Contango ORE, Inc. - CTGO STOCK NEWS

Contango ORE (NYSE American: CTGO) announced results from the first batch of gold production at the Manh Choh Gold Mine in Alaska. Key highlights include:

- Processed 210,000 tons of ore with an average grade of 0.276 ounce/ton
- Achieved 95% recovery, surpassing the 90% estimate
- Produced 55,000 ounces of gold and 11,000 ounces of silver
- Contango's 30% share: 14,700 ounces of gold and 3,218 ounces of silver
- Realized average gold price: $2,188 per ounce
- Total sales: $32.2 million

The company expects to produce 30,000 to 40,000 ounces of gold in 2024 from Manh Choh. Contango also completed the acquisition of HighGold, increasing its estimated mineral resources threefold.

Contango ORE (NYSE American: CTGO) reported a net loss of $18.5M or $1.90 per share for Q2-2024, compared to a $10.4M loss in Q2-2023. The increased loss is primarily due to a $12.6M non-cash expense from gold hedging contracts and higher interest costs. Key developments:

1. Manh Choh project (30% owned) poured its first gold bar on July 8, 2024.
2. Acquired HighGold Mining on July 10, 2024, issuing 1,698,887 shares valued at $33.4M.
3. Launched a 3,000-meter drilling campaign at Johnson Tract property on July 30, 2024.

The company has hedged 65% of expected gold production from July 2024 to December 2026 at an average price of $2,025 per ounce.

Contango ORE, Inc. (NYSE American: CTGO) has commenced surface drilling at the Johnson Tract property in Alaska. The 2024 campaign targets 3,000 meters across 20 drill holes, focusing on in-fill drilling of the upper third of the near-vertical resource. The program, expected to last three months, includes hydrological testing, metallurgical studies, and geochemical analysis. The company aims to upgrade resources to the Indicated category and support geotechnical studies for a planned 1.6 km tunnel. Contango is also advancing permitting efforts for an access road and underground facilities, with construction potentially starting next summer.

The Johnson Tract deposit contains an Indicated Resource of 3.49 million tonnes grading 9.39 g/t gold equivalent (1,053,000 ounces AuEq) and an Inferred Resource of 0.71 Mt grading 4.76 g/t AuEq (108,000 ounces AuEq). Contango aims for a production decision by 2030 and will host an investor webinar on August 5th, 2024, to discuss the project in detail.

Contango ORE (NYSE American: CTGO) has successfully acquired HighGold Mining (TSX-V: HIGH, OTCQX: HGMIF) through a court-approved plan of arrangement under the Business Corporations Act (British Columbia). The acquisition was approved by HighGold shareholders on June 27, 2024, and the Supreme Court of British Columbia on July 2, 2024.

Through this acquisition, Contango has issued 1,698,887 shares of its common stock to HighGold shareholders. HighGold's shares will be delisted from the TSX Venture Exchange on July 11, 2024, and HighGold will cease to be a reporting issuer.

Contango aims to boost gold production to 200,000 ounces annually within five years, utilizing its Direct Ship Ore model. Additionally, Darwin Green, HighGold's CEO, will join Contango's board of directors.

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.

Contango ORE (CTGO) announced that HighGold Mining shareholders have overwhelmingly approved the arrangement with Contango, with 93.7% of shareholders and 94.4% of security holders in favor. The approval meets the necessary requirements to proceed, with final court approval expected on July 2, 2024, and the arrangement closing around July 9, 2024. The acquisition of Johnson Tract is set to boost Contango's resources significantly. Additionally, Contango recently completed a $15 million public offering. CEO Rick Van Nieuwenhuyse highlighted the strategic benefits and upcoming exploration plans to advance the Johnson Tract development.

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.

Contango ORE (NYSE American: CTGO) announced the pricing of its underwritten public offering of 731,750 units at $20.50 per unit, totaling approximately $15 million in gross proceeds. Each unit includes one share of common stock and one-half of one warrant, exercisable at $26.00 per share for 36 months. The offering is expected to close around June 12, 2024, with proceeds intended for corporate purposes, including exploration of the Lucky Shot Project and HighGold's Johnson Tract. Canaccord Genuity and Cormark Securities act as joint book-runners, with Roth Capital Partners as co-manager.

Contango ORE (NYSE American: CTGO) has announced an underwritten public offering of its common stock and accompanying warrants. Shares and warrants will be sold separately but must be purchased together. The offering's timing and size remain uncertain. Proceeds will fund general corporate activities, including the exploration of the Lucky Shot Project and HighGold's Johnson Tract, anticipated to close by July 2024. Canaccord Genuity and Cormark Securities will act as joint book-runners. The offering is under an effective shelf registration filed with the SEC.