Welcome to our dedicated page for Contango Ore news (Ticker: CTGO), a resource for investors and traders seeking the latest updates and insights on Contango Ore stock.
About Contango Ore, Inc. (NYSE American: CTGO)
Contango Ore, Inc. is a U.S.-based mineral exploration and development company specializing in gold, silver, and copper mining. Headquartered in Alaska, the company focuses on identifying and advancing high-potential mining projects while leveraging strategic partnerships to optimize operations and reduce environmental impact. Its primary business revolves around the exploration and development of mineral-rich properties, with a significant emphasis on the Peak Gold Joint Venture (JV), a collaborative project with Kinross Gold Corporation.
Key Projects and Operations
- Peak Gold Joint Venture (JV): Contango holds a 30% stake in this JV, which spans approximately 675,000 acres of mineral-rich land in Alaska. The ore from this project is processed at Kinross Gold’s Fort Knox facility, significantly reducing upfront capital costs and accelerating production timelines. This strategic partnership exemplifies Contango's innovative approach to minimizing environmental footprints and operational risks.
- Johnson Tract Project: Located southwest of Anchorage, Alaska, this polymetallic gold project boasts high-grade deposits with significant exploration potential. The company is advancing this project through detailed drilling programs, environmental studies, and plans for an exploration tunnel to access deeper mineral zones.
- Lucky Shot Project: This fully permitted project is positioned for development, with plans to commence drilling in the near future. It reflects Contango's commitment to efficiently advancing its portfolio of assets.
- Additional Alaskan Mining Claims: Contango also holds 100% ownership of approximately 145,000 acres of state mining claims, offering exclusive exploration and development rights.
Business Model and Strategic Advantages
Contango Ore operates under a hybrid royalty model, combining direct participation in mining operations with the benefits of royalty-like cash flows. This approach allows the company to generate revenue while mitigating risks associated with full-scale mining operations. Its use of the Direct Shipping Ore (DSO) model further enhances efficiency by focusing on high-grade ore that can be processed with minimal additional treatment.
The company’s strategy of leveraging existing infrastructure, such as the Fort Knox mill, underscores its commitment to cost-effective and environmentally responsible mining practices. This approach not only reduces capital expenditures but also shortens development timelines, enabling quicker returns on investment.
Industry Context and Competitive Landscape
Operating in the precious metals mining industry, Contango Ore competes with both junior mining companies and established players. The industry is characterized by its sensitivity to commodity prices, regulatory frameworks, and operational challenges. Contango differentiates itself through its strategic partnerships, innovative business model, and focus on high-grade, low-cost projects in Alaska.
Challenges and Opportunities
While Contango benefits from its strategic advantages, it faces challenges such as logistical constraints and cost management. For instance, higher-than-expected moisture content in the Manh Choh ore has impacted transportation efficiency. However, the company's diversified project portfolio and strong balance sheet position it well to navigate these challenges and capitalize on opportunities in the gold market.
Conclusion
Contango Ore, Inc. represents a compelling player in the U.S. mining sector, combining innovative business strategies with a strong focus on operational efficiency and environmental stewardship. Through its strategic partnerships and high-potential projects, the company is well-positioned to contribute to the growing demand for precious metals while maintaining a commitment to sustainable practices.
Contango ORE (NYSE American: CTGO) has announced a significant cash distribution of $19.5 million from the Peak Gold JV, representing Contango's 30% share of profits from Campaign #1 ore processing at Manh Choh. The Peak Gold JV plans two additional campaigns in 2024, with the second already in progress. Contango anticipates at least one more cash distribution before year-end. The company projects its 2024 gold production share from the Peak Gold JV to range between 30,000 and 40,000 ounces. This distribution marks a notable milestone for Contango, demonstrating the project's ability to generate substantial cash flow and potentially signaling positive future returns for shareholders.
Contango ORE (NYSE American: CTGO) has started processing Campaign #2 of Manh Choh ore at the Kinross Fort Knox mill, targeting 10,000 ounces of gold for Contango's 30% share. Campaign #1 yielded 16,200 ounces of gold and 3,500 ounces of silver, with total sales of $36 million. The company expects Campaign #2 sales to realize a blended price between $2,100 to $2,200 per ounce.
Contango has also made progress on its Johnson Tract project, receiving a 404 Wetlands Permit and entering into an MOU to begin permitting for an underground exploration tunnel. The company has completed half of its planned 2024 surface drilling program at Johnson Tract and expects to finish by early October.
With gold prices near all-time highs, Contango anticipates strong financial performance and is positioned to advance its Lucky Shot and Johnson Tract development projects.
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.
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