Contango ORE, Inc. (NYSE-A:CTGO) completed a transaction in 2020 that repositions the Company as a well-capitalized US gold developer with a clear path to producing on average 67,500 gold equivalent ounces (GEO) per year net to Contango at all-in sustaining costs (AISC) of $1116/GEO. Today, our 30/70 joint venture (Peak Gold LLC) with Kinross Gold Corporation, where Kinross (70%) is Manager and Operator, has broken ground and started mining on its Manh Choh Project. Ore from Manh Choh will be transported by truck and processed at Kinross' existing Fort Knox milling complex. At current gold process and with less than 10 million shares O/S, the Company will generate over $50 million in free cash flow annually. The Project is fully permitted and the Company is fully funded through project completion. Kinross guidance for first production is planned for H2 2024. Kinross completed a Feasibility Study in Q2 2022. Contango’s share of capital is anticipated to be $65 million. Early works construction started in August 2022 with the construction of a camp and road access to the mine site and is now complete. Manh Choh is located on private lands owned by the Tetlin Alaska Native Tribe and consists of 675,000 acres in the heart of the Tintina Gold Belt. Contango also controls the 100% owned Lucky Shot project located in the Willow Mining District of SW Alaska. This project is road accessible with excellent infrastructure. The Lucky Shot Mine produced 250,000 ounces at ~40 g/t from mesothermal quartz veins and mining ceased by government order in 1942 when the War Act shut down all non-essential mining. The Company released an initial SK-1300 resource outlining 130,000 ounces of gold with Indicated grade of 14.5 g/t (0.46 oz.ton). Drilling from surface and underground is on-going to continue to explore the down-dip extension of the historically mined Lucky Shot vein.
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