Completion Of Trade Off Study At Gabbs Project

VANCOUVER - Joe Ovsenek, President and CEO of P2 Gold Inc. said, “With the completion of a production trade off study at the Gabbs Project, located on the Walker-Lane Trend in west-central Nevada, we are now launching a Phase Two metallurgical program. These and other programs completed since the acquisition of the project this year, including geophysical studies and diamond and reverse circulation drill programs, have positioned us to advance Gabbs to a preliminary economic assessment.”

In August, Kappes Cassiday & Associates (“KCA”) was retained to prepare a tradeoff study of the economic potential of several process options for treating the mineralization at the Gabbs gold-copper project. For the oxide ores, this study included both heap leaching and conventional milling using either acid or cyanide for recovery of gold and copper. In all cases, the sulphide ores were treated by conventional milling followed by flotation producing a gold/copper concentrate and cyanide leaching of the flotation tails to produce dore. In their analysis, KCA determined that a combination of heap leaching of the oxide ores with cyanide and conventional milling of the sulphide ores had the greatest economic potential. In this process option, the flowsheet used standard SART technology (Sulphidation, Acidification, Recycling, Thickening) to recover the oxide copper and gold from the cyanide solutions collected from the heap leach, and then regenerate the cyanide for reuse on the heap. The second-best process option was conventional milling of both oxide and sulphide ores with cyanide and flotation/leaching of the sulphide ores. Additional metallurgical studies were recommended to refine the tradeoff study and advance the project towards a preliminary economic assessment (“PEA”).