Contango Announces Production of 15,700 ounces of Gold and Anticipated $20.0 Million Cash Distribution from the Second Peak Gold JV Campaign of 2025

Core Viewpoint - Contango ORE, Inc. has successfully completed its second production campaign in 2025, achieving a production of approximately 15,700 ounces of gold, exceeding initial guidance and anticipating significant cash distributions from the Peak Gold JV [1][3]. Production Details - The Peak Gold JV processed 255,000 tons of ore from May 13 to June 7, 2025, with an average grade of 0.220 ounces per ton, resulting in approximately 56,000 ounces of gold [2]. - Gold recovery averaged 93%, leading to approximately 52,000 ounces of recovered gold, with Contango's share being about 15,700 ounces [2]. - As of the release date, the company has sold 7,200 ounces of gold from this campaign, with further sales expected throughout June [2]. Financial Expectations - The company expects cash distributions from the Peak Gold JV to exceed $93 million for 2025, based on a projected gold price of $3,200 per ounce for the second half of the year [3]. - The all-in sustaining costs for the second campaign are anticipated to be lower than the first campaign's costs of $1,374 per ounce sold [3]. Operational Insights - Mill throughput averaged 10,122 tons per day, which is 17% above plan and approximately 25% higher than the first campaign of 2025 [3]. - The company maintains a production guidance of 60,000 ounces of gold for its 30% share in the Peak Gold JV for 2025, with an expected average annual production of 58,750 ounces from 2025 to 2029 [3]. Company Overview - Contango ORE, Inc. is engaged in gold exploration in Alaska, holding a 30% interest in the Peak Gold JV, which covers approximately 675,000 acres for exploration and development [4].