Gold Miner P2 Gold Unlocks Potential in Nevada’s Gabbs Project
P2 Gold is emerging as a standout opportunity in Nevada’s mining landscape, with its Gabbs project demonstrating exceptional economic potential that appears dramatically undervalued by current market metrics. The company’s preliminary economic assessment from May 2024 revealed the project carries an estimated net present value of approximately $700 million at a 10% discount rate and a 62% internal rate of return whe
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Gold Miner P2 Gold Unlocks Potential in Nevada’s Gabbs Project
P2 Gold is emerging as a standout opportunity in Nevada’s mining landscape, with its Gabbs project demonstrating exceptional economic potential that appears dramatically undervalued by current market metrics. The company’s preliminary economic assessment from May 2024 revealed the project carries an estimated net present value of approximately $700 million at a 10% discount rate and a 62% internal rate of return when using spot metal prices—figures that dwarf P2 Gold’s current market capitalization of just $25 million.
The Gabbs project, containing roughly 3.5 million ounces of gold equivalent resources, has recently achieved significant metallurgical breakthroughs that substantially improve its economic outlook. Recent Phase 3 testing demonstrated gold recovery rates increasing from 78% to 85%, while copper recovery in oxides jumped from 54% to 67%.
Perhaps most striking is the dramatic reduction in extraction time. According to Joseph Ovsenek, President and CEO of P2 Gold, “When we did our other columns, it took us 145 days to reach the limit of getting all the metal out. With this new program, we had 98% of the gold recovered and 85% of the copper recovered in 58 days.”
This acceleration in leach kinetics could allow P2 Gold to reduce the project’s physical footprint, potentially lowering capital requirements and improving overall economics when the company advances to the feasibility stage. The results address previous concerns about recovery rates and strengthen the technical foundation of the project.
The company benefits substantially from its Nevada location—a jurisdiction known for its mining-friendly regulatory environment and established permitting processes. This geographic advantage, combined with the project’s planned heap leach processing method with SART (Sulfidization, Acidification, Recycling, and Thickening) technology, creates a pathway for relatively straightforward development compared to more complex operations elsewhere.
P2 Gold’s leadership team brings considerable industry credibility to the project. CEO Joseph Ovsenek and Chief Exploration Officer Ken McNaughton previously worked together at Pretium Resources, where they successfully advanced the Brucejack mine from discovery to production in under eight years—a track record that provides confidence in their ability to execute complex mining development plans.
This experience has shaped their approach to Gabbs, with the team setting an ambitious production target of 2028. “One thing we’ve learned is you have to set aggressive targets. If you don’t, you fill that time,” Ovsenek noted, emphasizing their commitment to maintaining development momentum.
In line with this philosophy, P2 Gold plans to skip the traditional pre-feasibility study phase and advance directly to a full feasibility study beginning in January. This decision leverages extensive historical data available from work conducted in the 1980s and 1990s, along with the project’s relatively straightforward processing requirements.
“There’s enough historical work and it’s such a simple process, especially to start with. It’s a heap leach in Nevada. The only thing new is the SART plant, and there’s a lot of those been built now,” Ovsenek explained.
The company has established clear development milestones for the coming year. Expansion and infill drilling is set to begin in mid-to-late October, with results expected over the following six months. These drilling campaigns will be crucial for potentially expanding the resource base and providing additional geological confidence in the deposit.
Near-term objectives include securing water permits, drilling water wells, and filing the mining plan of operation within four to five months—regulatory and technical achievements that will demonstrate progress toward eventual production.
To fund these activities, P2 Gold is currently executing a financing round targeting C$6 million, with the possibility of expansion based on investor interest. Management reports strong investment interest driven by the project’s location, simplicity, and the team’s proven track record.
“We expect to get expansion and infill drilling going by mid to late October. So we’ll be drilling throughout the year. We’re starting some more metallurgical programs in support of feasibility this fall. So we have the cash to really start picking up the pace of advance,” Ovsenek stated.
The financing environment appears favorable for P2 Gold, providing sufficient capital to maintain development momentum through the next crucial phases of advancement. The relatively modest funding requirements at this stage reflect the project’s straightforward processing approach and the extensive historical data available, reducing the amount of additional technical work required compared to greenfield projects.
For investors, P2 Gold presents a distinctive opportunity in the gold sector—a project with robust economics, improving metallurgical performance, and an experienced management team capable of navigating the path to production. The substantial gap between the project’s technical valuation and current market capitalization suggests significant potential upside as development milestones are achieved and market recognition grows.
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