Contango Announces Updated Mineral Resource Estimate for Kitsault Valley Project; Indicated Resources Increase 93% to 89.5 Million Silver Equivalent Ounces

Contango Silver & Gold Inc. (CTGO) released an updated SEC S-K 1300 Mineral Resource Estimate for its 100% owned Kitsault Valley Project in the Golden Triangle of northwest British Columbia, effective September 11, 2026. The statement covers seven deposits at a 132 g/t AgEq cut-off, with South Reef retaining its historical 2.0 g/t AuEq baseline. The figures represent in-situ resources adjusted for historical workings but before mining dilution or metallurgical recovery, and do not constitute Mineral Reserves or demonstrate economic viability.

The updated estimate includes Indicated Mineral Resources of 7.66 million tonnes at 363 g/t AgEq, containing 89.55 million ounces of AgEq. This comprises 58.70 million ounces of silver, 394.70 thousand ounces of gold, 9.38 million pounds of copper, 78.16 million pounds of lead, and 88.85 million pounds of zinc. Inferred Mineral Resources total 6.31 million tonnes at 320.26 g/t AgEq, containing 64.92 million ounces of AgEq. This includes 22.80 million ounces of silver, 620.82 thousand ounces of gold, 6.04 million pounds of copper, 40.24 million pounds of lead, and 48.61 million pounds of zinc.

Compared to the prior 2023 combined statement, Indicated tonnage increased 84.4% from 4.15 million to 7.66 million tonnes, and Indicated AgEq rose 93.1% from 46.37 million to 89.55 million ounces. Inferred tonnage decreased 7.7% from 6.83 million to 6.31 million tonnes, while Inferred AgEq fell 25.1% from 86.73 million to 64.92 million ounces. Total contained AgEq across both categories moved from 133.10 million ounces in 2023 to 154.47 million ounces in 2026, a net increase of 16.1%.

The Dolly Varden area carries the silver component, with Indicated resources of 5.52 million tonnes at 296.1 g/t Ag and 317.06 g/t AgEq, containing 56.27 million ounces of AgEq. The Homestake deposit carries the gold, with Indicated resources of 2.14 million tonnes at 5.63 g/t Au and 483.7 g/t AgEq, containing 33.28 million ounces of AgEq. Homestake’s Inferred resources hold 615.82 thousand ounces of gold, representing roughly 61% of all contained inferred gold.

The estimate utilized Leapfrog Geo 2026.1.2 with an Edge extension, applying hard geological boundaries, domain- and element-specific capping, and inverse-distance-cubed weighting with declustering on 5m x 5m x 5m parent blocks. The model comprises 34 re-modelled domains drawn from 23,264 assay intervals totaling 27,176 meters across 947 holes. The project-wide database includes 1,873 holes totaling 433,934 meters, with 1,454 holes (328,638 meters) assigned to the eight resource deposits. This includes 370 new holes totaling 175,264 meters added since prior statements. The assay dataset was locked in early January 2026, excluding the entire 2026 drill program of over 50,000 meters.

Price inputs for the estimate were US$53/oz for silver, US$3,500/oz for gold, US$5.00/lb for copper, US$1.25/lb for zinc, and US$0.90/lb for lead, with variable recovery assumptions built into the AgEq coefficients. The comparable 2023 price deck is not disclosed, preventing a like-for-like ounce comparison. Dave Larimer, CPG, VP Exploration, a company employee, certified the database on April 13, 2026, and accepted the final statement on September 11, 2026. Pre-2011 historic drilling was used only for geological modelling, not estimation, and some historical assay certificates remain unavailable.

The company stated that no Measured Resources or Mineral Reserves exist for Kitsault Valley, and the estimate establishes no capital expenditure, operating expenditure, mine schedule, net present value, or internal rate of return. Contango plans to fold 2026 drilling into a further MRE update in the first half of 2027, followed by an S-K 1300 Initial Assessment targeted for later in 2027, and a Pre-Feasibility Study over the following three years. A conference call is scheduled for September 23, 2026.

Contango Silver & Gold Inc. (CTGO) reported that its Indicated resource base nearly doubled, rising from 46.37 moz to 89.55 moz AgEq, driven by an 84.4% increase in Indicated tonnage. This update represents a re-modelled, category-upgraded foundation for the Kitsault project rather than an incremental drill-hole update, marking a significant step toward an economic study.

The release followed a series of telegraphed announcements, with an updated Kitsault Mineral Resource Estimate (MRE) flagged in releases on April 13, April 22, May 26, June 23, and September 8, as well as in the Q1-2026 MD&A. While the market anticipated the announcement, the specific figures were not previously disclosed.

The timing of the release lagged behind management’s prior commitments. The Q1-2026 MD&A promised the update by the end of the second quarter of 2026, followed by a June 23 release targeting late July 2026, and a September 8 release targeting late September. The data landed on September 22, a slippage of roughly two months attributed to re-domaining 34 domains and migrating legacy data into Leapfrog.

