Episode Details

Interview with Joseph Ovsenek, President & CEO of P2 Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/made-in-america-p2-gold-tsxvpgld-visiting-the-gabbs-project-10967

Recording date: 28th September 2026

P2 Gold Inc. (TSXV:PGLD, OTCQB:PGLDF) is advancing the 100%-owned Gabbs gold-copper project on Nevada's Walker Lane Trend towards a feasibility study in the first quarter of 2027. The headline development is scale. Drilling since October 2025 has returned more mineralisation than anticipated, particularly sulphide material at the Lucky Strike zone, where a higher-grade corridor remains open in all directions. As a result, the company has lifted its feasibility study target to average annual production of 150,000 ounces of gold and 45-50 million pounds of copper. The 2025 PEA outlined 109,000 ounces of gold and 33 million pounds of copper.

The revised mine plan uses a phased approach. A heap leach facility will process 12 to 14 million tonnes per year in the first two years. A 12 million tonne per year mill will then start in year three and treat sulphide material for the rest of the mine life, while oxide tonnage to the heap leach falls to 2 to 4 million tonnes per year. Milling improves estimated recoveries to 94.5% for gold and 79.9% for copper, compared with 85% and 67% under heap leaching.

CEO Joe Ovsenek expects the larger plan to cost around $400 million in preproduction capital, compared with US$382.7 million in the PEA. The Car Body zone is central to the capital story. It is small, at two to three million tonnes, but Ovsenek said it grades about one gram per tonne gold and leaches quickly. P2 Gold plans to have a contractor mine, crush and stack Car Body material during construction of the main project. Ovsenek estimates this could deliver up to 50,000 ounces of gold before the main operation starts, generating cash flow that reduces the external funding required.

On financing, copper is the lever. Although copper is a by-product, the volumes now justify a prepay, which Ovsenek said could raise $100 million to $200 million and leave roughly a couple of hundred million dollars to be sourced elsewhere. Debt, convertibles and offtake-linked debt are all options. Management has signalled a willingness to accept a higher cost of capital, around 15%, in exchange for speed. The company held C$17.1 million in cash, prepaids and receivables at June 30, 2026, so a substantial financing will be required ahead of construction.

The timeline is tight but defined. The updated MRE is due in Q4 2026, when Ovsenek expects 150 to 180 million tonnes to reach the measured and indicated categories. The feasibility study, a detailed mining plan of operations filing with the BLM, and approval of the water rights change of use are all expected in Q1 2027. Detailed engineering begins in Q4 2026. The goal is to complete federal NEPA and Nevada state permitting by the end of 2027 and break ground in early 2028, with the company's timeline pointing to production in 2029.

Beyond the feasibility case, Ovsenek believes the resource could potentially double, and the southwest of the property holds further Car Body-style gold targets. The key risks are permitting delays, capital cost confirmation and financing execution. Investors should track the Q4 2026 MRE as the first test of whether the larger mine plan is supported.

View P2 Gold's company profile: https://www.cruxinvestor.com/companies/p2-gold

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