Uncategorized
Centerra Gold Reports First Quarter 2025 Results; Approved up to $75 Million to Repurchase Shares in 2025; Announces Updated Mineral Resource at Kemess and Advancing Studies on the Project
Centerra Gold Inc. (TSX: CG) (NYSE: CGAU) reported its first quarter 2025 operating and financial results.
President and CEO, Paul Tomory, commented, “In the first quarter, we generated positive free cash flow at both operations. Our 2025 production guidance is unchanged, and we expect strong production in the second half of 2025 driven by increasing grades. The restart of Thompson Creek is advancing, with approximately 14% of the total capital investment complete. We maintained a strong cash position of $608 million, ensuring financial flexibility to advance ongoing and prospective project activities. With a focus on returning capital to shareholders, we increased our share repurchases to $14.9 million in the first quarter, and the Board of Directors has approved the repurchase of up to $75 million of Centerra’s common shares in 2025.”
Paul Tomory continued, “We are pleased to be moving forward with a Preliminary Economic Assessment on the Kemess project, which is expected to be completed by the end of 2025. The updated mineral resource published today demonstrates the robust mineralization in the highly prospective Toodoggone district in the northern interior of British Columbia. We have doubled our 2025 exploration guidance at Kemess to between $10 and $12 million, which is expected to focus on infill drilling for the open pit and underground targets and also to test high grade mineralization in the deeper Kemess Offset zone. With Kemess, we are advancing the studies for a potential combined open pit and longhole open stoping underground gold-copper mine with a possible 15-year operation in a top tier mining jurisdiction. We are targeting a project with a potential average annual production of approximately 250,000 gold equivalent ounces, which along with Mount Milligan, would give Centerra two long-life gold-copper assets in British Columbia. The existing infrastructure already in place, is expected to lower the execution risk compared to typical greenfield projects of this scale.”
First Quarter 2025 Highlights
Operations
- Production: In the first quarter 2025, consolidated gold production was 59,379 ounces, including 35,880 ounces from the Mount Milligan Mine and 23,499 ounces from the Öksüt Mine. Copper production in the quarter was 11.6 million pounds.
- Sales: First quarter 2025 gold sales were 61,132 ounces at an average realized gold priceNG of $2,554 per ounce and copper sales were 12.1 million pounds at an average realized copper priceNG of $3.80 per pound. The average realized gold and copper prices include the impact of the Mount Milligan streaming agreement with RGLD Gold AG and Royal Gold, Inc.
- Costs: First quarter 2025 consolidated gold production costs were $1,271 per ounce and all-in sustaining costs (“AISC”) on a by-product basisNG were $1,491 per ounce.
- Capital expendituresNG: First quarter 2025 additions to property, plant, and equipment and capital expendituresNG were $68.1 million and $46.9 million, respectively. Sustaining capital expendituresNG in the first quarter 2025 were $18.0 million and included construction at the tailings storage facility at Mount Milligan, as well as capitalized stripping and expansions at the heap leach pad at Öksüt. Non-sustaining capital expendituresNG in the first quarter were $25.8 million related mainly to the restart of operations at the Thompson Creek Mine.
Financial
- Net earnings: First quarter 2025 net earnings were $30.5 million, or $0.15 per share, and adjusted net earningsNG were $26.4 million or $0.13 per share. Key adjustments to net earnings include $6.6 million of an incremental gain on the sale of the Greenstone Partnership, $4.8 million of reclamation provision revaluation expense, and $3.3 million of unrealized gain on foreign exchange at Öksüt. For additional adjustments refer to the “Non-GAAP and Other Financial Measures” disclosure at the end of this news release.
- Cash provided by operating activities and free cash flowNG: In the first quarter 2025, cash provided by operating activities was $58.6 million and free cash flowNG was $10.0 million. This includes $39.4 million of cash provided by mine operations and $27.4 million of free cash flowNG at Mount Milligan and $50.3 million of cash provided by mine operations and $41.6 million of free cash flowNG at Öksüt. This was partially offset by capital expendituresNG at Thompson Creek.
- Cash and cash equivalents: Total liquidity of $1.0 billion as at March 31, 2025, comprising a cash balance of $608.2 million and $400.0 million under a corporate credit facility.
- Dividend: Quarterly dividend declared of C$0.07 per common share.
- Share buybacks: Under Centerra’s normal course issuer bid (“NCIB”) program, the Company repurchased 2,465,926 common shares (“Shares”) in the first quarter 2025, for the total consideration of $14.9 million. The Company’s Board of Directors has approved the repurchase of up to $75 million of Centerra’s Shares in 2025. Centerra believes that the NCIB will continue to provide the Company with a flexible tool to deploy cash pursuant to its capital allocation strategy, while preserving the financial flexibility to support investment in future growth.
- Tariff impact: The recent implementation of US tariffs had no impact on Centerra’s operations in the first quarter of 2025. While the Company continues to monitor the situation closely, no significant impact is expected on the mining operations at Mount Milligan and Öksüt, and restart activities at Thompson Creek moving forward. The Company is also assessing the potential impact of tariffs on the Langeloth Metallurgical Facility (“Langeloth”), however, Centerra does not currently anticipate any material impact at the Centerra level.
