Carl Esprey, CEO of Contango Holdings PLC (CGO.L) Interview

Multi-million-ounce resource potential indicated at Garalo Gold Project in Mali

Carl Esprey, Executive Director of Contango Holdings, said: "Garalo was acquired with the intention of bringing into production a small but highly profitable gold mine. The publication of this Report, which included both reinterpretation of historic data as well as information not previously incorporated in the historic 320,000-ounce figure, has made it clear that Garalo is significantly larger than first envisaged, with the potential to be a sizeable, multi-million-ounce standalone mine, rivalling some of our neighbours in this world class gold producing region.

"The resource quantum now being contemplated at Garalo suggest the Company should bypass the previously reported initial 10,000oz per annum development scenario, instead bringing a larger +30,000oz per annum heap leach operation onstream from the shallow oxides and providing Contango cashflow from Garalo in late 2021. With an estimated profitability of circa US$1,000oz at current gold prices, this would enable not only capital returns to shareholders potentially as early as 2022, but also fund a comprehensive exploration campaign focussed on realising the asset's multi-million ounce potential.

"The Contango in-country team is continuing with detailed core re-logging and field geological and structural mapping and will shortly initiate further tighter line-spacing airborne and radiometric surveys, ahead of fast-tracking a modest confirmatory drilling programme before progressing with the development. As previously reported, this expanded development case is expected to be funded through non-equity finance either via regional banks and / or royalty providers.

"This is an exceptionally exciting development for Contango, and we are committed to identifying the best development route through which to maximise the value of this asset for all stakeholders, combining the desire for early cashflow with discovering the full potential Garalo offers. Following our recent capital raise, the Company is in a solid financial position to react to this development at Garalo whilst also advancing development of our Lubu Coal Project in Zimbabwe, where we expect to commence mine pit construction in January 2021.

"With coking coal performing strongly over recent weeks and the interest we are seeing in our coking coal and coke product, I am confident that Contango has two high quality near term production assets which will deliver significant returns to shareholders."

https://www.share-talk.com/carl-esprey-ceo-of-contango-holdings-plc-cgo-l-interview/