P2 Gold Scales Up Gabbs Gold-Copper Project Ahead of Feasibility

• P2 Gold has enlarged the Gabbs feasibility case to target 150,000 ounces of gold and 45 to 50 million pounds of copper a year, up from 109,000 ounces and 33 million pounds in the 2025 PEA.
• CEO Joe Ovsenek expects preproduction capital around $400 million, only modestly above the PEA's US$382.7 million.
• The Car Body zone could deliver up to 50,000 ounces of gold during construction, providing early cash flow.
• A copper prepay of $100 million to $200 million could anchor the financing, with management prioritising speed over cost of capital.
• The Q4 2026 resource update and Q1 2027 feasibility, permitting and water milestones are the near-term catalysts ahead of targeted groundbreaking in early 2028

Few Nevada development projects pair meaningful gold output with a copper stream large enough to matter on its own. P2 Gold Inc. (TSXV:PGLD, OTCQB:PGLDF) is building its investment case on exactly that combination at its 100%-owned Gabbs gold-copper project. President and CEO Joe Ovsenek explained how the project has grown since the 2025 preliminary economic assessment (PEA). The feasibility study now targets average annual production of 150,000 ounces of gold and 45-50 million pounds of copper, which compares with 109,000 ounces of gold and 33 million pounds of copper in the PEA. The study is scheduled for completion in the first quarter of 2027, and an updated mineral resource estimate (MRE) is due in the fourth quarter of 2026. For investors, the central question is whether a larger mine can be financed and permitted on the compressed timeline management has laid out.

A Bigger Mine Plan Driven by Sulphide Growth

The decision to scale up followed the infill and expansion drill programme that has run at Gabbs since October 2025. The programme has completed 96 reverse circulation (RC) holes across the Sullivan and Lucky Strike zones, plus 39 diamond holes for geotechnical, metallurgical and exploration purposes. Ovsenek said the drilling kept returning more mineralisation than expected, with a higher proportion of sulphide than oxide material. The higher-grade corridor of gold-copper mineralisation at Lucky Strike is a key driver, and the zone remains open in all directions. Sullivan remains open down dip. Ovsenek expects the Q4 2026 MRE to place 150 to 180 million tonnes from Sullivan and Lucky Strike in the measured and indicated categories. The April 2024 MRE contained 49.8 million tonnes indicated and 112.2 million tonnes inferred.

The mine plan now follows a phased processing sequence. A heap leach facility will treat 12 to 14 million tonnes per year in years one and two. From year three, a mill will come online at 12 million tonnes per year and run for the remainder of the mine life. Oxide material sent to the heap leach will then fall to 2 to 4 million tonnes per year, limited to what must be mined to reach the sulphides. The company estimated mill recoveries are 94.5% for gold and 79.9% for copper vs. 85% and 67% respectively for heap leaching oxide material.

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

Capital Costs, Car Body Head Start

The 2025 PEA estimated preproduction capital of US$382.7 million. Ovsenek said a larger operation does not mean a proportionally larger bill. After trade-offs in the revised mine plan, he expects capital costs to come in at around $400 million.

The most distinctive element of the plan is the Car Body zone. Ovsenek described it as small, at two to three million tonnes, but grading about one gram per tonne (g/T) gold with no copper. He said it leaches well, with around 90% of the gold recovered in two weeks. Rather than blending Car Body into the main operation, P2 Gold plans to bring it into production during construction of the main project. The aim is to have the leach pad, ponds and carbon columns in place within the first six months. A contract miner would handle mining, crushing and stacking. P2 Gold would manage irrigation and ship loaded carbon off site for processing.

Ovsenek estimated Car Body could contribute 50,000 ounces of gold while the main project is still being built. That cash flow could offset a meaningful share of the main project's capital.

Copper Prepay as the Foundation

The copper stream also shapes the financing strategy. Copper remains a by-product at Gabbs, but it is now large enough to support a prepay arrangement. Ovsenek said a prepay of $100 million to $200 million could form the base of the capital stack, leaving roughly a couple of hundred million dollars to raise from other sources. Debt, convertible instruments and debt paired with a gold offtake are also under consideration, depending on market conditions at the time. Management's priority is speed rather than the lowest possible cost of capital.

As Ovsenek put it, "We're not scared of paying a higher returns, like 15% doesn't scare us if that allows us to build something quickly. It's a trade-off of time versus cost. And from our perspective, we'd rather pay more and be able to do things quickly."

