I-80 Gold reports best drill hits yet at Ruby Hill in Nevada

I-80 Gold (TSX: IAU; US-OTC: IAUCF) said Monday it had struck high-grade polymetallic mineralization at the Ruby Hill property’s Blackjack zone reporting the best assay results on the prospect yet.

Hole iRH23-42A returned 116.3 metres grading 10.1% zinc and 0.3 gram gold per tonne, signalling resource expansion potential in the storied mining district of Eureka County, Nev.

Peter Bell, a mining analyst at Canaccord Genuity, struck an optimistic tone in a note to clients, saying drilling continues to steadily expand the Ruby Hill footprint.

“The latest drill results from i-80 Gold are mapping a robust growth path for Ruby Hill, consistent with the company’s track record of seven discoveries since the previous year,” he said. “This progress is a strong indicator of the project’s potential to achieve resource status and expand its polymetallic footprint.”

I-80 Gold’s drill program at Ruby Hill is targeting high-grade mineralization in the Blackjack and Hilltop zones. Drilling recently uncovered significant high-grade mineralization from the first hole on the east side of the Archimedes pit. This suggests potential for further expansion at depth and to the south.

The drilling strategy includes detailed metallurgical work to understand the nuances of the polymetallic deposits. An unnamed third party, eyeing a minority joint venture stake in Ruby Hill, is financing this phase.

This program extends to the FAD deposit, 2 km south of Ruby Hill, building on promising preliminary drill results.

I-80 Gold is also laying the groundwork for an underground mine at Ruby Hill. The plan will involve building a ramp from the Archimedes open pit to access the mineralization below, with construction expected to start sometime next year. This development will facilitate definition drilling and mining operations, pushing the Ruby Hill project into its next growth phase.

I-80 Gold’s drilling continues in support of a planned resource statement during the first half of 2024, Tyler Hill, chief geologist at i-80 Gold, said in the release.

The company released a preliminary economic assessment on its Granite Creek asset, also in Nevada, in early November.

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 southwestern state.

Company closed 0.5% lower on Monday at $2.25. The stock is down 42% over the past 12 months after touching $1.70 and $4.22. It has a market capitalization of $656.7 million.