i-80 Gold Announces Lone Tree Plant Refurbishment Update; Study Highlights Material Increase in Margins and Short Payback Period

Executive Summary

• i‑80 Gold released an engineering study for the $430 M refurbishment of its Lone Tree processing plant, projecting a short payback period of 12–24 months and margin uplift of $1,000–$1,500 per ounce of gold.
• The study estimates total capital cost at $412 M (AACE Class 3) plus $18 M in spares; the plant will have a nameplate capacity of 2,268 t/d (≈828 kt/yr).
• Construction is slated to begin in H2 2026 after recapitalization is completed (target Q2 2026), with commissioning expected by Q4 2027.

Key Details

• Scope & Capacity – Refurbishment includes upgrading the autoclave to a modern POX circuit, new tailings filtration system, mercury abatement upgrades, and replacement of legacy CIL tanks; plant capacity 2,268 t/d (827,806 t/yr) at 85 % availability.
• Capital Cost Estimate – $412 M (direct + indirect) plus $18 M capital spares = $430 M total; higher than the originally anticipated ~$400 M due to inflation, design detail, and added redundancy in tailings filtration.
• Payback & Margin Impact – Expected payback 12–24 months (grade‑dependent); processing cost reduction to ~⅓ of current toll‑milling costs, delivering an estimated margin increase of $1,000–$1,500/oz Au.
• Construction Timeline – Early works started under limited notice‑to‑proceed; demolition Q2 2026, construction H2 2026, commissioning end 2027.
• Recapitalization Plan – Ongoing discussions for senior debt, royalty sale, and non‑core asset divestiture; aim to close recapitalization by end of Q2 2026 or earlier.
• Engineering Progress – ~30 % detailed engineering complete; full design and permitting targeted Q4 2025 (design) with permit applications Q1 2026.
• Operating Flexibility – Added filtered tailings system improves water recovery, reduces closure cost, and allows processing of oxidized material during autoclave outages, potentially boosting throughput 5–10 %.
• Workforce & Construction Intensity – Estimated 600,000 direct construction hours; peak crew ~400 personnel, relatively low intensity versus greenfield projects.

Notable Quotes

“Refurbishing the Lone Tree Plant marks a major step forward in our goal of creating a mid‑tier gold producer… expected to significantly increase margins and free cash flow generation.” – Richard Young, President & CEO
“The refurbishment incorporates standard, technically straightforward upgrades designed to improve operating efficiency… low execution risk with modest direct construction hours.” – Paul Chawrun, COO