Contango Launches Kitsault Valley Drilling

Why It Matters

Upgrading the Kitsault Valley resource moves Contango closer to a mine‑ready status, potentially adding a significant new supply of high‑grade silver to the market and creating a multi‑project processing hub that could enhance cash flow and investor confidence.

Key Takeaways

• 40,000‑meter drill program launched to upgrade Kitsault Valley resources.
• Dolly Varden deposits hold ~34.7 M oz silver and 166 k oz gold.
• Wolf Vein drilling returned up to 1,422 g/t silver in 2025.
• Torbrit‑style mineralization intersected 12.5 m at 66 g/t silver.
• PEA due next year, planning centralized mill for BC and Alaska ores.

Pulse Analysis

The Kitsault Valley project sits at the southern edge of British Columbia’s famed Golden Triangle, a region that has produced some of North America’s most prolific silver discoveries. With a land package of roughly 770 square kilometers and a ten‑kilometer mineralized trend, the area hosts seven deposits that collectively contain more than 34 million ounces of measured and indicated silver, plus substantial inferred resources. Rising precious‑metal prices over the past few years have amplified the economic appeal of such high‑grade, bulk‑tonnage targets, positioning Kitsault Valley as a potential cornerstone for Contango’s growth strategy.

Contango’s 40,000‑meter drilling effort focuses on infill and resource expansion holes, prioritizing the Dolly Varden system before moving north to Homestake Ridge. Recent 2025 results from the Wolf Vein are striking: a 21.7‑meter intercept averaged 1,422 g/t silver, and a separate hole intersected 12.5 meters of Torbrit‑style mineralization at 66 g/t silver across the Central Valley Fault. These findings suggest a kilometer‑scale zone where high‑grade silver veins may be contiguous, a scenario that could dramatically boost the project’s inferred resources and improve the economics of a future mine plan. The upcoming preliminary economic assessment, expected next year, will integrate these drill results and the latest metal price assumptions to refine the project's viability.

Beyond the immediate resource upside, Contango’s plan to ship ore to a company‑owned centralized mill—shared with its Johnson Tract gold project in Alaska—offers operational synergies that can lower capital intensity and accelerate cash generation. A dual‑project mill reduces per‑ton processing costs and provides flexibility to shift capacity between silver and gold streams as market conditions evolve. For investors, the combination of a robust resource base, high‑grade drill intercepts, and a cost‑efficient processing strategy signals a compelling upside potential, especially as the global silver market seeks new supply sources to meet industrial demand and investment appetite.