Contango begins lucky shot drill program to support feasibility study

FAIRBANKS, Alaska - Contango ORE, Inc. (NYSE American:CTGO) announced today the commencement of its Lucky Shot drill program designed to support the completion of a feasibility study. The mining exploration company, currently valued at $327 million, has seen its stock surge 125% year-to-date according to InvestingPro data.

The program, which began today, will be conducted in four phases combining underground drift drilling and surface exploration. The underground component targets approximately 18,000 meters across 210 drill holes, aiming to in-fill the Lucky Shot vein resource to Proven and Probable categories.

According to the company's press release, the drilling will extend through 2026 with the feasibility study expected to be completed in 2027. Initial assay results are anticipated to be reported in the first quarter of 2026.

Selected drill holes will undergo hydrological and geotechnical testing to characterize the deposit. Core samples will also be subjected to metallurgical, geochemical, and specific gravity tests to develop a reserve model for the deposit.

"It's exciting to get back underground at the Lucky Shot mine," said Dave Larimer, Contango's Exploration Manager. "The initial phase of drilling is a decisive resource 'In-Fill' program on the Lucky Shot Vein."

The company also plans to test mineralized structures recently mapped in the West Drift. Channel samples from this area reportedly included gold values of 26.1 g/t, 379 g/t, and 9.1 g/t over 0.5 meters in length, averaging approximately 139 g/t gold over 1.5 meters.

Contango holds various mining interests in Alaska, including a 30% stake in the Peak Gold JV, with the remaining 70% owned by KG Mining (Alaska), Inc., a subsidiary of Kinross Gold Corporation.

The information in this article is based on a press release statement from Contango ORE.Analyst price targets for Contango range from $28 to $37, suggesting significant upside potential from current levels. With a beta of -0.31, the stock typically moves opposite to the broader market. InvestingPro offers 10 additional insights and a comprehensive research report on Contango ORE, one of 1,400+ US equities covered with in-depth analysis.

In other recent news, Contango ORE Inc reported a significant earnings beat for Q3 2025, with earnings per share (EPS) reaching $2.04. This figure far exceeded the analysts' forecast of $0.465, marking a surprise of 338.71%. Despite this impressive earnings performance, the company's stock experienced a decline in regular trading hours. The stock closed at $23.2, reflecting a decrease of 4.88%. In pre-market trading, the stock further dipped by 8.19% to $21.3. These developments come as investors digest the earnings results, which significantly surpassed expectations. The company's financial performance highlights the variability in investor sentiment despite strong earnings.

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