Business
Contango ORE Announces Feasibility Study Results and Construction Decision on Manh Choh
HOUSTON / Jul 28, 2022 / Business Wire / Contango ORE, Inc. (“Contango,” “CORE” or the “Company”) (NYSE American: CTGO) announced that a major milestone has bee
About this update from Contango Silver & Gold Inc.
[{"type":"text","content":"HOUSTON / Jul 28, 2022 / Business Wire / Contango ORE, Inc. (“Contango,” “CORE” or the “Company”) (NYSE American: CTGO) announced that a major milestone has been achieved at the Company’s 30% owned Manh Choh gold project. Kinross Gold Corporation, the owner of KG Mining (Alaska), LLC, which is the 70% owner, operator and manager of the Peak Gold LLC joint venture (JV) and Manh Choh, announced the results of the Feasibility Study (FS) for the Manh Choh project ahead of schedule. They also announced that the Kinross Board made a decision to proceed with development of the project. The FS outlines a plan to batch process the high grade approximately 8g/t Manh Choh ore through Kinross' Fort Knox mill. By utilizing the existing facilities at Fort Knox, the FS plan contemplates that the Manh Choh project will proceed without having to permit, capitalize and construct a mill or tailings facilities at the project site. Kinross also contemplates reduced environmental disturbance and lower overall Green House Gas (GHG) emissions. Based on Kinross' updated resource model, Contango would have an initial reserve of approximately 300,000 ounces gold at 7.88g/t, and over half a million ounces of silver grading 13.6g/t, net its 30% ownership of the Peak Gold JV. According to Kinross' release, aggregate capital expenditures for the joint venture to execute the development plan will be approximately $182 million, including $30 million for the purchase the highway ore transport fleet, resulting in approximately $54.5 million in capital contributions attributable to Contango’s 30% interest. Average All-in Sustaining Costs (AISC) are estimated by Kinross at $900 per Au eq. oz. (which includes the Fort Knox Toll processing costs), which would result in a margin of over an $800 per ounce at today's approximate $1700 gold price. Kinross disclosed that the Manh Choh operations are expected to produce on average 225,000 ounces of gold per year, which would approximately 67,500 ounces net to Contango on an annual basis. The early works program has begun at the project, with camp refurbishments, earthworks and road construction now underway. Kinross, on behalf of the Peak Gold JV, is also continuing its comprehensive community programs and prioritizing local economic benefits as it develops the project. Permitting activities are advancing, with major permi...