i-80 Gold has revealed the outcomes of an engineering study concerning the refurbishment of its Lone Tree Plant located in Nevada, USA. The refurbishment marks a crucial milestone in i-80 Gold's phase one growth plan, aimed at transitioning to an owner-operator processing model to enhance margins and boost cash flow. The Study has highlighted a substantial surge in margins and potential for a short payback period for the project.
Nameplate Capacity
The plant is expected to have a capacity of 2,268 tonnes per day with POX and CIL circuits designed for processing both refractory and non-refractory materials.
Capital Cost Estimate
The estimated cost of the refurbishment is $412 million, surpassing initial expectations, but offering potential for increased flexibility in operational throughput.
Short Payback Period
An estimated payback period of 12 to 24 months, depending on the grade and gold price, indicating a swift return on investment for the project.
Transition to Owner-Operator
This transition is anticipated to reduce processing costs by one third and escalate gold margins by $1,000 to $1,500 per ounce, aligning with the company's strategic goal of enhancing profitability.
Permitting and Construction Timeline
The company is on track to complete engineering designs and permitting applications in 2026, with the construction phase expected to take place between 2026 and 2027.
- The refurbishment is projected to significantly enhance operational efficiency and decrease processing costs, positioning i-80 Gold for improved profitability.
- The shift towards an owner-operator model reflects i-80 Gold's strategic pivot towards maximizing margins and cash flow generation, signaling a strong commitment to operational excellence and financial performance.
The refurbishment of the Lone Tree Plant signifies a significant advancement in i-80 Gold's growth strategy, positioning the company as a potential mid-tier gold producer with enhanced margins and operational efficiency.