P2 Gold Gabbs Update

VANCOUVER, British Columbia, March 29, 2023 (GLOBE NEWSWIRE) -- P2 Gold Inc. (“P2” or the “Company”) (TSX-V:PGLD) (OTCQB:PGLDF) provides an update on its wholly-owned gold-copper Gabbs Project located on the Walker-Lane Trend in Nevada.

Preliminary Economic Assessment

The Company has restarted the preliminary economic assessment (“PEA”) on the Gabbs Project, which is expected to be completed in the third quarter of this year. The PEA was originally expected to be completed in the fourth quarter of 2022; however, the PEA was paused late in the third quarter of 2022 waiting for the inflation rate to ameliorate.

Three-Dimensional Geophysics Interpretation

In late 2021 and early 2022, the Company completed a 48.3-line kilometer Natural Source Magneto Telluric (“NSMT”) survey at Gabbs covering all four known zones of mineralization and the prospective locations of the potential gold-copper porphyry source at depth.

This month, Computational Geosciences Inc. created 3-D electrical conductivity inversion models of the NSMT survey data. The inversion model gives a subsurface view of the conductivity/resistivity with an estimated accuracy down to a depth of roughly sea level.

The initial interpretation by the Company of the three-dimensional NSMT inversion model has identified a high priority area in the center of the property that hosts a gold-copper porphyry exploration target. This area is below the Gold Ledge Zone and confirms the two-dimensional interpretation of the NSMT inversion model. The Company requires an additional permit in order to drill the exploration target. A plan view and sections from the three dimensional NSMT inversion model are available here.

Restructuring of Gabbs Payment Terms

The Company has issued additional shares to Waterton Nevada Splitter, LLC (“Waterton”), an affiliate of Waterton Precious Metals Fund II Cayman, LP, in respect of the restructuring of the outstanding payment terms for the acquisition of the Gabbs Project. (See the Company’s news release dated March 21, 2023 announcing the closing of the restructuring of the outstanding payment terms for the acquisition of the Gabbs Project).

As part of the restructuring, the Company agreed to increase Waterton’s interest in the Company to 19.9% of its issued capital. At the closing of the restructuring, the Company issued 2,659,748 shares in the capital of the Company to Waterton bringing its interest in the Company to 19.32%. As a result, the Company has issued an additional 660,786 shares (the “Shares”) in its capital to Waterton bringing its interest in the Company to 19.9%. All other terms of the restructuring remain unchanged.