P2 Gold's Most Valuable Drill Program Isn't Looking for Gold

• P2 Gold is advancing a feasibility study at its 100%-owned Gabbs gold-copper project in Nevada, targeting completion in the fourth quarter of 2026.
• The company has applied to the Nevada Division of Water Rights to transfer 2,500 acre-feet per year of water rights from irrigation to mining use, with approval expected in 6 to 12 months.
• A water well drill rig is on site completing test wells & monitoring wells across the Sullivan & Lucky Strike zones to build a regional groundwater model.
• An infill & expansion reverse circulation drill program has been expanded following positive results, with a 2nd drill rig expected on site in early August.
• A preliminary economic assessment (PEA) effective October 7, 2025 outlined a base case of 109,000 ounces of gold & 33 million pounds of copper per year at 9 million tonnes per year over a 14.2-year mine life; the feasibility study is advancing at a higher production rate of 12 million tonnes per year.

P2 Gold (TSX-V: PGLD; OTCQB: PGLDF) has released a project update confirming that feasibility study work at its 100%-owned Gabbs gold-copper project in Nevada remains on schedule for completion in the fourth quarter of 2026. While an ongoing infill & expansion reverse circulation (RC) drill program continues to generate results, the update's most operationally significant disclosures concern water, specifically the company's progress in securing, transferring, & characterising the water rights & hydrogeological data required to support a mine plan of operations filing before year-end.

Water Rights Transfer Advances in Parallel With Study

On April 2, 2026, P2 announced a definitive agreement for the acquisition of 2,500 acre-feet per year of water rights, with closing conditional on the Nevada Division of Water Rights (NDWR) transferring the points of diversion, places of use, & manner of use from irrigation to mining, milling, & dewatering for use at Gabbs. An application has since been submitted to the NDWR, with transfer approval targeted in 6 to 12 months, a timeline that aligns with projected feasibility study completion at the end of the fourth quarter.

The water rights are expected to be sufficient to support mining operations at Gabbs at the planned feasibility study production rate of nominally 12 million tonnes per year.

Nevada's water permitting environment makes this a material development milestone rather than a background administrative step. Open-pit mining projects in arid Nevada jurisdictions require demonstrated water access before a mining plan of operations can advance through Bureau of Land Management (BLM) review, meaning the NDWR transfer timeline functions as a gating item for the broader permitting path.

Hydrogeological Program Builds the Groundwater Model

A water well drill rig is on site & has completed a test well & monitoring well at the proposed location for Gabbs' mine water supply, near a historically permitted water well. The rig will now complete a test well & 2 monitoring wells at the periphery of each of the proposed open pits for the Sullivan & Lucky Strike zones.

Once drilling is complete, pump tests will be conducted on each of the 3 test wells to determine water flow rates & capacity. All data collected from the test & monitoring wells will be incorporated into a groundwater model in support of the company's mining plan of operations application.

The program serves a dual purpose: it establishes the hydrogeological baseline required for regulatory filings while simultaneously characterising dewatering requirements that will feed into mine-plan design assumptions within the feasibility study.

Infill Drill Program Expanded on Positive Results

RC infill drilling of the Lucky Strike Zone is ongoing. Following positive drill results received to date, the original drill program has been expanded to test open extensions of the zone to the north & south, with the Lucky Strike Zone currently remaining open in all directions. A 2nd RC drill rig is expected to mobilise to site in early August & will focus on infill & expansion drilling of the Sullivan higher-grade resources down dip.

Since the program commenced in October 2025, 69 RC drill holes have been completed at Gabbs, 24 at the Sullivan Zone & 45 at the Lucky Strike Zone. The diamond drill completed 29 metallurgical & slope stability geotechnical holes & 10 exploration holes before being demobilised at the end of May. Assay results for the RC holes & the geotechnical & exploration diamond drill holes will continue to be reported over the coming months.

Metallurgy & Permitting Also Progressing

Feasibility study-level column & flotation test work is underway for the Sullivan, Lucky Strike, & Car Body zones, with 23 columns at various stages. Optimisation of the flotation process flow sheet is nearing completion, with variability tests set to begin shortly thereafter. Comminution testing has been completed on the Sullivan & Lucky Strike zones. Metallurgical test results are anticipated in the third quarter.

Consultants have been selected to complete all BLM baseline needs assessment reports & resources, with a detailed mining plan of operations expected to be filed with the BLM prior to year-end 2026.

Project Context

Gabbs is located on the Walker Lane Trend in Nevada. A positive preliminary economic assessment (PEA), with an effective date of October 7, 2025, outlined average annual production of 109,000 ounces of gold & 33 million pounds of copper, processing 9 million tonnes per year over a 14.2-year mine life. The feasibility study is advancing at a nominal production rate of 12 million tonnes per year, targeting average annual production of 150,000 ounces of gold & 45 to 50 million pounds of copper per year.

An updated mineral resource estimate, to be prepared on completion of drilling, is expected in the third quarter.

FAQs (AI-Generated)