Getchell Gold Eliminates Debt, Targets 3 Million Ounces in Nevada's Premier Mining District

• Getchell Gold has more than doubled its historic resource at the Fondaway Canyon Gold Project to 2.3 million ounces at grades of 1.3-1.5 g/t, with significant expansion potential remaining
• The preliminary economic assessment shows strong economics with over 50% internal rate of return, $1,200/ounce operating costs, and $220 million capex for 117,000 ounces annual production
• The project sits in Nevada's premier gold mining district, surrounded by major producers in the Carlin and Walker Lane trends, with established infrastructure and processing facilities nearby
• Company has eliminated 95% of outstanding debt, maintains $5 million cash, and has $10 million in in-the-money warrants providing financial flexibility
• Aggressive drilling program underway to expand the 2.3 million ounce resource toward 3 million ounces while improving metallurgical recoveries from 84% to 88-90%

In Nevada's world-class mining district, where the state historically produced 10 million ounces of gold annually, Getchell Gold Corp (CSE:GTCH) is positioning itself as the next significant gold producer. Led by President Mike Sieb,, a geologist with extensive open-pit and underground mining experience across multiple jurisdictions, the company has transformed what was once a fragmented exploration project into a potentially robust mining operation at the Fondaway Canyon Gold Project.

Strategic Acquisition & Resource Development

Getchell Gold's journey began with a well-timed acquisition in January 2020, just before gold prices began their significant upward trajectory. The company acquired the Fondaway Canyon Gold Project for $4 million—$2 million in cash and $2 million in shares—inheriting a historic million-ounce deposit with 40 years of exploration data.

"We were extremely fortunate because it was right before the inflection point in the price of gold back in 2019. It had a historic million ounce deposit. So of course, right then and there, you elevate the company with having a million ounces in your back pocket ."

The company's systematic approach to consolidating decades of fragmented exploration work proved immediately successful. In their initial 2020 drilling campaign, all five widely-spaced drill holes hit significant mineralization, with intersections ranging from 50 to 100 meters of gold mineralization. This success established the foundation for a comprehensive re-evaluation of the project's potential.

Resource Expansion

Through three drilling campaigns spanning three seasons, Getchell Gold has achieved remarkable consistency in its exploration efforts. The company completed 26 drill holes in the central area of the project, with every single hole intersecting significant mineralization—a 100% success rate that Sieb notes is exceptional in the mining industry.

"By the end of that program I was saying 'well I'm expecting to hit gold' and not very many people can say that. You can hope to hit gold... I was always 'expecting' to hit gold and we went 26 for 26 [with the drilling]."

This consistent drilling success culminated in a revised resource estimate that more than doubled the historic resource. The current combined indicated and inferred resource totals 2.3 million ounces at grades of 1.3 to 1.5 grams per ton—grades that Sieb emphasizes are particularly attractive given that "grade is king" in mining economics.

Economic Assessment

The preliminary economic assessment (PEA) released by Getchell Gold demonstrates the project's robust economics. The study outlines an 8,000 tons per day open-pit mining operation producing 117,000 ounces of gold annually over a 10.5-year mine life. The operation shows strong financial metrics with an internal rate of return exceeding 50% and operating costs of approximately $1,200 per ounce.

Particularly notable is the project's manageable capital expenditure requirement of $220 million, which Sieb positions as providing significant strategic flexibility. The relatively modest capex means "we're not beholden to anybody to come in and buy us out," he explains, suggesting the company could potentially self-fund development as it grows stronger.

The PEA was conservatively structured, utilizing only 65% of the company's outlined resources and pricing gold at $2,250 per ounce. With gold prices having risen substantially since the study's completion, the economic fundamentals have only improved, providing what Sieb describes as "cream on the top" for the project's economics.

Interview with Mike Sieb, President, Getchell Gold

Metallurgical Advantages & Processing Infrastructure

The Fondaway Canyon project benefits from conventional processing requirements, utilizing standard open-pit mining followed by crushing and flotation to produce a high-grade concentrate for sale. The deposit consists of approximately 10% oxide mineralization at surface, with the majority being sulfide mineralization—a composition that suits conventional processing methods.

Current metallurgical test work indicates 84% gold recovery to concentrate, but Sieb is optimistic about improvements through additional testing.

"I want to take that 84% gold recovery and add about 4% to 6% to it and get myself up to about 88% or 90% recovery." 

The project's location provides significant infrastructure advantages, with three autoclaves and three roasters within 200 miles that could process the concentrate. This proximity to processing facilities, combined with the conventional nature of the mineralization, positions the project well for efficient production and marketing.

Strategic Location in Nevada's Mining District

Getchell Gold's project occupies a strategic position within Nevada's premier gold mining region. To the north lie the Carlin and Battle Mountain trends, home to major gold producers that have operated for 20-30 years. To the south are the Walker Lane mines, placing Fondaway Canyon in the center of proven gold-producing geology.

"We're right in the middle [of Nevada's gold mining region] and Fondaway Canyon actually forms its own trend like we are the gold in the middle there." 

