#USA #Contango ORE #Fairbanks #Gold Production #Peak Gold

Contango Reports Strong Gold Production and Cash Distribution

Contango ORE, Inc., listed on NYSE American as CTGO, has recently published exciting results from its Peak Gold joint venture (JV). The JV completed its third campaign for 2025, known as Campaign #3-2025, and Contango's share of production stands at approximately 17,000 ounces of gold. This impressive output contributes to a total cash distribution of $33 million for the year-to-date from the Peak Gold JV, indicating a robust financial position for the company.

Campaign Highlights

The Campaign #3-2025, which ran from August 12 to September 15, 2025, was a significant undertaking for the Peak Gold JV. During this period, around 287,000 tons of ore were processed, yielding an average grade of 0.214 ounces of gold per ton. The campaign achieved a gold recovery rate of 92.5%, leading to the extraction of approximately 56,800 ounces of gold. With Contango holding a 30% interest in the JV, their share totals more than 17,000 ounces of this gold production, surpassing the earlier forecast of 15,000 ounces.

Rick Van Nieuwenhuyse, the President and CEO of Contango, expressed satisfaction with the campaign's results, stating, "We've once again exceeded our production guidance, demonstrating the potential and efficiency of our operations."

Innovative Testing and Future Plans

In addition to ongoing production, the Peak Gold JV is engaged in a test campaign that involves blending low-grade Manh Choh ore with the higher grade Fort Knox ore. This testing aims to evaluate how effectively the mixed ores can be processed, potentially improving the cost-efficiency of future operations. Results from this test campaign are expected to be reported by early October, providing insights into the blending's viability.

Contango is proactively managing its financial health by engaging in debt repayments and reducing hedge contracts. As of October 1, 2025, the company reported a net hedge contract balance of 49,300 ounces of gold and an early repayment of $8.5 million on its credit facility.

Van Nieuwenhuyse added, "We aim to eliminate our debt and hedge positions by 2026 while ensuring our cash flows from operations facilitate further growth. Our target is to triple our annual production from 60,000 to 200,000 ounces over the next five years."

Strong Growth Position

To support these ambitious targets, Contango is mobilizing an underground drill contractor at the Lucky Shot project by the end of this month. The planned drilling program, which is expected to take between 12 to 18 months, aims to develop a mine plan targeting an annual production of 30,000 to 40,000 ounces of gold using a Direct Shipping Ore (DSO) model.

Simultaneously, the Johnson Tract project is progressing through its permitting phase, with an aim to construct an underground tunnel that will facilitate easier access to the orebody.

Furthermore, the company recently celebrated a legal victory when the Village of Dot Lake dismissed a lawsuit against the US Army Corps of Engineers, which bodes well for the ongoing Manh Choh project.

Financial Forecast

Looking ahead, based on current projections and the optimistic market outlook, Contango expects to surpass $100 million in cash distributions from the Peak Gold JV for the full year 2025. This robust cash flow will bolster their position to further reduce debt and hedge contracts.

Conclusion

As Contango ORE, Inc. continues to expand its production capabilities while managing financial responsibilities prudently, the company stands poised to deliver significant returns to shareholders. With innovative projects and strong operational excellence, Contango is reaffirming its commitment to sustainable growth in the mining industry. For more detailed discussion about their operations, a conference call will be hosted on October 3, 2025, open to all interested parties.

For further information about the company's developments, please visit Contango ORE's website.