#USA #Fairbanks #Alaska #Lucky Shot #Contango Silver

Contango Silver and Gold Enhances Project Value with High-Grade Drill Results

Contango Silver and Gold Inc. has recently made significant strides in its operations at the Lucky Shot Project, located in Alaska. The completion of the initial phase of its 2025/2026 underground diamond drilling program marks an important milestone for the company. This phase is part of a broader undertaking, encompassing a total of 18,000 meters of planned underground and surface exploration aimed at expanding resources, bolstering geological confidence, and propelling technical studies in anticipation of a mineral resource update and feasibility study slated for the first half of 2027.

Following this major development, the company announced its acquisition of the Lucky Shot lease, along with a net smelter returns royalty. This strategic move ensures Contango retains full ownership and control over the project, enhancing its economic outlook.

Key Highlights from the Drilling Program

The drilling program, successfully executed under the challenging conditions of the Alaskan winter, has revealed numerous high-grade gold intersections throughout the Lucky Shot vein system. Notable drill results include:

• - LSU26057: 0.37 meters averaging 10.53 g/t Au from L1c Vein.
• - LSU26064: 2.89 meters averaging 16.06 g/t Au, inclusive of 0.50 meters at 74.20 g/t Au from the CK vein.
• - LSU26072: 0.84 meters averaging 10.28 g/t Au from the L1d vein.

These results not only demonstrate the high-grade potential of the Lucky Shot mining operation but also provide valuable data that confirms the continuity of mineralization within the surrounding vein structures.

Acquisition of Lease and Royalty

On May 4, 2026, Contango entered a purchase and sale agreement with Alaska Hardrock Inc. to acquire full ownership of the Lucky Shot project. This agreement involves the purchase of the underlying real estate, mining claims, and mining equipment, while also extinguishing the existing 2% net smelter returns royalty. This acquisition is structured with a combination of cash payments and a $10 million promissory note, ensuring that the company can optimize its financial structure while enhancing its control over the project.

Rick Van Nieuwenhuyse, CEO of Contango, praised the acquisition as a significant step, stating, "With the consolidation of the royalty interests at Lucky Shot, we enhance the overall value of the project, allowing for efficient operations and maintaining investors’ interests."

Future Development Plans

With the successful completion of the initial drilling phase, Contango is now preparing for the next critical phase of further underground development. This entails an additional 800 meters of underground excavation, crucial for establishing underground access and drill platforms necessary for testing and expanding the known mineralized system.

The contractor for this work will be GMS Mine Repair & Maintenance, Inc., a reputed mining and tunneling firm with over 40 years of experience. The development program is expected to commence in mid-May 2026, spanning approximately five months. This effort will serve as a stepping stone towards executing an extensive 12,000-meter drilling campaign, strategically designed to identify new targets and test mineralization potential across the Lucky Shot system.

In summary, Contango Silver and Gold’s achievements at the Lucky Shot Project underline its commitment to creating substantial long-term value through resource expansion, strategic acquisitions, and continued exploration. Investors and stakeholders can look forward to further updates as the company advances towards completing its feasibility study by mid-2027.