Nevada-based i-80 Gold (TSX: IAU) (NYSE: IAUX) has reported substantial success from its 2023 drill program at the FAD deposit within the 100%-owned Ruby Hill property, leading to a surge in its stock value.
Situated in Eureka county, Ruby Hill holds significance as a core land package within a premier re-emerging carbonate replacement deposit (CRD) district on a global scale, as declared by i-80 Gold.
FAD is one among several polymetallic deposits drilled at Ruby Hill in 2023, contributing to the initial resource estimates alongside the Blackjack and Hilltop deposits. The latest results reveal multiple stacked zones of mineralization in the southeast section of the FAD deposit, according to i-80 Gold.
Key highlights from the 2023 drilling at FAD include notable grades:
4.4 g/t Au, 91.3 g/t Ag, 8.4% Zn, and 0.3% Pb over 1.6 m
4.9 g/t Au, 50.2 g/t Ag, 9.0% Zn, and 0.2% Pb over 4.5 m
6.2 g/t Au, 57.1 g/t Ag, 6.9% Zn, and 0.1% Pb over 5.0 m
6.0 g/t Au, 35.5 g/t Ag, 5.8% Zn, and 0.2% Pb over 8.5 m
3.1 g/t Au, 48.8 g/t Ag, 2.1% Zn, and 1.3% Pb over 3.8 m
An infill hole drilled on the western margin of the west FAD lobe yielded impressive results, including 5.7 g/t Au, 159.4 g/t Ag, 15.0% Zn, and 2.8% Pb over 5.4 m; 13.7 g/t Au, 430.0 g/t Ag, 15.9% Zn, and 7.7% Pb over 2.5 m; and 9.0 g/t Au, 92.4 g/t Ag, 12.2% Zn, and 1.0% Pb over 14.6 m.
The historical mining success in the Eureka district, dating back to 1864, and particularly at Ruby Hill until 1967, sets the stage for i-80 Gold’s exploration endeavors. The company estimates that a significant portion (80% to 90%) of the historic production originated from the original Ruby Hill mine, positioned 500 meters southwest of the FAD deposit.
Beyond the deeper sulfide mineralization at FAD, drilling explored areas proximal to the historic Ruby Hill mine, revealing low-grade oxide mineralization. This suggests the potential for delineating near-surface mineralization close to historical workings, presenting opportunities for open-pit mining.
Tyler Hill, Chief Geologist of i-80 Gold, expressed enthusiasm about the FAD drill program, emphasizing its synergy with successful programs on the Blackjack and Hilltop deposits. He highlighted FAD’s distinctive nature among global CRD deposits due to its elevated gold grades.
i-80 Gold’s stock witnessed a notable surge of over 10% in Toronto, with trading volume nearly five times the average daily volume. The company’s market capitalization is estimated at C$677 million ($504 million).
