Contango ORE, Inc. (NYSE-A: CTGO) owns a 30% interest in the high grade Manh Choh open pit gold mine located in Alaska and partnership with a subsidiary of Kinross Gold Corporation - The Peak Gold, LLC (Kinross 70% and Contango 30% with Kinross as Manager and Operator). Ore from Manh Choh will be transported along State maintained highways and then processed at Kinross' existing Fort Knox mill complex located near Fairbanks, Alaska. The use of the Fort Knox mill has accelerated the development of the project and resulted in significantly reduced upfront capital development costs, a smaller environmental footprint, a shorter permitting and development timeline, and less overall risk for the project.
Peak Gold LLC has had a mining lease since 2008 on 675,000 acres of private lands owned by the Tetlin Tribe and administered by the Tetlin Tribal Council. The Manh Choh project has received all Federal and State permits and mining operations are underway and ore is currently being stockpiled at the Mahn Choh site and transported by highway ore haul trucks to a stockpile area at the Fort Knox mill complex. Peak Gold LLC expects to build a roughly 250,000 ton stockpile and then start processing the stockpiled ore later in 2024. Annual gold production is expected to be 225,000 ounces per year with 30% or approximately 67,500 ounces credited to Contango’s account. According to the Feasibility Study Technical Report, All-In Sustaining Costs (AISC) are expected be of $1116/GEO (Gold Equivalent Ounce).