#United States #Contango ORE #Fairbanks #cash distribution #Peak Gold

Contango ORE Reports Substantial Cash Distribution

Contango ORE, Inc., listed on the NYSE American under the ticker CTGO, recently made headlines by announcing a remarkable cash distribution for the first quarter of 2025. The Peak Gold joint venture, in which Contango holds a 30% interest, has distributed a total of $24 million in cash. This distribution is a mix of profits from the previous production year and the initial results of the ongoing mining campaign for 2025.

The announcement detailed that the initial payment of $9 million stemmed from additional cash profits linked to production from 2024. This amount was paid out on March 12, 2025. A more significant contribution of $15 million was linked to the revenues generated from the first half of the Campaign #1-2025, which was paid on March 27, 2025. As an exciting development, a third distribution is expected upon the completion of the campaign in late April, further bolstering the financial position of Contango ORE.

Production Highlights of Campaign #1-2025

Rick Van Nieuwenhuyse, President and CEO of Contango, shared optimistic insights regarding the first campaign of 2025, which ran from February 7 to March 19. During this period, the Peak Gold JV processed an impressive 323,000 tons of ore. This produced an average grade of 0.215 ounces of gold per ton, ultimately yielding approximately 69,500 ounces of gold. Impressively, the company achieved a gold recovery rate of 93.5%, which converted into about 65,000 ounces of recovered gold. From this total, Contango's share amounts to around 19,500 ounces.

To date, Contango has sold 13,961 ounces of gold from this campaign, with the remainder of the production set to be sold by the expected date in late April. The company's original production guidance for Campaign #1-2025 ranged from 15,000 to 18,000 ounces, a target which was comfortably surpassed.

Future Production and Financial Expectations

Looking ahead, Mr. Van Nieuwenhuyse conveyed that the guidance for the Peak Gold JV's production remains at 60,000 ounces of gold for 2025. The corporation anticipates consistent increments in its production capabilities, expecting an average annual yield of 58,750 ounces through to 2029, with a cost estimation of $1,400 per ounce sold. The overall mining operations at the Manh Choh project remain on track, demonstrating continuous improvements in both ore transportation and processing operations at Fort Knox.

An exciting development is the forecasted increase in cash distributions for 2025 from the Peak Gold JV, now estimated to reach $80 million based on gold priced at $2,800 per ounce. This unexpected boost in cash flow is poised to enhance Contango's cash reserves, reduce liabilities, and fulfill existing hedge contracts, setting the company on a solid growth path.

In addition, Contango remains proactive in advancing the permitting activities and preliminary economic assessments of its other projects, including the Johnson Tract, which adds to their portfolio of ongoing ventures.

Conference Call and Further Communication

In a bid to keep stakeholders informed, Contango ORE will host a conference call and webcast on March 31, 2025, at 1:30 PM EST/10:30 AM PST. Participants can join via the provided link to stay updated on the ongoing developments and financial updates from the company.

As Contango ORE continues to navigate the volatile mining landscape, these substantial cash distributions and production results signal a robust start to the year. Investors and stakeholders alike are poised to benefit from what appears to be a thriving operation in the Alaskan gold mining sector. Further information about the company and its endeavors can be accessed at www.contangoore.com.