Blossom Gold Announces a Gold Discovery on the Kamma Claims

Blossom Gold Inc. (BGAU) announced a gold discovery on the Kamma Claims, located west of its flagship Rosebud project, following a first-phase reverse circulation scout program. The company stated that seven scout holes totaling 10,000 feet (3,050 m) have been completed, with only Hole KM26-003 reporting a mineralized interval.

The sole assayed intercept disclosed is from Hole KM26-003, which returned 7.6 metres grading 0.16 g/t Au (0.005 opt Au) from a depth of 38.1 metres. The release described the best zone as hosted in plagioclase-porphyritic dacite immediately below the alluvial contact, citing a down-hole depth of 25 metres, though the document also references 38.1 metres for the mineralized zone. While the company claimed several additional intervals of weaker hydrothermal alteration and gold mineralization exist in KM26-003, no specific grades, widths, or depths were provided for these intervals.

CEO commentary characterized the find as a validation of the target model, noting the location is approximately 3-3.5 miles south of the Hycroft Mine and its Vortex silver discovery. Looking ahead, Blossom Gold plans to use geochemistry to vector toward higher-grade feeder structures, with core drilling scheduled for 2027.

Blossom Gold Inc. (BGAU) did not release new financial results in today’s announcement. Prior-period context indicates that as of Q2-2026, the company held US$35.46M in cash with no debt and total equity of US$35.4M across 131.6M shares outstanding. The H1-2026 net loss of US$48.1M was driven largely by the Rosebud acquisition and RTO/listing costs, which were non-recurring and partially non-cash. The company remains pre-revenue with a going-concern flag and is dependent on equity financing.

The release does not alter the Rosebud resource, mine plan, metallurgy, permitting path, or the Q1 2027 resource target. Instead, it serves as optionality news regarding a secondary claim block.

The stock has not priced in a Kamma discovery. Kamma was introduced in June 2026 as "true blue sky," and shares fell from approximately C$2.40 in late May/June through the Kamma drilling-start release on Aug 31 (C$1.77) to approximately C$1.38 today. The market has not embedded a Kamma success, meaning there is no embedded anchor to beat, but also no economic result here to surprise to the upside.

The announcement represents a legitimate but small exploration positive, with gold found under cover and the model partially validated. This is roughly offset by the promotional mislabelling of a sub-cutoff hole as a discovery.

Blossom Gold Inc. (TSX: BGAU), a Canadian precious-metals explorer, became newly listed on the TSX in 2026 following a reverse takeover that brought in the 100%-owned Rosebud gold-silver property in Pershing County, Nevada (Black Rock Desert), plus the Kamma and Gamma claim blocks.

The Rosebud asset is a brownfield development site featuring a former underground mine that operated from 1997 to 2000 as a Newmont-Hecla joint venture. An NI 43-101 Inferred open-pit resource stands at 70.755 Mt @ 0.62 g/t Au and 6.49 g/t Ag (1.28 moz Au, 13.4 moz Ag). A separate small underground resource is also carried in the presentation. Pit optimization used US$2,500/oz Au, US$35/oz Ag, 70% Au and 40% Ag recovery.

The company’s strategy involves a pivot from underground to an open-pit, on-site heap-leach operation. Portal #2 was reopened mid-2026, with approximately 3,000 ft of Decline #2 rehabilitation underway. Four rigs are currently drilling, with underground infill planned for Q4 2026. An updated MRE is targeted for Q1 2027, with feasibility and permitting to follow.

Capitalization includes 131.6M shares out, 10.4M options, and a fully diluted count of approximately 142.0M. The company holds US$35.5M in cash with no debt. Institutional ownership stands at 78%, held by Condire, Libra, Konwave, Merk, and Franklin Templeton; this prior-period context was not disclosed in today's release.