11:59 AM EST, 02/18/2025 (MT Newswires) -- (Adds comment and updates shares.)

i-80 Gold ( IAUX ) on Tuesday reported the results of a preliminary economic assessment (PEA) for the Archimedes underground project within the Ruby Hill Complex in Nevada.

The study outlined a post-tax net present value of US$126.8 million based on a 5% discount rate, with a 23% internal rate of return and an initial capital cost of US$49 million

Gold production was projected at 84,400 ounces per year over a 10-year mine life.

"Based on the PEA, Archimedes is expected to contribute meaningfully to the overall production and economics of the company's hub-and-spoke strategy in spite of higher transportation costs to our central autoclave facility, and lower grades relative to the company's two other underground projects," chief executive Richard Young said.

An updated resource estimate is expected to be completed in 2028 for inclusion in a planned feasibility study.

"The PEA's findings show that at a base case gold price of US$2,175/oz, Archimedes Underground is at the lower end of valuation compared to other underground gold projects in our portfolio, however it presents the highest leverage to gold prices," Young added.

National Bank of Canada maintained its outperform rating and $1.75 price target on the company's shares following the update.

National Bank said its thesis for the company is supported by its resource endowment, with exploration upside in a Tier 1 jurisdiction and multiple growth levers. These are tempered by de-risking with pending resource estimate and mine plan updates, recapitalization, financing and development.

I-80 shares were last seen up $0.09 to $1.07 on the Toronto Stock Exchange.

Price: 1.07, Change: +0.09, Percent Change: +8.67