#United States #Contango ORE #Peak Gold JV #Fairbanks #Gold Production

Contango ORE Inc. Announces Significant Cash Distribution

Contango ORE, Inc. (NYSE American: CTGO) has announced an exciting financial update from its Peak Gold joint venture, where a substantial cash distribution of $9 million was successfully disbursed to the company. As of December 19, 2024, these funds correspond to Contango's 30% share of profits derived from the processing of ore from the Manh Choh project, specifically through the latest Campaign #3.

This noteworthy cash distribution brings Contango's total cash inflow from the Peak Gold JV to an impressive $40.5 million since the inception of ore processing activities back in July 2024. The Peak Gold project has been pivotal for Contango, showcasing strong production capabilities and financial returns, key components for empowering future exploration and operational strategies.

Production Highlights in 2024

According to production statistics for the year, Contango has achieved remarkable output, including:

• - Gold production: 42,000 ounces
• - Silver production: 16,330 ounces
• - Gold sales delivered into hedges: 21,100 ounces
• - Gold sold at spot price: 19,660 ounces
• - Average blended realized gold price: $2,285 per ounce
• - Total sales from gold and silver: $95,411,875
• - Recoverable gold inventory: 1,240 ounces

Rick Van Nieuwenhuyse, President and CEO of Contango, expressed satisfaction with the results, noting, "In 2024, the Peak Gold JV executed three successful campaigns, surpassing the company’s forecast by around 30%. This year, Contango produced approximately 42,000 ounces of gold and 16,300 ounces of silver, significantly exceeding our original projections of 30,000 to 35,000 ounces of gold production."

As for the future, Contango anticipates an uptick in production for 2025, projecting annual gold yields of approximately 60,000 ounces. Looking ahead, the company estimates it’ll receive an average of 58,750 ounces of gold annually through to 2028 from its 30% stake in the Peak Gold JV, alongside an estimated all-in sustaining cost of around $1,400 per ounce.

Core Operations and Future Directions

Contango's pathway to profitability is supported by its extensive landholdings for exploration and production in Alaska, specifically via its 30% interest in the Peak Gold JV, which oversees around 675,000 acres for productive mining on the Manh Choh project. The remaining 70% is held by KG Mining (Alaska), Inc., part of Kinross Gold Corporation, which plays a significant role in operations.

In addition to these projects, Contango maintains active leases on several other significant sites. These include the Johnson Tract project leased from CIRI Native Corporation, and the Lucky Shot project leased from Alaska Hardrock Inc., as well as a 100% ownership of various mining claims across the state.

In terms of corporate governance, Contango remains committed to its strategic goals while ensuring compliance and transparency through regular financial updates and disclosures. The final financial results for 2024 are expected to be reported in March 2025, which will provide further insight into the company's fiscal health and performance.

With its robust operational framework, talented team, and strong financial position, Contango ORE, Inc. is well-positioned to capitalize on future opportunities within the mining sector.

For more information about their operations and exploration activities, visit Contango ORE's website.