Contango's Second Gold Production Campaign
Contango ORE, Inc. (NYSE: CTGO) has announced the launch of its second gold production campaign at the Manh Choh Gold Mine. This is a major achievement as the Peak Gold Joint Venture begins processing ore from Manh Choh at the Kinross Fort Knox mill. The second campaign has started processing and is expected to run through late September.
Updates on Corporate Progress
During this campaign, Contango aims to produce around 10,000 ounces of gold, which is promising given the recent favorable trends in gold prices. The company has also made several significant updates:
- Obtained the 404 Wetlands Permit from the US Army Corps of Engineers, allowing for the construction of an access road from the Johnson Tract camp site to the proposed mining area.
- Entered into a memorandum of understanding with the Department of Natural Resources to begin the permitting process for an exploration portal for the Johnson Tract project.
- Engaged SRK Consulting Canada Inc. to complete a Preliminary Economic Assessment for the Johnson Tract project, utilizing their Direct Shipping Ore method.
- Accomplished about half of the planned surface drilling program for 2024 at the Johnson Tract, remaining on budget and on schedule.
Leadership Insights
Rick Van Nieuwenhuyse, the CEO and President of Contango, shared his excitement about the start and progress of the second campaign at the Fort Knox mill. He noted that the first campaign produced 16,200 ounces of gold, resulting in substantial financial returns for the company. Given the success of previous campaigns, expectations are high for this ongoing phase, particularly with gold market prices projected to be between $2,100 and $2,200 per ounce.
Production and Financial Outlook
As Campaign #2 progresses, Contango expects their All-in Sustaining Costs (AISC) to align closely with prior forecasts, reinforcing their solid financial strategy. They plan to announce detailed financial results for the quarter soon, providing stakeholders with valuable insights into their operational performance and financial status.
Progress on the Johnson Tract Project
Alongside gold production, Contango is making strides with the Johnson Tract project. They have recently secured key permits for infrastructure development, including an access road and the expansion of the camp's airstrip to accommodate larger cargo planes. These enhancements are set to improve operational efficiency and accessibility for future mining activities.
Future Projects and Production Aspirations
The company is dedicated to strategically advancing both its Johnson Tract and Lucky Shot projects, with plans to begin drilling at Lucky Shot by 2025. They anticipate producing approximately 67,500 ounces of gold annually starting in 2025, aiming to strengthen their mining capabilities while maximizing value for shareholders.
About Contango ORE, Inc.
Contango ORE is a publicly traded company focused on gold exploration and production in Alaska. The firm holds a 30% interest in the Peak Gold Joint Venture and possesses significant land for exploration and development. With strategic partnerships and a dedicated approach, Contango is well-positioned to lead in the gold mining sector while delivering value to its shareholders.
Frequently Asked Questions
What is the primary focus of Contango ORE, Inc.?
Contango ORE specializes in 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 anticipates producing 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, in addition to the ongoing campaigns at the Manh Choh mine.
When does Contango plan to announce their financial results?
Financial results for the quarter are expected to be released in the first half of November.
What is the significance of the 404 Wetlands Permit?
This permit enables Contango to construct essential infrastructure that supports the development of their Johnson Tract project.
