Why i-80 Gold is Positioned to Capitalize on Record Gold Prices

• Spot prices reached $3,875.32/oz on October 1, 2025, driven by U.S. government shutdown uncertainty, weak labor data, and persistent safe-haven demand, with analysts projecting targets toward $4,000/oz.
• i-80 Gold controls 6.5 million ounces measured and indicated (M&I) plus 7.5 million ounces inferred resources across four core projects in Nevada, North America's premier mining jurisdiction.
• Recent infill drilling at Granite Creek returned grades including 33.6 g/t gold over 2.9 meters and 20.8 g/t over 5.7 meters, supporting resource conversion ahead of Q1 2026 feasibility studies for both Granite Creek and Cove projects.
• Ownership of one of only two operating autoclaves in Nevada provides competitive advantages in processing refractory ore, with planned refurbishment expected to boost recovery rates from 60% to 92% by Q4 2025.
• The company targets production exceeding 600,000 ounces annually by the early 2030s, scaling from current estimated output of 30,000-40,000 ounces in 2025, with strong institutional backing from Sprott, Orion, and Van Eck.

Introduction: Gold's Record Rally Creates Window for Mid-Tier Nevada Producers

Gold markets entered historic territory on October 1, 2025, with spot prices surging to an all-time high of $3,875.32 per ounce before settling at $3,860.13, marking a year-to-date gain exceeding 47%. The rally reflects converging macroeconomic pressures including the U.S. government shutdown, weakening labor market indicators, and sustained safe-haven demand amid geopolitical uncertainty. December gold futures climbed 0.4% to $3,887.40 as the dollar index fell to its lowest level in over a week, making dollar-denominated gold more attractive to international buyers.

Against this backdrop of record prices and heightened market volatility, Nevada-based i-80 Gold Corp. (TSX: IAU | NYSE American: IAUX) presents a compelling case for investors seeking leveraged exposure to gold's continued strength. The company controls a substantial resource base of 6.5 million ounces M&I and 7.5 million ounces inferred across four high-grade projects, positioning it to benefit directly from elevated gold prices while advancing toward mid-tier production status.

The current environment favors developers with advanced-stage assets in stable jurisdictions. Nevada's established mining infrastructure, favorable regulatory framework, and proximity to processing facilities provide operational advantages that translate to lower execution risk. With feasibility studies scheduled for Q1 2026 and recent drilling results confirming robust high-grade mineralization, i-80 Gold's development timeline aligns favorably with sustained strength in gold markets.

Company Overview: Building Nevada's Next Mid-Tier Producer

i-80 Gold has assembled a portfolio of four core projects (Granite Creek, Ruby Hill, Cove, and Lone Tree) concentrated in Nevada's prolific gold-producing districts. The company's strategy centers on developing a Nevada-based mid-tier producer capable of generating over 600,000 ounces annually by the early 2030s. This production target would position i-80 among North America's significant gold producers, with operations entirely within a Tier-1 mining jurisdiction.

"Our vision is to build a Nevada-based mid-tier gold producer with a clear path to over 600,000 ounces per year by the early 2030s."

The statement reflects management's strategic focus on scaling production within North America's premier mining jurisdiction while leveraging existing infrastructure and geological expertise.

The company's resource base comprises both high-grade underground deposits and oxide open-pit opportunities. At Granite Creek, measured and indicated resources total 261,000 ounces at 10.5 grams per tonne (g/t), with an additional 326,000 ounces at 13.0 g/t in the inferred category. The Cove project hosts 311,000 ounces indicated at 8.2 g/t and 1.16 million ounces inferred at 8.9 g/t. These grades significantly exceed typical open-pit operations and support economically robust underground mining scenarios.

As of June 30, 2025, i-80 Gold maintained $134 million in cash against $176 million in debt, following approximately $200 million raised through equity offerings in 2025 via bought deal and private placement financings. The company's market capitalization stood at approximately $748 million in September 2025. Management has outlined plans to secure $350 million to $400 million in debt financing while pursuing asset optimization through the sale of the non-core FAD project and royalty monetization on the Mineral Point property.

Key Development: High-Grade Drill Results Advance Resource Conversion

On September 10, 2025, i-80 Gold released results from the initial six holes of its 2025 infill drilling program at Granite Creek, confirming robust high-grade mineralization within the South Pacific Zone. Significant intercepts included 33.6 g/t gold over 2.9 meters in hole iGS25-02A, 29.7 g/t over 3.6 meters in the same hole, and 20.8 g/t over 5.7 meters in hole iGU25-01. These results validate the geological model underpinning the February 2025 preliminary economic assessment (PEA) and support ongoing resource conversion efforts.

"The first six holes of the 2025 infill drill program confirm robust high-grade mineralization in the South Pacific Zone."

