P2 Gold Hits High-Grade at Gabbs as $11.6M Raise Funds 2026 Feasibility

• P2 Gold Inc. closed a non-brokered private placement for gross proceeds of $11,625,000 to fund ongoing exploration and development at the Gabbs Project in Nevada.
• Recent diamond drilling at the Lucky Strike Zone intersected 183 grams per tonne gold and 4% copper over 1.52 metres within a broader interval of 1.04 grams per tonne gold and 0.35% copper over 53.34 metres.
• The company is conducting an infill and expansion drill program to increase the overall mineral resource to over 5 million gold-equivalent ounces, with a target resource update in the third quarter of 2026.
• Management and insiders hold approximately 16% of issued and outstanding shares, with insiders subscribing for 300,000 units in the most recent financing.
• The feasibility study (FS) is progressing at a nominal processing rate of 12 million tonnes per year and remains on target for completion in the fourth quarter of 2026.

What Has Happened

Within a five-day window in late May 2026, P2 Gold Inc. (TSX-V: PGLD) (OTCQB: PGLDF) delivered two material updates at its Gabbs gold-copper project in Nevada. On May 25, 2026, P2 Gold Inc. closed a non-brokered private placement for gross proceeds of $11,625,000 through the issuance of 15.5 million units at $0.75 each. The placement was upsized twice since its original April 22 announcement.

On May 20, 2026, the company reported drill results from four diamond drill holes at the Lucky Strike Zone, including a 100-meter step-out into previously undrilled ground that encountered visible gold. These announcements address key constraints on the feasibility pathway: new geological data and the capital needed to complete the current program.

Decoding the Lucky Strike Drill Results

The most significant result from the May 20, 2026, release came from a step-out drill 100 metres to the south of the previously defined Lucky Strike Zone, into ground with no historical drilling. The hole returned a broad interval of 1.04 grams per tonne gold and 0.35% copper over 53.34 metres, including a higher-grade core of 1.93 grams per tonne gold and 0.44% copper over 19.81 metres. Within that core, a sub-interval of 183 grams per tonne gold and 4% copper over 1.52 metres was recorded. The hole ended in mineralisation, indicating the zone has not been fully delineated at depth or to the south.

The intersection was characterised by intense silicification, brecciation, sulphide flooding, and coarse visible gold near the upper contact of the quartz monzonite unit - the same structural setting that hosts higher-grade mineralisation at both the Lucky Strike and Sullivan Zones. This confirms that the ore controls at Lucky Strike are analogous to those at Sullivan, where mineralisation is hosted in and below a tabular quartz monzonite unit underlain by pyroxenite.

The Lucky Strike Zone's footwall mineralization ranges from 20 metres to 60 metres thick, with the main mineralised body reaching up to 75 metres and a combined thickness of up to 125 metres in some areas. 3 additional holes from the program returned further confirmation of lateral extent, with the strongest returning 0.88 grams per tonne gold and 0.34% copper over 56.39 metres. The company stated that, based on available drill data, the Lucky Strike Zone has the potential to be significantly larger than the adjacent Sullivan Zone.

Funding the Feasibility Pathway

The closing of the $11,625,000 financing removes the near-term capital overhang on P2 Gold's 2026 work program. The offering was upsized on April 28, 2026 and again on May 13, 2026 - a sequence that reflects incremental investor demand rather than a single institutional commitment. The Quaternary Group Limited subscribed for 10 million of the 15.5 million units issued. Insiders participated for 300,000 units, consistent with the approximately 16% management and board ownership stake disclosed in recent corporate presentations.

Each unit consists of one common share and one warrant exercisable at $1.50 per share for two years from the date of issue. The company confirmed that infill and expansion drilling, phase four metallurgical work, and the mineral resource estimate (MRE) update are all targeted for completion by the end of the third quarter of 2026 - ahead of a feasibility study (FS) due in the fourth quarter.

President and Chief Executive Officer of P2 Gold, Joseph Ovsenek, addressed the resource scale objective:

"The target is to get that completed by the end of this year. Another thing we're doing is we're looking to increase the size of our resource base that will go into that feasibility study. Our target is 5 million ounces of gold equivalent."

Project Scale & Economic Context

The 2025 Preliminary Economic Assessment (PEA), released in October 2025, outlined an after-tax NPV5 of US$942.9 million, an after-tax IRR of 33.8%, and average annual production of 109,000 ounces of gold and 33 million pounds of copper over a 14.2-year mine life. The FS is being conducted at a nominal processing rate of 12 million tonnes per year- a 33% increase over the 9 million tonnes per year used in the PEA.

Ovsenek described the expected output at the higher processing rate: 

"We expect to get up closer to that 150,000 ounces of gold a year in production and 45 to 50 million pounds of copper a year. So you put that into an equivalency basis, you're well north of 200,000 ounces of gold equivalent a year."

The April 2024 MRE totalled 1.16 million ounces indicated and 2.29 million ounces inferred on a gold equivalent basis. The current drill program, which has completed 67 reverse-circulation (RC) holes, 32 metallurgical and geotechnical holes, and 5 exploration diamond drill holes as of the May 20 release, is designed to move the resource base toward the 5-million gold-equivalent-ounce threshold that management has identified as the FS input target.

Valuation Context

P2 Gold's market capitalisation as of March 31, 2026, was C$175.6 million - the lowest among a peer group of four western US gold developers, including Dakota Gold, Liberty Gold, US Gold, and Roxmore Resources, despite carrying the highest combined indicated and inferred gold equivalent grade in that group, based on data presented during a recent corporate interview. The company also bears no production royalty, which management has indicated provides leverage in structuring future construction financing.

What to Watch Next

Four confirmed catalysts remain for the second half of 2026: ongoing drill assay results as the program continues, an updated MRE targeted for the third quarter, finalisation of the water rights transfer, and completion of the feasibility study in the fourth quarter. The company's published schedule targets a construction decision in 2027 and a production start in late 2028 or early 2029.

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