P2 Gold's Lucky Strike Drill Results: 8 Things You Need to Know

• P2 Gold has reported new drill results from the Lucky Strike Zone at its Gabbs gold-copper project in Nevada, part of an ongoing infill and expansion program
• Standout intercepts at Lucky Strike returned grades of up to 0.71 g/t gold and 0.31% copper over roughly 55 metres, with higher-grade intervals hitting 1.28 g/t gold and 0.43% copper over nearly 23 metres
• Results confirm that ore controls at Lucky Strike are consistent with the broader deposit, supporting the resource model ahead of an updated mineral resource estimate (MRE) targeted for the third quarter of 2026
• The Lucky Strike Zone remains open in all directions; the western half alone measures approximately 700 metres by 500 metres, roughly the same footprint as the Sullivan Zone, the project's most drilled area
• The Gabbs 2025 preliminary economic assessment (PEA) outlined 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, over a 14.2-year mine life
• The project is structured to require a single equity raise to reach production, with mill construction funded from heap leach cash flow

P2 Gold Returns Consistent Results as Gabbs Moves Toward Feasibility

P2 Gold Inc. released recent drilling results from the Lucky Strike Zone at its Gabbs gold-copper project, as part of an ongoing infill and expansion drill program. The results confirm the Mineral Resource model for the zone and indicate that Lucky Strike has the potential to be significantly larger than the Sullivan Zone, the project's primary deposit. The company advances toward a third quarter of 2026 mineral resource update and a fourth quarter 2026 feasibility study, the two key technical milestones before a construction decision. 

Gabbs is a development-stage asset with a completed 2025 preliminary economic assessment (PEA) and an active feasibility study underway. The Gabbs Project is located on the Walker Lane Trend in west-central Nevada, approximately a two-hour drive on pavement from Reno. P2 Gold acquired the project in 2021. The property covers approximately 45.25 square kilometres across 543 lode mining claims and one patented claim, and hosts four known zones of mineralisation: Sullivan, Lucky Strike, Gold Ledge, and Car Body, all of which outcrop at surface and remain open in all directions.

1. Drill Results: Grade, Width, and Continuity

Results from this batch support the existing resource estimate for the Lucky Strike Zone. The three key drill results each returned intervals ranging from 54.86 to 68.58 metres, with gold grades between 0.51 grams per tonne (g/t) and 0.71 g/t and higher-grade sections of 0.92 g/t to 1.28 g/t gold. All three holes also intersected additional mineralisation below the main interval. True thickness for all intervals is yet to be determined.

Consistent grades and widths across multiple holes support the conversion of inferred ounces into the indicated category. This is a key requirement ahead of the updated mineral resource estimate due in the third quarter of 2026 and the Feasibility Study (FS) targeted for year-end.

2. Ore Controls Confirmed Across the Zone

Ore controls at Lucky Strike are the same as those at the Sullivan Zone, and drilling to date confirms the Mineral Resource model. Mineralisation is concentrated within and below a layer of intrusive rock, with higher-grade gold and copper at the core of the zone and in narrow bands around near-vertical fractures. 

3. Lucky Strike Has Potential to Exceed Sullivan in Scale

The Lucky Strike Zone is open in all directions and, based on current and historical drill data, has the potential to be significantly larger than the Sullivan Zone. Current drilling is focused on the western half, which measures approximately 700 metres by 500 metres, roughly the same size as the Sullivan Zone. The 2025 PEA was based on the April 2024 Mineral Resource Estimate (MRE), compiled before the current infill and expansion program began. The updated MRE, targeted for the third quarter of2026, will form the basis of the feasibility study.

The combined thickness of the main mineralised body and deeper footwall mineralisation reaches up to 125 metres, the main body ranging up to 75 metres thick, with footwall mineralisation ranging from 20 metres to 60 metres in thickness.

President and Chief Executive Officer of P2 Gold, Joseph Ovsenek, described the drilling program's progress:

"The mineralisation we're hitting is just consistent with what we wanted or better."

The company's expansion target of 3.0 to 3.5 million ounces of gold and 1.0 to 1.5 billion pounds of copper reflects management's confidence in the zone's grade continuity.

4. Program Scale & the Path to the Updated MRE

The drill program has been expanded from approximately 15,000 metres to closer to 25,000 to 30,000 metres, with the updated MRE targeted for the third quarter of 2026.