The company emphasized that the drilling program's 40 holes totaling 14,000 meters specifically target resource conversion to support the upcoming feasibility study, underscoring management's focus on technical de-risking ahead of production decisions.

The 40-hole, 14,000-meter program specifically targets conversion of inferred resources to the indicated category ahead of a planned feasibility study in Q1 2026. Resource conversion reduces technical uncertainty and enhances project bankability, critical factors as the company advances toward production decisions and project financing. Ramp-up activities at Granite Creek continue with steady-state production targeted for the first half of 2026, providing near-term operational milestones.

Concurrent drilling at the Cove underground project saw completion of 45,000 meters of infill work across the Helen and Gap zones. Results support the geological model and confirm the high-grade nature of mineralization. Notably, approximately 15% of Cove's material is oxide ore that can bypass autoclave processing and be treated directly at the Lone Tree carbon-in-leach (CIL) circuit, reducing processing complexity and costs. The remaining sulfide material will be processed through autoclave or third-party roasting facilities, with a Cove feasibility study also scheduled for Q1 2026 in conjunction with SRK Consulting.

Strategic Significance: Autoclave Advantage in Nevada

i-80 Gold's ownership of the Lone Tree autoclave facility represents a strategic competitive advantage in Nevada's gold mining landscape. As one of only two operating autoclaves in the state, this processing infrastructure is critical to unlocking value from refractory gold ores (material that cannot be efficiently processed through conventional cyanide leaching due to sulfide encapsulation of gold particles). The autoclave uses high-temperature, high-pressure oxidation to break down sulfide minerals, liberating gold for subsequent recovery.

Current recovery rates at the facility approximate 60%, but a refurbishment study due in Q4 2025 targets improvements to approximately 92% recovery. This 32-percentage-point increase would dramatically enhance project economics across i-80's portfolio, particularly at Granite Creek, Cove, and Ruby Hill where refractory ores predominate. At current gold prices exceeding $3,860 per ounce, each percentage point of recovery improvement translates to significant additional revenue per ton processed.

The Lone Tree autoclave is one of only two operating autoclaves in Nevada and is critical to unlocking refractory material at Granite Creek, Cove, and Ruby Hill, according to the company's September 2025 corporate presentation. This competitive positioning becomes increasingly valuable as Nevada's limited autoclave capacity constrains other operators' ability to process high-grade refractory ores economically, particularly in a rising gold price environment.

The autoclave eliminates reliance on costly third-party toll milling arrangements that can constrain margins and production flexibility. This vertical integration becomes increasingly valuable as gold prices rise, allowing i-80 to capture the full margin benefit of elevated prices rather than sharing economic upside with processing contractors. Nevada's limited autoclave capacity also positions i-80 to potentially offer toll processing services to other operators, creating an additional revenue stream while optimizing facility utilization.

Project Economics: Leveraged to Gold Price Strength

The February 2025 preliminary economic assessments for both Granite Creek and Cove demonstrate strong economics that benefit substantially from gold prices above base-case assumptions. At Granite Creek, the PEA modeled an eight-year mine life producing approximately 60,000 ounces annually at an all-in sustaining cost (AISC) of $1,597 per ounce. At a gold price of $2,175 per ounce, the project generates a 5% net present value (NPV5%) of $155 million and after-tax cash flow of $197 million.

With gold currently trading at $3,860 per ounce (77% above the base-case assumption), Granite Creek's economics improve dramatically. Even at the PEA's higher price sensitivity of $2,900 per ounce, NPV5% reaches $344 million with total after-tax cash flow of $420 million. The spread between current spot prices and the project's AISC of $1,597 per ounce exceeds $2,260, providing substantial operating margins that buffer against potential cost inflation or operational variability.

Cove's economics present similar leverage with even lower operating costs. The project targets approximately 100,000 ounces annually over an eight-year mine life at an AISC of $1,303 per ounce. At $2,175 per ounce gold, Cove achieves NPV5% of $271 million and an internal rate of return (IRR) of 30%. At $2,900 per ounce, NPV5% increases to $582 million with IRR of 52%. These returns position Cove as the portfolio's most economically robust asset on a risk-adjusted basis, with AISC approximately $300 per ounce lower than Granite Creek and production rates 67% higher.

Current Market Context: Safe-Haven Demand Supports Price Outlook

Gold's surge to record highs reflects multiple supportive macroeconomic factors likely to persist through 2025 and 2026. The U.S. government shutdown resulting from political deadlock over funding legislation has delayed economic data releases and heightened policy uncertainty, traditional catalysts for safe-haven demand. The October 2025 JOLTS report showed only marginal growth in job openings alongside declining hiring activity, reinforcing expectations for Federal Reserve interest rate cuts that reduce the opportunity cost of holding non-yielding gold.

