en.Wedoany.com Reported - P2 Gold Inc. (TSXV: PGLD) (OTCQB: PGLDF) has provided an update on its wholly-owned Gabbs gold-copper project located in the Walker-Lane mineral belt in Nevada, USA, with the feasibility study aimed at bringing the project into production targeting completion in the fourth quarter of this year.
Regarding infill and expansion drilling, reverse circulation (RC) infill drilling at the Lucky Strike zone is underway. Due to positive results received, the original drilling program has been expanded to test undelineated extensions to the north and south of the zone, which remains open in all directions. A second RC drill rig is expected to mobilize in early August, focusing on infill and expansion drilling along the dip of the high-grade Sullivan resource. Since the program began in October 2025, a total of 69 RC holes have been completed at the Gabbs project, including 24 at the Sullivan zone and 45 at the Lucky Strike zone. Before demobilizing at the end of May, the diamond drill rig completed 29 metallurgical and slope stability engineering holes and 10 exploration holes. Assay results from RC holes, as well as engineering and exploration diamond drill holes, will continue to be reported over the coming months.
In terms of water well drilling, a water well drill rig has mobilized and completed one test well and one monitoring well at the proposed water supply location for the Gabbs mine, near a historically permitted water well. Next, the rig will complete one test well and two monitoring wells at each of the proposed open pits at the Sullivan and Lucky Strike zones. Once all water and monitoring wells are drilled, pumping tests will be conducted on the three test wells to determine flow rates and capacities. All data will be integrated into the groundwater model to support the mining operations plan application.
Regarding water rights, the company announced on April 2, 2026, the signing of a definitive agreement to acquire 2,500 acre-feet per year of water rights ("Water Rights"), with closing subject to the Nevada Division of Water Resources (NDWR) approving the change in point of diversion, place of use, and manner of use from irrigation to mining, milling, and dewatering at the Gabbs project. A change application has since been submitted to the NDWR, with approval expected to take six to twelve months, aligning with the feasibility study's anticipated completion at the end of the fourth quarter. These water rights are expected to be sufficient to support the nominal 12 million tonnes per year production rate in the feasibility study.
Metallurgical test work is ongoing. For the feasibility study-level column leach and flotation tests at the Sullivan, Lucky Strike, and Car Body zones, 23 column leach tests are at various stages in the program. Flotation process optimization is nearing completion, after which variability testing will begin. Comminution testing for the Sullivan and Lucky Strike zones has been completed. Metallurgical test results are expected in the third quarter.
On the permitting front, the company has selected consultants to complete all U.S. Bureau of Land Management (BLM) baseline needs assessment reports and baseline needs assessment resources. The company expects to submit a detailed mining operations plan to the BLM by the end of 2026.
Ken McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer of P2 Gold, is the Qualified Person for the Gabbs project as defined under National Instrument 43-101. Mr. McNaughton has reviewed, verified, and approved the scientific and technical information in this news release.
P2 Gold Inc. is a mineral exploration and development company focused on advancing its Gabbs gold-copper project in the Walker Lane mineral belt, Nevada. A positive preliminary economic assessment outlined a long-life, mid-sized mine at Gabbs with average annual production of 109,000 ounces of gold and 33 million pounds of copper over a 14.2-year mine life at a processing rate of 9 million tonnes per year. 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 and 45 to 50 million pounds of copper. The project is accessible via paved Highway 361, with power and water available on site. All zones remain open, and an infill and expansion drilling program is underway. Upon completion of drilling, an updated mineral resource estimate will be prepared for Gabbs, expected in the third quarter.
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