Manh Choh Mine Pours First Gold
Contango ORE announced the first gold pour from the Manh Choh mine, a joint venture with Kinross. The gold was processed at Kinross’s Fort Knox mill. CEO Rick Van Nieuwenhuyse highlighted the significance of this milestone for the company's shareholders and its strategic future. The Manh Choh project, now in production, forms part of Contango's broader plan to increase gold output to 200,000 ounces annually within five years. Their direct ship ore (DSO) model leverages existing processing facilities to minimize environmental impact and reduce capital requirements. Other projects, Lucky Shot and Johnson Tract, will also contribute to this growth strategy.
- First gold pour from Manh Choh mine was successfully completed.
- Production milestone strengthens Contango's strategic foundation.
- Goal to increase annual gold production to 200,000 ounces within five years.
- Direct ship ore (DSO) model reduces environmental footprint and capital needs.
- No immediate revenue figures or financial impact details provided.
Insights
The first gold pour at the Manh Choh mine is a significant milestone for Contango ORE, solidifying its transition from exploration to production. This development indicates that the joint venture with Kinross is yielding tangible results, potentially enhancing the company's revenue stream. The use of Kinross Fort Knox mill facility is a strategic move, leveraging existing infrastructure to minimize initial capital outlay. This approach is beneficial as it reduces upfront investment risks, which could be particularly appealing to investors in the current economic climate.
The Direct Ship Ore (DSO) model mentioned by the CEO is another notable aspect. By transporting high-grade ore to already operating processing facilities, Contango aims to minimize both environmental footprint and permitting risks. This strategy not only supports sustainable practices but can also expedite the production process, aligning with the growing investor demand for environmentally responsible mining operations. Short-term, investors might see stability in stock value; long-term, successful implementation of this model across other projects could lead to substantial growth.
The milestone of a first gold pour is a positive indicator for Contango ORE’s financial health. Gold production implies a future revenue stream, potentially improving cash flow and financial stability. The company’s goal to scale production to 200,000 gold equivalent ounces annually within five years is ambitious yet promising. Achieving this target would significantly enhance Contango's market position and could lead to increased investor confidence.
Investors should note the mention of 'challenging capital markets for miners.' This highlights the broader industry context of financing difficulties, but Contango’s approach to reduce capital requirements via the DSO model is financially pragmatic. This model could decrease the need for extensive capital investments and complex permitting processes, thereby lowering financial risks and enhancing profitability margins. Monitoring quarterly production metrics and cost management will be important to assess the company's progress on this front.
Rick Van Nieuwenhuyse, CEO and President for Contango commented: “Today was a monumental day for Contango shareholders. From the first discovery hole to pouring the first bar of gold emblazed with the special Manh Choh branding (as shown in the video link below), it has certainly been a journey, but one that sets us up for future success. With the Peak Gold JV’s Manh Choh project now producing gold, we have a solid foundation to build Contango by employing a different, more disciplined model. The Lucky Shot and Johnson Tract projects represent high quality resources that are ideally suited for our unique direct ship ore (“DSO”) model. Our five year plan is to grow production from our existing portfolio to 200,000 of annual gold equivalent production. By developing high-grade, high-quality mines that can utilize the DSO model by transporting our ore to existing and permitted operating processing facilities, we will reduce our environmental footprint and thereby lower our permitting risk, as well as lower the overall capital requirements to achieve commercial production. We believe this is a unique model and a right-fit for these continuing challenging capital markets for miners.”
Link to gold pour video: https://youtu.be/2_73S0E13cs
ABOUT CONTANGO
Contango is a NYSE American listed company that engages in exploration for gold and associated minerals in
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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240708894230/en/
Contango ORE, Inc.
Rick Van Nieuwenhuyse
(907) 888-4273
www.contangoore.com
Source: Contango ORE, Inc.
FAQ
What is the significance of Contango ORE's first gold pour from the Manh Choh mine?
Where was the first gold from the Manh Choh mine processed?
What is Contango ORE's production goal for the next five years?
How does Contango ORE's Direct Ship Ore (DSO) model benefit the company?
Which other projects are part of Contango ORE's growth strategy?
