P2 Gold Gabbs Project Update: 7 Things You Need to Know

Project Overview

P2 Gold (TSX-V: PGLD | OTCQB: PGLDF) is advancing the 100%-owned Gabbs gold-copper project on the Walker Lane Trend in Nye County, Nevada. The 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 million tonnes per year (Mtpa) & producing an average of 109,000 ounces of gold & 33 million pounds of copper annually over a 14.2-year mine life. The feasibility study (FS) is advancing at a nominal 12 Mtpa production rate targeting average annual production of 150,000 ounces of gold & 45 to 50 million pounds of copper. The updated mineral resource estimate (MRE) & FS are both targeting 2026 completion. The June 18, 2026 geotechnical drill release & the June 09, 2026 project-wide update together define the current state of the program.

1. The Geotechnical Program Is an FS Prerequisite, Not a Secondary Workstream

The Pit Slope Stability Geotech Drill Program is a direct input to the mine plan & open pit economics that will define the FS, not a parallel technical exercise running alongside the main program. The holes were drilled at the margins of the planned open pit specifically to collect the rock data required for pit wall angle & slope stability design. Those parameters determine how much waste rock must be moved per tonne of ore, which flows directly into the operating cost & capital spending assumptions in the FS.

Steeper pit walls supported by geotechnical data reduce the total waste movement required over the mine life, lowering the cost structure of the operation. Without this dataset, the mine plan cannot be finalized at the confidence level required & the project economics to be disclosed in the fourth quarter of 2026 cannot be computed on a defensible basis. The completion & demobilization of the diamond drill by the end of May 2026 on a schedule that supports the third quarter 2026 MRE & fourth quarter 2026 FS confirms the geotechnical program has been correctly sequenced, reducing execution risk on the path to FS delivery.

2. All 5 Geotechnical Holes Intersected Mineralization, & the Pit Margins Are Carrying Grade

A geotechnical program that returns broad, mineralized intervals at the planned pit boundary is telling investors something specific: the Sullivan Zone is larger than the current mine plan assumes & the edge of economic mineralization sits closer to or beyond the planned pit boundary. The holes drilled at pit wall positions returned wide, gold-copper intervals confirming that mineralization is not thinning at the planned extraction boundary, a positive indicator for MRE continuity ahead of the third quarter 2026 update.

At Sullivan, the deeper footwall mineralization & the main mineralized body together form a combined thickness of up to 175 meters. This confirms the Sullivan Zone has meaningful vertical depth & width at precisely the location where the mine plan requires that confidence, supporting the resource model going into the updated MRE.

3. The Sullivan Zone Is Open Down Dip & the Follow-Up Program Is Already Planned

The confirmation that the Sullivan Zone remains open for expansion down dip is a resource conversion signal, not just an exploration result. P2 Gold has responded by planning a 7,500-meter RC drill program targeting that down-dip mineralization specifically for inclusion in the FS MRE. This is not speculative follow-up. It is a program designed to define the gold-copper material that the geotechnical holes have already shown exists at pit margins & to determine whether it falls within an economic pit outline.

Since the program commenced in October 2025, a total of 70 RC holes have been completed across both the Sullivan & Lucky Strike zones, alongside geotechnical & exploration holes completed by the diamond drill before its demobilization. The planned infill & expansion program at Lucky Strike & the new down-dip program at Sullivan together represent the final drilling input to the MRE targeting third quarter 2026. The drilling inventory being fed into the updated MRE is materially larger than the dataset that supported the October 2025 PEA.

4. The Bigger Production Plan Still Needs an Economic Proof Point & the FS Will Provide It

The October 2025 PEA was built on a smaller production scenario of 9 Mtpa. The FS is now advancing at a larger rate of 12 Mtpa, targeting 150,000 ounces of gold & 45 to 50 million pounds of copper annually, but the updated economics for that larger scenario have not yet been published. That means investors are currently working with numbers that do not reflect the scale the company is building toward.

The FS targeting the fourth quarter of 2026 is the document that will show what the larger production scenario is worth. Processing test work & the updated MRE, both targeting third quarter 2026 delivery, are the 2 steps that need to be completed first. Until those results are in hand, the 12 Mtpa production rate is a well-supported target, but not yet a fully validated one.

5. Water Is Secured for the Larger Production Plan & the Approval Clock Is Running in Step With the FS

Water is a practical requirement for any mining operation, & in Nevada it must be formally permitted before construction can begin. P2 Gold secured a definitive agreement on April 02, 2026 to acquire water rights sized to support operations at the planned 12 Mtpa production rate. The transfer of those rights from their current use to mining use requires approval from the Nevada Division of Water Rights (NDWR), with that approval targeting a 6 to 12-month timeline that lines up with when the FS is expected to be completed.