The company reported cash, prepaids and receivables of C$17.1 million at June 30, 2026, and a market capitalisation of US$241 million on September 11, 2026. Management and the board own 15.7% of the company.

Permitting and Water Workstreams in Parallel

Gabbs requires federal approval under the National Environmental Policy Act (NEPA), plus several permits from the State of Nevada. The company now expects to file a detailed mining plan of operations with the Bureau of Land Management (BLM) in the first quarter of 2027, reflecting the higher mill throughput. Ovsenek's goal is for the federal and state permitting sequence to come together by the end of 2027, allowing the company to break ground at the beginning of 2028. The company's own timeline shows production in 2029, with construction start contingent on permitting.

Water is also moving forward. In April 2026, P2 Gold signed a definitive agreement to acquire 2,500 acre-feet per year of water rights from an agricultural user. Ovsenek said the source is a dairy farm. Closing depends on the Nevada Division of Water Rights approving a change of use from irrigation to mining, milling and dewatering. Ovsenek expects that approval in the first quarter of 2027. Detailed engineering will begin in the fourth quarter of 2026 to support the water pollution control and air quality permit applications.

Exploration Upside Beyond the Feasibility Case

Ovsenek sees considerable room for growth beyond the feasibility case, the mineral resource could potentially double in size from the 150 to 180 million tonnes expected in the upcoming update. The southwest of the property also holds potential for additional Car Body-style deposits. He described these as low-sulphidation epithermal gold targets of 50,000 to 100,000 ounces each that could be added to the heap as they are found. Expanded exploration will largely depend on the mining plan of operations, which would allow more ground disturbance. In the meantime, the company is looking for ways to drill around Car Body and Lucky Strike while engineering proceeds.

The Investment Thesis for P2 Gold

• The feasibility study targets 150,000 ounces of gold and 45 to 50 million pounds of copper per year, a substantial increase on the 2025 PEA production profile.
• Management expects preproduction capital of around $400 million, only modestly above the PEA's US$382.7 million despite the larger operation.
• Car Body could generate early cash flow during construction, with management estimating up to 50,000 ounces of gold from the zone before the main project is complete.
• A copper prepay of $100 million to $200 million could anchor the financing package and reduce the equity required.
• Investors should monitor the Q4 2026 updated MRE, specifically whether 150 to 180 million tonnes reach the measured and indicated categories.
• The Q1 2027 feasibility study, mining plan of operations filing and water rights approval form a cluster of near-term catalysts.
• Key risks include permitting timelines under NEPA, capital cost confirmation, and financing execution against a current cash position of C$17.1 million.

Macro Thematic Analysis

Gabbs sits at the intersection of two themes that have drawn investor attention through 2026: higher gold prices and demand for domestically sourced copper in the United States. Most Nevada gold developers are pure heap leach stories. Copper developers typically need large capital budgets and long lead times. Gabbs offers exposure to both metals from a single open pit operation in a mining-friendly state with established infrastructure.

That dual exposure matters for valuation and for financing. Copper by-product revenue can lower effective gold production costs. It also opens funding routes, such as copper prepays, that pure gold developers cannot access. Metal price leverage is significant. The 2025 PEA base case used US$2,350 per ounce gold and US$4.50 per pound copper to generate an after-tax net present value (NPV) at a 5% discount rate of US$942.9 million. Using spot prices as of September 4, 2026, of US$4,561 per ounce gold and US$6.59 per pound copper, the company calculates that figure at US$3.213 billion. Those numbers are based on the smaller PEA mine plan and will be superseded by the feasibility study.

Jurisdiction adds to the appeal. Nevada has a well-understood permitting framework and a deep pool of mining contractors. For a developer targeting construction in 2028, that combination of regulatory familiarity, infrastructure and two-metal exposure positions Gabbs as a candidate for re-rating as it moves through feasibility and permitting.

TL;DR

‍P2 Gold (TSXV:PGLD) has enlarged the Gabbs gold-copper project in Nevada after drilling returned more sulphide mineralisation than expected. The feasibility study, due Q1 2027, targets 150,000 ounces of gold and 45 to 50 million pounds of copper a year, with a 12 million tonne per year mill from year three. CEO Joe Ovsenek expects capital costs around $400 million, only modestly above the PEA's US$382.7 million. The Car Body zone could produce up to 50,000 ounces during construction, and a $100 million to $200 million copper prepay could anchor financing. Key catalysts are the Q4 2026 resource update and Q1 2027 feasibility, permitting and water milestones, with groundbreaking targeted for early 2028.

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