P2 Gold's Lucky Strike Drilling Keeps Gabbs on Track for a Pivotal 2026

• P2 Gold released results from ten additional reverse circulation (RC) drill holes at the Lucky Strike Zone on March 3, 2026, part of an ongoing infill and expansion drill program at its Gabbs gold-copper project in Nevada.
• Key intercepts include 0.65 grams per tonne (g/t) of gold and 0.32% copper over 68.58 meters (Hole GBR-088) and 0.71 g/t gold and 0.31% copper over 54.86 meters (Hole GBR-089), with high-grade cores reinforcing the geological model underpinning the project's preliminary economic assessment (PEA).
• Results confirm that ore controls at Lucky Strike mirror those established at the Sullivan Zone, supporting predictable resource modelling ahead of an updated mineral resource estimate (MRE) targeted for the third quarter of 2026.
• The Lucky Strike Zone remains open in all directions and shows potential to be materially larger than Sullivan, underpinning P2 Gold's resource expansion target of 3-3.5 million ounces of gold and 1-1.5 billion pounds of copper.
• A feasibility study is targeted for completion in Q4 2026. The Mining Plan of Operations was filed with the US Bureau of Land Management in January 2026, which formally initiates the federal environmental review process required before construction can begin.
• The 2025 PEA outlines an after-tax net present value (NPV) of US$942.9 million at a 5% discount rate and a 33.8% internal rate of return (IRR) using conservative base case metal prices, with economics improving dramatically at current spot gold prices.

Drilling That Advances the Gabbs Feasibility Plan

P2 Gold released results from ten additional drill holes at the Lucky Strike Zone at its Gabbs Project on the Walker Lane Trend in Nevada. The holes, numbered GBR-082 through GBR-091, form part of an 11,500-meter, 70-hole infill and expansion program focused exclusively on Lucky Strike.

The intercept was Hole GBR-089, returning 0.71 grams per tonne (g/t) of gold and 0.31% copper over 54.86 meters, including 1.28 g/t gold and 0.43% copper over 22.86 meters. Hole GBR-088 intersected 0.65 g/t gold and 0.32% copper over 68.58 meters, reinforcing grade continuity across the zone.

These results are part of an ongoing drilling program to convert inferred resources to the indicated category required for a feasibility study. Since the program began in October 2025, 57 drillholes have been completed across the project; 24 at Sullivan and 33 at Lucky Strike, alongside 18 diamond drill holes for metallurgical and geotechnical work. Assay results will continue to be released in the coming months.

The number and spacing of drill holes directly determine the confidence level of mineral resources. Inferred resources are based on wider drill spacing and therefore carry higher geological uncertainty, while additional drilling confirms grade continuity, thickness, and geometry of the mineralized zones. As drill density increases, resources can be upgraded to the indicated category, the minimum confidence level required for feasibility studies and detailed mine planning. This progression reduces the risk that future engineering work materially alters project economics, improving the reliability of resource models that underpin valuation and development decisions.

Geological Consistency: The Sullivan Comparison

The recent drilling strengthens confidence in the geological predictability of the Lucky Strike Zone, a key factor supporting the upcoming mineral resource update. Results confirm that the ore controls at Lucky Strike mirror those established at the Sullivan Zone, where mineralization is localized within and below a tabular unit of quartz monzonite underlain by pyroxenite.

At Lucky Strike, the deeper footwall mineralization ranges from 20 to 60 meters thick, while the main mineralized body reaches up to 75 meters, producing combined widths of up to 125 meters. This may reduce geological risk and simplify the resource modelling that will anchor the feasibility study.

The current drilling focus is on the western half of Lucky Strike, a zone measuring approximately 700 by 500 meters, roughly the same footprint as Sullivan. However, Lucky Strike remains open in all directions, and management has indicated that available data supports the potential for the zone to be significantly larger than Sullivan. 

The 2026 Catalyst Sequence

The Lucky Strike results keep the Gabbs project on track for a critical sequence of 2026 milestones, including a mineral resource update in the third quarter and a feasibility study by year-end. 2026 is intended to advance the technical and regulatory work needed for a potential construction decision.

The key milestones are tightly sequenced. Infill and expansion drilling is expected to conclude in the first half of 2026. An updated mineral resource estimate, incorporating both Sullivan and Lucky Strike data, is targeted in the third quarter of 2026. The feasibility study, which will draw on the updated resource, Phase Four metallurgical work, and feasibility-level engineering studies already underway, is targeted for completion by the end of 2026.

Environmental studies are running in parallel and represent what management identifies as the critical path to construction. The Mining Plan of Operations was filed with the Bureau of Land Management in January 2026, starting the formal regulatory review process. Environmental permits are targeted for late 2027, with construction planned to begin in 2028. 

President and Chief Executive Officer of P2 Gold, Joseph Ovsenek, noted the nature of this timeline:

"If all goes well and we can connect up the dots efficiently, we could be breaking ground in late next year, and that's our target."

Management has indicated that environmental permitting remains the primary schedule variable. To help compress timelines, baseline environmental studies were initiated ahead of the final mine plan to advance regulatory work in parallel with technical studies.

Project Economics: What Grade Continuity Means Financially

The 2025 preliminary economic assessment (PEA), completed in October 2025 , established the financial framework for Gabbs using base case metal prices of US$2,350 per ounce of gold, US$29 per ounce silver, and US$4.50 per pound copper. At those assumptions, the project delivers an after-tax net present value (NPV) of US$942.9 million at a 5% discount rate, a 33.8% internal rate of return (IRR), and a 2.4-year payback on initial capital estimated at US$382.7 million. 

