Contango ORE Celebrates Major Cash Distribution from Peak Gold JV
Contango ORE, Inc. is excited to share that the Peak Gold Joint Venture (JV) has delivered a substantial cash distribution of $9.0 million. This positive outcome represents Contango's 30% share of profits derived from processing ore from the Manh Choh project, specifically from Campaign #3.
Production Overview and Milestones
In its entirety, since processing began at Manh Choh, Contango has received a remarkable total of $40.5 million in cash distributions from the Peak Gold JV. Rick Van Nieuwenhuyse, President and CEO of Contango, enthusiastically reported, "2024 has been a phenomenal year for our operations. The Peak Gold JV successfully completed three campaigns, with our share of production reaching around 42,000 ounces of gold and 16,300 ounces of silver. This significantly surpasses our original estimates of producing between 30,000 and 35,000 ounces of gold."
Production Statistics 2024
To provide a clear picture of the operational success in 2024, here are some key production statistics:
- Gold Production: 42,000 ounces
- Silver Production: 16,330 ounces
- Gold Delivered into Hedges: 21,100 ounces
- Gold Sold at Spot Price: 19,660 ounces
- Average Realized Gold Price: $2,285 per ounce
- Total Sales of Gold and Silver: $95,411,875
- Gold in Recoverable Inventory: 1,240 ounces
Future Projections for Gold Production
Looking ahead, the company anticipates that its share of production from the Manh Choh mine in 2025 will reach 60,000 ounces of gold. Furthermore, estimates indicate Contango will see an average annual yield of around 58,750 ounces of gold through 2028. The projected all-in sustaining costs for the life of the mine stand at approximately $1,400 per ounce of sold gold. Contango plans to unveil the final financial results for 2024 in March of the following year.
About Contango ORE
Contango is a publicly traded company on the NYSE American, focusing on the exploration of gold and related minerals in Alaska. With a 30% stake in the Peak Gold JV, Contango operates within a project that encompasses approximately 675,000 acres of land designated for exploration and development. The remaining 70% interest is held by KG Mining, a subsidiary of Kinross Gold Corporation.
Additionally, the company has a viable lease on the Johnson Tract project and a solid lease on the Lucky Shot project, complemented by full ownership of several mining claims across Alaska that solidify Contango's standing in the mineral rights landscape.
Frequently Asked Questions
What is the significance of the $9 million cash distribution?
The cash distribution reflects Contango's 30% share of profits from the Peak Gold JV, showcasing the project's financial viability and the company's lucrative involvement.
How much gold and silver did Contango produce in 2024?
In 2024, Contango produced approximately 42,000 ounces of gold and 16,300 ounces of silver.
What are the future expectations for gold production?
Contango expects to produce 60,000 ounces of gold in 2025, with ongoing average yields projected at 58,750 ounces annually through 2028.
What are the projected costs for the Manh Choh mine?
The estimated all-in sustaining costs for the Manh Choh mine are around $1,400 per ounce of gold sold.
Where can I find more information about Contango ORE?
Further details about Contango ORE and its operations can be found on its official website, providing insights into their projects and future plans.
