K2 Gold board approves $9.8-million 2026 budget

Executive Summary

• K2 Gold Corp.’s board approved a $9.8-million budget for 2026 to advance the Mojave project upon receipt of the final record of decision and to finance drill testing of new targets at the Si2 project in Nevada.
• The company announced the retention of Machai Capital Inc. and Winning Media LLC for digital marketing services, involving total cash fees of $300,000 (plus GST) and the issuance of 100,000 stock options to Machai.
• Additional stock options were granted to a consultant, and the release highlights significant historical and recent exploration results across the Mojave, Si2, and Wels projects.

Key Details

• 2026 Budget: Approved $9.8-million budget focused on advancing the Mojave project and drilling new high-priority targets at the Si2 project.
• Mojave Project Highlights:
  • Gold Valley Target: Rock samples up to 375 grams per tonne gold; first-ever visible gold reported at Mojave.
  • Dragonfly Target: 2020 drilling intersected 86.9 metres of 4.0 g/t Au from surface.
  • Stega Target: Grab samples up to 14.2% copper and 15.79 g/t Au.
  • Soda Valley Target: Grab samples returning 2.91%, 2.61%, and 2.47% copper with associated silver up to 125 g/t.
  • Cerro Gordo Target: Hosts gold-silver-lead-zinc mineralization; least tested zone, lying on trend with eastern gold and western copper corridors.
  • Historical Context: Cerro Gordo district produced ~4.4 million oz Ag, 37 tons Pb, 12,000 tons Zn. Santa Rosa mine produced 76,584 tons ore averaging 0.45 g/t Au, 397.7 g/t Ag, 16.3% Pb, 0.7% Cu.
• Si2 Project:
  • Described as an analogue to AngloGold Ashanti’s Expanded Silicon project (16.3 million oz Au).
  • New targets defined pointing to potential boiling-zone-level mineralization.
  • 2026 drilling will be the first systematic test of these new targets.
• Wels Project (Yukon):
  • Located 40 km east of Beaver Creek, 60 km south of Fuerte Minerals' Coffee deposit.
  • Land position: 350 contiguous quartz claims covering 7,200 hectares.
  • Previous Drilling Highlights:
    • DDH17-08: 10.38 g/t Au over 6 m.
    • DDH15-01: 3.53 g/t Au over 19.5 m.
    • DDH17-06: 2.37 g/t Au over 28.5 m.
    • WRC23-006: 34.7 g/t Au over 1.52 m.
    • WRC23-005: 1.60 g/t Au over 21.34 m (from 3.05m), including 3.22 g/t Au over 9.14 m.
• Marketing Agreements:
  • Machai Capital Inc.: Retained for digital marketing services (SEO, SEM, lead gen, etc.) for 3 months.
    • Consideration: $200,000 plus GST.
    • Equity: 100,000 stock options granted at an exercise price of 81 cents per share, expiring Jan. 2, 2029.
    • Subject to TSX-V approval.
  • Winning Media LLC: Retained for digital media services (programmatic advertising, SMS, email, ticker tagging, podcasts) for 1 month.
    • Consideration: $100,000 (U.S.).
    • Subject to TSX-V approval.
• Incentive Stock Options:
  • 50,000 additional stock options granted to a consultant.
  • Exercise Price: 81 cents per common share.
  • Term: Five years.
  • Subject to company stock option plan and TSX-V policies.

Notable Quotes

• "With a $9.8-million exploration budget now approved, 2026 is shaping up to be a pivotal year for K2... At Mojave, we continue to demonstrate compelling scale, with multiple kilometres of high-grade gold, copper and polymetallic gold-silver-lead-zinc trends now defined, positioning the project for a return to drilling... In parallel, our work at Si2 has generated a very compelling pipeline of new targets that we expect to see drill tested in the near term, while the Wels project presents an opportunity to reignite value in Yukon." — Anthony Margarit, President and CEO