Contango ORE Announces Initial Results of 2013 Exploration Program

HOUSTON -- (BUSINESS WIRE) -- Contango ORE, Inc. (CTGO.PK) announced today the initial drilling results in its 2013 exploration program at its 765,000 acres near Tetlin, AK. The initial results are part of a $10 million 2013 exploration program that includes drilling 55-67 holes over a five-month period from June through the end of October. Results to date reflect 8 holes drilled and analyzed that are summarized in Table 1 below. Analytical results are pending from an additional 19 holes.

In general, all of the 2013 holes intercepted a 100 to 125 foot wide zone of mineralization. The drill intervals in holes 13062-064 represent infill drilling while those from holes 13066 to 069 represent infill and expansion drilling. See map below for drilling locations. The early results of our 2013 drilling program indicate that the previously identified Peak zone will be extended along both strike and dip relative to the known limits from previous drilling.

Mr. Brad Juneau, President of the Company, said, “The preliminary results of our 2013 exploration program at our Tetlin project continue to meet our expectations in terms of gold, silver, and copper grade as well as thickness. Our goal is to identify sufficient mineral resources by the end of 2013 to justify initial reviews of economic and engineering parameters on the project. We expect to be drilling continuously with a two-rig program throughout the rest of the summer and early fall in an attempt to delineate the limits of the Peak Zone as well as test additional exploration prospects. We are awaiting final interpretations of new airborne geophysical data we acquired earlier this summer before selecting our exploratory drilling sites, anticipated to be in late July.”

Contango ORE has taken additional mining claims this spring in the vicinity of Tok, AK covering 40,200 acres. These claims were selected based on proximity to known mineral occurrence, access to existing infrastructure, and which complement our existing exploration program in terms of leveraging our local knowledge based on our exploration results to date. We have initiated exploration activities on these new claims.


Contango ORE, Inc. (CORE) is a Houston-based company that engages in the exploration in Alaska for gold and associated minerals and rare earth elements. Additional information can be found on our web page at www.contangoore.com.


This press release contains forward-looking statements regarding CORE that are intended to be covered by the safe harbor “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995, based on CORE’s current expectations and includes statements regarding future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as “expects”, “projects”, “anticipates”, “plans”, “estimates”, “potential”, “possible”, “probable”, or “intends”, or stating that certain actions, events or results “may”, “will”, “should”, or “could” be taken, occur or be achieved). Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those, reflected in the statements. These risks include, but are not limited to: the risks of the exploration and the mining industry (for example, operational risks in exploring for, developing mineral reserves; risks and uncertainties involving geology; the speculative nature of the mining industry; the uncertainty of estimates and projections relating to future production, costs and expenses; the volatility of natural resources prices, including prices of gold and rare earth elements; the existence and extent of commercially exploitable minerals in properties acquired by CORE; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the interpretation of exploration results and the estimation of mineral resources; the loss of key employees or consultants; health, safety and environmental risks and risks related to weather and other natural disasters); uncertainties as to the availability and cost of financing; inability to realize expected value from acquisitions; inability of our management team to execute its plans to meet its goals; and the possibility that government policies may change or governmental approvals may be delayed or withheld, including the inability to obtain any mining permits. Additional information on these and other factors which could affect CORE’s exploration program or financial results are included in CORE’s other reports on file with the Securities and Exchange Commission. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. CORE does not assume any obligation to update forward-looking statements should circumstances or management’s estimates or opinions change.


Table 1

Significant 2013 gold drill results from initial drill holes at the Peak zone, Chief Danny prospect, Tetlin project, Alaska. Sample intervals are calculated using a 0.5 gpt lower cut off for gold with no internal waste greater than 3 meters less than cutoff grade. Intercepts shown are drill intercept lengths. All holes reported were completed at -60 degree inclination along azimuth 225 degrees to intercept mineralization at approximately right angles. The grade cutoff for gold (Au) is 0.5 gpt; for silver (Ag) is 10 gpt; and for copper (Cu) is 0.1 gpt.

