⚠️ PAID-FOR CONTENT

P2 Gold is an exploration and development company with one flagship asset: the Gabbs gold-copper project in Nye County, Nevada, situated near the town of Gabbs on the Walker Lane Trend, roughly equidistant between Reno and Las Vegas. The 2025 PEA outlined approximately 3.5 million gold-equivalent ounces across the indicated and inferred categories, with a roughly one-third / two-thirds split respectively. This conversation with CEO Joe Ovsenek covers the current state of an infill RC drill program, plans for a feasibility study, a recently signed water rights acquisition deal, and how the company plans to finance all of it.

TL;DR

P2 Gold is in a footrace against time. RC drilling is paused for roughly a month between contractors, remobilizing in May. Of the 11,500-metre infill program, they’ve drilled 62 holes so far (24 at Sullivan, 38 at Lucky Strike), and Lucky Strike is looking better than expected on both size and grade. The big targets are a Q3 2025 resource update (possibly August or September), and a feasibility study by December 2025. Those timelines are tight and depend on getting drilling done fast enough. They have roughly C$10M in the bank, which they believe covers the FS, but the US$10.5M water rights acquisition will need a separate equity raise. That raise is likely landing in a window when the FS should be close to done.

What have they done for shareholders lately?

CEO Ovsenek told me the two biggest things since we last spoke are the infill drill program which is meant for converting inferred ounces to measured and indicated so they can actually use them in a feasibility study, and signing a deal to acquire water rights for the project. On the drilling side, 62 RC holes are in the ground across Sullivan (24 holes) and Lucky Strike (38 holes), with results released on roughly 20 of the Lucky Strike holes so far. On the water rights front, they’ve signed an agreement to buy existing water rights from a rancher for US$10.5M, with US$100K paid upfront and the rest due on regulatory approval. Those rights would give them about 67% more water than the minimum required, which Joe says is room for expansion, if they need it. Engineering contractors are already on board, with KCA (Kappes, Cassiday & Associates) out of Reno as the feasibility study project lead, and geotechnical, metallurgical, wildlife, and cultural survey work already underway.

How much money do they have, and what are they spending it on?

They’ve got roughly C$10 in the bank right now. An additional ~C$1.5M is expected to come in from warrant exercises due in September 2025, which Ovsenek said he expects to be fully exercised (and intends to exercise his own portion). G&A is running at roughly C$100K per month all-in, including marketing, so call it C$1.2M per year. RC drilling costs are running about US$200/m all-in but diamond drilling is running north of US$400/m. Ovsenek said the existing cash plus warrant proceeds are intended to carry the company through completion of the feasibility study. However, the US$10.5M water rights payment is explicitly outside that budget and will require a separate equity raise. He said he’d prefer straight equity over royalties or streams, because royalties dilute at the project level and eliminate future buyback optionality. He mentioned timing the raise to coincide with the FS re-rate, when he believes the stock should trade closer to C$2, though that is, of course, very forward-looking.

Upcoming catalysts

Technical & Operational: Additional Lucky Strike drill results are expected in batches approximately every two to three weeks, pending lab turnaround (labs are backlogged as more companies come back to drilling). Results for five holes currently missing from the sequence (holes 97–101) were expected within two weeks of the interview date. A decision on the feasibility study processing rate (whether to run at 9 million tonnes per year (as per the PEA), or increase to 10, 11, or 12 Mtpa) was expected by end of April 2025. At 12 Mtpa, management believes production could step up from approximately 109,000 oz gold/year (PEA base case) to approximately 150,000 oz gold/year, alongside 45–50 million pounds of copper per year. Flotation metallurgy results are expected in Q3 2025 with heap leach column results expected Q3 or early Q4 2025. Updated mineral resource estimate is targeted for Q3 2025, possibly August or September.

Corporate & Permitting: The water rights change-of-use application with the Nevada Division of Water Resources was expected to be filed within roughly a month of the interview. Mining Plan of Operations approval from the BLM is expected sometime in 2025. Feasibility study completion is targeted for Q4 2025 (December). Water rights transfer approval is expected in Q4 2025 or Q1 2026 (6 to 12 month regulatory window). Environmental permit (EIS or EA) is being targeted for Q4 2027, with Q2 2028 as the outer bound before potential construction start.

Risks

The most immediat risk is the drilling timeline. The one-month gap between RC contractors directly threatens the Q3 MRE target, which in turn threatens the December FS deadline. Ovsenek said they’re also trying to secure a second rig simultaneously, but noted that drill rigs are hard to come by right now with everyone in the market drilling at once, which is also slowing lab assay turnarounds. If the MRE slips past Q3 into Q4, the FS timeline almost certainly moves with it. On the financial side, the water rights equity raise introduces dilution risk, with terms depending on where the share price sits at the time, and that’s tied to macro conditions. Lucky Strike holes 95 and 96 came in lower grade than surrounding holes, because of hitting porphyry (proxenite) without the monzonite contact layer that hosts the higher-grade gold, a reminder that grade continuity in this style of deposit isn’t guaranteed drill hole to drill hole.

P2 Gold CEO Interview

VERY IMPORTANT WARNING

Please note that this company has paid Resource Talks for the creation of this content. This website is a business that charges for the creation and publication of content. This means there will always be a potential conflict of interest which means you can never rely on anything said herein.

By consuming this content, you acknowledge that Resource Talks and/or its affiliates and/or their personnel may own, have owned, or will own interests in and/or may have a business relationship with some or all companies/entities mentioned/featured in this publication. You further acknowledge that entities which may be referenced or featured in this publication or their related parties may hold an interest in Resource Talks or its affiliates, which may create further conflict of interest.

The information provided herein is general & impersonal in nature and meant for entertainment purposes only. The reader acknowledges and agrees that the information does not constitute a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. The author is not a licensed investment advisor. He is just another talking head on the internet. He might own shares of companies mentioned in this publication. Always assume he doesn’t know much more than a potato does. The mining & exploration space is among the riskiest sectors to invest in. The risk of anything mentioned in this publication is 100% loss of capital. If you don’t read the official documents provided by the company on http://www.SedarPlus.ca, you will lose all of your money.