en.Wedoany.com Reported - P2 Gold (TSXV: PGLD | OTCQB: PGLDF) released drill results from five holes at the Sullivan Zone of its Gabbs gold-copper project in Nevada on June 18, 2026. These holes were designed to provide data on pit wall stability after mining commences, and all five are located on the outer edge of the planned open pit. However, all holes encountered gold-copper mineralization in the area. The company stated that while this result was not intentionally sought, it confirms that the Sullivan Zone still has room for expansion along the dip direction, with the scale of mineralization continuing to grow. P2 Gold has planned a 7,500-meter follow-up drilling program to test the extent of this mineralization, and the results will be directly used to update the project's total resource estimate.
On June 9, 2026, the company released a project update outlining plans to simultaneously advance drilling, geotechnical work, permitting, and feasibility studies. P2 Gold President and CEO Joseph Ovsenek defined 2026 as a year for concurrently advancing drilling, permitting, and engineering work, rather than sequentially, to shorten the path to a construction decision. Ovsenek stated that the critical path for this strategy is environmental permitting, so studies were initiated early to stay ahead of this risk. This same parallel approach explains why holes drilled purely for engineering purposes are now serving a dual role as sources of new resource information. Ovsenek noted that if permitting and engineering proceed as planned, the project could break ground by the end of next year, and the current drilling results are intended to support, not delay, this timeline.
The Gabbs project is located in Nevada, within a mining trend hosting multiple gold-copper deposits, and benefits from road access, existing power and water infrastructure, resulting in lower construction costs compared to remote projects. The claim block includes four separate mineralized zones, all with room for further drilling, and their full extent has yet to be determined. A preliminary economic assessment (PEA) from October 2025 estimated the project's after-tax value at several hundred million dollars, using a smaller processing rate than the one currently being evaluated for the feasibility study. If adopted, this change would support higher annual gold and copper production. P2 Gold aims to complete the feasibility study by the end of 2026, with a resource estimate update to be completed beforehand.
In mid-June 2026, the company's stock price was approximately C$0.71, with a market capitalization of about C$186 million, well below the project's estimated value in the 2025 assessment. Management noted that this gap is expected to narrow as the feasibility study and permitting work progress. Since the start of the current drilling program in late 2025, P2 Gold has completed dozens of holes in the Sullivan and Lucky Strike areas and plans further testing at both locations.
The June 18, 2026 results reinforce P2 Gold's strategy for Gabbs in 2026: work commissioned for pit engineering is becoming a source of new resource information ahead of the feasibility study, reducing the cost of testing the Sullivan Zone's extension along the dip direction. For investors, these results alone do not change the feasibility study timeline or the project's economics, but they add another data point supporting management's view that the gap between Gabbs' estimated value and the company's current market capitalization can narrow as the feasibility study, updated resource estimate, and permitting work are completed on schedule.
