Contango Provides Corporate Update: Kitsault Drill Program Exceeds Target, Johnson Tract Infrastructure Ahead of Plan, Lucky Shot 2070 East Drift Drilling Underway

Contango Silver & Gold Inc. (CTGO) released an operations and corporate update rather than a drill-result announcement, with no new assay results reported in the release.

At the Kitsault Project in British Columbia, the company completed 56,492 m in 152 holes from 61 drill pads, representing an approximately 40% increase over the originally planned 40,000 m. Assays are pending and expected over the next 2-3 months. An updated mineral resource estimate (MRE) is planned for the first half of 2027, followed by an Initial Assessment later in 2027.

In Alaska, the Johnson Tract project saw the completion of a 2.6-mile access road to the proposed portal site and the portal laydown area ahead of schedule and under budget. The company also completed a new 60-man winterized camp pad, which was originally planned for 2027. Underground exploration development drift is scheduled for 2027.

At the Lucky Shot project, the 2026 Coleman surface program was completed with approximately 5,800 m in 27 holes from five pads. Remaining Coleman assays are expected in the fourth quarter. The company also completed 943 m in 16 holes on the KM vein from the West Drift Extension, with assays expected in the fourth quarter.

Drilling began on October 22, 2026, at the Lucky Shot East Drift from the 2070E drift, described as the first modern program to test the eastern extent of the Lucky Shot vein system. The initial phase consists of 42 holes from six stations for 3,650 m. A second rig is to begin from the 2300E drift on November 15, 2026, with 42 holes and 5,320 m planned. Both programs are expected to finish in early 2027.

At the Manh Choh project in Alaska, the third 2026 processing campaign ran from August 20 to September 24, 2026, and ended early due to persistent rain. Mill modifications to handle higher copper and sulphide content increased reagent consumption. Remaining tons are pushed to the fourth campaign starting in November. Q3 unit cash costs are expected to be similar to Q2 2026, and the company is guiding toward the lower end of its 2026 production guidance of 40,000 gold equivalent ounces attributable to its 30% Peak Gold JV interest.

In corporate news, the company stated that the hedge book is removed and the balance sheet is unhedged. It also welcomed the election of a majority Conservative government in British Columbia.

Contango Silver & Gold Inc. (CTGO) is a producer and developer with a market capitalization of roughly $700 million, holding a 30% interest in the producing Manh Choh mine and three large 100%-owned development and exploration assets. The company’s recent update included 40% more drilling metreage without assays, a development that is incremental rather than value-changing at this stage.

Kitsault remains the largest source of future silver-gold optionality for the company. Additional metres drilled could support the H1 2027 Mineral Resource Estimate update and the subsequent Initial Assessment, but the market cannot price grades that have not yet been reported. The recent release does not alter the perceived scale, grade, or odds of the system. Meanwhile, infrastructure development at Johnson Tract is ahead of schedule, offering a modest positive for timeline and capital efficiency, though it does not change resource or permitting risk.

Lucky Shot East Drift represents a legitimate new exploration front, but it remains pre-assay. While earlier high-grade veins at Lucky Shot support the broader thesis, this specific release does not add evidence regarding grade, width, or continuity.

The Manh Choh operation presents a contrasting narrative. The company is guiding to the lower end of 2026 production and stating that Q3 unit cash costs should be similar to Q2. This represents a modest operational miss versus prior cost guidance. For a producer, such developments matter to near-term cash flow and sentiment, though they are not thesis-breaking events.

CTGO stock has fallen from $37.22 in May to $20.97 on October 27, sitting near the low end of the provided price series. Expectations are therefore low, but low expectations do not make an assay-free operations update material. The news is mixed, largely incremental, and the key value drivers remain pending assays.

Contango Silver & Gold Inc. (NYSE American: CTGO; TSX: CTGO) is a gold and silver producer and explorer with assets located in Alaska and British Columbia. The company holds a 30% interest in the Peak Gold joint venture with Kinross Gold’s subsidiary, which holds the remaining 70% and operates the mine. The asset produces gold and silver under a direct-shipping-ore model.

In Alaska, the company owns the Lucky Shot high-grade gold project, which currently holds a resource of approximately 110,000 oz Au at 14.5 g/t Au. An exploration target of 400,000-500,000 oz Au is in place, with the company targeting a feasibility study in the first half of 2027 and potential production of 40,000-50,000 oz Au annually. Also in Alaska is the 100% owned Johnson Tract gold-silver-copper-zinc-lead project, which has a resource of about 1.1 moz AuEq at 9.4 g/t AuEq. The May 2025 Initial Assessment showed a post-tax NPV5 of $615.4M and 60% IRR at $4,000/oz gold.

In British Columbia’s Golden Triangle, Contango Silver & Gold owns the Kitsault Valley silver-gold polymetallic project. The September 2026 MRE showed 89.5 moz AgEq indicated and 64.9 moz AgEq inferred, with an MRE update and Initial Assessment planned.

Prior-period context not disclosed in today’s release includes a Q1 2026 net loss of $14.3M, cash of $97.6M, total debt of $33.0M, and total equity of $321.5M. Q2 2026 net income was $4.8M, cash was $89.0M, and the credit facility was amended to $46.3M principal. 2026 production guidance is 40,000-45,000 oz Au, with 2027 guidance of 75,000-80,000 oz Au.