At the more conservative NPV15 metric, which better reflects development risk, the project still carries a US$298 million valuation. Against a market capitalization of approximately US$110 million as of early January 2026, the gap between project value and market valuation remains significant.

The development plan follows a staged approach. The initial operation processes 9 million tonnes per year through heap leach during the first five years, generating the cash flow required to fund a 5 million tonne per year mill beginning in year six. The mill accounts for US$350.9 million of the US$571.8 million in total sustaining capital and is expected to be financed from operating cash flow rather than through a second capital raise. 

The mill accounts for US$350.9 million of the US$571.8 million in total sustaining capital and is expected to be financed from operating cash flow rather than through a second capital raise.

As the project advances toward feasibility, the next stage of engineering will focus on refining these assumptions and confirming the economic model. As Ovsenek noted:

“You have to have a robust feasibility study, not a marketing document.”

At current spot prices, the economics strengthen substantially. The project's economics are also structured to strengthen materially as metal prices rise. Management has noted that the base case assumptions are conservative, and the project carries leverage to both gold and copper.

Resource Expansion: Lucky Strike as the Growth Driver

P2 Gold's stated resource expansion target of 3-3.5 million ounces of gold and 1-1.5 billion pounds of copper represents a significant increase from the April 2024 mineral resource estimate of 1.16 million ounces indicated and 2.29 million ounces inferred gold equivalent. Lucky Strike is central to that growth case.

The zone has been delineated over approximately 700 by 500 meters in its western portion alone. Historical drilling data, combined with the P2-drilled holes now returning consistent grades across the program, supports the view that the zone has substantially more tonnage to add. The company has also highlighted that a number of historical holes were not assayed for both gold and copper, meaning the historical data may understate the true extent of mineralization.

Porphyry potential at depth adds a further exploration dimension. The mineralization model at Gabbs is coherent, having a porphyry system with four defined surface zones (Sullivan, Lucky Strike, Gold Ledge, and Car Body) spread across a 45.25 km2 property. 

Based on the 2025 PEA at base case prices, Gabbs would rank as Nevada's fourth-largest gold producer at 109,000 ounces per year and third-largest copper producer at 33 million pounds annually. If the expanded resource thesis plays out, those rankings could improve.

Execution Risks on the Path to Production

Investors should weigh several material risks alongside the opportunity. Environmental permitting is the acknowledged critical path to construction, and delays in permitting could push the 2028 gold production target into 2029. Management has characterized late 2027 as the best case for environmental approval and mid-2028 as the realistic worst case.

Project financing, while supported by a single initial capital raise structure, will require market access at a time when equity conditions for development-stage mining companies remain selective. The disconnect between the project's NPV and its market capitalization reflects this execution risk premium.

Metallurgical assumptions remain subject to the outcomes of the ongoing Phase Four metallurgical program. While Phase Three results demonstrated 98% gold recovery and 85% copper recovery within 58 days of leaching, feasibility-level confirmation will be required before those figures are embedded in project economics. Commodity price sensitivity also applies to the copper by-product credit, which is a meaningful component of the project's revenue and cost structure. A sustained decline in copper prices would affect both revenues and the economic case for the mill expansion.

The Investment Thesis for P2 Gold

• Grade continuity confirmed: Multiple drill holes across the Lucky Strike Zone have returned intercepts consistent with the geological model underpinning the 2025 Preliminary Economic Assessment, reducing the risk of negative surprises in the upcoming updated mineral resource estimate.
• Catalysts are scheduled and sequenced: The updated mineral resource estimate in the third quarter of 2026 and feasibility study in the fourth quarter of 2026 provide investors with defined, measurable milestones over the next nine months.
• Resource upside is material: Lucky Strike has the potential to be significantly larger than Sullivan, and management is targeting a resource of 3 to 3.5 million gold ounces and 1 to 1.5 billion copper pounds, representing substantial growth from the current base.
• Single-raise capital structure: The project is designed to require only one equity raise to reach production, with mill construction funded from heap leach cash flow, a structure that limits ongoing dilution risk for existing shareholders.
• Nevada jurisdiction: Gabbs benefits from paved highway access, an existing powerline crossing the property, flat construction terrain, and an established permitting framework in Nevada, the world's number two ranked mining jurisdiction per the 2024 Fraser Institute survey.

P2 Gold enters 2026 with its drilling program on pace, its geological model validated, and its 2026 catalyst sequence intact. The recent Lucky Strike results confirm that the infill and expansion program is performing as expected. For investors, the key consideration is the company’s progress in advancing permitting and securing financing toward a potential construction decision. 

TL;DR

P2 Gold's March 3 drill results from the Lucky Strike Zone confirm grade continuity and geological consistency across the Gabbs Project, keeping the company on track for an updated mineral resource estimate in Q3 2026 and a feasibility study in Q4 2026. Key intercepts, including 0.71 g/t gold and 0.31% copper over 54.86 meters, support the resource model while Lucky Strike's open-ended footprint adds upside to P2 Gold's 3-3.5 million gold ounce expansion target. With the Mining Plan of Operations filed and permitting underway, the path to a late 2028 first gold pour remains intact, underpinned by a project that delivers a 33.8% internal rate of return at conservative base case prices - and dramatically stronger economics at current spot gold.

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