Lode Gold plans Fremont drilling, PFS in 2026

Executive Summary

• Lode Gold Resources provided a year-end review highlighting major milestones at its Fremont Gold Mine in California, including the completion of a comprehensive geological model and an internal scoping study (ISS 2025) that optimizes the project for 100% underground bulk mining.
• The company outlined key catalysts for 2026, including an identified drill plan of 8,500 meters for infill and step-out drilling, and the initiation of a Pre-Feasibility Study (PFS) targeting completion by late 2026 or early 2027.
• Significant operational and financial updates include a 1:10 share consolidation, the addition of strategic shareholders, improved offtake payables (increased from 82% to 91.5%), and the completion of three NI 43-101 reports for advanced assets.

Key Details

• Project Location & Ownership: Fremont Gold Mine, Mariposa, California, on the Mother Lode gold belt. Lode Gold controls 3,351 acres of patented land with 100% ownership of surface and mineral rights.
• Historical Context: Historic high-grade past-producing mine averaging 10.7 g/t Au prior to suspension in 1942. Seven deposits on a 4 km strike; only 8% of the Mineral Resource Estimate (MRE) has been exploited.
• Geological Model: Completed comprehensive model of the Pine Tree-Josephine system confirming broad true widths:
  • 53 m at 1 g/t Au
  • 34.5 m at 2 g/t Au
  • 16.8 m at 3 g/t Au
• Internal Scoping Study (ISS 2025):
  • Optimizes Fremont as a 100% underground bulk mining operation.
  • Evaluates scale-up from 4,000 tonnes per day (tpd) to 6,000 tpd.
  • Economic indicators improved over the 2023 Preliminary Economic Assessment (PEA), despite higher mining costs due to the shift from open pit to underground, driven by better head grades in early years.
• Economic Metrics (2023 PEA Base Case):
  • Gold Price Assumption: $1,750/oz.
  • Net Present Value (NPV): $835 million (U.S.).
  • Internal Rate of Return (IRR): 64.4%.
  • Free Cash Flow: >$140 million (U.S.).
  • Note: Release mentions a hypothetical scenario at $3,000/oz yielding the above NPV/IRR, but explicitly states the base case was $1,750/oz.
• Exploration Progress:
  • Nine new AI-defined drill targets identified.
  • Three deep drill holes (up to 1,300 m) confirmed mineralization continuity with limited drilling under 250 m.
• Permitting & ESG:
  • Full underground shift with no open pit and no cyanide operation.
  • Reduced disturbance to 200 acres.
  • Over 24 months of water studies completed.
  • Registration with MSHA completed; notice to county being prepared for underground access.
• Commercial & Capital Structure:
  • Offtake studies completed; payables improved from 82% (2023 PEA) to 91.5% for flotation concentrate.
  • 1:10 share consolidation executed.
  • Capital structure strengthened with new institutional shareholders and two added strategic shareholders.
  • Approximately 48.6 million shares outstanding.
  • Approximately $10.7 million (U.S.) market cap.
  • Butterfly transaction and spinout of a subsidiary (exploration pure play) completed.
• 2026 & Future Roadmap:
  • Drilling: Identified drill plan of 8,500 m for infill and step-out holes.
  • Sampling: Initiate underground channel sampling to upgrade resources to Measured and Indicated (M&I).
  • PFS: Study to include metallurgy, rock mechanics, and geotechnical work. Target completion: End of 2026 / Early 2027.
  • Pilot Plant: Targeted for 2028, 300-500 tpd mill on previous 1942 footprint.
  • Feasibility Study: Initiation targeted for 2028.
• Other Assets:
  • Advanced three assets and completed three NI 43-101 reports.
  • Canada: Yukon properties (Tombstone belt, 99.5 sq km, >4,500 m drilled) and New Brunswick (Acadian Gold JV, 445 sq km).

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.