Gold Terra Resources (TSXV:YGT) - Former Producing Mine Plans Production in 2029

Gold Terra Resources: 2026 Strategy & Campbell Shear Project Update – Detailed Summary

Key Concepts:

• Campbell Shear: A highly prospective gold-bearing geological structure in Yellowknife, NWT, Canada, historically producing 14 million ounces of gold.
• Con Mine: A former producing gold mine with existing mining leases and surface rights, targeted for acquisition by Gold Terra Resources.
• De-risking: The process of reducing the technical and financial risks associated with a mining project to increase its value and attract investment.
• PA (Preliminary Assessment): A study outlining the economic viability of a mining project, including capital and operating costs, revenue projections, and key financial metrics.
• MRE (Mineral Resource Estimate): An assessment of the quantity and quality of mineral resources within a defined area, categorized by confidence levels (Measured, Indicated, Inferred).
• Cut-off Grade: The minimum grade of ore required to be economically viable for extraction.
• Aran Geology: The geological characteristics of Archean terrains, known for hosting significant gold deposits.
• Brownfield Site: A previously developed site, in this case, the Con Mine, offering existing infrastructure advantages.

1. Current Market Conditions & Portfolio Overview

Gerald Paneton, Chairman and CEO of Gold Terra Resources, highlights the favorable environment for gold investment, with prices exceeding $4,000 per ounce. Gold Terra possesses a 70-kilometer portfolio along the Campbell Shear, a historically prolific gold-producing system. The Con Mine, which ceased operations in 2003 when gold was at $340/ounce, represents a key acquisition target. Paneton emphasizes the significant potential even at a gold price of $2,000/ounce, but the current price dramatically enhances the project’s viability.

2. 2025 Achievements & Strategic Shift

The primary achievements of 2025 centered around demonstrating the continued potential of the Campbell Shear at depth and attracting new investment. Specifically:

• Deep Drilling Success: Drilling 700 meters below the existing mine confirmed the Campbell Shear remains open at depth, proving the geological model extends significantly. While the 700m hole didn’t intersect gold, it validated the model and identified a long-term exploration target requiring underground drilling. A previous drill hole at 200m below the mine did intersect gold.
• Re-evaluation of Car Mine Potential: Re-analysis of historical drilling data from the Car Mine (drilled in the 1990s from underground) revealed a potential resource of 500,000+ ounces at 6 g/t, which was previously below the economic cut-off grade due to the lower gold price at the time.
• Investor Confidence & Strategic Partnerships: New investors, including Eric Sprott, David Arwell, and McKenzie, joined the company, demonstrating increased confidence in the project. Discussions with Newmont regarding the potential acquisition of the Con Mine are ongoing, with a target completion date before the end of 2027.

3. Acquisition Strategy & Infrastructure

The ultimate goal is to acquire the Con Mine, which holds a mining lease and surface rights. The company’s strategy has evolved from initially seeking 1.5 million ounces to justify a new mill (when the deal was signed with Newmont at $1,700/ounce gold) to focusing on a more achievable 1 million ounce target, leveraging the current higher gold prices. The existing infrastructure at the Con Mine, particularly the mining lease and surface rights, are critical to accelerating the project’s development.

4. Revised Drilling & Resource Strategy (2026 Focus)

A key shift in strategy occurred due to market conditions and investor sentiment. Initially, deep underground drilling was planned to expand the resource. However, with gold prices exceeding $3,000/ounce, the focus has shifted to developing a mill based on a 1 million ounce resource between surface and 1,000 meters depth. This is supported by:

• Yellow Rex Area: Approximately 300,000 ounces are currently defined in the Yellow Rex area, with potential for expansion.
• Zone 103: The northern extension of the Campbell Shear, previously drilled in the 1990s, contains an estimated 500,000 ounces at 5 g/t.
• Cut-off Grade Optimization: Lowering the cut-off grade from 3.5 g/t to 2.5 g/t could increase the resource estimate to 700,000 ounces from the existing 500,000 ounces in the Yellow Rex area.

A 15,000-meter drill program is planned for 2026, combining infill drilling to upgrade Inferred resources to Indicated, step-out drilling to expand the resource, and confirmation of historical drilling results. The drilling will be conducted both in winter and summer.

5. Economic Considerations & De-risking

Paneton emphasizes the importance of a robust economic model. He estimates a 2,000-ton per day mill producing 140,000 ounces per year, with a break-even gold price between $1,500 and $2,000 per ounce. The current gold price of $4,000/ounce provides a significant margin. The company is focused on “de-risking” the project through:

• Preliminary Assessment (PA): Completion of a PA by the end of 2026, outlining the project’s economic viability.
• Updated Mineral Resource Estimate (MRE): A revised MRE incorporating the results of the 2026 drilling program.
• Mining Contractor Engagement: Securing pricing from mining contractors for ramp development and underground access.

6. Geological Understanding & Potential

The Campbell Shear is described as a vertically oriented, linear gold system formed by the squeezing of island arc volcanoes. The shear zone is 50-75 kilometers long and has been largely unexplored for the past 25 years. Paneton believes the area has the potential to host multiple large and small gold deposits, similar to other prolific gold camps like Timmins and Red Lake. He suggests Yellowknife could potentially host 5-10 million ounces of gold. Dilution control is a key consideration, requiring careful mining methods to avoid incorporating waste rock into the ore stream.

7. Financials & Timeline

• Recent Funding: A recent financing raised approximately $7 million, with 95% coming from existing shareholders.
• Drilling Costs: Drilling costs are estimated at $250-$300 per meter.
• Timeline:
  • 2026: Completion of MRE and PA.
  • 2027: Acquisition of the Con Mine.
  • 2028: Development of the mill and mine infrastructure.
  • 2029/2030: Production commencement.

8. Key Quote:

“The first step is de-risking the project. For me, five years ago, four years ago when I signed with Newmont was to find one and a half million ounces or two. Now 1 million ounces is good enough.” – Gerald Paneton

Conclusion:

Gold Terra Resources is strategically positioned to capitalize on the current high gold price environment and unlock the potential of the Campbell Shear. The company’s revised strategy, focused on a 1 million ounce resource and leveraging the existing infrastructure at the Con Mine, aims to accelerate the project towards production. The 2026 drilling program and subsequent PA are critical milestones in de-risking the project and attracting further investment. The company’s experienced management team and strong shareholder base provide a solid foundation for success.