READ TIME: 10 MINUTES
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P2 Gold is advancing the Gabbs copper-gold project in Nevada, a technically challenging but potentially economic deposit historically stalled due to the co-occurrence of copper and gold in not the most heap leach-friendly metallurgy. The conversation with CEO Joe Ovsenek was an in-depth, hour-plus interrogation of management’s track record, ownership structure, technical plans, funding strategy, and project risk profile, including a detailed breakdown of the use of SART technology to solve legacy metallurgical issues, the company’s aversion to dilution, and its roadmap to feasibility and potential production without a joint venture partner.
TL;DR
- 1. Insider Ownership: CEO Joe Ovsenek and team have nearly $10 million CAD of their own capital in P2 Gold, aligning their interests directly with shareholders.
- 2. Metallurgy is the key risk: The success of the project hinges on the effectiveness of SART technology to economically separate gold and copper during heap leaching.
- 3. Avoiding equity dilution: P2 plans to fund the feasibility study by selling a royalty, not issuing shares, citing the current depressed share price.
- 4. Gabbs is fully controlled and near infrastructure: Permits are largely in place, and the project benefits from access and power, but will need to finalize a water well permit in 2025.
- 5. The market has not rewarded progress: Despite claiming robust economics (50% IRR, $1.4B NPV5), the stock trades at historic lows due to past dilution, limited institutional support, and being in the ‘boring’ development phase of the Lassonde curve.
Is Joe Ovsenek the Right Person to Lead P2 Gold?
According to Joe Ovsenek, the CEO of P2 Gold, the company is led by a team with a long track record in exploration and mine development. Ovsenek and exploration lead Ken McNaughton have worked together since 1996, including their roles at Silver Standard Resources and later Pretium Resources, where they were instrumental in taking the Brucejack Mine from discovery to production in under eight years. They also contributed to building a mill in Argentina for silver-zinc-tin production and managing early-stage projects in Nevada.
Ovsenek said, “We know what it takes to discover a mine, to move it forward, and to build it.” The team claims prior heap leach experience, including pilot testing in the Yukon, and experience producing both gold dore and concentrate.
Does the Team Have Heap Leach and Mill-Specific Experience?
Ovsenek stated that the team has operated mills and managed heap leach operations before. He referenced past work with reputable Nevada-based metallurgical firms like Kappes, Cassiday & Associates (KCA). Ovsenek also clarified that the planned operation at Gabbs will include both heap leaching and milling over a two-phase development period: five years of heap leaching followed by an additional nine years of combined heap leaching and milling.
Skin in The Game?
Management reportedly owns around 22.7% of the company. Ovsenek himself owns approximately 15 million shares and claims to have invested a significant amount of personal capital. He stated, “Between Ken and I, we’ve invested close to $10 million Canadian. That’s almost equal to our current market cap.”
Ovsenek said he purchased shares at various prices, including at $0.40 and $0.05, resulting in a personal average cost basis he estimates to be between $0.20 and $0.30. When asked about his overall exposure, Ovsenek said, “This is everything I’m doing. This is 100% of my focus.”
How Involved is Management Beyond P2 Gold?
Ovsenek holds directorships at other juniors such as Tudor Gold and CopperX Resources, and previously served on the board of Victoria Gold. He claims that these positions do not detract from his operational responsibilities at P2 Gold, emphasizing that board roles require minimal time commitment.
Will Management Buy More Shares in 2025?
Ovsenek said it is difficult for insiders to buy shares due to blackout periods and internal negotiations. He also indicated that management may be nearing the limit of what they can invest personally, citing past contributions.
Do Insiders Hold Royalties on P2 Projects?
According to Ovsenek, no members of management or the board personally hold royalties on any P2 Gold projects. He criticized such practices as outdated.
Are There Existing Royalties on the Gabbs Project?
P2 Gold granted a 2% NSR royalty to Waterton Global Resource Management as part of the project acquisition. However, the company has the right to buy back the royalty for $6.5 million USD. Ovsenek said the company intends to execute this buyback once cash flow begins.
What is the History of the Gabbs Project?
Gabbs has a long exploration history dating back to the late 1800s. Larger companies like Cyprus, Glamis Gold (later Goldcorp), and others evaluated the project through the 1970s to the 1990s. According to Ovsenek, a project in the 1990s received permits and planned to use acid leaching followed by cyanide leaching to separately extract copper and gold, but collapsed due to falling metal prices.
Waterton acquired the project during the downturn via its loan-to-own strategy. P2 Gold later acquired the project from Waterton, which currently holds about 15% of P2’s equity but no longer has any debt or other financial claims.
What is the Current Relationship with Waterton?
Waterton, according to Ovsenek, is in wind-down mode and is expected to exit its stake in P2 Gold eventually. However, they are reportedly willing to hold their equity until P2 achieves more market traction. Ovsenek said they are unlikely to sell their shares in the open market to avoid triggering negative signals.
What is P2’s Capital Markets Strategy Going Forward?
Ovsenek acknowledged that the company is primarily retail-owned and lacks institutional support. He stated the goal for 2025 is to move toward feasibility-stage work and attract institutional investors through derisking efforts. The company is planning to fund this with a royalty sale, rather than equity, to avoid dilution at current low share prices.
What Makes Gabbs Potentially Economic Despite Historical Challenges?
