en.Wedoany.com Reported - Contango Silver and Gold Inc. announced final assay results from the first phase of its 2025/2026 underground diamond drilling program at the Lucky Shot project in Alaska, USA, with hole LSU26091 intercepting 972.1 g/t gold over 0.17 meters in the L1d vein, where visible gold was observed in core logging. This result marks the completion of the first phase of underground drilling in the company's 18,000-meter exploration campaign.
At the annual general meeting on June 18, shareholders elected seven directors to serve until the 2027 annual general meeting, including Clynton Nauman, Rick Van Nieuwenhuyse, Shawn Khunkhun, Michael Cinnamond, Tim Clark, Darren Devine, and Brad Juneau. Shareholders also approved the appointment of Baker Tilly US LLP as independent auditor for the fiscal year ending December 31, 2026, and approved, on a non-binding advisory basis, the compensation of the company's named executive officers and the frequency of future advisory votes on executive compensation.
In addition to the drilling results above, the company has restarted underground exploration and development work at Lucky Shot. Contract miner GMS Mine Repair & Maintenance, Inc. has mobilized to the site and is advancing exploration drifts and preparing future underground drill platforms. The company's CEO, Rick Van Nieuwenhuyse, stated that as drilling advances eastward toward the Enserch tunnel, the geological model continues to improve, and the team is particularly excited about the ultra-high-grade KM vein, which encountered approximately 6 meters grading 60 g/t gold at the end of the west drift. Extending the west drift by 100 meters will allow testing of the extent and continuity of this new discovery.
Other drilling highlights include: hole LSU26078 returned 8.89 g/t gold over 5.30 meters in the L1c vein, including 35.15 g/t gold over 0.6 meters, with visible gold observed; hole LSU26085 returned 38.97 g/t gold over 0.3 meters in the CK vein, with visible gold observed; hole LSU26084 returned 17.75 g/t gold over 0.63 meters in the CK vein; hole LSU26081 returned 15.41 g/t gold over 0.21 meters in the CK vein; hole LSU26092 returned 9.45 g/t gold over 0.85 meters in an unassigned vein structure, with visible gold observed; hole LSU26082 returned 8.56 g/t gold over 0.71 meters in the CK vein; hole LSU26079 returned 2.24 g/t gold over 0.87 meters in the L2 vein; and hole LSU26088 returned 4.47 g/t gold over 0.82 meters in the L1e vein, with visible gold observed.
According to a research report updated on May 14 by Cantor Fitzgerald analyst Mike Kozak, the company's first-quarter 2026 financial results were mixed. Financial performance was significantly impacted by realized losses on gold hedge positions, while the Manh Choh mine in Alaska experienced reduced throughput and higher unit costs due to unusually harsh winter conditions. Headline earnings per share were a loss of $0.83, and after excluding $19 million in realized gold hedge losses, adjusted EPS was $0.27, below the expected $0.36. The company held $97 million in cash at the end of the first quarter, up from $65 million in the previous quarter, while total debt decreased slightly from $34 million to $33 million. Operationally, net sales in the first quarter were 8,000 ounces of gold, with production slightly higher at 8,100 ounces, but all-in sustaining costs were $2,778 per ounce (after by-product credits), above the full-year guidance of $2,200 to $2,300 per ounce. The company reaffirmed its 2027 production guidance and plans to eliminate the remaining 22,000-ounce gold hedge position priced at $2,025 per ounce by the first half of 2027. The analyst raised the target price from $29 to $30 per share, maintaining a "Speculative Buy" rating.
Freedom Broker analyst Vitaly Kononov, in a flash update on May 14, viewed the results as structurally neutral, suggesting investors should look to the second campaign and the expected Kitsault Valley mineral resource estimate update at the end of the second quarter for potential catalysts. Guidance for joint venture allocations in fiscal 2026 and fiscal 2027 remained unchanged at $48 million to $54 million and $165 million to $175 million, respectively. The analyst noted that the mineral resource estimate update for the project, expected to be completed by the end of the second quarter of 2026, will incorporate results from the 2025 drilling program. Current indicated resources stand at 34.7 million ounces of silver and 166,000 ounces of gold, and any upgrade could independently catalyze the stock price. Freedom Broker assigned a target price of $41 per share and a "Buy" rating.
According to a report by Tim Maxwell for CBS News MoneyWatch on May 28, gold and silver prices have experienced significant volatility since fall 2025, with gold climbing from $3,865 on October 1, 2025, to breaking the $5,000 mark for the first time in January, and silver rising from $47 to break through $100 per ounce, reaching a high of $116. Recent prices have reversed, influenced by factors including the Iran conflict pushing up energy prices and Federal Reserve interest rate policy making yield-bearing options like bonds more attractive. Over the past year, gold has risen 36%, while silver has surged 133%. Kitco NewsWire reported on June 19 that spot gold was trading at approximately $4,154.70 per ounce, down 1.28%, and spot silver was at $64.690, down 1.35%, due to the Fed's hawkish stance and a stronger U.S. dollar. U.S. markets were closed for the Juneteenth holiday, following the Fed's decision to hold the federal funds rate target range steady at 3.50% to 3.75%.
In the company's share structure, approximately 8% is held by insiders, about 37% by institutions, and the remaining 55% by retail investors. Major shareholders include Franklin Advisers Inc. with a 4.12% stake, John P. Juneau with 2.3%, The Vanguard Group Inc. with 2.24%, the Kenneth R. Peak Marital Trust with 2.18%, and BlackRock Institutional Trust Co. with 3.72%. The company has a market capitalization of $547.9 million, with 32.27 million shares outstanding, and a 52-week trading range of $14.88 to $34.38.
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