Growth Initiatives
- Updated mineral resource at Kemess and advancing project studies: In 2024, Centerra completed over 11,400 meters of core drilling for exploration, geotechnical, and metallurgical testing purposes. Those results have been included in the updated mineral resource as of April 15, 2025. Gold mineral resources at Kemess are estimated to contain 2.7 million ounces of indicated resources and 2.2 million ounces of inferred resources. Copper mineral resources are estimated to contain 971 million pounds of indicated resources and 821 million pounds of inferred resources. The updated resource is generally consistent with the Company’s previous understanding of the resource estimate. Centerra has increased 2025 exploration guidance at Kemess to between $10 and $12 million, up from $4 to $6 million previously, with a total of 28,500 meters of drilling planned. The focus is expected to be on infill drilling for the open pit and underground targets and also to test high grade mineralization in the deep Kemess Offset zone. The Company is moving forward with a Preliminary Economic Assessment on Kemess, using an open pit and longhole open stoping underground mining concept, which is expected to be completed by the end of 2025. Kemess has significant infrastructure already in place, including: a 380 kilometer, 230 kilovolt power line; a 50,000 tonne per day nameplate processing plant in need of some refurbishment; “mothballed” site infrastructure including a water treatment plant, camp, administration facilities, air strip, truck shop and warehouse which will require some refurbishment; and tailings storage using the previously mined pit as well as an existing tailings facility, which is capable of expansion. Complementing this existing infrastructure, it is anticipated that new crushing, conveying, and mine infrastructure will be required for the open pit and underground operations. The Company expects the existing infrastructure to lower the execution risk for the project when compared with a typical greenfield project of this scale. With the Kemess project, the Company is advancing the studies for a potential gold-copper mine with a possible 15-year operation in a top tier mining jurisdiction. The Company is targeting a project with a potential average annual production of approximately 250,000 gold equivalent ounces, which along with Mount Milligan, would give Centerra two long-life gold-copper assets in British Columbia. For additional details on Kemess, refer to the news release published on May 6, 2025 entitled “Centerra Gold Announces Updated Mineral Resources at Kemess; Advancing Studies on the Project”.
Overview of Consolidated Financial and Operating Highlights
| ($millions, except as noted) | Three months ended March 31, | |||||||
| 2025 | 2024 | % Change | ||||||
| Financial Highlights | ||||||||
| Revenue | 299.5 | 305.8 | (2) | % | ||||
| Production costs | 198.9 | 173.8 | 14 | % | ||||
| Depreciation, depletion, and amortization (“DDA”) | 24.1 | 33.3 | (28) | % | ||||
| Earnings from mine operations | 76.5 | 98.7 | (22) | % | ||||
| Net earnings | 30.5 | 66.4 | (54) | % | ||||
| Adjusted net earnings(1) | 26.4 | 31.3 | (16) | % | ||||
| Cash provided by operating activities | 58.6 | 99.4 | (41) | % | ||||
| Free cash flow(1) | 10.0 | 81.2 | (88) | % | ||||
| Additions to property, plant and equipment (“PP&E”) | 68.1 | 15.3 | 346 | % | ||||
| Capital expenditures – total(1) | 46.9 | 16.8 | 179 | % | ||||
| Sustaining capital expenditures(1) | 18.0 | 16.2 | 11 | % | ||||
| Non-sustaining capital expenditures(1) | 28.9 | 0.6 | 4717 | % | ||||
| Net earnings per common share – $/share basic(2) | 0.15 | 0.31 | (52) | % | ||||
| Adjusted net earnings per common share – $/share basic(1)(2) | 0.13 | 0.15 | (13) | % | ||||
| Operating highlights | ||||||||
| Gold produced (oz) | 59,379 | 111,341 | (47) | % | ||||
| Gold sold (oz) | 61,132 | 104,313 | (41) | % | ||||
| Average market gold price ($/oz) | 2,860 | 2,074 | 38 | % | ||||
| Average realized gold price ($/oz )(3) | 2,554 | 1,841 | 39 | % | ||||
| Copper produced (000s lbs) | 11,647 | 14,331 | (19) | % | ||||
| Copper sold (000s lbs) | 12,141 | 15,622 | (22) | % | ||||
| Average market copper price ($/lb) | 4.24 | 3.86 | 10 | % | ||||
| Average realized copper price ($/lb)(3) | 3.80 | 3.12 | 22 | % | ||||
| Molybdenum roasted (000 lbs) | 3,034 | 2,891 | 5 | % | ||||
| Molybdenum sold (000s lbs) | 4,244 | 2,948 | 44 | % | ||||
| Average market molybdenum price ($/lb) | 20.53 | 19.93 | 3 | % | ||||
| Average realized molybdenum price ($/lb)(3) | 21.59 | 20.47 | 5 | % | ||||
| Unit costs | ||||||||
| Gold production costs ($/oz)(4) | 1,271 | 746 | 70 | % | ||||
| All-in sustaining costs on a by-product basis ($/oz)(1)(4) | 1,491 | 859 | 74 | % | ||||
| Gold – All-in sustaining costs on a co-product basis ($/oz)(1)(4) | 1,742 | 1,013 | 72 | % | ||||
| Copper production costs ($/lb)(4) | 2.23 | 1.92 | 16 | % | ||||
| Copper – All-in sustaining costs on a co-product basis ($/lb)(1)(4) | 2.54 | 2.09 | 22 | % | ||||
- Non-GAAP financial measure. See discussion under “Non-GAAP and Other Financial Measures”.