Forward-looking timelines also shifted. Previous releases from May 26 and September 8 pointed to a preliminary economic study or Initial Assessment in the first half of 2027. The current release pushes this to later in 2027, with a Pre-Feasibility Study (PFS) scheduled three years beyond that. Consequently, the first economic read on Contango’s largest resource has moved toward late 2027, with a development decision projected for roughly 2030.

The Inferred resource declined by 21.8 moz AgEq. Management stated this does not reflect a one-for-one conversion of Inferred resources to Indicated, citing revised geological interpretation, estimation parameters, and historical depletion. The Indicated gain reflects both new confidence from new drilling and a redefinition of the existing resource.

A significant portion of the headline geometry is influenced by price assumptions. AgEq is calculated at US$53/oz Ag and US$3,500/oz Au. Because the 2023 valuation deck is not disclosed, it is unclear how much of the 93.1% increase is due to metal-price inflation of the conversion factor versus physical addition.

This is a project-level resource statement and does not impact Contango’s cash flow, which derives from a 30% non-operated interest in the Peak Gold JV, operated by Kinross. Prior-period context from the August 13 release showed Q2-2026 net income of $4.8M and an adjusted net loss of $5.5M, with cash costs of $2,641/oz and AISC of $2,877/oz. These figures run materially above full-year 2026 guidance of $1,900–2,000/oz cash costs and $2,200–2,300/oz AISC and are unaffected by today’s news.

Technical verification quality is described as acceptable but not pristine. The report notes an employee QP, unavailable historical assay certificates, pre-2011 drilling excluded from estimation, and a company flag on "high-grade sample influence" as a material uncertainty. The high-grade nature of Dolly Varden barite-rich silver zones makes top-cut sensitivity a relevant factor.

Contango Silver & Gold Inc. (NYSE American/TSX: CTGO), headquartered in Fairbanks, Alaska, operates as an emerging mid-tier silver-gold producer utilizing a Direct Shipping Ore (DSO) model. Under this approach, ore is mined, containerized, and shipped to third-party mills, a strategy that eliminates the need for on-site milling and tailings facilities.

The company’s portfolio includes a 30% interest in the Peak Gold JV, where Kinross Gold holds a 70% operating stake. This joint venture leases approximately 675,000 acres in Alaska and hosts the producing Manh Choh mine. Contango also holds a 100% lease on the Lucky Shot project, comprising approximately 8,600 acres in the Willow Mining District, and a lease on Johnson Tract, which covers approximately 21,000 acres near tidewater from Cook Inlet Region Inc. Additionally, the company holds approximately 145,000 acres of State of Alaska mining claims, approximately 11,700 acres of State claims and upland mining leases, and approximately 247,000 acres (100,000 ha) of mineral tenures in and around Kitsault Valley.

The Kitsault Valley project, acquired through the Dolly Varden Silver Corporation transaction that closed on March 26, 2026, is now 100% owned by Contango. The property hosts 89.55 moz Indicated and 64.92 moz Inferred AgEq resources outlined across eight resource-reporting deposits in two areas: Dolly Varden and Homestake. The company describes the project as early-stage exploration, and there are currently no reserves.

Manh Choh serves as the company’s flagship by cash flow, with Contango holding a 30% interest. Year-end 2025 reserves stood at 1,585 kt at 7.0 g/t Au, containing 318 koz Au. Resources as of December 31, 2024, included Measured and Indicated resources of 301 kt at 9.8 g/t Au, containing 95 koz Au. Ore is trucked approximately 240 miles to Kinross’s Fort Knox mill. In 2025, the project produced 60,200 oz of Au and 57,315 oz of Ag, with an All-In Sustaining Cost (AISC) of $1,616/oz. The company received $102M in distributions. Cumulative returns of $160M against an initial $105M capital investment indicate that the original stake has been repaid, with all future distributions representing upside.

Lucky Shot is 100% owned following the acquisition of the underlying lease and the extinguishment of a 2% NSR royalty. Resources as of May 26, 2023, included Measured and Indicated resources of 226,963 t at 14.5 g/t Au (105,620 oz Au) and Inferred resources of 82,058 t at 9.5 g/t Au (25,110 oz Au), against a stated target of 400,000–500,000 oz M&I. A feasibility study is targeted for the first half of 2027.

Johnson Tract hosts 1.1 moz AuEq at 9.4 g/t AuEq. An Initial Assessment released in May 2025 produced a post-tax NPV5 of $615.4M and an IRR of +60% at $4,000/oz gold, based on 102,258 oz AuEq per year over a 7-year life, $213.6M initial capital, and an AISC of $860/oz. Permitting is tracked under FAST-41. A 2.6-mile access road and portal pad were completed in 2026, with tunneling targeted for 2027 and a feasibility study/FID for 2028.