2024 from our high grade Manh Choh operation achieving commercial production, we will be able to continue to create value for the Johnson Tract Project and advance this high-quality project through to production. When combined with our Manh Choh and Lucky Shot projects, the Johnson Tract Project represents another asset that meets our criteria to be a run-of-mine, direct shipping ore operation. Contango will now develop a growth plan to advance these three assets to a production decision and target producing well in excess of 150,000 ounces of gold per year.” “We believe that a model of focusing on assets that meet three specific criteria will enable Contango to continue to build a significant production profile while minimizing our environmental footprint: 1) located near existing or amenable to new infrastructure; 2) sufficient grade to directly transport run-of-mine ore to an existing third-party processing facility; and 3) inclusive of a simple ore body — specifically in terms of permitting. “This business model would result in low permitting and execution risk, low initial capital outlay and shorter timelines to production. This model has
worked well for Manh Choh, and we believe it will work well for the Lucky Shot and Johnson Tract projects.” “We look forward to working closely with CIRI to rapidly advance the Johnson Tract Project to a production decision. In addition to the three projects discussed, Contango has assembled an impressive group of exploration stage properties in Alaska including: the 675,000 acres of highly prospective ground in the Tintina Gold belt and under lease from the Tetlin Alaska Native Tribe by our Peak Gold JV partner Kinross; several early stage assets (Eagle- Hona, Triple Z, and Shamrock); most of the Willow district surrounding the Lucky Shot Project; and now a large tract of private land owned by CIRI, a very successful Alaska Native Corporation based in Anchorage, Alaska.” Darwin Green, President and CEO of HighGold said, “HighGold believes this transaction with Contango represents a compelling value creating opportunity for our shareholders, with obvious synergies, an enhanced capital markets profile, financial strength, and a robust platform for future growth. It is a union that brings together three of Alaska’s most compelling high-grade gold deposits in one company with ability to self-fund growth out of cash-flow.”
www.alaskaminers.org I The Alaska Miner I May 2024
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