Announcement • Jul 28
I-80 Gold Provides Update on Lone Tree Plant Refurbishment Project Remains on Schedule and on Budget
I-80 Gold Corp. has provided a status update on the refurbishment of its Lone Tree autoclave and carbon-in-leach processing plant located in Nevada, a cornerstone asset within Phase 1 of the Company's development plan. Once refurbished and commissioned, Lone Tree is expected to serve as the central processing hub for the Company's underground mines. The refurbishment is a key step in the Company's transition from toll milling to an owner-operator processing model which, based on the Company's December 2025 engineering study, is expected to reduce current processing costs and increase cash margins between an estimated USD 1,000 to USD 1,500 per ounce of gold, depending on grade and gold price. Early works and pre-construction readiness activities are well underway on site and continue to advance on schedule ahead of major construction, which is expected to commence in the fourth quarter of 2026. Second and third quarter pre-construction activities include mobilization of the EPCM contractor to site, commencement of demolition of the existing plant components requiring replacement as part of the refurbishment, and advancement of detailed engineering, procurement packages, and the award of key contracts. Procurement activities remain on schedule, with approximately 50% of procurement packages, by value, awarded as of mid-July. Project capital remains on budget with minimal contingency drawdown and approximately 40% of capital committed as of mid-July. The overall plant refurbishment remains on schedule to achieve first gold pour, which is anticipated in late 2027. Early works activities continue to advance on schedule. Safety systems and training programs are in place, and health and safety teams have mobilized to site to further advance emergency preparedness and response planning. Contractor onboarding and mobilization are also progressing well. Pre-demolition equipment and building cleaning have been completed, and environmental testing is nearing completion. No material requiring special handling has been encountered to date. Major demolition activities commenced on schedule in mid-June and will extend into the fourth quarter of 2026. Lighting upgrades have also been completed throughout the Plant. Hatch Ltd. has expanded its global and site-based engineering and procurement teams to support the Lone Tree refurbishment. Procurement activities remain on schedule, with approximately 50% of procurement packages, by value, awarded as of mid-July. Detailed engineering is approximately 30% complete as of mid-July and continues to progress in line with the Company's planned construction and commissioning schedule. Project costs incurred to date remain in line with the December 2025 engineering study and the Company's 2026 guidance, of between USD 140 million to USD 160 million in expenditures. The total capital cost estimate of USD 430 million, inclusive of contingency of approximately 12%, owner's cost, and capital spares, is supported by extensive engineering reviews, operating assessments, and trade-off studies. The Plant is permitted for the existing operational components in use. Normal course design and environmental permit applications were submitted in the first quarter of 2026, as planned. Several permits have been received to date and additional permits are pending. Various construction activities are scheduled to commence in the second half of 2026 upon the anticipated approval of the associated permits. Major construction is anticipated to commence in the fourth quarter of 2026. The scope of refurbishment work at Lone Tree includes a combination of new and improved design components and the replacement of some existing infrastructure. This work is aimed at modernizing the Plant to improve process efficiency and operating flexibility, and to meet new environmental compliance standards, including the refurbishment and upgrade of the existing autoclave to a modern pressure oxidation circuit. Upcoming Plant refurbishment milestones include commencement of construction in the fourth quarter of 2026, completion of detailed engineering by end of First Quarter 2027, filtration plant completion in early fourth quarter 2027, and first gold pour by year-end 2027. The Lone Tree Plant is a legacy asset with existing infrastructure, strategically situated as a centralized processing hub for the Company's underground gold projects and located immediately adjacent to Interstate 80. Based on 85% plant availability, the Plant is expected to process approximately 2,250 tonnes per day with a total annual throughput of approximately 825,000 tonnes. Using integrated pressure oxidation and carbon-in-leach circuits, the Plant is designed to be capable of processing both refractory (sulfide) and non-refractory (oxide) mineralized material. Oxide material will bypass the pressure oxidation circuit to be processed solely in the carbon-in-leach circuit after grinding. This flexibility allows the treatment of mineralized material to be optimized with the lowest cost and highest recovery rate. I-80 Gold is one of two gold companies in Nevada with an autoclave processing plant.