The significance for investors is straightforward: the company did not wait for the FS to finalize the production rate before securing water. By moving early & sizing the water position for the larger scenario, P2 Gold has removed a step that would otherwise sit between FS completion & a construction decision. Either outcome within the approval window keeps the construction start targeting late 2027 to mid-2028 on track.

6. Permitting Is on the Critical Path to a 2028 Construction Start & Nevada's Track Record Supports the Timeline

A detailed mine plan with the Bureau of Land Management (BLM) is targeting submission before yearend 2026, with environmental approval targeting 2027 & a construction start targeting late 2027 if environmental approval is achieved in 2027, with a fallback window extending through mid-2028. The BLM filing depends on the completion of the regional water model being built from the water well program currently underway at site, with test wells & monitoring wells planned at both the Sullivan & Lucky Strike pit locations. That water model must be complete before the detailed mine plan can be filed.

Nevada is a well-established mining jurisdiction, a characteristic that reduces the likelihood of regulatory disruption & supports the parallel-track permitting strategy running at Gabbs. Local consultants with direct Nevada mining experience have been engaged to advance BLM baseline study reports & environmental work before the final mine plan is submitted, accepting the risk that some baseline work may need updating in exchange for compressing the overall permitting timeline. The BLM filing timeline & NDWR approval are the 2 permitting variables with the most direct bearing on whether a 2028 construction start is achievable.

7. The Third Quarter 2026 MRE Is the Nearest-Term Valuation Milestone & Resource Confidence Level Matters as Much as Total Ounces

The updated MRE targeting third quarter 2026 is the most consequential near-term milestone for Gabbs, & investors should evaluate it on resource classification, the ratio of higher-confidence indicated to lower-confidence inferred mineral resources, as much as on total gold-equivalent ounces. For FS-level mine planning, indicated mineral resources carry the confidence level required for mine scheduling, cost estimation, & project financing. A large but predominantly inferred resource does not support an FS at the same level of credibility as one where the material to be mined is well-classified & supported by close-spaced drilling.

The infill & expansion program at Lucky Strike is designed to upgrade lower-confidence inferred material to indicated & to test zone extensions. The Sullivan geotechnical program has confirmed that the zone extends to the pit margin with consistent grade & width, providing the structural confidence to support tighter resource classification in that area. The combination of conversion work at Lucky Strike & geotechnical confirmation at Sullivan means the third quarter 2026 MRE should reflect both a larger total inventory & a higher proportion of well-classified material than the resource that supported the October 2025 PEA. The degree to which that is the case will determine how investors price the project ahead of the fourth quarter 2026 FS.

Key Takeaway for Investors

• The geotechnical program is a direct input to the mine plan, not a secondary workstream, & its completion on schedule removes a key dependency on the path to the fourth quarter 2026 FS.
• All 5 geotechnical holes returned gold-copper mineralization at the planned pit margins, confirming the Sullivan Zone extends beyond the current mine plan boundary.
• No FS-level economics have been published for the 12 million tonnes per annumproduction scenario, making the fourth quarter 2026 FS the primary valuation event for Gabbs.
• Water rights sized for the 12 Mtpa scenario are under a definitive agreement with NDWR approval on a timeline aligned with FS completion, removing a key permitting dependency.
• The third quarter 2026 Mineral Resource Estimate & processing test work results are the 2 nearest data points that will indicate whether the 12 Mtpa production scenario is technically supported ahead of the Feasibility Study.

Bottom Line

The June 18, 2026 geotechnical release & the June 09, 2026 project update together confirm that P2 Gold is executing across every workstream simultaneously, drilling, geotechnics, water rights, processing test work, & permitting, on a schedule aligned with third quarter 2026 MRE delivery & fourth quarter 2026 FS completion. The geotechnical program's core finding that the Sullivan Zone is open down dip & carrying grade at the planned pit margins has immediate implications for both the resource model & the mine plan that will underpin the FS economics. The central unknown investors should track is the FS itself: the production rate move from 9 Mtpa to 12 Mtpa has not yet been economically quantified at feasibility study confidence level, & the NPV5% & returns figures to be disclosed in the fourth quarter of 2026 represent the valuation turning point the entire 2026 program is building toward. Between now & then, the third quarter 2026 MRE, specifically its indicated versus inferred classification split, & the third quarter 2026 processing test work results across the Sullivan, Lucky Strike, & Car Body zones are the 2 nearest data points that will indicate whether the 12 Mtpa scenario is resourced & metallurgically supported to underpin the FS mine plan.