Contango ORE Announces Significant Gold Production Update

Contango's Second Campaign of Gold Production

Contango ORE, Inc. (NYSE: CTGO) recently announced the exciting commencement of its second campaign for gold production at the Manh Choh Gold Mine. This marks a significant milestone as the Peak Gold Joint Venture begins processing Manh Choh ore at the Kinross Fort Knox mill. The second campaign commenced processing and is expected to continue into late September.

General Corporate Updates and Progress

During this campaign, Contango aims to produce approximately 10,000 ounces of gold, which reflects a favorable outlook given the recent trends in gold prices. Additionally, the company has achieved several noteworthy updates:

1. Secured the 404 Wetlands Permit from the US Army Corps of Engineers to construct an access road from the Johnson Tract camp site to the proposed mining area.
2. Entered into a memorandum of understanding with the Department of Natural Resources to begin permitting an exploration portal for the Johnson Tract project.
3. Engaged SRK Consulting Canada Inc. to finalize a Preliminary Economic Assessment for the Johnson Tract project based on their Direct Shipping Ore method.
4. Completed about half of the planned 2024 surface drilling program at the Johnson Tract, staying on budget and schedule.

Remarks from Leadership

Rick Van Nieuwenhuyse, the CEO and President of Contango, expressed enthusiasm about the commencement and progress of the second campaign at the Fort Knox mill, noting that the first campaign yielded 16,200 ounces of gold and drew significant financial returns for the company. With past campaigns bringing substantial revenues, expectations remain high for this ongoing phase, especially with current gold market prices projected between $2,100 and $2,200 per ounce.

Production and Financial Expectations

As they move forward with Campaign #2, Contango expects their All-in Sustaining Costs (AISC) to align closely with their previous forecasts, supporting their sound financial strategy. They anticipate announcing detailed financial results for the quarter soon, giving stakeholders insight into their operational performance and financial health.

Advancements in the Johnson Tract Project

In addition to gold production, Contango continues to advance the Johnson Tract project, having recently obtained essential permits for infrastructure development including an access road and expanding the camp's airstrip to accommodate larger cargo planes. These features are expected to enhance operational efficiency and accessibility for future mining activities.

Future Projects and Production Goals

The company is committed to strategically advancing both its Johnson Tract and Lucky Shot projects, with plans to initiate drilling at Lucky Shot by 2025. With expectations of producing around 67,500 ounces of gold annually starting in 2025, Contango aims to bolster its mining capabilities while maximizing value for its shareholders.

About Contango ORE, Inc.

Contango ORE is a publicly traded company specializing in gold exploration and production in Alaska. The firm maintains a 30% interest in the Peak Gold Joint Venture and holds significant acreage for exploration and development. With strategic partnerships and a focused approach, Contango is positioned to lead in the gold mining industry while ensuring shareholder value.

Frequently Asked Questions

What is the primary focus of Contango ORE, Inc.?

Contango ORE focuses on the exploration and production of gold and related minerals, particularly in Alaska.

How much gold is Contango expecting to produce in the second campaign?

Contango expects to produce approximately 10,000 ounces of gold during the Campaign #2 exploration.

What projects are currently underway for Contango?

The company is advancing the Johnson Tract and Lucky Shot projects, alongside the ongoing campaigns at the Manh Choh mine.

When does Contango plan to announce their financial results?

Financial results for the quarter are anticipated to be shared in the first half of November.

What is the significance of the 404 Wetlands Permit?

This permit allows Contango to build essential infrastructure that supports the development of their Johnson Tract project.

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