September 7, 2025
i-80 Gold Corp has announced the commencement of underground construction at its Archimedes project, part of the Ruby Hill Complex in Nevada. The company has secured all necessary environmental permits for underground mining, with production expected in the fourth quarter of 2026.
The company is adopting a phased approach to mining, starting with the upper zone while seeking permits for the lower zone. New permits will allow mining above the 5,100-foot elevation, with development and production mining anticipated to continue into the first half of 2028. Permitting for areas below this elevation is underway, with completion expected in the first half of 2027.
Shares of i-80 Gold rose 9.3% to C$1.18, marking a six-month high. The company, based in Reno, has a market capitalization of C$930.4 million.
Phase 1 Growth
Archimedes is i-80 Gold’s second planned underground mine, located about 180 km from its Lone Tree processing facility. CEO Richard Young highlighted the importance of the permits and construction start as part of a plan to boost annual gold output to 600,000 oz. by 2030. Phase 1 includes ramping up the Granite Creek mine, constructing Archimedes, and refurbishing the Lone Tree facility. These efforts aim to increase annual gold output to 150,000-200,000 oz. by 2028.
Underground development at Archimedes above the 5,100-foot elevation is expected to finish by mid-2027, featuring two portals, a main haulage decline, ventilation raises, exploration bays, and infrastructure. The Lone Tree refurbishment study is on track for completion in late 2025, with a feasibility study for Granite Creek expected in early 2026.
Next Steps
Starting in late 2026, material from Archimedes will be processed at a third-party facility until Lone Tree is operational in early 2028. Initial operations will also include on-site heap leaching. A preliminary economic assessment indicates a 10-year mine life with an average annual output of 100,000 oz. at a cost of $1,877/oz. At a gold price of $3,000/oz., the project has an after-tax net present value of $644 million and an internal rate of return of 81%.
Construction capital is estimated at $47 million, with life-of-mine costs at $106 million. The project uses an indicated resource of 436,000 oz. and an inferred resource of 988,000 oz. i-80 plans further drilling to expand resources and potentially extend the mine life. The timing of the infill drill program and feasibility study has been accelerated by 12 months, increasing drilling costs by $10 million-$25 million.
