Contango Holdings provides Garalo-Ntiela Gold Project update

Aeromagnetics and airborne geophysics for the collection of magnetic and radiometric data commenced at the start of July 2021 and has been completed across both licences as planned. Results from the survey are expected in early August 2021. It is important to remember that the project has been drilled extensively previously and as such the collection of this data was to further aid direct mine planning activities and support the project's accelerated development into production.

The survey did however also target some as yet untested areas within the project area, particularly at Ntiela where exploration work earlier this year yielded very encouraging results. The company believes the results of these studies will outline extensions of the G1 and G3 deposits, previously identified as showing the potential to host in excess of 1.8 million oz of gold. Ground-based induced polarisation (IP) is expected to commence upon receipt and interpretation of this new data in early August 2021.

The company has also reported the project camp is nearing completion, supporting the permanent presence of up to 20 employees and contractors, along with a secure storage building for drill core.

Expectation remains that Garalo-Ntiela will merit the development of a processing hub capable of supporting multiple open pit operations given the excellent proximal infrastructure, historical exploration and the orebody's near surface location.

Carl Esprey, CEO of Contango Holdings, said: “We have received consistently encouraging results from development and exploration activities at Garalo-Ntiela, including recent data from local trenching work and grab sampling. The analysis of this highlights the increasing potential that the project will deliver many multiples of the original resource quantum that we originally considered when acquiring Garalo in October of last year. Indeed, our work programme over the next few months is designed to specifically direct our development and mine construction work to ensure we choose the optimum path to realise the full potential of this significant gold asset.

“I look forward to sharing results from this work programme over the coming weeks and into 4Q21 as we look to realise the value of the Garalo-Ntiela Project and have this reflected in the market. Similarly, we continue to make progress in Zimbabwe and I look forward to providing updates on our commercial negotiations with regard to the Lubu Coal Project in due course.”

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