Contango ORE, Inc. Announces Earnings for Quarter Ended March 31, 2017

HOUSTON--(BUSINESS WIRE)--Contango ORE, Inc. (“CORE” or the “Company”) (OTCQB: CTGO) announced today that it has filed its Form 10-Q for the quarter ended March 31, 2017 with the Securities and Exchange Commission.

The Company reported a net loss of approximately $0.5 million, or ($0.11) per basic and diluted share, for the three months ended March 31, 2017 compared to a net loss of approximately $0.2 million or $(0.05) per basic and diluted share for the same period last year. For the nine months ended March 31, 2017, the Company reported a net loss of approximately $2.1 million, or ($0.46) per basic and diluted share, compared to a net loss of $1.0 million, or ($0.24) per basic and diluted share, for the same period last year.

Peak Gold, LLC (the “Joint Venture”), managed by our Joint Venture partner Royal Alaska, LLC (“Royal Alaska”), a wholly owned subsidiary of Royal Gold, Inc. (“RGLD”), expended approximately $8.8 million during the nine months ended March 31, 2017 for exploration, development and project management of its Peak Zone gold ore discovery and other newly discovered gold bearing areas on its Tetlin properties near Tok, Alaska. RGLD has contributed a total of approximately $20.0 million to the Joint Venture and earned a cumulative economic interest of 24.9% in the Joint Venture.

Brad Juneau, President and CEO of the Company, commented, “The Phase I 2017 drilling program finished up in early April 2017, consisting primarily of holes around the edges of the North Peak deposit area in an effort to better define the mineral resource. All drill results from the North Peak deposit drilling have been received. There were also six initial holes drilled in the True Blue Moon target area, a new prospect generated from airborne magnetics/resistivity and surface recon data. We have received assays on 4 of these holes which showed one gold bearing interval in one hole but no material gold in the other holes. We expect to receive assays on the other two holes within the next few days, and will evaluate these results before deciding whether to drill further holes in this area.

While there are still areas with potential room for expansion of North Peak, we intend to focus our summer 2017 program drilling exploration targets both near Main/North Peak as well as more remote targets relative to our existing infrastructure. While all exploration activity by definition has risks, these prospects are sizeable in potential area with similar geophysical and geochemical properties to our Main Peak and North Peak properties.

Third party engineers are working to finalize an updated resource report on North Peak and Main Peak that will take into account all of the data from recent drilling which will be completed during the June quarter.”

The data below includes 19 drill holes, 2 of which were previously released incomplete assays, between TET17320 and TET17348 and some new intervals in previously released drill holes as shown on the accompanying base map. Sample intervals are calculated using 0.5 grams per tonne (gpt) lower cut off for gold with no internal waste less than cutoff grade that is greater than 3 meters in thickness. Intercepts shown are drill intercept lengths. True width of mineralization is unknown:

About CORE

CORE is a Houston-based company that engages in the exploration in Alaska for gold and associated minerals through Peak Gold, LLC, its joint venture company with Royal Gold, Inc. Additional information can be found on our web page at www.contangoore.com.