Resource Update Tests the Tonnes Behind P2 Gold's 12-Million-Tonne Mill

• P2 Gold's feasibility study (FS) plans a mill processing 12 million tonnes (t) per year from year 3.
• Drilling and analysis indicate the Lucky Strike Zone is predominantly sulfide mineralization.
• The April 2024 mineral resource estimate (MRE) carried all of Lucky Strike's tonnes as inferred.
• Management expects 150 to 180 million tons from Sullivan and Lucky Strike in measured and indicated.
• The updated MRE is due in the fourth quarter of 2026, ahead of the FS in the first quarter of 2027. 

P2 Gold (TSXV: PGLD | OTCQB: PGLDF) has set the feasibility study (FS) for its 100%-owned Gabbs gold-copper project in Nevada around a mill that starts up in year 3. That mill will process 12 million tonnes (t) per year of sulfide mineralization, the unweathered material below the near-surface oxide. The Lucky Strike sulfide behind that plan was carried entirely in the inferred category in the April 2024 mineral resource estimate (MRE). Inferred is the lowest-confidence resource category, estimated from limited drilling. An updated MRE incorporating all drilling to date is due in the fourth quarter of 2026, ahead of the FS in the first quarter of 2027.

Drilling Results & the Larger Mill  

The bigger mill follows drilling that has run at Gabbs since October 2025. The program has completed 96 reverse circulation (RC) holes, 34 at the Sullivan Zone and 62 at Lucky Strike, plus 39 diamond holes for geotechnical, metallurgical, and exploration work. It also defined a new higher-grade corridor of gold-copper mineralization at Lucky Strike.

President and Chief Executive Officer of P2 Gold, Joe Ovsenek, ties the larger plan to what the drilling kept returning:

"We keep hitting more and more. It's getting bigger and bigger. More sulfide than oxide." 

Drilling and analysis to date indicate that Lucky Strike is predominantly sulfide mineralization and is expected to add to overall tonnage. In years 1 and 2, a heap leach, in which crushed ore is stacked on lined pads and irrigated with a leach solution, treats 12 to 14 million t per year. From year 3, mining prioritizes 12 million t of sulfide per year for the mill. The heap leach then takes the oxide that must be mined to reach it, expected at 2 to 4 million t per year.  

Milling sulfide ore is estimated to recover 94.5% of the gold and 79.9% of the copper, compared with 85% and 67% for heap leaching oxide ore. The FS is advancing on at least 12 million t per year, targeting average annual production of 150,000 ounces (oz) of gold and 45 to 50 million pounds (lb) of copper. The 2025 preliminary economic assessment outlined 109,000 oz of gold and 33 million lb of copper a year at 9 million t per year. 

Lucky Strike in the April 2024 Estimate  

The April 2024 MRE predates the current drill program, and it splits Sullivan and Lucky Strike by confidence. Sullivan carried 33.7 million t of indicated oxide and 16.1 million t of indicated sulfide, alongside 6.2 million t of inferred oxide and 19.9 million t of inferred sulfide. Lucky Strike carried no indicated tonnes: its 35.9 million t of oxide and 33.3 million t of sulfide were all inferred. That inferred oxide graded 0.42 grams per tonne (g/t) gold and 0.24% copper, and the inferred sulfide 0.33 g/t gold and 0.24% copper. 

Across the project, the estimate held 49.8 million t indicated at 0.45 g/t gold and 0.27% copper, and 112.2 million t inferred at 0.35 g/t gold and 0.23% copper. Indicated and measured are the higher-confidence categories, and reserves are part of a resource shown to be economic to mine. Mineral resources that are not mineral reserves lack demonstrated economic viability.    

The updated MRE will include the holes from the higher-grade corridor at Lucky Strike, where results are similar in grade to the higher-grade material at Sullivan. That corridor, discovered in 2026, remains open to the north and the south. Lucky Strike remains open in all directions, and Sullivan remains open down-dip, meaning it continues along its slope at depth.  

The Measured & Indicated Guide for the Update 

Management's guide for the update covers the 2 zones the April 2024 estimate split by confidence. Ovsenek names the deposits that make up the mine and the tonnage he anticipates from them:  

"Sullivan and Lucky Strike are the mine we're going to come out with on our resource update. We're probably going to see 150 to 180 million tons of ore between those 2 deposits."  

Those tons are expected to land in the measured and indicated categories and convert to reserves, by management’s estimate. 

Two RC drills were still working at Gabbs as of September 21, 2026, the first extending the Lucky Strike higher-grade corridor to the southwest and the second extending Sullivan down-dip. Assay results will continue to be reported as the program runs. Beyond the update, P2 Gold sees potential for the resource to double in size from that range. 

What the Fourth-Quarter Update Will Show 

The fourth quarter of 2026 brings Lucky Strike and Sullivan drill results, metallurgical test results, and the updated MRE. Metallurgical work at feasibility level includes flotation testing on the sulfide, a process that recovers metal-bearing minerals into a concentrate. It also includes 22 column tests on the Sullivan and Lucky Strike oxide ores, which leach ore samples in tubes to model heap leaching. Engineering is on track for the FS, with equipment selection proceeding and a power supply study initiated.   

The FS is targeted for completion in the first quarter of 2027 and aims at a mine life of at least 12 years. In Ovsenek's view, the study will be close to the final word on the plan:

"The feasibility study is pretty much going to be it. We may update it." 

The reason is more drilling: P2 Gold would like to drill a little more to expand the resource. The fourth-quarter estimate will show how many tonnes of Sullivan and Lucky Strike are measured and indicated, compared with the 150 to 180 million tons management expects.

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