for resource expansion through continued exploration
• Multiple Production Centers: Diversified asset base across underground and open pit operations reduces single-asset risk while optimising processing approaches

Macro Thematic Analysis

The global gold mining sector faces increasing pressure to replace depleting reserves while maintaining production growth in established, low-risk jurisdictions. Nevada's position as North America's premier gold-producing region makes it particularly attractive for development-stage companies with proven resource bases. i-80 Gold's strategy directly addresses this thematic by focusing on systematic development of high-grade assets in a jurisdiction where regulatory certainty and infrastructure support reduce execution risks.

The company's three-phase approach aligns with broader industry trends toward measured capital deployment and organic growth over acquisition-based expansion. As established producers face resource depletion and rising costs, mid-tier developers with systematic growth strategies become increasingly valuable. The Lone Tree Autoclave refurbishment exemplifies efficient capital allocation - leveraging existing infrastructure to unlock margin expansion rather than building greenfield facilities.

Current gold price levels provide substantial margin cushion for i-80 Gold's projected operating costs of $1,200-1,500 per ounce, creating potential for strong cash flow generation throughout the development cycle. This margin environment supports self-funding strategies while reducing dependence on external capital markets.

“We aim to become the next mid-tier gold producer in Northern Nevada. And we expect to be able to produce over 600,000 ounces per year of gold at low cost, low capital in a safe, mature mining jurisdiction of Northern Nevada."

TL;DR

i-80 Gold is executing a systematic three-phase development strategy to become Nevada's next mid-tier gold producer, targeting 600,000+ ounce annual production under experienced management. The Lone Tree Autoclave refurbishment by end-2027 eliminates $1,000-1,200/oz margin loss while high-grade underground resources (10+ g/t) provide exceptional economics. With well-understood Carlin trend geology and supportive Nevada jurisdiction, the company offers compelling organic growth exposure in North America's premier gold district.

FAQ's (AI Generated)

Q: How does the three-phase strategy minimise development risk? 

Each phase generates cash flow supporting subsequent development, reducing external funding dependence. Phase 1 eliminates toll milling margins, Phase 2 adds production base, Phase 3 achieves mid-tier status.

Q: What makes i-80 Gold's geology advantageous compared to other Nevada developers? 

Carlin trend epithermal mineralization in sediment hosts provides predictable ore body continuity. Well-understood geology enables resource conversion from inferred to measured categories with reduced exploration risk.

Q: When will the margin improvement from autoclave refurbishment be realised? 

Lone Tree Autoclave completion targeted for end-2027. Company continues toll milling for cash flow until then, with potential stockpiling evaluation as completion approaches.

Q: How does current production at Granite Creek support the development thesis? 

Two years of operating experience demonstrates geological understanding and mining capability. Current operations provide cash flow and technical validation while accessing higher-grade underground resources.

Q: What regulatory advantages does Northern Nevada provide for development? 

Established mining jurisdiction with supportive federal, state, and local agencies. Regulatory framework encourages mid-tier producer development with predictable permitting processes and community support.

Q: How will Phase 3 development be funded without significant dilution? 

Self-funding strategy through cash flow from earlier phases, plus potential FAD asset divestiture. Systematic approach reduces external capital requirements while maintaining development momentum.