
P2 Gold (TSXV:PGLD) - Direct-to-Feasibility Strategy Accelerates Nevada Gold Development
Interview with Joseph Ovsenek, President & CEO of P2 Gold Inc.
Our previous interview: https://www.cruxinvestor.com/posts/p2-gold-inc-tsxvpgld-35moz-project-advances-on-metallurgical-breakthrough-7826
Recording date: 11th September 2025
P2 Gold presents one of the most compelling value propositions in the current gold mining sector, offering investors exposure to a high-quality Nevada development project with exceptional economics and experienced management execution capabilities. The company's Gabbs project demonstrates robust financial metrics that appear significantly disconnected from its current market valuation, creating a substantial opportunity for value recognition and appreciation.
The project's preliminary assessment reveals impressive economics with a 62% internal rate of return and $700 million net present value at a 10% discount rate when current metal prices are applied. These figures stand in stark contrast to P2 Gold's market capitalization of just $25 million, suggesting a potential 28-fold upside if the market recognizes the project's intrinsic value. The 3.5 million ounce gold equivalent resource base provides substantial scale, while the Nevada location offers regulatory advantages and established mining infrastructure that reduce development risks.
Recent metallurgical breakthroughs represent a significant catalyst for enhanced project economics and accelerated development timelines. Phase 3 metallurgical results demonstrated remarkable improvements, with gold recovery rates increasing from 78% to 85% and copper recovery jumping from 54% to 67%. Perhaps more importantly, extraction kinetics improved dramatically, with 98% of gold now recoverable in 58 days compared to the previous 145-day timeline. This improvement could reduce capital expenditure requirements and project footprint size when advancing to feasibility study.
Management credibility provides crucial execution confidence for investors evaluating development-stage mining opportunities. CEO Joseph Ovsenek and Chief Exploration Officer Ken McNaughton previously collaborated at Pretium Resources, successfully advancing the Bruce Jack project from discovery to production in under eight years. Their proven track record demonstrates capability in navigating complex development processes including resource expansion, permitting, financing, and construction management. The team's philosophy of setting aggressive targets and maintaining development momentum has translated into P2 Gold's ambitious 2028 production timeline.
The company's strategic approach to development acceleration includes skipping pre-feasibility study and advancing directly to feasibility based on extensive historical data and the project's straightforward heap leach processing characteristics. This decision could compress typical development timelines while leveraging Nevada's established regulatory framework and heap leach infrastructure. The addition of SART plant technology for gold and copper oxide recovery represents the primary technical innovation required, with numerous similar facilities already operating successfully.
Near-term catalysts provide multiple opportunities for market recognition and potential re-rating over the next 12 months. Expansion and infill drilling beginning in mid-to-late October should generate results over six months, potentially expanding the resource base and providing additional geological confidence. Key regulatory milestones including water permitting and mining plan of operation filing within four to five months will demonstrate tangible progress toward production.
P2 Gold's current financing round targeting C$6 million with potential expansion based on strong investor interest demonstrates improving market sentiment and capital access. The relatively modest funding requirements reflect the project's efficient development pathway and extensive historical database, allowing the company to maintain aggressive advancement while preserving shareholder dilution.
At current gold prices exceeding $3,600 per ounce, P2 Gold offers compelling leverage to continued metal price appreciation while providing downside protection through robust project economics and experienced management execution capabilities.
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