Phase One Drilling At The Sullivan Zone

VANCOUVER - P2 Gold Inc. reported results from the final 11 reverse circulation (RC) drill holes (GBR-013 to 023) of Phase One drilling at the Sullivan Zone, and on activities recently completed and underway, at its Gabbs Project located on the Walker-Lane Trend in Nevada.

“We have the assays for all of the Sullivan Zone drill holes from the Phase One program, and the results confirm our thesis that the historical drilling understated the width and grade of the gold-copper mineralization at Gabbs,” commented Joe Ovsenek, President and CEO of P2. “This Phase One program has also confirmed that the Sullivan Zone measures at least 1,000 meters long and over 200 meters wide, and hosts near-surface, high-grade gold-copper mineralization. The preparation of an updated Mineral Resource estimate is underway and expected to be completed in the first quarter of 2022. RC samples for the remaining three holes from the Car Body Zone and one hole from the Lucky Strike Zone are in the lab, and we expect to release those results early in the new year.”

Gabbs Phase One Drill Program, Sullivan Zone - Select drill results from holes GBR-013 to GBR-023 include: Hole GBR-014 intersected 1.18 g/t gold equivalent (0.77 g/t gold and 0.35% copper) over 82.30 meters, including 21.34 meters grading 2.31 g/t gold equivalent (1.71 g/t gold and 0.51% copper); Hole GBR-021 intersected 1.01 g/t gold equivalent (0.63 g/t gold and 0.32% copper) over 86.86 meters, including 25.91 meters grading 1.57 g/t gold equivalent (1.06 g/t gold and 0.44% copper); and Hole GBR-022 intersected 1.01 g/t gold equivalent (0.60 g/t gold and 0.36% copper) over 153.92 meters, including 42.67 meters grading 1.53 g/t gold equivalent (1.02 g/t gold and 0.44% copper).

Drill holes GBR-013 to 018 were designed to test the southeastern half of the Sullivan Zone. In particular, holes GBR-014 and 015, drilled along the edge of the previously defined limit of the Sullivan Zone mineralization, confirmed that the zone is still open to the southeast. Drill hole GBR-013 ended prior to planned depth, and it along with hole GBR-016 did not intersect the monzonite or footwall mineralization. Drill holes GBR-019 and 020 expanded upon the mineralization encountered in drill holes GBD-004 and GBR-010 and in drill hole GBD-003, respectively. Finally, drill holes GBR-021 to 023 extended the higher-grade mineralization to the northwest of drill hole GBD-003.

The mineralization intersected in Phase One drilling at the Sullivan Zone is thicker and higher grade than defined by historical drilling, which consisted of mainly vertical drill holes. An analysis of the assays from the Phase One drill program and historical drilling suggests that the gold mineralization may be controlled in part by a sub vertical sheeted structure. The Phase One angle drill holes are interpreted to have cut a more representative amount of the sheeted structure, which resulted in them generally having higher average gold values than the vertical drill holes. Overall, drilling continued to intersect an intensely altered package of volcanic rocks that includes a monzonite sill which hosts the higher-grade gold mineralization, along with copper–gold mineralization extending well into the underlying altered pyroxenites. A Mineral Resource update is underway and expected to be completed in the first quarter of 2022. The Mineral Resource update will incorporate the results of the Gabbs Phase One drill program and Phase One and Two metallurgical programs.

The Phase Two metallurgical program is underway and is expected to be completed in the first quarter of 2022. The program is expected to determine the preferred processing alternative to be used as the basis for a preliminary economic assessment targeted for completion in late 2022.

In the field, a 25.7 line kilometer Natural Source Magneto Telluric (NSMT) survey has been completed over the project covering all four known zones of mineralization and prospective source copper porphyry locations between the zones. Based on the results of the NSMT survey, infill NSMT survey lines are planned over areas believed to potentially host the source copper porphyry at depth. The infill NSMT survey lines are expected to be completed prior to year end.