P2 Gold Raises Gabbs Feasibility Study to 12 Million Tonnes per Year, Advances Mill Start to Year Three

• The Gabbs feasibility study (FS) will proceed at a nominal rate of 12 million tonnes per year, up from 9 million tonnes per year in the 2025 preliminary economic assessment (PEA).
• Mill operations are now planned to begin in year three of mine life rather than year six, running at seven million tonnes per year alongside a heap leach facility operating at five to seven million tonnes per year.
• In years one and two, the heap leach facility will operate at 14 million tonnes per year to recoup capital costs and increase the stripping of oxide mineralisation to expose sulphide mineralisation for mill operations in year three.
• Two identical seven-million-tonnes-per-year, three-stage crushing trains with high-pressure grinding rollers will serve both the mill and heap-leach circuits from year three onward, with simplified maintenance and spare-parts inventory expected to reduce life-of-mine costs.
• Metallurgy test work, equipment selection, power supply studies, and Bureau of Land Management (BLM) baseline work are all in progress, with an updated Mineral Resource estimate (MRE) targeted for the third quarter and the FS targeted for the fourth quarter of this year.

About P2 Gold Inc.

P2 Gold Inc. (TSXV: PGLD | OTCQB: PGLDF) is a mineral exploration and development company focused on advancing its gold-copper Gabbs Project on the Walker Lane Trend in Nevada, where work to support a feasibility study is underway. A positive preliminary economic assessment (PEA) has outlined a long-life, mid-size mine at Gabbs with average annual production of 109,000 ounces of gold and 15,000 tonnes of copper over a 14.2-year mine life. The Gabbs Project has excellent infrastructure, with access via paved Highway 361 and on-site power and water. All zones on the property remain open, and an infill and expansion drill program is underway.

Feasibility Study Overview

P2 Gold Inc. has announced that the feasibility study (FS) for its 100%-owned gold-copper Gabbs Project in Nevada will proceed at a nominal production rate of 12 million tonnes per year, with heap leach production at 14 million tonnes per year for the first two years of operations and the mill starting in year three of mine life. The throughput increase from 9 million tonnes per year and the three-year advancement of the mill start-up address optimisation opportunities identified in the 2025 PEA, and follow an evaluation of multiple mining scenarios. The FS is targeted for completion in the fourth quarter of this year.

Key Feasibility Study Parameters

The crushing circuit will comprise two identical seven-million-tonnes-per-year, three-stage crushing trains, with high-pressure grinding rollers used for the third stage. In years one and two, the heap leach facility will operate at 14 million tonnes per year. From year three through the remaining mine life, the mill facility will operate at seven million tonnes per year in parallel with a heap leach facility operating at five million to seven million tonnes per year.

The increased operating rate in the first two years will accelerate cash flow to repay capital costs and increase the stripping of oxide mineralisation to expose sulphide mineralisation for mill operations in year three, with minimal to no stockpiling or rehandling.

The twin seven-million-tonnes-per-year crushing trains will provide the flexibility from year three onward to dedicate one train primarily to the mill circuit and the other, or both, to the heap leach facility as needed. Operating identical twin trains is expected to simplify maintenance, spare parts inventory, operator training, and procedures, resulting in cost savings over the life of the mine.

President and Chef Executive Officer of P2 Gold, Joe Ovsenek, said of the decision:

 "The decision to increase the production rate at Gabbs to a nominal rate of 12 million tonnes per year and advance mill production to year three supports our feasibility study targeted production rate for Gabbs of 150,000 ounces of gold and 45 to 50 million pounds of copper production per year. We believe the Gabbs feasibility study will demonstrate the potential for the Gabbs Project to become a significant gold-copper producer with excellent economic potential in Nevada."

Feasibility Study Progress

Metallurgy test work is in progress with heap leach, flotation, and comminution studies underway. With the production rate decision confirmed, equipment selection and general arrangement design can now proceed. Power supply studies are also in progress.

Permitting and Water Resources

Bureau of Land Management (BLM) baseline needs assessment reports and resources have been specified, and consultants have been engaged for each required baseline report. For water resources, authorisation has been received to drill three test wells and five monitoring wells; a water-well drilling contractor is mobilising to the site and is expected to commence drilling the first test well this week.

Next Steps

Metallurgy test work covering heap leach, flotation, and comminution will continue, alongside equipment selection and general arrangement design, now that the production rate has been confirmed. Three test wells and five monitoring wells are to be drilled, with the first test well expected to commence drilling this week. An updated Mineral Resource estimate is targeted for the third quarter, and the Gabbs Project feasibility study is targeted for completion in the fourth quarter of this year.

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