Nevada-Based Exploration Company Finds High Gold Grades

i-80 Gold Corp. (IAU:TSX; IAUX:NYSE) announced in a press release on January 17, 2024, that it has the results from the company's drill program on the Nevada-based Ruby Hill property. The company believes that these results illustrate the potential to expand estimates of high-grade mineralization on the property.

The results are focused on the East Hilltop, Upper Hilltop, and Hilltop Corridor zones. I-80 reported that the company found 1.5 grams per tonne (g/t) gold (Au), 274.6 g/t silver (Ag), 4.7% zinc (Zn), and 4.3% lead across 13.2m on the East Hilltop zone, as well as 22.4% Zn across 5.8m, and 197.2 g/t Ag, 7.5% Zn, and 5% Pb across 6.1m. I-80 also found 9.5% Zn, 0.3% copper (Cu), and 12.6 g/t Ag across 114.3m, including 17.7% Zn, 0.4% Cu, and 10.2 g/t Ag across 36.6m, and 12.9% Zn, 0.6% Cu, and 48.8 g/t Ag across 15.2m on East Hilltop. The final drill hole on the site found 0.2 g/t Au, 36.3 g/t Ag, 7.1% Zn, and 1.4% Pb across 6.1m.

Drilling on the Upper Hilltop zone found 2.1 g/t Au, 514.8 g/t Ag, 3.1% Zn, and 23.4% Pb across 10m, 14.7 g/t Au, 253.3 g/t Ag, 0.4% Zn, and 8.7% Pb across 7.5m, 0.6 g/t Au, 332.9 g/t Ag, 8.8% Zn, and 18.8% Pb across 32m, and 1.0 g/t Au, 469.4 g/t Ag, 6.8% Zn, and 15.6% Pb across 23.6m.

Exploration on the Hilltop Corridor found 252 g/t Ag, and 22.3% Zn across 1.5m, and 1,181 g/t Ag, 19.5% Zn, and 10.2% Pb across 1.5m.

The company stated that "The continuing drill program at Ruby Hill is focused on defining and expanding mineralization in the multiple zones that make the property a core asset for i-80." These results will be factored into an upcoming initial resource estimate, it said.

Tyler Hill, the chief geologist at i-80, commented, "Drilling continues to intersect extremely high-grade polymetallic base metal mineralization in multiple zones at Ruby Hill. These results include multiple new intercepts in the East Hilltop discovery area, including the most significant copper mineralization identified to date." He continued, "High-grade, silver-rich skarn mineralization was also intersected in stepout drilling along the untested southern extension of the Graveyard Flats intrusive."

Gold Ready for a Breakout

On January 23, 2024, Katusa Research predicted that gold could have a "monster breakout" this year. The report commented, "Any decisive and sustained price move up, you'll wish you owned more gold stocks, because we could be on the cusp of a gold rush like no other." Gold could see substantial momentum if it breaks over CA$2,200, Katusa stated.

Mining Discovery also reported on January 23, 2024, that gold could see significant rallies in 2024, especially as the Federal Reserve considers cutting rates. Gold is typically seen as a safe haven for investors when inflation and economic uncertainty are running high.

Mining Discovery stated, "An economic downturn accompanied by more rate cuts than currently expected might send gold to new record highs."

Mind Blowing Results

Chris Temple with The National Investor covered i80 Gold Corp. on January 23, 2024, and reviewed the company positively. Temple highlighted the company's advantageous position inside the United States, its experienced management, and its highly mineralized properties in Nevada.

Temple commented, "Today in Nevada . . .  wide drill intercepts exceeding one ounce per ton of gold . . . 10-20% for zinc content . . . and more out there is mind-blowing!"

On December 16, 2023, Technical Analyst Clive Maund rated the company as a "Strong Buy" and his "top and safest pick in the entire gold space" based on the company's stock patterns. Maund notes that the company's stock value had increased by over 10% since October and commented, "It is viewed as even more attractive here for the simple reason that we now have much less time to wait before it really gets moving."

The company has a number of catalysts, according to its investor presentation, including the development of three deposits at the Lone Tree autoclave facility and the ongoing conversion of the Ruby Hill plant to a polymetallic mineralization facility. The company reports that it has a 5-year production target of more than 400,000 ounces of gold equivalent per year. 

Ownership and Share Structure

Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 2.14%, as CEO Ewan Stewart Downie owns 6.37 million shares of the company.

According to Reuters, institutional investors own 51.28% of the company, as Equinox Gold Corporation owns 16.85% of the company with 50.24 million shares, Sprott Asset Management L.P. owns 7.72% of the company with 23.03 million shares, Orion Resource Partners (U.S.A.) L.P. owns 7.31% of the company with 21.80 million shares, Sprott Asset Management U.S.A. Inc. owns 5.51% of the company with 16.44 million shares, Fidelity Management & Research Company L.L.C. owns 3.69% of the company with 11.00 million shares, Van Eck Associates Corporation owns 3.38% of the company with 10.07 million shares, BlackRock Institutional Trust Company, N.A., owns 3.24% of the company with 9.65 million shares, Euro Pacific Asset Management, L.L.C. owns 1.87% of the company with 5.57 million shares, and Equinox Partners Investment Management L.L.C. owns 1.71% of the company with 5.11 million shares.

Reuters reports that there are 298.15 million shares outstanding and 217.57 million free float traded shares, while the company has a market cap of CA$461.8 million and trades in the 52-week period between CA$1.73 and CA$3.80.

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1. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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