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

Contango ORE, Inc. Announces 2025 Gold Production Milestone

On June 16, 2025, Contango ORE, Inc. shared exciting news regarding the results of its Peak Gold joint venture (JV). The second campaign of 2025, designated as Campaign #2-2025, has successfully concluded, with the company recording an impressive output of approximately 15,700 ounces of gold, significantly surpassing initial projections of 15,000 ounces. This production milestone not only highlights the efficiency of the operation but also positions Contango as a strong player in the gold mining sector.

The processing period for this campaign spanned from May 13 to June 7, 2025. During this timeframe, the Peak Gold JV processed a total of 255,000 tons of ore, achieving an average grade of 0.220 ounces per ton. This led to the extraction of nearly 56,000 ounces of gold, of which approximately 52,000 ounces were successfully recovered at an average recovery rate of 93%. As per the company’s stake in the JV, Contango's share amounts to 15,700 ounces of gold.

Rick Van Nieuwenhuyse, President and CEO of Contango, expressed optimism about these findings: “Completing processing on June 7th marks a significant achievement for our company. While the ore grade was slightly below our plan, our recovery rates exceeded expectations. This, combined with an average mill throughput of 10,122 tons per day, which is 17% above plan, has set a solid foundation for reduced operating costs relative to our first campaign of 2025.”

In fact, the first campaign reported all-in sustaining costs of $1,374 per ounce, and anticipations indicate that costs for the second campaign will likely be lower. Contango maintains its production guidance of 60,000 ounces of gold for the Peak Gold JV in 2025. Furthermore, the long-term average annual production projection remains at about 58,750 ounces per year until 2029, with expected all-in sustaining costs estimated around $1,400 per ounce.

As for financial benefits, Contango anticipates a cash distribution exceeding $20 million from the Peak Gold JV by late June 2025, with projections indicating a staggering $93 million expected in total cash distributions for the year, assuming a gold price of $3,200 per ounce for the latter half of 2025. These funds will bolster the company’s cash reserves, assist in debt reduction, and underwrite ongoing hedge contracts.

In addition to the Peak Gold operations, Contango is actively progressing with permitting activities on its Johnson Tract project. The company holds a 30% interest in the Peak Gold JV, while KG Mining (Alaska), Inc., a subsidiary of Kinross Gold Corporation, maintains the remaining 70% share. The Peak Gold JV is currently exploring approximately 675,000 acres of land in the Manh Choh project area.

Van Nieuwenhuyse concluded with affirmations of the ongoing improvements in mining operations at Manh Choh and the company’s intent to report final gold sales and all-in sustaining costs in early August 2025 alongside their second-quarter results. Processing for the third campaign is anticipated in August 2025, paving the way for continued success in the coming months.

About Contango ORE, Inc.

Contango ORE is publicly traded on the NYSE American under the ticker symbol CTGO. The company is focused on gold exploration and mining in Alaska, demonstrating commitment not just to output but also to the sustainable management of its mineral resources. Further information about Contango can be found on their official website.

Looking Ahead

As Contango ORE, Inc. undergoes these stages of production, stakeholders and investors are eagerly watching to see how the operational improvements and production outputs will unfold in this dynamic market. The company’s forward-looking approach, combined with existing projects and potential developments, positions it favorably within the gold mining industry.