The project’s challenge has always been the co-occurrence of gold and copper. Cyanide dissolves both metals, but standard heap leach systems struggle to recover copper, making operations costly.
P2 aims to solve this using SART (Sulfidization, Acidification, Recycling, and Thickening) technology to recover copper and recycle cyanide.
Ovsenek cited multiple operating examples including Fortuna Silver, Torex Gold, and Newmont.
Will SART Work at Gabbs?
According to Ovsenek, early test work supports the use of SART at Gabbs. Recoveries currently assumed in the PEA are 78% for gold and 54% for copper. He expects improved recoveries to over 80% for gold and high 60s to 70% for copper from ongoing metallurgical testing. These results are expected in Q3 2025.
What is the Backup Plan if SART Fails?
Ovsenek stated that if SART underperforms, the company could build a mill and use tank leaching. He emphasized the project remains robust even at current metal prices.
Is the Project Permitted and Technically De-Risked?
P2 Gold holds two Notices of Intent to drill across its large land package. The water permit, which is expected by May 2025, would allow drilling a production well to support both heap leach and mill operations.
The Heap Leach pad location has been geotechnically reviewed, though further drilling is needed to finalize design. Ovsenek claims the topography is ideal: gentle slopes, minimal clay, and accessible infrastructure. The company plans to haul in clay to line the leach pads.
How Will the Transition from Oxide to Sulphide Be Managed?
The first five years are planned as oxide-only Heap Leach. Sulphides encountered during that period will be stockpiled. After five years, a mill would be introduced to process both sulphide and oxide material.
According to Ovsenek, the oxide-sulphide contact is geochemically well-defined, aiding mine planning. Strip ratio optimization will be addressed through further geotechnical work.
What is the State of Metallurgy and Concentrate Quality?
P2 plans to produce two copper concentrates: one from flotation and one from SART. Ovsenek claims flotation concentrates run at 26% copper and are clean. SART concentrates are reportedly over 50% copper.
Gravity recovery is considered unlikely due to poor historical performance. Flotation tails will be leached to maximize gold recovery. Silver recovery is low, estimated at 55–60%.
What About Deleterious Elements and Host Rock?
Ovsenek reported no major issues with deleterious elements. Arsenic is low. Barite content is elevated but could potentially be recovered as a critical mineral. Carbonate content is low, meaning acid consumption is not expected to be a major cost factor.
What Exploration Potential Remains at Gabbs?
The company currently reports roughly 3.5 million gold-equivalent ounces (2 Moz is actually gold + 1.5 Moz from the copper). Management believes it can expand this to 4–5 million ounces from near-surface mineralization at four known zones.
Some areas such as Gold Ledge cannot be drilled until a Plan of Operations is secured. The company is also planning to explore the southwest corner of the property, which has artisanal workings but no modern drilling.
Is There Additional Capital Needed in 2025?
Ovsenek confirmed that the company currently has just over $1 million in treasury. This is expected to cover G&A, metallurgical work, and a potential PEA update.
A new capital raise would be needed to drill expansion targets. Ovsenek emphasized reluctance to raise equity at current share prices, preferring to sell a royalty instead.
The company also holds ~C$500k in Kingfisher shares, which may be monetized to fund the water well.
What’s the Status of the Convertible Debt?
P2 Gold has approximately C$1.3 million in convertible debt outstanding.
The debt carries a 7.5% interest rate and can be converted at $0.10/share. It matures in January 2026. Ovsenek said the company may extend the debt or convert it depending on market conditions.
What Keeps the CEO Up at Night?
“The share price,” Ovsenek said. He believes the market has not recognized the project’s value. He attributes the share price weakness to the fallout from flow-through financings and poor retail sentiment during a down market.
What Did P2 Learn from the Failed Eskay Mining Merger?
In 2024, P2 Gold entered into a proposed merger with Eskay Mining, which held assets near Brucejack. Ovsenek said the deal failed after Eskay declined to raise capital.
He stated that future M&A is not a current priority. The company’s focus is on Gabbs.
Will P2 Look for New Projects in 2025?
Not unless a new project offers “obvious value to shareholders,” according to Ovsenek. The focus remains on Gabbs, reaching 5 million ounces, and securing funding through a royalty sale to avoid further dilution.
What Are the Final Steps Before Feasibility and FID?
The company’s goal is to sell a royalty to fund a $10 million feasibility study.
Ovsenek believes this can be done without further equity raises, assuming metallurgical results are positive. If exploration drilling is undertaken, however, an additional raise would be required.
Is There a Path to Production Without a JV Partner?
Ovsenek believes Gabbs is not large enough to warrant a JV, he sees it as a standalone midsized mine. He claims the management team has the capability and track record to take the project to production.
G&A and Marketing Budgets
Annual hard-dollar G&A is estimated at $500,000. Senior management is not currently taking salaries. Marketing expenditure is minimal for now, but may ramp up prior to metallurgical results to raise awareness among potential investors.
Community and Permitting
Gabbs, Nevada (which is a nearby town of under 500 people) is described as pro-mining.
The project sits on BLM land with good road and power infrastructure. According to Ovsenek, the community is supportive and permitting is straightforward, provided BLM standards are met.
P2 Gold CEO Interview With Joe Ovsenek
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