P2 Gold's Gabbs Project: Promising Assay Results and Metallurgical Advances

P2 Gold Inc. has announced encouraging assay results from the Sullivan Zone at its Gabbs Project in Nevada, marking a significant step forward in the development of this gold-copper venture. The company has also initiated a Phase Three Metallurgical Program, aiming to enhance copper and gold recoveries and provide a marketing sample of the copper-silver SART concentrate. These developments underscore P2 Gold's commitment to advancing the Gabbs Project toward production, with promising economic implications.

The recent assay results from the Sullivan Zone reveal impressive grades for gold, silver, and copper. The Panel Sample assayed at 2.029 gpt gold, 15.79 gpt silver, and 0.42% copper, while the Composited Sample showed 0.663 gpt gold, 0.99 gpt silver, and 0.34% copper. These findings are particularly noteworthy as they align with the company's previous metallurgical testwork, which demonstrated high recovery rates for both gold and copper through heap leach and conventional milling processes.

The Phase One Metallurgical Program, conducted in 2021, showed that gold and copper could be recovered with extractions averaging 97.2% for gold and 95.2% for copper when the sample was ground to 100 microns. The Phase Two program, completed in 2022, proposed heap leaching the oxide material and recovering gold as a salable doré, with column test leach results ranging up to 89% for gold and 62% for copper. The average extraction for the three column tests was 82% for gold and 50% for copper.

These historical results, combined with the recent assay data, paint a compelling picture of the Gabbs Project's economic viability. Using existing recoveries of 78% for oxide gold mineralization and 54% for oxide copper mineralization, the project boasts an internal rate of return of 50.1% and a net present value at a 5% discount rate of over US$1.4 billion at April 1st spot metal prices of $3,132 gold, $33.97 silver, and $4.39 copper. These financial metrics, based on the Company's preliminary economic assessment announced on May 22, 2024, highlight the project's strong potential.

The Phase Three Metallurgical Program, now underway, is focused on increasing copper and gold recoveries of the oxide mineralization and providing a marketing sample of the copper-silver SART concentrate. The program involves leach testing approximately 150 kilograms of the Panel Sample in a 20-centimeter diameter column and approximately 20 kilograms of the Composited Sample in a 10-centimeter column. Initial results from this program are expected early in the third quarter of this year.

The expected outcomes of this program could significantly influence the future development and production plans for the Gabbs Project. Based on the results of prior testwork, the company anticipates a meaningful increase in copper and gold recoveries, which would directly boost the project's bottom line. As Joe Ovsenek, President and CEO of P2 Gold, commented, "The assay results of the sample collected at the Sullivan Zone support our enthusiasm and conviction for continuing to advance the Gabbs Project forward toward production. Moreover, based on the results of our prior testwork, we expect the next phase of our metallurgical program to deliver a meaningful increase in copper recoveries as well as an increase in gold recoveries, a direct boost to the project's bottom line. We look forward to providing further updates on our metallurgical program as we advance Gabbs."



In conclusion, P2 Gold's recent assay results and the commencement of the Phase Three Metallurgical Program at the Gabbs Project represent significant milestones in the company's journey toward production. The promising economic indicators and the potential for increased metal recoveries position the Gabbs Project as a highly attractive venture in the gold-copper mining sector. Investors and industry observers will be closely watching the outcomes of the Phase Three Metallurgical Program, which could further solidify the project's economic viability and pave the way for future development and production.