Since the program began in October 2025, 57 reverse circulation (RC) drill holes have been completed - 24 at Sullivan and 33 at Lucky Strike - with the RC drill expected to return to Sullivan for additional down-dip extension work on completion at Lucky Strike. Drilling is expected to continue through May to June. The company is targeting a resource of 3.0 to 3.5 million ounces of gold and 1.0 to 1.5 billion pounds of copper.

5. The PEA Baseline Being Upgraded

The 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, with a 2.4-year payback on preproduction capital of US$382.7 million.

At those base case prices of US$2,350 per ounce of gold, US$29.00 per ounce of silver, and US$4.50 per pound of copper, Gabbs would rank as Nevada's fourth-largest gold producer at 109,000 ounces per year and third-largest copper producer at 15,000 tonnes per year, over a 14.2-year mine life. 

The current April 2024 MRE stands at 49.8 million tonnes grading 0.45 g/t gold, 1.36 g/t silver, and 0.27% copper (Indicated), and 112.2 million tonnes grading 0.35 g/t gold, 0.84 g/t silver, and 0.23% copper (Inferred). The Indicated resource contains 0.72 million ounces of gold and 297.0 million pounds of copper; the Inferred contains 1.28 million ounces of gold and 567.1 million pounds of copper.

6. Feasibility-Stage Optimisation Running in Parallel

Trade-off studies are underway on throughput options ranging from 9 million tonnes per year to 12 million tonnes per year, with a decision expected in the coming months. Kappes, Cassiday & Associates is the lead engineer on the feasibility study, with Northern Lights Mining engaged to run mining studies. A throughput increase to 12 million tonnes per year would, if adopted, increase average annual gold production to closer to 150,000 ounces and copper production to 45 to 50 million pounds per year.

7. The Single-Raise Capital Structure

The project is structured to require a single preproduction capital raise of US$382.7 million, with mill construction funded from heap leach cash flow.

The mill facility, which accounts for US$350.9 million of the US$571.8 million in total sustaining capital, is planned to be funded from operating cash flow generated by the heap leach operation in the early years of production. As of September 2025, the company held cash, marketable securities, and receivables of C$12,075,264.

8. Environmental Permitting Determines the Production Timeline

Environmental permitting is the critical path to a construction decision, with baseline studies front-loaded ahead of the finalised mining plan. Local consultants with regional permitting experience supported the preparation of the Draft Mining Plan of Operations, which was filed with the Bureau of Land Management in the third week of January 2026.

For Investors: Key Takeaways

• Ore controls at Lucky Strike confirmed as consistent with Sullivan: Drill data from this batch confirms the Mineral Resource model for the Lucky Strike Zone, with mineralisation localised within and below a tabular unit of quartz monzonite underlain by pyroxenite, the same geological setting as Sullivan.
• Zone scale is still being defined: The Lucky Strike Zone is open in all directions, with the western half alone matching Sullivan's footprint and combined mineralised thickness.
• Preliminary Economic Assessment economics provides a defined baseline: The 2025 preliminary economic assessment returned an after-tax net present value at a 5% discount rate of US$942.9 million and an after-tax internal rate of return of 33.8% at base case prices, with a 2.4-year payback on preproduction capital of US$382.7 million.
• Feasibility-stage optimization is active:  Trade-off studies are underway on throughput options ranging from 9 million tonnes per year to 12 million tonnes per year. A throughput increase to 12 million tonnes per year would, if adopted, increase average annual gold production to closer to 150,000 ounces and copper production to 45 to 50 million pounds per year.
• The project is designed for a single equity raise: Total preproduction capital of US$382.7 million is the only planned raise. Mill construction of US$350.9 million is intended to be funded from heap leach cash flow, with no second capital raise planned.
• Environmental permitting is the critical path.The Draft Mining Plan of Operations was filed with the Bureau of Land Management in January 2026, with baseline studies front-loaded ahead of the finalised mining plan.

The Bottom Line

The March 2026 drill results confirm the Mineral Resource model for the Lucky Strike Zone and advance the project toward the third quarter of 2026 resource update, which will form the basis of the fourth quarter of 2026 feasibility study. The PEA baseline of US$942.9 million NPV5% and 33.8% IRR at base case prices remains the current reference point. The critical path to production remains environmental permitting, with the company targeting a construction start in late 2027 if permitting proceeds on schedule.

FAQs (AI-Generated)