Contango’s Three-Front Gambit: Juggling Drills, Dollars, and Dissent

FAIRBANKS, AK – June 23, 2026 – Contango Silver & Gold Inc. has launched a full-court press across its mineral portfolio, detailing a period of intense operational activity in Alaska and British Columbia. The company's latest update paints a picture of aggressive advancement, with drills turning at its Lucky Shot and Kitsault Valley projects, foundational infrastructure work underway at the Johnson Tract, and a shrewd financial maneuver to increase its exposure to a strong gold market.

This multi-front strategy, however, arrives at a curious moment. Despite the tangible progress on the ground, the company's stock has been trading near 52-week lows, suggesting a disconnect between operational momentum and investor sentiment, likely influenced by a Q4 2025 earnings miss and a significant derivative loss reported in the first quarter of 2026. The flurry of activity underscores a pivotal moment for Contango, as it attempts to prove that its long-term development strategy can overcome short-term market skepticism and complex regulatory hurdles.

A Tale of Three Projects: Drilling for Growth

At the heart of Contango's strategy is a massive exploration push designed to expand and define its resources. At the historic Lucky Shot project, 75 miles north of Anchorage, two helicopter-supported drill rigs began a 6,800-meter surface program on June 22. This effort is twofold: infill drilling aims to increase confidence in known mineralization to support a feasibility-level mine design, while step-out drilling will probe the connection between the Coleman and Lucky Shot vein systems.

"We're eager to see what the core reveals as we push to unlock the full value of this system," said Dave Larimer, Contango's VP Exploration. This surface program complements an ongoing 15,000-meter underground drilling campaign, all feeding into a planned feasibility study for a potential 40,000-50,000 ounce per year operation.

Meanwhile, in British Columbia’s prolific Golden Triangle, the drill program at the Kitsault Valley project is running well ahead of schedule. Over 14,000 meters—more than a quarter of the planned 40,000-meter program—are already complete. The focus here is on expanding resources at the Torbrit, North Star, Wolf, and Red Point deposits. According to company President Shawn Khunkhun, the team is encouraged by "strong visual indicators and historical continuity."

The market is keenly awaiting two key catalysts from Kitsault: the first stream of assay results in the third quarter and an updated Mineral Resource Estimate (MRE) slated for release by late July. The current MRE stands at 65 million ounces of silver and 1 million ounces of gold, but internal projections suggest the update could elevate the silver resource to between 90-100 million ounces, a significant step toward the company's ambition of becoming a major precious metals producer.

The Johnson Tract Equation: Balancing Progress and Preservation

While drilling defines future potential, Contango’s most complex challenge lies at the Johnson Tract Critical Metals Project. Here, progress is measured not in meters drilled, but in permits secured and infrastructure built. CEO Rick Van Nieuwenhuyse described this summer as a "pivotal operational shift," as the company leverages its inclusion in the federal FAST-41 program, which provides a clearer, more predictable permitting timeline.

On the ground, this translates into a massive logistical and scientific undertaking. The project camp has reopened to support extensive environmental and cultural baseline studies, including everything from marine mammal acoustic surveys to wetlands mapping and cultural resource studies. Simultaneously, geotechnical drilling is underway for a proposed access road and barge facility, and construction has begun on a 2.6-mile road connecting the camp to a proposed exploration portal location. This road is the critical precursor to beginning an underground exploration tunnel, planned for 2027, once all permits are in hand.

However, the project's path forward is a delicate balancing act. Located on an inholding owned by Cook Inlet Region, Inc. (CIRI), a Native regional corporation, within the boundaries of Lake Clark National Park, the project requires navigating a labyrinth of stakeholder interests. While the partnership with CIRI provides a unique foundation for development, the project faces staunch opposition from environmental groups concerned about its potential impact on the park's ecosystem and the endangered Cook Inlet beluga whale population, with litigation over a key permit still pending. Contango's success at Johnson Tract will be a test case in modern resource development, weighing economic potential against profound environmental stewardship obligations.

Unlocking Value: The Strategic Unwinding of Gold Hedges

Underpinning this capital-intensive operational blitz is a calculated financial recalibration. The company announced it has delivered ahead of schedule on its remaining 11,000-ounce gold hedge obligations for 2026. This move, while contributing to a reported $19.0 million loss on derivative contracts in Q1, was a strategic cost to exit legacy positions.

As CFO Mike Clark stated, the early delivery results in "more exposure to high gold prices for the Company." With 15,000 ounces remaining for delivery in the first half of 2027, the company is actively working to eliminate its remaining hedges this year. This strategy is designed to maximize revenue from its Manh Choh production in a strong gold market, bolstering a cash position that grew to $97.5 million by the end of March 2026. The increased cash flow provides vital fuel for the aggressive exploration and development programs across its portfolio.

With assay results pending, a major resource update on the horizon, and infrastructure taking shape, Contango is methodically assembling the components of a diversified mining house. The company will have an opportunity to connect these moving parts for the market in a conference call scheduled for June 24, where leadership will aim to demonstrate that its long-term, multi-front strategy is creating value that is not yet reflected in its share price.