Contango ORE Announces Major Cash Distribution from Peak Gold JV, Boosting 2025 Production Strategy

Contango ORE Reports $9 Million Cash Distribution from Peak Gold JV

Contango ORE, Inc., a prominent player in the gold exploration sector, has recently revealed a significant cash distribution of $9 million from the Peak Gold Joint Venture (JV) dated April 24, 2025. This announcement comes as part of the company’s comprehensive strategy to enhance its performance in the current financial year. With notable prior distributions received earlier this year, the cumulative total for 2025 now stands at $33 million from the Manh Choh project's gold sales.

The Peak Gold JV has completed its initial campaign for the year, yielding approximately 20,000 ounces of gold to date. Looking ahead, Contango is gearing up for its second campaign, slated to initiate in mid-May. Rick Van Nieuwenhuyse, the President and CEO of Contango, expressed optimism regarding operational progress at the Manh Choh site, projecting total gold production of around 60,000 ounces by the end of 2025. Notably, this comes at an all-in sustaining cost of approximately $1,625 per ounce, aligning with earlier forecasts.

In April, Contango proactively reduced its credit facility burden by prepaying $8.2 million, which has now adjusted the total outstanding balance to $30.1 million. The company has also continued to honor and deliver against its hedge contracts, further diminishing their obligations by an additional 11,939 ounces. This reduction results in a total remaining hedge of 74,800 ounces, an essential step for maintaining financial health and operational efficiency.

During the discussion of future endeavors, Van Nieuwenhuyse noted that the Johnson Tract project is approaching the final stages of a preliminary economic assessment (PEA), with a release expected by the end of April. This project, alongside the Peak Gold JV, emphasizes Contango's strategic focus on gold and associated minerals exploration.

For those unfamiliar with Contango, the company is publicly traded on the NYSE American under the ticker CTGO and specializes in the exploration of gold within Alaska. Holding a 30% interest in the Peak Gold JV, Contango leases approximately 675,000 acres in the Manh Choh project area. The remaining 70% is owned by KG Mining (Alaska), Inc., which is part of Kinross Gold Corporation, overseeing operations in the Peak Gold JV.

In addition to its stakes in the Peak Gold JV, Contango also manages various other interests, including leases on the Johnson Tract and Lucky Shot projects, along with complete ownership of several mining claims across Alaska's expansive mining landscape.

This strategic move to announce financial results scheduled for May 14, 2025, reflects Contango's commitment to transparency and stakeholder engagement. As the gold market remains volatile, the company continues to adapt its strategies, aiming to remain resilient amid the challenges facing the mining industry.

In closing, Contango's recent cash distributions and production plans demonstrate a proactive approach in navigating the complex landscape of gold exploration and extraction, highlighting their potential for future growth within the industry. Investors and stakeholders can stay updated through additional releases on their official website at www.contangoore.com.