VANCOUVER – P2 Gold Inc. [PGLD-TSXV; CTIMF-OTC] has completed the February, 2022 updated mineral resource estimate (2022 MRE) for its wholly-owned Gabbs project located on the Walker-Lane trend in Nevada. The 2022 MRE is the first update to the Mineral Resource estimate for Gabbs since the company acquired the project in 2021. Gold-equivalent Mineral Resources at Gabbs have been upgraded and increased significantly as a result of the 2021 drill program, metallurgical test work and increased understanding of the geologic controls on the gold-copper mineralization.
Gold equivalent Pit Constrained Mineral Resources at Gabbs comprise Indicated Mineral Resource of 1.12 million ounces of gold equivalent or 0.65 million ounces of gold and 266.7 million pounds of copper (43.4 million tonnes grading 0.47 g/t gold and 0.28% copper), including Oxide Indicated Mineral Resource of 576,000 ounces of gold equivalent or 0.39 million ounces of gold and 127.9 million pounds of copper (20.1 million tonnes grading 0.61 g/t gold and 0.29% copper) as well as Inferred Mineral Resource of 1.64 million ounces of gold equivalent or 0.88 million ounces of gold and 376.1 million pounds of copper (69.9 million tonnes grading 0.39 g/t gold and 0.24% copper).
Prior to the 2022 MRE, the Gabbs Project had an Inferred Mineral Resource (2021 MRE) of 1.84 million ounces of gold equivalent or 1.26 million ounces of gold and 422.3 million pounds of copper (73.1 million tonnes grading 0.54 g/t gold and 0.26% copper).
The 2022 MRE was prepared by P&E Mining Consultants Inc. (P&E), based on four diamond drill holes and 27 reverse circulation drill holes completed by the company in 2021 and 494 drill holes completed by prior Gabbs Project operators between 1970 and 2011. A NI 43-101 Technical Report will be prepared by P&E and posted on the company’s website and the company’s profile on SEDAR within 45 days.
The company retained Kappes, Cassiday & Associates (KCA) in Reno, Nevada to carry out a Phase Two metallurgical program to determine the preferred extraction process for the Gabbs mineralization. Based on work completed to date, KCA is proposing that the oxide material be heap leached and gold recovered as a salable doré and cyanide soluble copper produced as a salable copper sulphide concentrate. For the sulphide material, KCA is proposing flotation to recover a salable copper concentrate with the flotation tails cyanide leached to recover additional gold as a salable dore and cyanide soluble copper as a copper sulphide concentrate.
Gold and copper recoveries used for the 2022 MRE were based on historical metallurgical testwork and recently completed metallurgical tests at KCA. For the oxide material, gold and copper recoveries were assumed to be 76% and 48%, respectively. For the sulphide material: gold recovery to copper flotation concentrate was assumed to be 72% and gold recovery from rougher flotation tails was assumed to be 78.0% for a weighted gold recovery of 94%; and copper recovery was assumed to be 79% to flotation concentrate and 7.6% from cyanide soluble copper precipitation for a weighted recovery 87%. Metallurgical testing by KCA is ongoing.