Sieb positioned the project within established geological trends while maintaining its own distinct mineralization characteristics.

The regulatory environment also favors development, with the project located in Churchill County, which completed a comprehensive modernization lands bill in 2022. This legislation specifically addressed stakeholder concerns and designated the Fondaway Canyon watershed for future development, with strong county support as they seek their first gold mine in the region.

Financial Strength

A significant transformation in Getchell Gold's financial position has occurred over the past year. The company has systematically addressed previous balance sheet constraints, eliminating 95% of outstanding debt that had previously created uncertainty for potential investors.

"We were extremely cognizant of that [debt overhang]. There was a strong rationale why we required the debenture in the first place. But of course there was a stronger rationale to address it and take care of it and that's what we did."

The company now maintains $5 million in cash and has approximately $10 million in in-the-money warrants, which Sieb describes as "a self-fulfilling prophecy of money coming in." This financial strength provides the foundation for aggressive exploration and development activities while maintaining strategic flexibility.

Growth Strategy

Getchell Gold's immediate focus centers on expanding the resource base through targeted drilling designed to increase both the size and confidence level of the mineral inventory. The company is executing a three-step strategy: finding more gold in the ground, increasing the resource, and expanding the conceptual open pit to support higher annual production rates.

The current drilling program aims to grow the resource from 2.3 million ounces toward 3 million ounces while improving various operational parameters.
‍

"It's a simple three-step process to make it look better."

Looking beyond the current drilling, the company plans to release an updated PEA (version 2.0) in Q2 of the following year, incorporating expanded resources, improved metallurgical recoveries, and current gold pricing. This updated study is expected to demonstrate the enhanced economics resulting from the systematic improvement program.

District-Scale Opportunity

The Fondaway Canyon project represents only a fraction of the potential within Getchell Gold's land package. The company controls a four-kilometer-long gold corridor, with current activities focused on approximately 25% of this area. Historic mining and known resources exist throughout the broader corridor, suggesting significant expansion potential.

Sieb envisions the operation potentially transitioning to underground mining methods in the future, extending the mine life well beyond the current 10.5-year open-pit scenario. The grades and thicknesses observed in drilling support this longer-term vision, potentially multiplying the current mine plan's scope and duration.

Market Position & Valuation Opportunity

Despite the substantial progress in resource development and economic demonstration, Sieb believes the company remains significantly undervalued relative to its assets and potential. The combination of debt elimination, resource growth, and improved gold market conditions has created what he sees as a compelling investment opportunity.

"When you actually look at what we have and what we've done and where we're going, you can see that we're woefully undervalued." 

Sieb also acknowledged that "every company says this" but emphasized the quantifiable progress supporting this assessment.

The company is positioned to benefit from sustained strong gold markets while executing a clearly defined growth strategy over the next 6-12 months. With consistent drilling results, improving financial metrics, and established infrastructure advantages, Getchell Gold represents a development-stage opportunity in one of North America's premier mining jurisdictions.

The Investment Thesis for Getchell Gold

• Proven Resource Base: 2.3 million ounce resource with 100% drilling success rate and significant expansion potential remaining across a 4-kilometer gold corridor
• Strong Economic Fundamentals: PEA demonstrates over 50% IRR with conservative assumptions, $220M capex, and 117,000 oz/year production over 10.5-year mine life
• Premier Nevada Location: Strategic position between major producing trends with established infrastructure, favorable permitting environment, and nearby processing facilities
• Clean Balance Sheet: 95% debt elimination completed, $5M cash, $10M in-the-money warrants providing financial flexibility without dilutive partnerships
• Clear Growth Catalyst: Aggressive drilling program underway targeting 3M ounce resource with PEA 2.0 scheduled for Q2 next year incorporating expanded resources and improved recoveries
• Management Execution: Experienced team with proven track record of resource development and successful navigation of balance sheet restructuring
• Market Timing: Well-positioned to benefit from sustained strong gold prices with economics based on conservative $2,250/oz gold assumption
• Self-Funding Potential: Modest capex requirements may enable independent development without major partnership dilution

The gold mining sector is experiencing a renaissance driven by persistent inflationary pressures, geopolitical uncertainties, and central bank accumulation strategies. Nevada, historically producing 10 million ounces annually at its peak, represents North America's most prolific gold-producing jurisdiction with established infrastructure and favorable regulatory frameworks. Development-stage companies with proven resources in premier districts are positioned to capitalize on sustained higher gold prices while benefiting from operational expertise concentrated in established mining regions.

Getchell Gold exemplifies this opportunity, having acquired and systematically developed a substantial resource base during a period of market weakness. The company's transformation from a debt-burdened explorer to a financially robust developer with a 2.3 million ounce resource coincides with gold's emergence as a preferred store of value amid monetary uncertainty. The Nevada location provides both geological confidence and operational advantages, while the company's clean balance sheet enables aggressive resource expansion without the dilutive partnerships that often characterize resource development.

"We're in a very strong gold market that doesn't really look like it's going to be changing much in the immediate future. And we're going to be major beneficiaries of all the macro fundamental factors coming together."