Contango Announces First Gold Pour at Manh Choh on July 8, 2024

Rhea-AI Summary

Contango ORE (NYSE American: CTGO) announced the commencement of gold production at its Manh Choh mine, with its first gold pour set for July 8, 2024, at the Fort Knox mill facility. This milestone follows the formation of the Peak Gold joint venture with Kinross in September 2020, the completion of a feasibility study, successful permitting, and mine construction. Mining operations began in August 2023, and ore hauling started in November 2023, leading to a substantial stockpile of ore ready for processing. CEO Rick Van Nieuwenhuyse emphasized the project's high-quality deposit and exceptional grade, inviting stakeholders to virtually join the gold pour event.

Positive

• First gold pour scheduled for July 8, 2024, marks a significant milestone.
• Completion of mine construction and commencement of mining operations in August 2023.
• Formation of Peak Gold joint venture with Kinross in September 2020.
• Feasibility study demonstrated viability of the Manh Choh project.
• Substantial stockpile of ore ready for processing at Fort Knox mill.

Negative

• No specific production targets or financial projections provided.
• Potential delays in processing or operational challenges not addressed.

Insights

Mining Industry Analyst

The announcement of the first gold pour at Manh Choh on July 8, 2024, marks a significant milestone for Contango. Such events often indicate that a project has moved from development into production, which can be critical for the company's revenue stream. The fact that mining operations commenced in August 2023 and ore hauling started in November 2023 signifies a smooth transition from the development phase to production, which is essential in the mining world.

This milestone also reflects well on the feasibility study's accuracy and the company's project management capabilities. The successful transition to production can often lead to an increase in investor confidence and, potentially, the stock price. However, investors should watch for updates on production volumes and cost efficiencies, which will provide a clearer picture of the project's financial impact.

Financial Analyst

From a financial perspective, the commencement of gold production is a pivotal development. It will shift Contango from a capital expenditure-heavy phase to a revenue-generating phase. Investors will be keen to see financial reports post-July 8, 2024, to evaluate the impact on the company's revenue and profitability. It's important to monitor the production costs per ounce of gold and compare it to the prevailing gold market prices. The project's success largely hinges on maintaining a low cost of production relative to the gold price, ensuring profitability even in fluctuating market conditions.

The partnership with Kinross and the use of the Fort Knox mill facility also highlight strategic cost savings and risk-sharing benefits. This collaboration could enhance operational efficiency and financial stability, which are critical considerations for long-term investors.

FAIRBANKS, Alaska--(BUSINESS WIRE)-- Contango ORE, Inc. (“Contango” or the “Company”) (NYSE American: CTGO) is pleased to announce that the first gold pour for the Manh Choh mine will take place at the Fort Knox mill facility on July 8, 2024.

Rick Van Nieuwenhuyse, CEO and President for Contango commented: “This is indeed a grand milestone event for the Company and its shareholders. Since its discovery, the Manh Choh project has stood out as a very high-quality deposit with exceptional grade for an open pit gold mine. Upon forming the Peak Gold joint venture with Kinross in September 2020, a feasibility study was completed that demonstrated the viability of the Manh Choh project, followed by Peak Gold successfully permitting the project and completing construction of the mine. Mining operations commenced in August of 2023 and ore hauling started in November 2023, leading to a sizeable stockpile of ore at Fort Knox ready to be processed through the mill. We look forward to sharing video coverage of our first gold pour on July 8^th. I hope you will join us virtually to celebrate this accomplishment.”

ABOUT CONTANGO

Contango is a NYSE American listed company that engages in exploration for gold and associated minerals in Alaska. Contango holds a 30% interest in the Peak Gold JV, which leases approximately 675,000 acres of land for exploration and development on the Manh Choh project, with the remaining 70% owned by KG Mining (Alaska), Inc., an indirect subsidiary of Kinross, operator of the Peak Gold JV. The Company also has a lease on the Lucky Shot project from the underlying owner, Alaska Hardrock Inc. and through its subsidiary has 100% ownership of approximately 8,600 acres of peripheral State of Alaska mining claims. Contango also owns a 100% interest in an additional approximately 145,000 acres of State of Alaska mining claims through its wholly owned subsidiary, which gives Contango the exclusive right to explore and develop minerals on these lands. Additional information can be found on our web page at www.contangoore.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements regarding Contango that are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995, based on Contango’s current expectations and includes statements regarding future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as “expects”, “projects”, “anticipates”, “plans”, “estimates”, “potential”, “possible”, “probable”, or “intends”, or stating that certain actions, events or results “may”, “will”, “should”, or “could” be taken, occur or be achieved). Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those, reflected in the statements. These risks include, but are not limited to: the risks of the exploration and the mining industry (for example, operational risks in exploring for, developing mineral reserves; risks and uncertainties involving geology; the speculative nature of the mining industry; the uncertainty of estimates and projections relating to future production, costs and expenses; the volatility of natural resources prices, including prices of gold and associated minerals; the existence and extent of commercially exploitable minerals in properties acquired by Contango or the Peak Gold JV; ability to realize the anticipated benefits of the Peak Gold JV; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the interpretation of exploration results and the estimation of mineral resources; the loss of key employees or consultants; health, safety and environmental risks and risks related to weather and other natural disasters); uncertainties as to the availability and cost of financing; Contango’s inability to retain or maintain its relative ownership interest in the Peak Gold JV; inability to realize expected value from acquisitions; inability of our management team to execute its plans to meet its goals; the extent of disruptions caused by an outbreak of disease, such as the COVID-19 pandemic; and the possibility that government policies may change, political developments may occur or governmental approvals may be delayed or withheld, including as a result of presidential and congressional elections in the U.S. or the inability to obtain mining permits. Additional information on these and other factors which could affect Contango’s exploration program or financial results are included in Contango’s other reports on file with the U.S. Securities and Exchange Commission. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Contango does not assume any obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240625414183/en/

Contango ORE, Inc.

Rick Van Nieuwenhuyse

(907) 888-4273

www.contangoore.com

Source: Contango ORE, Inc.

FAQ

When will Contango ORE's first gold pour at Manh Choh occur?

The first gold pour at Manh Choh will take place on July 8, 2024.

What is the significance of the Manh Choh project for Contango ORE (CTGO)?

The Manh Choh project is notable for its high-quality deposit and exceptional grade, marking a major milestone in Contango ORE's mining operations.

When did Contango ORE form the Peak Gold joint venture with Kinross?

Contango ORE formed the Peak Gold joint venture with Kinross in September 2020.

What progress has been made in the Manh Choh project since its discovery?

Progress includes a feasibility study, successful permitting, mine construction, commencement of mining operations in August 2023, and ore hauling starting in November 2023.

Where will the gold from Manh Choh be processed?

The gold from Manh Choh will be processed at the Fort Knox mill facility.