The dollar index's decline to a more-than-one-week low on October 1 makes dollar-priced gold more attractive to overseas buyers, particularly in major consuming nations. China's gold markets were closed for holiday during the October 1 price surge, with reopening scheduled for October 9 potentially bringing additional demand from the world's largest gold consumer. Silver, often traded in tandem with gold, climbed 0.5% to reach a 14-year high near $46.90 per ounce, indicating broad-based precious metals strength.

Market analysts have raised near-term price targets, with several projecting gold toward $3,900 to $4,000 per ounce based on current momentum and macroeconomic conditions. While counter-forces exist (including potential dollar strengthening, hawkish Federal Reserve policy shifts, or U.S. fiscal reforms), the underlying drivers of geopolitical tension, monetary policy uncertainty, and persistent inflation concerns continue supporting elevated prices. For development-stage producers like i-80 Gold, this environment provides favorable economics for advancing projects toward production decisions.

Institutional Support: Backing From Major Resource Investors

i-80 Gold's shareholder base includes prominent institutional investors specializing in resource sector opportunities. Sprott, Orion Mine Finance, and Van Eck (firms with extensive track records evaluating mining projects) maintain significant positions. This institutional support provides both validation of the technical and economic merits of i-80's assets and potential access to additional capital as development progresses.

Institutional investors typically conduct extensive due diligence before committing capital to development-stage mining companies, evaluating geological prospectivity, management capability, jurisdictional risk, and project economics. The presence of sophisticated resource investors suggests confidence in i-80's ability to execute its development strategy and achieve production targets. These investors also bring operational expertise and industry networks that can benefit portfolio companies beyond pure capital provision.

The company's ability to raise approximately $200 million through equity offerings in 2025 demonstrates continued market access despite broader capital markets volatility. With additional debt financing of $350 million to $400 million planned alongside asset monetization initiatives, i-80 has outlined a clear path to funding development through to production without excessive equity dilution. The strong institutional backing enhances credibility in debt markets and positions the company favorably for project financing discussions.

The Investment Thesis for i-80 Gold

• Position in i-80 Gold ahead of Q1 2026 feasibility study releases for Granite Creek and Cove, which are expected to confirm economics and potentially catalyze rerating as projects advance toward construction decisions and project financing.
• With all-in sustaining costs of $1,303-$1,597 per ounce against current spot prices exceeding $3,860, i-80 offers significant operating margin leverage; each $100 increase in gold prices adds approximately $30-40 million in annual cash flow at full production.
• Add mid-tier Nevada gold producers to portfolios currently weighted toward senior producers or exploration companies; Nevada's Tier-1 jurisdiction and established infrastructure reduce execution risk relative to international development projects.
• Track infill drilling results and resource estimate updates through Q4 2025 and Q1 2026; successful conversion of inferred to indicated resources de-risks projects and supports higher valuations using standard mining sector metrics.
• Consider i-80's potential as an acquisition target for senior producers seeking to add Nevada production; the company's consolidated land position and processing infrastructure could attract strategic interest, particularly if gold prices remain elevated.
• If gold prices break through $4,000 per ounce and sustain above this level, increase exposure to development-stage producers like i-80 whose project economics improve dramatically while many senior producers face rising input costs that compress margins.

i-80 Gold occupies a distinctive position in the gold development space, combining substantial high-grade resources in a premier jurisdiction with strategic processing infrastructure during a period of record gold prices. The company's 6.5 million ounces M&I and 7.5 million ounces inferred resources provide a multi-decade development runway, while near-term catalysts including feasibility studies and continued drilling results offer regular newsflow through 2026.

The economic leverage inherent in development-stage producers becomes particularly compelling at current gold prices. With spot gold at $3,860 per ounce and project-level AISC in the $1,300-$1,600 range, operating margins exceed $2,200-$2,500 per ounce (spreads that can absorb significant cost inflation while still generating robust returns). The autoclave refurbishment targeting 92% recovery rates further enhances economics, potentially adding 30-50 basis points to internal rates of return across the portfolio.

For investors seeking leveraged exposure to gold's continued strength while diversifying away from senior producers facing cost inflation and reserve replacement challenges, i-80 Gold presents a credible pathway to meaningful production growth in North America's most established gold mining jurisdiction. The convergence of record gold prices, advancing technical work, and upcoming feasibility studies creates a favorable setup for potential rerating as the company transitions from developer to near-term producer.

TL;DR

i-80 Gold controls 14 million ounces of gold resources across four Nevada projects and targets 600,000+ annual ounces by the early 2030s, with projects showing strong economics at current gold prices above $3,860/oz and key feasibility studies due Q1 2026.

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