P2 Gold Announces Significant Increase in Mineral Resource for Gabbs
February 10, 2022 News Release 22-02
P2 Gold Announces Significant Increase in Mineral Resource for Gabbs
Vancouver, British Columbia, February 10, 2022; P2 Gold Inc. (“P2” or the “Company”) (TSX-V:PGLD)
reports the completion of 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.
Highlights
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)
o 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)
• 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) (see P2 news release of February 23, 2021).
Gabbs Project February 2022 Mineral Resource Estimate
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 National Instrument 43 -101
Technical Report will be prepared by P&E and posted on www.p2gold.com and the Company's profile
on www.SEDAR.com within 45 days of the date of this news release.
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Table 1: February 2022 Gabbs Project Pit Constrained Mineral Resource Estimate(1)(2)(3)(4)
Mineral
Resource
Classification
Tonnes
(M)
Gold
Grade
(g/t)
Copper
Grade
(%)
Gold
(M oz)
Copper
(M lbs)
Gold Eq.
Grade
(g/t)
Gold Eq.
(M oz)
Indicated 43.4 0.47 0.28 0.65 266.7 0.81 1.12
Inferred 69.9 0.39 0.24 0.88 376.1 0.73 1.64
(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 Resource in this estimate has a lower level of confidence tha n 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, Metallur gy and Petroleum (CIM), Standards on Mineral Resources and Reserves,
Definitions (2014) and 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 respective 0. 35 g/t and 0 .36 g/t oxide and
sulphide gold equivalent cut-off grades. The gold equivalent cut-off grades were derived from
US$1,675/oz gold, US$3 .80/lb copper, US$2 .14/tonne mining cost, and US$13.81 and
$17.34/tonne respective oxide and sulphide processing costs ; US$0.68/tonne G&A cost , 76%
and 94% respective Au oxide and sulphide process recoveries; and 48% and 87% respective Cu
oxide and sulphide process recoveries.
Oxide Mineral Resources at Gabbs now consist of Indicated Mineral Resources of 576,000 ounces of
gold equivalent (20.1 million tonnes grading 0.61 g/t gold and 0.29% copper) and Inferred Mineral
Resources of 260,000 ounces of gold equivalent (9.9 million tonnes grading 0.61 g/t gold and 0. 19%
copper). See Table 2 below for a breakdown of the oxide and sulphide Mineral Resources.
Table 2: February 2022 Gabbs Project Pit Constrained Mineral Resource Estimate by Rock Group(1)(2)
Rock
Group
Tonnes
(M)
Gold
Grade
(g/t)
Copper
Grade
(%)
Gold
(M oz)
Copper
(M lbs)
Gold Eq.
Grade
(g/t)
Gold Eq.
(M oz)
Oxide
Indicated 20.1 0.61 0.29 0.39 127.9 0.89 0.58
Oxide
Inferred 9.9 0.61 0.19 0.19 42.2 0.80 0.26
Sulphide
Indicated 23.3 0.34 0.27 0.26 138.8 0.73 0.55
Sulphide
Inferred 60.1 0.35 0.25 0.68 333.8 0.72 1.38
(1) See Notes 1 to 4 to Table 1 above.
(2) Tables may differ and not sum due to rounding.
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The majority of the increase in the 2022 MRE (from the 2021 MRE) occurred at the Sullivan Zone where
the Company drilled 27 drill holes (four diamond drill holes and 23 reverse circulation drill holes) in 2021.
The Inferred Mineral Resource at the Lucky Strike Zone also increased in the 2022 MRE, whereas the
Inferred Mineral Resource changed nominally at Car Body and Gold Ledge. See Table 3 below for a
breakdown of the Gabbs Mineral Resource by zone.
Table 3: February 2022 Gabbs Project Pit Constrained Mineral Resource Estimate by Zone(1)(2)
Zone
Tonnes
(M)
Gold
Grade
(g/t)
Copper
Grade
(%)
Gold
(M oz)
Copper
(M lbs)
Gold Eq.
Grade
(g/t)
Gold Eq.
(M oz)
Sullivan
Indicated 43.4 0.47 0.28 0.65 266.7 0.81 1.12
Sullivan
Inferred 16.3 0.43 0.26 0.22 94.3 0.78 0.41
Lucky Strike
Inferred 49.1 0.34 0.25 0.54 269.5 0.69 1.10
Car Body
Inferred 2.4 1.26 - 0.10 - 1.26 0.10
Gold Ledge(3)
Inferred 2.1 0.19 0.26 0** 12.2 0.51 0**
(1) See Notes 1 to 4 to Table 1 above.
(2) Tables may differ and not sum due to rounding.
(3) Gold Ledge Inferred Mineral Resource rounded to zero**.
Gabbs Project February 2022 Updated Mineral Resource Key Parameters
A comparison of the key parameters of the 2022 MRE to the 2021 MRE is set out in Table 4 below. Of
note, for the 2022 MRE, the oxide and sulphide cut-off grades increased to 0.35 g/t gold equivalent and
0.36 g/t gold equivalent, respectively, from 0.24 g/t gold equivalent and 0. 30 g/t gold equivalent for
the 2021 MRE. In addition, the 2022 MRE used gold and copper prices of US$1,675 per ounce gold and
US$3.80 per pound copper , compared to the 2021 MRE which used US$1,600 per ounce gold and
US$3.00 per pound copper.
Table 4: Comparison of Key Parameters of the 2022 MRE to the 2021 MRE
Parameter February 2022 January 2021
Mining scenario Open pit Open pit
Constrained pit shell 50-degree slopes 50-degree slopes
Oxide cut-off grade 0.35 g/t gold eq. 0.24 g/t gold Eq
Sulphide cut-off grade 0.36 g/t gold eq. 0.30 g/t gold Eq
Gold price US$1,675/ounce US$1,600/ounce
Copper price US$3.80/pound US$3.00/pound
Gold recovery 76% Oxide 94% Sulphide 80% Oxide 80% Sulphide
Copper recovery 48% Oxide 87% Sulphide 0% Oxide 90% Sulphide
Mining costs US$2.14/t US$2/t
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Parameter February 2022 January 2021
Processing costs
US$13.81/t
Oxide
US$17.34/t
Sulphide US$8/t Oxide US$12/t Sulphide
G&A costs US$0.68/t US$2/t
Metallurgical Test Results
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 doré 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: (a) 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 (b) copper recovery was assumed to be
79% to flotation concentrate an d 7.6% from cyanide soluble copper precipitation for a weighted
recovery 87%. Metallurgical testing by KCA is ongoing.
Quality Assurance
The 2022 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 (“QP”), as defined by
National Instrument 43 -101. Mr. Puritch has reviewed and approved the technical contents of this
news release relating to the 2022 MRE and 2021 MRE.
Mr. Christopher L. Easton, MMSA QP , of Kappes, Cassiday & Associates is the Independent QP
responsible for metallurgical testwork and has reviewed and approved the technical contents of this
news release relating to metallurgical test work.
Ken McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, P2 Gold, is the Company Qualified Person,
as defined by NI 43-101, responsible for the Gabbs Project. Mr. McNaughton has reviewed , verified
and approved the 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.
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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.
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 te rminology such as “may”, “will”,
“expect”, “anticipate”, “believe”, “continue”, “propose”, “potential” or the negative thereof or
other variations thereof or comparable terminology. Such forward -looking information includes,
without limitation, information with respect to the Company’s expectations, strategies and plans for
the Gabbs Project including the Company’s planned expenditures and exploration activities and the
estimation of mineral resources.
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 forwa rd-looking information. See “Risk
Factors” in the Company’s annual information form dated August 9, 2021 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.