Num  Drill Hole  From_m    To_m     Int_m   Au_opt    Au_gpt   Ag_gpt   Cu_pct
1   TET13062      6.10     9.10      3.00    0.037     1.265      6.9    0.106
2   TET13062     79.40    80.80      1.40    0.052     1.783      1.1    0.031
3   TET13062     83.20    85.10      1.90    0.024     0.822      0.9    0.026
4   TET13062     88.90    153.70    64.80    0.382    13.101     21.0    0.482
5   including   109.70    118.90     9.20    0.923    31.640     28.5    0.711
6   including   115.40    116.20     0.80    2.013    69.000     72.5    1.785
7   and         125.80    126.50     0.70    1.286    44.100     52.1    0.836
8   and         128.10    133.70     5.60    0.985    33.774     56.5    0.833
9   including   132.80    133.70     0.90    1.394    47.800    172.0    3.260
10  TET13063    131.11     171.60   40.49    0.483    16.550     36.1    0.732
11  including   146.00     148.65    2.65    2.365    81.100    178.0    3.920
12  and         153.35     155.14    1.79    1.671    57.300    121.0    0.762
13  TET13064     89.10      95.10    6.00    0.007     0.257     26.5    0.325
14  including    91.00      93.20    2.20    0.017     0.591     59.9    0.691
15  TET13064    120.50     122.90    2.40    0.016     0.549      9.2    0.202
16  TET13064    147.20     152.20    5.00    0.043     1.487      1.9    0.052
17  TET13064    156.60     189.40   32.80    0.310    10.638      6.4    0.198
18  including   163.00     166.50    3.50    1.213    41.586     15.3    0.461
19  including   163.70     164.80    1.10    2.225    76.300     19.2    0.499
20  and         171.00     173.60    2.60    0.712    24.400     13.4    0.494
21  and         174.30     177.70    3.40    0.590    20.212      7.5    0.323
22  and         181.50     183.50    2.00    0.680    23.300      8.4    0.295
23  TET13065    157.60     159.10    1.50    0.039     1.325      3.4    0.110
24  TET13065    184.45     206.93   22.48    0.034     1.160     10.5    0.403
25  including   186.55     188.47    1.92    0.125     4.270     15.6    0.705
26  and         203.00     204.50    1.50    0.153     5.240     40.7    1.290
27  TET13067    104.60     110.30    5.70    0.001     0.037      5.9    0.263
28  TET13067    114.80     125.10   10.30    0.005     0.180     18.2    0.215
29  TET13068      0.00      48.80   48.80    0.011     0.365     23.1    0.269
30  including     6.10      21.00   14.90    0.031     1.062     47.6    0.212
31  TET13068     54.90      79.20   24.30    0.004     0.148     10.0    0.312
32  TET13068     82.30      91.40    9.10    0.001     0.029      9.7    0.644
33  including    88.80      91.40    2.60    0.002     0.057     25.9    1.450
34  TET13068     94.50      98.30    3.80    0.000     0.002      2.6    0.224
35  TET13068    103.70     112.80    9.10    0.001     0.033      4.0    0.160
36  TET13068    128.40     132.30    3.90    0.000     0.002      1.2    0.120
37  TET13068    137.20     140.20    3.00    0.001     0.030      7.6    0.234
38  TET13069     54.60      63.70    9.10    0.000     0.000      3.6    0.106
39  TET13069     72.90     122.60   49.70    0.001     0.032     10.9    0.538
40  including    86.60      94.80    8.20    0.002     0.074     23.8    1.373
41  TET13069    136.70     141.35    4.65    0.000     0.004      4.5    0.133
42  TET13069    158.60     162.63    4.03    0.006     0.214    124.1    3.055
43  including   160.60     161.09    0.49    0.026     0.882    343.0    7.260

Contacts

Contango ORE, Inc.
Brad Juneau
713-621-7325
www.contangoore.com