P2 Gold’s Gabbs Feasibility Study: The Throughput Decision & Its Implications for Project Scope

• P2 Gold has executed a definitive agreement to acquire 2,500 acre-feet per year of water rights in the Gabbs Basin of Nevada, exceeding current projected process water requirements.
• The feasibility study (FS), targeting completion in the fourth quarter of 2026, has not yet confirmed whether it will be based on 9 million tonnes per year or 12 million tonnes per year,  a decision the company is actively evaluating.
• Management is targeting approximately 150,000 ounces of gold per year and 45 million to 50 million pounds of copper per year at the higher throughput scenario, compared to the 2025 preliminary economic assessment (PEA) baseline of 109,000 ounces of gold and 15,000 tonnes of copper annually.
• The October 2025 PEA returned an after-tax net present value at a 5% discount rate (NPV5%) of US$942.9 million and an after-tax internal rate of return (IRR) of 33.8% at base case prices of US$2,350 per ounce of gold and US$4.50 per pound of copper.
• Three milestones are pending in 2026: Nevada Division of Water Resources (NDWR) transfer approval, an updated mineral resource estimate (MRE) in the third quarter, and FS completion in the fourth quarter.

What Has Happened

P2 Gold  (TSX-V: PGLD | OTCQB: PGLDF | FRA: 4Z9 ) has executed a definitive agreement to acquire 2,500 acre-feet per year of water rights in the Gabbs Basin through its wholly-owned subsidiary, P2 Gabbs Inc. Closing is conditional on Nevada Division of Water Resources (NDWR) approval to transfer the rights from irrigation to mining, milling, and dewatering use, with an anticipated timeframe of 6 to 12 months coinciding with the projected feasibility study (FS) completion at the end of the fourth quarter of 2026.

The Throughput Decision: 9 or 12 Million Tonnes Per Year

The FS that P2 Gold is targeting has not yet confirmed whether it will be based on 9 million tonnes per year or 12 million tonnes per year. The October 2025 preliminary economic assessment (PEA) was built on the 9 million tonne per year scenario. It outlines an average annual production of 109,000 ounces of gold and 15,000 tonnes of copper over a 14.2-year mine life. 

President & Chief Executive Officer of P2 Gold, Joe Ovsenek, outlined the production targets the company is aiming for at the higher throughput scenario:

"We announced our PEA back in October. It was a 9 million tonne per year mine producing roughly 110,000 ounces of gold a year, 33 million pounds of copper over 14 years on average. So we're looking to permit that. And while we're doing that, we've got some studies underway now on the mining side where we can look to increase that from 9 million tonnes a year to 12 million tonnes a year, because we'd like to get closer to 150,000 ounces of gold a year and 45 million to 50 million pounds of copper a year."

The throughput decision will be informed by the updated mineral resource estimate, which the company has indicated is expected in the third quarter of 2026.

2026 Permitting & Development Workstreams

Closing of the acquisition is conditional on NDWR approval to transfer the points of diversion, places of use, and manner of use from irrigation to mining, milling, and dewatering for use at the Gabbs Project. The 2,500 acre‑feet per year of secured water rights exceed the process‑water requirement estimated for the 9 million tonne per year scenario referenced in the 2025 PEA and could accommodate a higher throughput option if the FS concludes such a rate is technically and economically supported. This excess capacity ensures upside for potential project expansion, directly supporting the ongoing evaluation to increase the annual processing rate to 12 million tonnes per year for the upcoming FS.

The water‑rights transfer was one of several work streams planned for 2026, alongside infill and expansion drilling, Phase 4 metallurgical testwork, geotechnical drilling, environmental studies, and the FS. The ongoing drilling is designed to deliver an updated MRE by the third quarter of 2026, which will provide the foundation for the current mining trade-off studies to determine whether the final project scale is optimized.

Project Context: Gabbs on the Walker Lane Trend

The Gabbs Project is located on the Walker Lane Trend in Nye County, Nevada, accessible via paved Highway 361 with a powerline crossing the project and water infrastructure. The project covers 543 lode mining claims and one patented claim, totalling approximately 45.25 square kilometres.

The April 2024 MRE established an indicated mineral resource of 1.16 million gold equivalent ounces and an inferred mineral resource of 2.29 million gold equivalent ounces across four known mineralised zones, all of which outcrop and remain open. The October 2025 PEA outlined a heap leach and mill operation at 9 million tonnes per year, with annual average production of 109,000 ounces of gold and 15,000 tonnes of copper over a 14.2 year mine life. At base case prices of US$2,350 per ounce of gold and US$4.50 per pound of copper, the PEA returned 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%, and a preproduction capital cost of US$382.7 million.

What to Watch Next

Three milestones define the near-term sequence for Gabbs. First, NDWR must approve the transfer of the water rights from irrigation to mining, milling, and dewatering use, a review the company anticipates will take 6 to 12 months from the agreement date. Second, P2 Gold is targeting an updated MRE in the third quarter of 2026 upon completion of the current infill and expansion drill program, with those results feeding directly into the FS. Third, the FS is targeted for completion at the end of the fourth quarter of 2026, coinciding with the anticipated NDWR approval window. All targeted completions are based on current schedules. Subject to financing and permitting, the company plans detailed engineering in 2027 and targets construction to begin in 2028.

‍