From Resource Expansion to Feasibility: P2 Gold’s 2026 De-Risking Agenda

• P2 Gold Inc. is advancing its Gabbs Project in Nevada toward a completed feasibility study by year-end 2026.
• The company has expanded its 2026 drill program to approximately 25,000–30,000 metres and expects to deliver an updated mineral resource estimate by the end of summer 2026.
• A 2025 Preliminary Economic Assessment outlined a 9 million tonne per year operation producing approximately 110,000 ounces of gold and 33 million pounds of copper annually over a 14-year mine life.
• Management is evaluating increasing throughput to 12 million tonnes per year, which could raise annual production toward 150,000 ounces of gold and 45–50 million pounds of copper.
• Permitting activities are underway with the U.S. Bureau of Land Management, and early baseline environmental studies have been initiated to support an accelerated timeline.

P2 Gold is entering a pivotal year as it advances its Gabbs Project in Nevada through feasibility and permitting. President and CEO Joseph Ovsenek outlined the company’s 2026 objectives, focusing on drilling, resource growth, engineering studies, and environmental approvals. The company is working toward a completed feasibility study by year-end.

The update is relevant for investors assessing near-term gold developers with exposure to Nevada, a leading U.S. mining jurisdiction. With limited advanced-stage development projects of scale in the state, Gabbs represents a comparatively rare asset targeting annual production in excess of 100,000 ounces of gold.

Drilling and Resource Expansion Plan

P2 Gold has an active infill and expansion drill program underway at Gabbs. The initial 15,000-metre program has been expanded, with management now expecting total drilling of approximately 25,000 to 30,000 metres. According to Ovsenek, drilling results are consistent with expectations or better, supporting confidence in resource continuity across multiple deposits within the project area.

In parallel, the company is conducting metallurgical and geotechnical core drilling. These programs are expected to conclude in the first half of the year. The combined datasets will support a new mineral resource estimate targeted for release by the end of summer 2026.

The updated resource will form the foundation of the ongoing feasibility study. Management has indicated that completion of the feasibility study remains scheduled for year-end, contingent on timely resource delivery and engineering progress.

Project Scale and Production Targets

The company’s 2025 Preliminary Economic Assessment outlined a 9 million tonne per year operation producing roughly 110,000 ounces of gold and 33 million pounds of copper annually over a 14-year mine life. However, P2 Gold is currently evaluating the potential to increase processing capacity to 12 million tonnes per year. This expansion scenario could lift production toward approximately 150,000 ounces of gold and between 45 and 50 million pounds of copper annually.

Trade-off studies are underway to determine the optimal throughput rate. Final mine planning decisions will depend on the forthcoming resource estimate and economic optimization work.

Permitting Strategy and Timeline

Permitting represents the critical path for the project. P2 Gold has filed its Mining Plan of Operations with the U.S. Bureau of Land Management and has initiated baseline environmental studies in advance of formal requirements to accelerate the process.

Ovsenek emphasized the company’s proactive approach:

“The critical path for us we see along that timeline is the environmental permitting… we’ve started a lot of those studies up front before we have our mining plan of operations finalized.”

By commencing studies early and engaging experienced local consultants familiar with Nevada mining projects, the company is attempting to compress timelines. Management has indicated that, if approvals proceed as expected, ground-breaking could occur in late 2027.

Nevada’s regulatory stability remains a key advantage. Compared with jurisdictions where mining policies have shifted in recent years, the state provides a comparatively predictable framework for development.

Interview with Joseph Ovsenek, President & CEO of P2 Gold Inc.

Feasibility Study Discipline

P2 Gold has appointed lead engineering firms to oversee feasibility-level work, including process design and mine planning. Management has stressed the importance of preparing a realistic feasibility study. Ovsenek states:

“You have to have a robust feasibility study, not a marketing document. You want to have credibility. You have to have a realistic feasibility study.”

This disciplined approach is particularly relevant in a rising gold price environment, where cost inflation must be carefully managed. While gold prices have strengthened significantly over the past two years, management acknowledges the need to balance metal price assumptions with conservative cost projections.

Valuation Context and Market Positioning

At a market capitalization of approximately C$225–250 million, P2 Gold currently trades at a level typical of mid-stage development companies. Management believes successful completion of feasibility and continued de-risking could support a material re-rating, particularly given the relative scarcity of large-scale, advanced development projects in Nevada.

Institutional capital typically flows first to producers before moving into developers. As capital rotates into advanced-stage projects with near-term production visibility, P2 Gold is positioning itself to attract that interest. The company’s strategy remains straightforward: advance the project toward construction while creating optionality. Management has stated that while it plans to build the mine, it remains open to acquisition offers that reflect full value for shareholders.

The Investment Thesis for P2 Gold

• Gabbs is located in Nevada, a Tier-1 mining jurisdiction, which provides regulatory stability, established infrastructure, and a predictable permitting framework compared with many international jurisdictions.
• The project targets annual production of 110,000 to 150,000 ounces of gold, placing it in a meaningful production category that may attract institutional and strategic interest.
• Copper by-product production of 33–50 million pounds per year offers additional revenue diversification and exposure to electrification-related demand trends.
• Clear and measurable 2026 milestones - including a resource update, feasibility study completion, and permitting advancement - provide defined catalysts for valuation reassessment.
• At a market capitalization of approximately C$225–250 million, the company represents a mid-stage developer with potential re-rating leverage if feasibility and permitting objectives are achieved.
• The scarcity of advanced-stage development projects of scale in Nevada enhances the strategic relevance of Gabbs within the North American gold sector.

Macro Thematic Analysis

Over the past several years, gold prices have strengthened materially, reflecting inflation concerns, central bank buying, and diversification away from traditional reserve assets. At the same time, global mine supply growth has been constrained by declining grades, limited new discoveries, and permitting challenges in multiple jurisdictions. In North America, political and regulatory stability has gained relative importance as certain regions have introduced higher royalties, revised mining codes, or delayed approvals.

Nevada remains one of the most established gold-producing regions globally. Infrastructure, workforce expertise, and regulatory precedent reduce certain execution risks compared with frontier jurisdictions. Developers such as P2 Gabbs who can demonstrate credible feasibility economics in Tier-1 jurisdictions may command valuation premiums as capital seeks lower geopolitical risk. In addition, copper exposure provides leverage to electrification and energy transition themes. Copper demand forecasts remain linked to grid expansion, renewable energy installations, and electrified transportation.

The opportunity lies at the intersection of rising gold prices, constrained new project pipelines, and jurisdictional stability. Projects that can move from feasibility to construction during supportive commodity cycles may capture stronger financing terms and strategic interest from producers seeking reserve replacement.

TL;DR

P2 Gold Inc. is advancing its Nevada-based Gabbs Project toward feasibility by year-end 2026. With expanded drilling, a pending resource update, potential production of up to 150,000 ounces of gold annually, and permitting underway, P2 Gold’s 2026 agenda centers on delivering an updated resource estimate, completing a feasibility study, and advancing permitting at its Nevada-based Gabs Project. The company is evaluating production expansion scenarios while emphasizing realistic engineering and disciplined execution. For investors, the key implications are milestone delivery, jurisdictional stability, and potential re-rating as the project transitions from development toward construction readiness.

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