HOUSTON--(BUSINESS WIRE)--Contango ORE, Inc. (“CORE” or the “Company”) (OTCQB:CTGO) is pleased to announce that the Management Committee of Peak Gold, LLC, (“Peak Gold”) managed by Royal Alaska, LLC, a wholly owned subsidiary of Royal Gold, Inc. (“Royal Gold”) has approved the 2016 Phase II budget of $6.8 million for the second half of the calendar year. This is in addition to the $4.2 million previously approved in connection with the Phase I 2016 budget, most of which was expended drilling core holes at the Tetlin Gold project. The 2016 Phase II budget will be expended on expansion and infill drilling on the North Peak, Connector, and West Peak existing target areas, as well as, initial drilling on additional new targets.
We expect Peak Gold to publish a new resource estimate after 2016 Phase II drilling and subsequent analysis is complete. During the 2016 Phase II drilling, we expect to release assay results periodically, beginning in late July.
The following table shows the most recent significant intercepts drilled on the project for which assay results are available for the 2016 drilling program. Sample intervals are calculated using 0.5 grams per tonne (gpt) lower cut off for gold with no internal waste less than cutoff grade that is greater than 3 meters in thickness. Intercepts shown are drill intercept lengths. True width of mineralization is unknown. The data below includes 13 new drill holes from TET16211 to TET16225:
Brad Juneau, CEO, commented, “We continue to be impressed with the efficiency of the drilling operations, as we are seeing significant improvements in the cost per foot drilled which stands currently at approximately $115/ft. In addition, the number of holes that encounter skarn material, a prerequisite for finding gold in this area, has improved such that most holes find this type of mineralization. The Peak Gold team is continually improving its understanding of the geologic model, which has led to the drilling at Connector and West Peak. With the new drill hole data, we are continuing to find significant thickness and impressive grades of gold, as shown on the significant interval table shown above. Our immediate goal is to extend the known limits of the deposits we have found, and to provide enough information to provide reliable data on the continuity of the gold distribution in each area. We are continuing our surface recon program and may carry out additional soil geochemical sampling work to develop new drilling targets this summer. Our cumulative drilling from 2011 through the present has tested less than one percent of the acreage that we currently have under lease. We will be giving a presentation on the Tetlin Gold Project at the Explorer and Developer Forum at the Denver Gold Forum on September 19, 2016 in Colorado Springs, Colorado.”
CORE is a Houston-based company that engages in the exploration in Alaska for gold and associated minerals through Peak Gold, LLC, its joint venture company with Royal Gold, Inc. Additional information can be found on our web page at www.contangoore.com.
This press release contains forward-looking statements regarding CORE that are intended to be covered by the safe harbor "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995, based on CORE’s current expectations and includes statements regarding future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as "expects", “projects”, "anticipates", "plans", "estimates", "potential", "possible", "probable", or "intends", or stating that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved). Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those, reflected in the statements. These risks include, but are not limited to: the risks of the exploration and the mining industry (for example, operational risks in exploring for, developing mineral reserves; risks and uncertainties involving geology; the speculative nature of the mining industry; the uncertainty of estimates and projections relating to future production, costs and expenses; the volatility of natural resources prices, including prices of gold and associated minerals; the existence and extent of commercially exploitable minerals in properties acquired by CORE; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the interpretation of exploration results and the estimation of mineral resources; the loss of key employees or consultants; health, safety and environmental risks and risks related to weather and other natural disasters); uncertainties as to the availability and cost of financing; inability to realize expected value from acquisitions; inability of our management team to execute its plans to meet its goals; and the possibility that government policies may change or governmental approvals may be delayed or withheld, including the inability to obtain any mining permits. Additional information on these and other factors which could affect CORE’s exploration program or financial results are included in CORE’s other reports on file with the Securities and Exchange Commission. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. CORE does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change.