i-80 Gold (IAUX) Surges 2.32% on High-Grade Drilling Results, Extends 3-Day Rally to 8.48%

i-80 Gold (IAUX) surged 2.32% on Thursday, extending its three-day rally to a cumulative gain of 8.48%. The stock reached its highest level since September 2025, with an intraday rise of 3.23%, driven by renewed investor confidence in its Nevada-focused gold projects and operational progress.

Recent drilling results from the Granite Creek and Cove projects underpinned the momentum. High-grade gold mineralization at Granite Creek, including 33.6 g/t over 2.9 meters, validated the site’s potential for resource expansion. Meanwhile, the Cove project’s 45,000-meter infill drilling program strengthened geological models and resource conversion, positioning both assets for feasibility studies in early 2026. These advancements highlight the company’s ability to scale production from high-grade deposits, a key catalyst for long-term growth.

Financially, the firm reported a 286% year-over-year revenue increase to $27.8 million in Q2 2025, supported by higher gold sales and operational efficiency. However, a $175.2 million equity financing in May 2025—while boosting liquidity—resulted in significant shareholder dilution, increasing weighted shares outstanding by 68%. This dilution, coupled with ongoing capital needs for its 600,000-ounce production target by the early 2030s, raises concerns about further funding requirements and potential equity offerings.

Operational challenges persist, including rising processing costs and delays in critical infrastructure upgrades. The Lone Tree autoclave refurbishment, essential for handling refractory material, remains in a preliminary engineering phase. Additionally, inefficiencies at Granite Creek, such as elevated oxide material and sulfide processing bottlenecks, could hinder production timelines. These constraints underscore the company’s reliance on external financing and technical execution to meet its strategic goals.

Despite these risks, i-80 Gold’s hub-and-spoke processing strategy and focus on Nevada’s Walker Lane trend align with favorable market conditions for gold. Analysts have assigned a “Moderate Buy” rating with a $1.50 price target, reflecting optimism about its asset base. However, bearish short interest and the need for mid-2026 capital raises highlight the stock’s volatility. Investors will closely monitor the feasibility study outcomes and funding developments to gauge the company’s path to commercial production.