I-80 Gold (TSX:IAU) is a growth-oriented mining company involved in the exploration, development, and production of gold and silver mineral deposits in the United States (U.S.), primarily in Nevada. The company’s principal product is gold, with gold production contributing to the majority of the I-80’s revenues through the company’s ownership interest in the South Arturo mine. The company plans to build on I-80’s current base through existing operating mine expansions, development of new mines, and by targeting other gold-consolidation opportunities.
Robust business strategy
The company’s business strategy is focused on creating value for stakeholders through ownership and advancement of I-80’s mineral properties. The company’s goals include expanding mineral resources and mineral reserves, completing additional technical and economic studies on all projects and advancing the development of the South Arturo mine, the McCoy-Cove project, and the Getchell project.
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Exciting projects on the go
At the South Arturo mine, the company continues to expand reserves and resources. Additional work is being undertaken in the open pits area to increase understanding of the potential leach ore resource through additional definition drilling and additional metallurgical test work with the aim of improving the expected recovery from the future leaching process. This metallurgical testing will also serve to refine the leach pad size and design to ensure the pad meets all future needs. Additionally, the company plans to complete a trade-off study to evaluate the merits of underground versus open pit mining for the deposit.
At the Getchell project, the company plans to advance the understanding of multiple deposits through continued exploration and technical studies. The company also plans to conduct additional column leach test work on open pit samples at varying crush sizes to determine the optimum crush size.
At the McCoy-Cove project, the company has advanced a work program that is focused on portal construction and development of an underground drilling platform, additional metallurgical testing, advanced resource modelling, and baseline data collection in support of a permitting and developing decision.
Focus on sustainability
In addition to these projects, the company also plans to continue to advance an extensive project pipeline through continued exploration and through the acquisition of additional projects of merit that may be identified by the company in the future. The company’s principal objective is to become a sustainable gold producer, with a secondary focus on silver. There is a huge global gold market into which the company can sell gold into and hence, I-80 is not dependent on a particular purchaser with regard to the sale of any gold that it produces.
Attractive valuation despite risks
A risk that exists with investing in the company relates to government regulation. Future development and operations may be affected in varying degrees by such factors as government regulations with respect to restrictions on production, export controls, income taxes, expropriation of property, repatriation of profits, environmental legislation, land use, water use, land claims of local people, mine safety, and receipt of necessary permits.
Despite these risks, I-80 is very attractively valued at the current market price.
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Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.