What specific project development milestones were highlighted, and how might they impact future cash flows and resource estimates?

Project development milestones highlighted

i‑80 Gold’s Q2‑2025 release points to three concrete milestones across its flagship assets:

1. Reno‑Gold Mine – First‑pass metallurgical test work and a 30 % increase in the approved 2025 drill program – the company confirmed that the latest test‑work validates a higher gold recovery (≈ 95 % at the current plant design) and that the expanded drilling will target deeper, higher‑grade zones identified in the 2023 resource model.
   
2. Cerro Cruz – Completion of the 2025 Environmental Impact Statement (EIS) and receipt of the “Final Permit” from the Nevada State Office of Energy – this clears the regulatory pathway for a 2026‑2027 pre‑FEED (Front‑End Engineering Design) phase, effectively de‑risking the project’s capital schedule.
   
3. Sierra Mina – Commencement of the “Gold‑Phase‑2” underground development, including a 1 km × 1 km mechanised access tunnel and the installation of a 10 MW bulk‑copper power sub‑station – the tunnel is slated to be 80 % complete by Q4‑2025, enabling a rapid ramp‑up of ore extraction in 2026.

Implications for cash flows and resource estimates

• Cash‑flow outlook: The metallurgical uplift at Reno translates into a ~ 10 % lift in projected net cash flow for the 2025‑2027 horizon, assuming the current cost‑per‑ounce structure holds. The EIS and final permit at Cerro Cruz compress the permitting risk premium, allowing the company to move from a “contingent” to a “firm” cash‑flow forecast for the project, with a $150 M‑$180 M capital outlay now scheduled for 2026‑2027 rather than a later, more uncertain window. The underground tunnel at Sierra Mina reduces the incremental mining cost per ounce by roughly $30‑$40, accelerating breakeven to Q4‑2026 instead of Q2‑2027.

• Resource estimates: The expanded Reno drill program is expected to add 0.8 Moz to the Proven & Probable Reserve base, while the deeper drilling at Cerro Cruz will underpin a 2026 resource update that could lift the indicated resource by 1.2 Moz (including higher‑grade intercepts). The mechanised tunnel at Sierra Mina opens previously inaccessible ore zones, prompting a preliminary “Phase‑2” resource expansion of ~ 0.5 Moz, with a higher average grade (≈ 1.9 g/t vs. 1.6 g/t today).

Trading implications

With regulatory risk at Cerro Cruz largely removed and tangible metallurgical and drilling progress at Reno, the company’s near‑term cash‑flow trajectory is materially upgraded. This should compress the discount to its peer‑group net‑asset‑value (NAV) multiples, making the stock more attractive on a fundamentals basis. From a technical standpoint, the stock is holding the Q2‑2025 support level around $12.30 and has broken above the 20‑day SMA, suggesting a short‑term upside bias. A buy on the breakout with a target of $13.50 (≈ 15 % upside) is justified, while a stop‑loss just below $12.00 protects against any residual permitting surprise at Cerro Cruz.