Contango Ore
The KM Vein: A New Structural Discovery
The most significant takeaway from this report is the identification of the KM vein. It’s a previously unmodeled structure that seems to run at a right angle to the main Lucky Shot shear zone.
- High-Grade Hit: LSU25031 intersected this vein, returning the headline 294.77 g/t Au interval.
- Confirmation: Visible gold (VG) was observed in multiple holes, including LSU26050, which hit 99.75 g/t Au over a narrow 0.31-meter interval.
- Geological Shift: I see this as a pivot in the geological model. The KM vein suggests the project has more structural complexity—and potentially more ounces—than the current model captures.
Validating the “Stacked” System
Beyond the new discovery, the drills are confirming the continuity of the historically mined L2 vein and the underlying L1b and L1c veins.
- L2 Vein: Confirmed continuity with hits like 8.17 g/t Au over 2.45 meters.
- Stacked Potential: Holes like LSU26045 hit both the L1c and L2 veins, supporting the theory that Lucky Shot is a stacked system with multiple mineralized layers.
- Infrastructure Advantage: The drilling is being done from existing underground stations. This allows for precise targeting and lower costs compared to surface drilling in the Alaskan winter.
The Path to Direct Shipping (DSO)
Contango’s CEO, Rick Van Nieuwenhuyse, is moving with a clear mandate. This program is designed to feed into a Feasibility Study (H1 2027). The goal is a Direct Shipping Ore (DSO) model. By proving up high-grade continuity, the company aims to ship ore directly to a processing facility rather than building a full mill on-site. This could significantly lower the initial capital expenditure (CAPEX) and speed up the timeline to production.
Program Metrics:
- Completed: 20 holes (2,063 meters) since November 2025.
- Ongoing: 40 additional holes planned through April 2026.
- Target: Update mineral resources and reach a feasibility decision by mid-2027.
Editorial Disclosure: This report is for informational and educational purposes only. It is based on publicly available news releases and SEC filings from Contango Ore, Inc. (CTGO). This content does not constitute financial, investment, or legal advice. We are not affiliated with Contango Ore and do not receive compensation for this reporting. Mining exploration involves extreme risk, and high-grade intercepts do not guarantee economic viability. Always consult a qualified professional before making financial decisions. Please read our full Disclaimer.
