Contango Reports 74.20 g/t Au Intercept and $16.1 M Lease Acquisition
Contango Silver and Gold completed 6,020 m of drilling at Lucky Shot, returning assays like 0.50 m at 74.20 g/t Au and 2.89 m at 16.06 g/t Au across multiple veins. Contango paid $16.074 million to acquire the Lucky Shot lease and eliminate a 2% NSR royalty, improving project economics before a H1 2027 feasibility study.
1. Underground Drilling Program Results
Contango completed 6,020 m of underground diamond drilling in 65 HQ holes from ten West Drift stations, targeting the L2, L1b, L1c and L1d vein systems. High-grade intercepts include 0.50 m at 74.20 g/t Au and 2.89 m at 16.06 g/t Au in the CK Vein, confirming continuity and expansion of multiple vein structures.
2. Acquisition of Lucky Shot Lease and Royalty
On May 4, 2026, Contango agreed to pay $16,074,000 to acquire 100% of the Lucky Shot real property, mining claims and equipment, extinguishing a 2% net smelter returns royalty. Consideration comprises a $300,000 deposit, $1,709,250 on signing, $4,064,750 on closing and a $10 million promissory note at 5% annual interest, payable over four years.
3. Implications for Project Economics and Next Steps
Consolidating lease and royalty interests restores full project control and reduces administrative burden, enhancing economics ahead of a targeted H1 2027 feasibility study. Combined with high-grade drill results, this milestone de-risks the deposit and provides a clear roadmap for resource expansion and technical study advancement.