At Gabbs, the Permitting Groundwork May Matter More Than the Drill Results

• P2 Gold confirmed on June 09, 2026 that its feasibility study (FS) for the Gabbs gold-copper project in Nevada remains on schedule for completion in the fourth quarter (Q4) of 2026
• A water well drill program is underway across both the Sullivan & Lucky Strike zones to build a regional water model, a required step before the company can file its mine plan with the Bureau of Land Management (BLM)
• 2,500 acre-feet per year of water rights are under a definitive acquisition agreement, expected to be sufficient to support mining operations at the planned FS production rate of nominally 12 million tonnes per year (Mtpa), with Nevada Division of Water Rights (NDWR) transfer approval targeting a 6 to 12-month timeline that coincides with FS completion
• Feasibility study-level processing test work covering the Sullivan, Lucky Strike, & Car Body zones is underway, with results targeting Q3 2026 delivery ahead of the FS
• An updated mineral resource estimate (MRE) incorporating all drilling completed to date is targeting Q3 2026 completion, forming the technical basis for the FS

Opening Briefing

P2 Gold (TSX-V: PGLD | OTCQB: PGLDF) released a project-wide update on June 09, 2026 confirming its feasibility study (FS) for the Gabbs gold-copper project in Nye County, Nevada remains on schedule for the fourth quarter (Q4) of 2026 completion. The update confirmed progress across 5 simultaneous work programs: drilling, water well testing, water rights transfer, processing test work, & mine plan studies for the Bureau of Land Management (BLM). Each program feeds directly into the FS or the mine plan application.

The company's October 2025 preliminary economic assessment (PEA) outlined an after-tax net present value at a 5% discount rate (NPV5%) of US$942.9 million & an after-tax internal rate of return (IRR) of 33.8%, based on processing 9 Mtpa & producing an average of 109,000 ounces of gold & 33 million pounds of copper annually over a 14.2-year mine life. The FS is advancing at a nominal production rate of 12 Mtpa, targeting average annual production of 150,000 ounces of gold & 45 to 50 million pounds of copper per year.

Investors tracking Gabbs often focus on drill results as the primary value driver. The June 09, 2026 update suggests the more consequential near-term developments are taking place in the work programs that determine whether the project can be permitted, financed, & built on schedule, water rights, mine planning, & environmental studies running in parallel with the drill program.

The Drilling Program: Expansion Reflects Geological Confidence

The drilling program at Gabbs has grown beyond its original scope. Since the program commenced in October 2025, 69 drill holes have been completed: 24 at the Sullivan Zone & 45 at the Lucky Strike Zone. A separate drill completed 29 holes for processing test work & pit wall stability studies, & 10 additional holes for exploration, before being removed from site at the end of May 2026.

The original drilling program at the Lucky Strike Zone has been expanded to test extensions of the zone to the north & south, following positive results received to date. The Lucky Strike Zone remains open in all directions, meaning its full size has not yet been defined. A 2nd drill rig is targeting mobilisation to site in early August 2026, where it will focus on the Sullivan Zone's higher-grade material at depth.

Expanding a drill program mid-cycle carries a specific implication: the company is committing additional capital to a zone where results have met or exceeded expectations. The updated MRE, targeting Q3 2026 delivery, will show whether the total resource inventory supports the 12 Mtpa production scenario, with the FS targeting Q4 2026 completion based on whichever production rate is selected.

Water Well Drilling: A Prerequisite, Not a Formality

The water well program described in the June 09, 2026 update is a required step before P2 Gold can file its detailed mine plan with the BLM. A water well rig is on site & has completed an initial test well & monitoring well at the proposed location for Gabbs' mine water supply, near a historically permitted water well. The rig will next complete a test well & 2 monitoring wells near each of the proposed open pits at the Sullivan & Lucky Strike zones.

Once all wells are in place, flow tests will be conducted on each of the 3 test wells to measure water availability & capacity. That data will be used to build a regional water model in support of the mine plan application. The water model must be completed before the detailed mine plan can be filed with the BLM, with the company targeting that filing before yearend 2026.

Running the water well program at the same time as drilling removes a dependency that would otherwise push the BLM filing later. For a project targeting a construction start in 2028, a yearend 2026 BLM filing is on the critical path to keeping that schedule intact.

