Metallurgical Program Initiated At The Gabbs Project

VANCOUVER - P2 Gold Inc. has initiated a metallurgical program for its gold-copper Gabbs Project, located on the Walker-Lane Trend in Nevada, and plans to undertake a drill program at Gabbs in the third quarter. Sullivan Zone Metallurgical Program: Two 36-kilogram metallurgical samples have been collected from surface locations within the Sullivan Zone. Assay results from the two metallurgical samples have returned gold and copper values consistent with historic drilling by prior operators in this location.

Prior metallurgical test work at Gabbs focused on the recovery of oxide mineralization by both heap leaching and conventional milling. Depending on the method, historical metallurgical recoveries were reported to range from 70% to 85% for copper and 85% to 95% for gold. P2’s metallurgical tests of the metallurgical samples will also evaluate the potential process options defined by previous operators.

P2’s initial metallurgical program is focused on the oxide mineralization as the Inferred Mineral Resource for Gabbs assumes zero recovery of oxide copper mineralization. By confirming a viable option for recovery of copper from the oxide mineralization, the Company believes that oxide copper can be included in future estimates of the Mineral Resource. P2’s initial metallurgical program is expected to be completed in the coming months and results will be reported when the program is completed.

Historical drilling at Gabbs was generally less than 100 meters deep, penetrating only the upper half of the interpreted mineralization as the drilling was concentrated on the oxide mineralization. Also, depending on the historical operator and the metal of focus at the time, a significant percentage of drill hole samples were assayed for either copper or gold but not both metals.   At the Sullivan Zone, historical drilling identified a near-surface, higher grade gold-copper layer measuring 30 meters to 50 meters in thickness, and 200 meters long on section. This higher grade layer was not domained for the 2021 Inferred Mineral Resource. As a result, P2 is planning an infill drill program to test the full thickness and lateral extent of the mineralization and determine geologic constraints, in order to redefine the existing Gabbs Project Mineral Resource.

The first phase of the infill drill program, which is planned to commence in the third quarter, will comprise approximately 8,000 meters of reverse circulation drilling focused mainly on the Sullivan Zone, the largest of the four zones identified to date on the Gabbs property. Gold-copper mineralization in the Sullivan Zone is hosted within what are interpreted to be sills associated with an alkaline gold/copper porphyry. Additionally, a drill program is being evaluated for the Car Body Zone, the smallest tonnage, highest-grading gold zone on the property where gold mineralization is interpreted to be low-sulphidation epithermal mineralization.

For select section views of the 2021 phase one drill program, please see Gabbs 2021 phase one drill program.