i-80 Gold has started the subway development of Archimedes in Nevada, after obtaining all the necessary regulatory approvals. The announcement marks a new step in its growth strategy in the state, where it is looking to significantly increase its gold production in the coming years.
Start of works on the Archimedes subway development
The Archimedes project, located on the Ruby Hill property, has the basic surface infrastructure completed, including shops, offices and key utilities such as water, power and compressed air. Environmental permit approvals from the Nevada Division of Environmental Protection and the Bureau of Land Management authorize the company to begin subway operations at levels above 1550 meters elevation.
Such a staggered scheme allows the upper zone to be mined first while permitting continues for the lower depths. In addition, permits for these zones are expected to be ready in 2027, with mining production at Archimedes to formally commence in 2026.
The company estimates that Archimedes will contribute approximately 100,000 ounces of gold annually, with an initial life of 10 years. This contribution will be essential to achieve its goal of raising gold production consolidated gold production to between 150,000 and 200,000 ounces per year by 2028, and up to 600,000 ounces by the early 2030s.
This geological potential in the lower zone of the field, known as Ruby Deeps, remains open to the north and south. This strengthens expectations for potential resource expansion through additional drilling, with the initial phase to commence in the fourth quarter of 2025.
Small Mine Development(SMD) was contracted to carry out the subway work up to 5100 feet. The plan includes the construction of access ramps, ventilation stacks, portals, exploration areas and other technical infrastructure. This stage of the development is expected to be completed in 2027.
In parallel, i-80 Gold is accelerating the Archimedes technical feasibility study, which is estimated to be completed in the first quarter of 2027. This study will follow National Instrument 43-101 and Subpart SK 1300 standards.
During the first stages of production, the ore mined will be treated in a third-party autoclave plant. However, starting in 2028, the company plans to use its own processing plant at Lone Tree, currently under renovation.
According to the preliminary economic assessment, the Archimedes project has a net present value of US$644 million after taxes, with an internal rate of return of 81% considering a gold price of US$3,000 per ounce. Total all-in sustaining cost has been estimated at US$1,877 per ounce, excluding the first and last operating years.
Immediate efforts are focused on three fronts: resource conversion through drilling, permitting of the deeper zones and metallurgical validation of the ore. Together, these actions will consolidate the company’s planned business model and establish Archimedes as one of its most important assets in Nevada.
Source and photo: i-80 Gold Corp
