Contango ORE Launches Second Gold Production Campaign

Exciting Developments at Contango ORE, Inc.

Contango ORE, Inc. (NYSE American: CTGO) is thrilled to announce significant progress in its operations, particularly with the commencement of processing for Campaign #2 of gold production from the Manh Choh project. This marks a pivotal moment for the company that has aimed to optimize its gold mining efforts.

Campaign #2 Production Details

The new campaign has kicked off with operations at the Kinross Fort Knox mill, where the company expects to process a substantial amount of ore. The Campaign began processing on a date that aligns with the company’s project timelines and is expected to run smoothly into the fall. CEO Rick Van Nieuwenhuyse expressed excitement about this initiative, indicating that the target is to yield around 10,000 ounces of gold for Contango's share of production.

Gold Sales and Expectations

In addition to the efforts in Campaign #2, Contango has achieved remarkable success earlier this year with Campaign #1, which culminated in total production of approximately 16,200 ounces of gold. The sales from this initial campaign amounted to $36 million. With gold prices soaring, the remaining campaign aims to capitalize on the favorable market conditions, banking on a blended selling price that is significantly above cost estimates.

Project Advancements and Regulatory Approvals

The company has also made strides in securing necessary permits. Recently, it received the coveted 404 Wetlands Permit from the US Army Corps of Engineers, facilitating the construction of access roads vital for project development. Such permits are crucial for creating pathways to exploration sites and enhancing logistical capabilities.

Exploration and Future Drilling Programs

Contango has taken proactive steps by engaging with SRK Consulting Canada Inc. for a comprehensive Preliminary Economic Assessment. This will guide future decisions regarding exploration activities, particularly at the Johnson Tract project. Additionally, the ongoing drilling programs, which encompass measuring and capturing various geological data, remain on schedule and within budget, affirming the company's commitment to thorough exploration practices.

Strategic Objectives and Insights

Van Nieuwenhuyse underscored the importance of a strong balance sheet moving forward and reiterated the potential for the company's projects to yield significant shareholder value. The Lucky Shot project is fully permitted and is on track for drilling commencement next year. As the company moves closer to its goals, the focus will remain on executing a sustainable mining model while leveraging the DSO approach.

About Contango ORE, Inc.

Contango ORE is an exploration and development company involved in gold and mineral exploration in Alaska. With a strategic interest in the Peak Gold JV, the company manages a substantial land portfolio, which covers about 675,000 acres dedicated to exploration. Alongside this, Contango holds significant mining claims that strengthen its position in the industry.

Frequently Asked Questions

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

Contango ORE primarily focuses on the exploration and development of gold and associated minerals in Alaska.

How does Campaign #2 differ from Campaign #1?

Campaign #2 aims to process a fresh batch of ore, targeting production of approximately 10,000 ounces of gold, building on the success of Campaign #1.

What permits has Contango received for its projects?

The company recently received the 404 Wetlands Permit allowing for the construction of key access roads crucial for mining operations.

What does the future hold for Contango's exploration programs?

Contango plans to continue expanding its exploration efforts, with ongoing drilling programs and a commitment to thorough economic assessments for future development.

How does the company plan on sustaining shareholder value?

By advancing its projects systematically, maintaining a strong financial position, and focusing on strategic production targets, Contango aims to enhance shareholder value significantly.

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