The decision follows the success of last year's drill program, which delineated high-grade mineralisation in multiple areas close to the existing workings.
The Granite Creek project is located near the north end of the Battle Mountain-Eureka Trend in Humboldt County, Nevada. It includes open-pit and underground resources.
The first stoping area has been defined and mining is now underway. This means the company is on track to begin production this year.
i-80 Gold increased the drilling programme for 2022 to 30,000m as a result of the recent success it had expanding mineralisation. The company also advanced permitting for an open-pit mine on the property.
i-80 Gold's president and chief operating officer, Matt Gili, said the interim processing arrangement with Nevada Gold Mines had allowed the company to fast-track development at Granite Creek.
"Our highly successful drill programme has not only defined areas for mining, but also resulted in new discoveries, including the South Pacific Zone that has the potential to materially increase resources," he said.
i-80 Gold is focused on developing operations in Nevada. It is the sole owner of the Lone Tree property in the Battle Mountain Trend and is anticipated to become the company's flagship project. It also owns the nearby properties of Ruby Hill, McCoy-Cove and Buffalo Mountain.
On February 23, i-80 Gold Corporation traded on the TSX at C$2.75/share, which was unchanged on the day and valued the company at $658 million.
i-80 Gold's shares have traded within a tight range of between $2.50 and $3 this year. This was below the highs seen in September and October last year.