Contango ORE shares rise after news of first gold bars from Alaska mine

Shares of gold explorer Contango ORE rose 1.7% during trading on June 25. On that day, the company announced that the first pour of gold-bearing ore from the Manh Choh mine in Alaska, which it is developing in partnership with Kinross, will soon take place.

Details

Contango ORE’s stock prices rose by 1.7% on the New York Stock Exchange on June 25, reaching $17.55. Since the beginning of the year, the stock is down 3%.

On Tuesday, Contango ORE announced that it will broadcast a video report of the first gold pour from the Manh Choh mine in Alaska on July 8. Pouring is the process of obtaining gold bars from ore by pouring it into molds.

The exploration and development of the Manh Choh project are handled by Peak Gold, a joint venture between Contango ORE (30%) and Kinross (70%). Mining operations at the site began in August 2023, and ore transportation started in November.

All ore is stored at the Fort Knox plant, as stated by Contango ORE. The company has planned to begin processing in 2024. Gold production is expected to reach 225,000 ounces per year, with 30%, approximately 67,500 ounces, going to Contango, says the company. The initial pour is scheduled for July 8.

Context

Contango engages in the exploration of gold and associated minerals in Alaska. It owns 30% of the Peak Gold JV. The company also has a lease on the Lucky Shot project, owns several thousand hectares in Alaska through a subsidiary, and has exclusive rights to explore and develop minerals in these areas. By the end of July, Contango plans to complete the acquisition of 100% of the outstanding equity interests of HighGold Mining Inc.

Analysts’ insights

According to MarketWatch, five analysts are tracking the company. There are four Buy recommendations and one Overweight rating. The average price target is $33.33 per share, indicating a potential upside of nearly 90%.