Water Rights: Sized for Optionality

The water rights position at Gabbs is structured to keep the production rate decision open. On April 02, 2026, P2 Gold announced a definitive agreement to acquire 2,500 acre-feet per year of water rights in the Gabbs Basin. Closing is conditional on the NDWR approving the transfer of those rights from agricultural use to mining & processing use, with approval targeting a 6 to 12-month timeline coinciding with projected FS completion at the end of Q4 2026.

The 2,500 acre-feet per year position is expected to be sufficient to support mining operations at the planned FS production rate of nominally 12 Mtpa, per the June 09, 2026 press release. Under the 12 Mtpa scenario, the FS is targeting average annual production of 150,000 ounces of gold & 45 to 50 million pounds of copper, compared to 109,000 ounces of gold & 33 million pounds of copper annually under the 9 Mtpa PEA baseline.

The financial consequence of that flexibility is material. The October 2025 PEA NPV5% of US$942.9 million was built on the 9 Mtpa case. A 12 Mtpa scenario with proportionally higher production would carry a different NPV outcome, though no FS-level economic estimate has yet been disclosed for that scenario.

Processing Test Work: Covering All 3 Production Zones

Feasibility study-level processing test work is underway across the Sullivan, Lucky Strike, & Car Body zones. 23 test columns are at various stages in the program, testing how gold & copper are recovered from ore across the deposit. Work to refine the processing flow sheet is nearing completion, with variability tests targeting commencement shortly thereafter, & ore hardness testing completed on the Sullivan & Lucky Strike zones.

Covering all 3 zones at this level of testing is significant because it establishes recovery rates across the full deposit. The October 2025 PEA established gold & copper recovery rates through its processing design, & those rates form the baseline against which the current test results will be measured. Whether the results hold across Sullivan, Lucky Strike, & Car Body will directly affect the cost estimates in the FS & by extension the NPV & IRR figures disclosed when the FS is completed.

Processing test results are targeting Q3 2026 delivery, sequenced to feed into the FS ahead of Q4 2026 completion. A delay in those results would represent a direct risk to the FS timeline.

Permitting: The Variable That Determines Whether the 2028 Production Target Holds

Consultants have been selected to complete all BLM baseline study reports. The company has filed an initial mine plan with the BLM & is targeting submission of a detailed mine plan before yearend 2026, which will formally advance the federal environmental review process required before a construction decision can be made.

Nevada is an established Tier 1 mining jurisdiction, a characteristic that reduces the probability of regulatory delays & supports the parallel work strategy P2 Gold is running at Gabbs. The company has engaged local consultants with direct Nevada mining experience to run environmental baseline studies before the final mine plan is completed, accepting the risk that some work may need to be repeated in order to compress the overall timeline.

The company is targeting environmental approval by 2027, with a construction start targeting late 2027 if that timeline is achieved, & a fallback window extending through mid-2028. The construction timeline is targeting a 2028 start, with first production targeting 2028 to 2029.

What to Watch Next

The updated MRE, targeting Q3 2026, is the most important near-term milestone. It will show whether the total gold & copper inventory across Lucky Strike & Sullivan supports the 12 Mtpa production scenario & will form the foundation for the FS. Investors should watch both the total resource figure & how much of it is classified as indicated rather than inferred, as that classification directly affects mine planning reliability & cost estimates in the FS.

The Q3 2026 processing test results will show whether the gold & copper recovery rates used in the October 2025 PEA hold across all 3 zones, with the outcome feeding directly into the cost inputs of the FS targeting Q4 2026 completion. NDWR approval of the water rights transfer is targeting a 6 to 12-month timeline from the April 02, 2026 definitive agreement, with formal approval removing a key dependency on the path to FS completion. The company is also targeting submission of a detailed mine plan with the BLM before yearend 2026, with the pace of BLM review determining whether the construction timeline targeting 2028 remains on track.

The FS itself, targeting Q4 2026 completion, will disclose updated NPV, IRR, capital expenditure, & operating cost estimates at feasibility study level, resolving the 9 Mtpa versus 12 Mtpa production rate question that determines the project's scale & economic baseline.

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