U.S.-focused i-80 Gold (TSX: IAU; US-OTC: IAUCF) says the results of a preliminary economic assessment (PEA) for its Granite Creek asset in Nevada confirm the project offers "substantial economic opportunity."
The company, which spun off from Premier Gold Mines as part of the company's acquisition by Equinox Gold (TSX: EQX; NYSE: EQX) , began underground test mining at Granite Creek in September.
The program is aimed at gaining a better understanding of the optimal mining cycle required for the project and to advance underground development for a commercial production scenario.
While a production decision for Granite Creek has yet to be made, i-80 Gold says the PEA supports the development of both open pit and underground mines on the property.
"This study contemplates constructing heap leach and CIL facilities on the property for the open pit and trucking refractory material for third party processing," president and chief operating officer Matthew Gili, said in the statement.
The recent acquisition of the Lone Tree site will allow for the optimization of the facilities as the miner progresses towards a feasibility study, Gili noted. He added the integration of Lone Tree could lead to changes in the ultimate processing plans.
Granite Creek, one of four projects the company is advancing, is located in Humboldt county, near Nevada Gold Mine's Twin Creeks and Turquoise Ridge mines.
Based on the current resource estimates for the property, i-80 expects the mine will have a nine-year operating life, producing 1.25 million ounces of gold at life-of-mine all-in sustaining costs of US$963.40 per ounce.
In September, the gold miner inked a deal with Nevada Gold Mines, a partnership between Newmont (TSX: NGT; NYSE: NEM) and Barrick Gold (TSX: ABX; NYSE: GOLD), which will help it create a major mining complex in the precious metals-rich state of Nevada.