PEA For The Gabbs Gold-Copper Project On The Walker Lane Trend

VANCOUVER - P2 Gold Inc. announced a positive Updated Preliminary Economic Assessment (PEA) on its Gabbs Gold-Copper Project located on the Walker-Lane Trend in Nevada. After-tax net present value (5% discount rate) of US$949.2 million and internal rate of return of 33.5% at US$2,414/oz gold, US$31.48/oz silver and US$4.71/lb copper. Total projected life-of-mine ("LOM") post-tax cash flow of US$1.7 billion at Spot Metal Prices over 14.2-year mine life. Total projected LOM revenue of US$5.4 billion at Spot Metal Prices over 14.2-year mine life. LOM production of 1.471 million ounces of gold, 2.058 million ounces of silver and 190 thousand tonnes of copper. Estimated pre-production capital cost, including contingencies, of US$365.5 million with payback of 1.7 years at Spot Metal Prices.

"We have increased the production profile for Gabbs to nine million tonnes per year while still maintaining a healthy mine life of over 14 years," commented Joe Ovsenek, President and CEO of P2.  "Life-of-Mine production at Gabbs is now expected to be over 1.4 million ounces of gold and 190 thousand tonnes of copper.  The 2024 PEA contemplates heap leach processing at nine million tonnes per year as the first phase of operations for the initial five years to reduce upfront capital requirements and project risks. In year six, operations will switch to concurrent heap leach processing at four million tonnes per year and mill processing at five million tonnes per year.  Heap leach operations will pay for preproduction capital and a significant portion of mill capital prior to the commencement of mill processing in year six.

The next steps are to optimize metallurgical recoveries (as metal leaching was continuing when column tests were stopped due to time constraints), renew water well permits and file a mining plan of operations.  What's more, Gabbs has considerable Mineral Resource expansion potential for both oxides and sulphides, which is why we expect Gabbs to be a long-life gold and copper mine."