#USA #Contango ORE #Peak Gold JV #Manh Choh #Fairbanks

Contango ORE Updates Production Guidance for the Manh Choh Gold Project in 2025

Contango ORE, Inc., publicly traded on the NYSE American under the ticker CTGO, has recently announced significant updates regarding its gold production guidance for the Manh Choh project, particularly for the year 2025. This announcement comes as the company seeks to provide clarity amidst operational challenges and financial estimates related to its ongoing projects in Alaska.

In detail, Contango has reaffirmed expectations for its 30% stake in the Peak Gold Joint Venture (JV), emphasizing that they anticipate a total output of approximately 60,000 ounces of gold from the Manh Choh mine for 2025. However, the company has also noted an adjustment in its all-in sustaining costs (AISC), now projected to be around $1,625 per ounce for that year, compared to the previous estimates. The estimated life-of-mine AISC is on track to increase to about $1,400 per ounce of gold equivalent sold, highlighting the challenges the company faces.

The rise in AISC can be attributed to several factors, primarily the recent weight restrictions imposed on the Chena Flood Plain Bridge, a crucial passage for the ore transportation. This restriction has limited the annual ore transport capacity by approximately 20% from earlier projections, alongside escalating processing costs that have compounded these financial outlooks.

Financial Implications

Contango's projections also extend to financial expectations, predicting cash distributions from the Peak Gold JV to reach approximately $50 million in 2025 based on current market conditions, specifically at a spot price of $2,500 per ounce of gold. Company President and CEO Rick Van Nieuwenhuyse expressed optimism regarding the profitability of the Manh Choh project over its projected four to five-year operational life, despite the setbacks.

Strategic Moves and Future Outlook

To address financial strains and align with its production schedule, Contango is actively engaged in discussions with lenders to restructure principal repayments associated with its credit facility. The Company is focused on navigating through these restrictions while advancing its other projects, including Lucky Shot and Johnson Tract, which are integral to their growth strategy.

The company continues to operate in a landscape fraught with uncertainty, reflective of the volatile nature of mining. Factors such as fluctuating commodity prices, operational risks, and the evolving regulatory environment pose significant hurdles. Nonetheless, Contango is poised to capitalize on its exploration potential, aiming to maintain a robust production profile and strategic initiatives.

This update stands as a testament not only to Contango's resilience in facing operational constraints but also to its commitment to navigating the complexities of gold mining. Stakeholders can expect ongoing updates as Contango progresses further into 2025 and beyond.

For those interested in gaining deeper insights, CEO Rick Van Nieuwenhuyse will be hosting a live webinar to discuss these developments and address any questions. The webinar is set for 3 PM EST / 12 PM PST, inviting investors and analysts alike to participate.

About Contango ORE, Inc.

Contango ORE, Inc. is an exploration-focused company engaged primarily in the development of gold and related minerals in Alaska. The company holds a significant stake in the Peak Gold JV, which oversees a considerable land lease for its operations, supplementing its portfolio with interests in the Johnson Tract and Lucky Shot projects. More information about their ventures can be found on their official website at www.contangoore.com.