i-80 Gold Corp is a mining company focused on the exploration, development, and production of gold properties in Nevada, USA.
You have an intimate relationship with mining, coming from a mining family. Could you tell us more about your background?
My dad was an explorationist, and I was born in Timmins, Ontario. Throughout my life, I moved from mining town to mining town, so it is something I grew up with. During university, my summer jobs typically involved working at some bush camp doing exploration. I fell in love with working in the bush and the industry because it took me out into nature, which I really enjoyed.
After university, where I studied business, I started an exploration service company using a government student loan, which did very well. Subsequently, I started my first public company in the late 1990s called Wolfden Resources. We became quite diversified in gold and base metals with projects throughout Canada. That company was taken over, and as part of the takeover, we spun out Premier Gold Mines, which I ran until three years ago. Three years ago, Premier Gold was taken over, and as part of that transaction, we spun out i-80 Gold, which is now a Nevada-focused company. We started assembling our Nevada portfolio within Premier prior to the takeover, and now we are strictly a Nevada company.
What is the reason behind that strict geographical choice?
We had a mine in Mexico with Premier, but operating there can be difficult due to social issues and cartel influences. It is not as straightforward as in North America. Canada, while more straightforward, has its challenges, particularly with permitting and indigenous relations. For example, we did permit the Greenstone project, which recently poured its first gold, but it was challenging.
In contrast, Nevada is a state that is very accommodating for mining companies, with good regulations and a great mining history. Most towns in north-central Nevada exist because of mining, and the communities are pro-mining. The steps to get a permit are well laid out, and if followed, you can be quite certain of getting a permit. Permitting a new mining project is one of the biggest risks in our industry, and Nevada’s clear process mitigates this risk significantly.
Tell us about your four mines in Nevada, starting with Lone Tree.
The Lone Tree facility, acquired from Nevada Gold Mines, includes an autoclave facility and is intended to be our central processing site. Our long-term vision is to build three separate underground operations to feed that autoclave facility, similar to what Nevada Gold Mines does but on a smaller scale.
Most high-quality oxide deposits in Nevada are depleting, and deeper gold mineralization becomes refractory, requiring processing through an autoclave or roaster. By acquiring Lone Tree, we became the third company in Nevada with such a processing facility, giving us a unique competitive advantage. Permitting a new facility like this would be difficult today, making our acquisition significant.
How did you acquire the Lone Tree facility?
We had a joint venture with Nevada Gold Mines, and they wanted to buy us out of our joint venture. We agreed on the condition that they give us Lone Tree, one of their processing facilities under care and maintenance. Convincing them took time, but it gives us a competitive advantage. To fill the Lone Tree facility, we need to build three separate underground mines. This approach is more cost-effective than building three separate processing plants, saving us significant capital costs.
When do you expect the Lone Tree facility to become operational?
The timeline hinges on completing feasibility and obtaining the final permit for our Cove project. Cove is a high-grade underground deposit, one of the highest-grade development stage gold deposits in North America. We are drilling from underground, upgrading resources, and completing feasibility studies at Granite Creek and Ruby Hill as well. We envision the autoclave starting up around 2027.
Your ambition is to become a mid-tier gold mining company. Why is that?
A mid-tier producer typically produces around 500,000 ounces. Companies like Lundin Gold, Alamos Gold, and Torex are considered mid-tier producers and have market caps in the billions. Our market cap is about 500 million, but we have greater resources than many mid-tier producers today. To unlock long-term value, our goal is to become a similar-sized company, expecting significant growth in our market cap as we increase production.
Additionally, at Ruby Hill, our flagship operation, we have one of the largest silver deposits in Nevada and North America. We also have polymetallic deposits rich in silver and gold. Our plan is to convert the gold plant at Ruby Hill into a base metal plant, producing lead and zinc concentrates. This diversification into base metals, silver, and gold positions us well for growth.
How do you ensure that your operations are sustainable?
Our operations are primarily on brownfield sites with historic mining activity. Currently, we are mining at Granite Creek and processing heap leach pads at Lone Tree and Ruby Hill. We have always taken a proactive approach to being part of the communities in which we work, avoiding major environmental issues.
With over 25 years of experience in permitting projects and running mines in multiple countries, we have a track record of being a responsible mining company. We work diligently through the necessary processes to ensure we are a friendly and sustainable mining company in the communities we operate in.
Would you say that gold prices will remain very high in the years to come?
My view is that, particularly in Western countries like Canada, the United States, and Europe, we have become addicted to debt. Governments think it is natural to double the country's debt without any big deal. This increasing debt load will put significant pressure on fiat currencies unless it is written off. The BRICS nations, like China, see this potential issue and are buying gold, reducing their exposure to US and Canadian markets, and considering gold-backed securities. This will be positive for gold.
We have seen gold prices hit all-time highs even during significant interest rate increases. Every time rates increased, gold would dip but kept coming back. Recently, Canada and Europe have reduced interest rates, and once the US does the same, it will be a real catalyst for gold, especially if we go back into another period of QE. I predict that the gold price will easily hit $3,000 by the end of this year.
If you could pinpoint a major challenge for i-80 Gold to resolve, what would you choose?
Realistically, something we can solve involves cooperation with local authorities and governments. Acceptance of metals by all people and governments is crucial. I am involved with another company in the US that faced rejection by anti-mining groups despite local support. Rationalized permitting would be a significant improvement. Changing the attitude of people towards mining, especially the "not in my backyard" mentality, would make a big difference. It is important to understand that mining can be done responsibly, and people often do not realize the origin of the commodities they use daily.
How do the next three years for i-80 Gold look?
Building financial flexibility for our company is key. We need to upgrade our projects from deposits with mostly inferred resources to those with mostly measured and indicated resources. This involves significant definition drilling and completing permits. Two of our three projects are already underground, and we expect to get a permit for the third one this year.
Our goal is to get all components needed for future success in place. We aim to become one of the largest United States-only producers by ensuring we have all necessary permits and resources. By aligning all these aspects, we are preparing to achieve significant growth and stability in the upcoming years.
