P2 Gold Announces Initial Mineral Resource Estimate for the Monarch Gold Zone at the BAM Project
January 24, 2023 News Release 23-01
P2 Gold Announces Initial Mineral Resource Estimate for the Monarch Gold
Zone at the BAM Project
Vancouver, British Columbia, January 24, 2023; P2 Gold Inc. (“P2” or the “Company”) (TSX-V:PGLD)
(OTCQB:PGLDF) reports the initial Mineral Resource Estimate (“MRE”) for the near -surface gold
mineralization drilled to date at the Monarch Gold Zone, a newly-discovered deposit at its BAM Project.
The gold-copper BAM Project is located in the Golden Triangle of northwest British Columbia.
“The announcement of an initial Mineral Resource Estimate for the near surface mineralization at the
Monarch Gold Zone in just eighteen months from discovery speaks to the continuity of the zone, as
well as the capabilities of our exploration team,” commented Joe Ovsenek, President and CEO of P2.
“As importantly, it highlights the potential size of the porphyry system at depth that is driving the
surface mineralization. The Monarch Gold Zone is currently defined for over a kilometre along strike,
remains open in multiple directions , and is hosted within a large sericite/ankerite alteration system
that covers the western half of the Property. The size and intensity of the mineral and alteration
systems at surface are clearly indicative of a substantial porphyry system at depth. During 2023, the
focus of the BAM Exploration Program will be exploration for the feeder zones and the porphyry
system at depth and expansion of the near-surface mineralization.”
BAM Project, Monarch Gold Zone Mineral Resource Estimate
The initial Monarch MRE comprises 520,000 ounces of gold in an Inferred Mineral Resource at a grade
of 0.59 g/t (Table 1). The pit-constrained Mineral Resource Estimate starts at surface and continues to
a depth of 190 metres over a strike length of 1,250 metres, with the Monarch Gold Zone open to
expansion by drilling to the northeast and southwest. A plan map of the Monarch Gold Zone is
available here.
2 | P a g e
The Monarch MRE was prepared by P&E Mining Consultants Inc. (“P&E”), based on six diamond drill
holes (836 metres) completed by the Company in 2021 and 95 diamond drill holes (13,958 metres)
completed by the Company in 2022. A National Instrument 43 -101 Technical Report will be prepared
by P&E and posted on www.p2gold.com and under the Company's profile on www.SEDAR.com within
45 days of the date of this news release.
Table 1: January 2023 BAM Project, Monarch Gold Zone, Pit Constrained Inferred Mineral Resource
Estimate(1-5)
Tonnes
(M)
Gold Grade
(g/t)
Silver
Grade
(g/t)
Gold
(M oz)
Silver
(M oz)
Gold Eq.
Grade
(g/t)
Gold Eq.
(M oz)
27.2 0.59 2.52 0.52 2.21 0.62 0.55
(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic
viability. The estimate of Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
(2) The Inferred Mineral R esource in this estimate has a lower level of confidence than that
applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It
is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded
to an Indicated Mineral Resource with continued exploration.
(3) The Mineral Resources in this press release were estimated using the Canadian Institute of
Mining, Metallurgy and Petroleum (CIM), Standards on Mineral Resources and Reserves,
Definitions (2014) a nd Best Practices (2019) prepared by the CIM Standing Committee on
Reserve Definitions and adopted by CIM Council.
(4) The Mineral Resource Estimate was prepared for a potential open pit scenario using a
constraining pit shell (with 50 degree slopes) at a 0.2 g/t gold equivalent cut-off grade. The
gold equivalent cut-off grade was derived from US$1,800/oz gold, US$24/oz silver, CAD:USD of
0.77, C$2.50/tonne mining cost, C$12.00/tonne milled processing costs, C$1.50/tonne G&A cost,
and 90% and 80% gold and silver process recoveries, respectively.
(5) Gold equivalent g/t = Gold g/t + (Silver g/t x 0.012)
BAM Project, Monarch Gold Zone Mineral Resource Estimate Cut-Off Grade Sensitivities
The Monarch MRE s ensitivity table, Table 2 below, shows the potential for higher -grade Mineral
Resources at higher gold equivalent cut -offs, which potential can be assessed during engineering
studies.
Table 2: January 2023 BAM Project, Monarch Gold Zone Pit Constrained Inferred Mineral Resource
Estimate Cut-Off Grade Sensitivities(1-2)
Cut-Off
Gold Eq.
(g/t)
Tonnes
(M)
Gold
Grade
(g/t)
Silver
Grade
(g/t)
Gold
(M oz)
Silver
(M oz)
Gold Eq.
Grade
(g/t)
Gold Eq.
(M oz)
0.6 10.2 0.97 3.04 0.32 0.99 1.00 0.33
0.4 18.0 0.75 2.82 0.43 1.63 0.78 0.45
0.2 27.2 0.59 2.52 0.52 2.21 0.62 0.55
(1) Refer to the footnotes to the Mineral Resource Estimate in Table 1 of this Press Release.
3 | P a g e
(2) The Mineral Resource Estimate cut-off grade sensitivities in Table 2 are a subset of the Mineral
Resource Estimate in Table 1.
2023 BAM Exploration Program
The focus of the 2022 BAM Drill Program was to attempt to define the limits of the epithermal surface
mineralization at the Monarch Gold Zone and provide geologic information to aid in the interpretation
of the airborne and ground geophysical surveys. Th is interpretation o f the geophysical surveys is
essential to the discovery of the higher-grade feeder systems for the near-surface epithermal gold
mineralization and any associated porphyry mineralization at depth.
During 2023, crews are expected to mobilize to BAM in mid-May with the first drill mobilized to site in
early to mid -June. A three-dimensional geophysics interpretation of the BAM Project , incorporating
the results of the natural source magneto -telluric (NSMT) geophysical survey and the Z -Tipper Axis
Electromagnetic (ZTEM) airborne geophysical survey is expected to be completed shortly. This
interpretation will be compiled with the available drill data and surface mapping to develop targets
for the 2023 BAM Exploration Program to test for the feeder zones and the porphyry system at depth.
Quality Assurance
The Monarch MRE was prepared under the supervision of Eugene Puritch, P.Eng., FEC, CET of P&E
Mining Consultants Inc. of Brampton, Ontario, who is an Independent Qualified Person, as defined by
National Instrument 43 -101. Mr. Puritch has reviewed and approved the te chnical contents of this
news release relating to the Monarch MRE.
Ken McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, P2 Gold, is the Qualified Person, as
defined by National Instrument 43-101, responsible for the BAM Project. Mr. McNaughton has
reviewed, verified, and approved the scientific and technical information in this news release.
About P2 Gold Inc.
P2 Gold is a mineral exploration and development company focused on advancing precious metals and
copper discoveries and acquisitions in the western United States and British Columbia.
For further information, please contact:
Joseph Ovsenek
President & CEO
(778) 731-1055
P2 Gold Inc.
Suite 1100, 355 Burrard Street
Vancouver, BC
V6C 2G8
(SEDAR filings: P2 Gold Inc.)
Michelle Romero
Executive Vice President
(778) 731-1060
Neither the TSX Venture Exchange (the “Exchange”) nor its Regulation Services Provider (as that term
is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this
release.
4 | P a g e
Forward Looking Information
This press release contains “forward-looking information” within the meaning of applicable securities
laws that is intended to be covered by the safe harbours created by those laws. “Forward -looking
information” includes statements that use forward -looking terminology such as “may”, “will”,
“expect”, “anticipate”, “believe”, “continue”, “potential” or the negative thereof or other variations
thereof or comparable terminology. Such forward -looking information includes, without limitation,
information with re spect to the Company’s expectations, strategies and plans for the BAM Project
including the Monarch MRE and the Company’s planned expenditures and exploration activities.
Forward-looking information is not a guarantee of future performance and is based upon a number of
estimates and assumptions of management at the date the statements are made. Furthermore, such
forward-looking information involves a variety of known and unknown risks, uncertainties and other
factors which may cause the actual plans, intentions, activities, results, performance or achievements
of the Company to be materially different from any future plans, intentions, activities, results,
performance or achievements expressed or implied by such forward -looking information. See “Risk
Factors” in the Company’s annual information form for the year ended December 31, 2021, dated
March 31, 2022 filed on SEDAR at www.sedar.com for a discussion of these risks.
The Company cautions that there can be no assurance that forward-looking information will prove to
be accurate, as actual results and future events could differ materially from those anticipated in such
information. Accordingly, investors should not place undue reliance on forward-looking information.
Except as required by law, the Company does not assume any obligation to release publicly any
revisions to forward -looking information contained in this press release to reflect events or
circumstances after the date hereof.