(2) As at March 31, 2025, the Company had 207,944,128 common shares issued and outstanding.
(3) This supplementary financial measure within the meaning of National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure (“NI 51-112”) is calculated as a ratio of revenue from the consolidated financial statements and units of metal sold and includes the impact from the Mount Milligan Streaming Agreement (defined below), copper hedges and mark-to-market adjustments on metal sold not yet finally settled. Under the Mount Milligan Streaming Agreement, the Company purchases refined gold and copper warrants and arranges for their delivery to Royal Gold and Royal Gold is entitled to 35% of gold ounces sold and 18.75% of copper pounds sold. Royal Gold paid $435 per ounce of gold delivered and 15% of the spot price per tonne of copper delivered in the periods presented.
(4) All per unit costs metrics are expressed on a metal sold basis.
2025 Guidance – Gold and copper producing assets
| Units | 2025 Guidance |
Three Months Ended March 31, 2025 |
|
| Production | |||
| Total gold production(1) | kozs | 270 – 310 | 59 |
| Mount Milligan Mine(2)(3)(4) | kozs | 165 – 185 | 36 |
| Öksüt Mine | kozs | 105 – 125 | 23 |
| Total copper production(2)(3)(4) | Mlbs | 50 – 60 | 12 |
| Unit Costs(5) | |||
| Gold production costs(1) | $/oz | 1,100 – 1,200 | 1,271 |
| Mount Milligan Mine(2) | $/oz | 1,075 – 1,175 | 1,384 |
| Öksüt Mine | $/oz | 1,100 – 1,200 | 1,102 |
| AISC on a by-product basisNG(1)(3)(4) | $/oz | 1,400 – 1,500 | 1,491 |
| Mount Milligan Mine | $/oz | 1,100 – 1,200 | 1,168 |
| Öksüt Mine | $/oz | 1,475 – 1,575 | 1,563 |
| Capital Expenditures | |||
| Additions to PP&E | $M | 105 – 130 | 35.6 |
| Mount Milligan Mine | $M | 75 – 90 | 23.7 |
| Öksüt Mine | $M | 30 – 40 | 11.9 |
| Total capital expendituresNG | $M | 105 – 130 | 21.0 |
| Sustaining capital expendituresNG | $M | 95 – 115 | 17.9 |
| Mount Milligan Mine | $M | 65 – 75 | 9.2 |
| Öksüt Mine | $M | 30 – 40 | 8.7 |
| Non-sustaining capital expendituresNG | $M | 10 – 15 | 3.1 |
| Mount Milligan Mine | $M | 10 – 15 | 3.1 |
| Other Items | |||
| Depreciation and amortization | $M | 95 – 115 | 23.0 |
| Mount Milligan Mine | $M | 60 – 70 | 15.5 |
| Öksüt Mine | $M | 35 – 45 | 7.5 |
| Current Income tax and BC mineral tax expense(1) | $M | 35 – 42 | 29.3 |
| Mount Milligan Mine | $M | 3 – 5 | 1.1 |
| Öksüt Mine | $M | 32 – 37 | 28.2 |
| Corporate and administration costs(6) | $M | 28 – 32 | 9.3 |
(1)Consolidated Centerra figures.
(2) The Mount Milligan Mine is subject to an arrangement with RGLD Gold AG and Royal Gold Inc. which entitles Royal Gold to purchase 35% and 18.75% of gold and copper produced, respectively, and requires Royal Gold to pay $435 per ounce of gold and 15% of the spot price per metric tonne of copper delivered. Using assumed market prices of $2,700 per ounce of gold and $4.00 per pound of copper for the remaining three quarters of 2025, the Mount Milligan Mine’s average realized gold and copper price for that period would be $1,902 per ounce and $3.36 per pound, respectively, compared to average realized prices of $2,554 per ounce and $3.80 per pound in the three month ended March 31, 2025, when factoring in the Mount Milligan Streaming Agreement and concentrate refining and treatment costs.
(3) Gold and copper production for 2025 at the Mount Milligan Mine assumes estimated recoveries of 64% to 66% for gold and 77% to 79% for copper, consistent with the previous guidance, and compared to the actual recoveries for gold of 62.1% and for copper of 77.6% achieved in the three months ended March 31, 2025.
(4) Unit costs include a credit for forecasted copper sales treated as by-product for all-in sustaining costsNG. Production for copper and gold reflects estimated metallurgical losses resulting from handling of the concentrate and metal deductions levied by smelters.
(5) Units noted as ($/oz) relate to gold ounces.
(6) Corporate and administration costs do not include stock-based compensation and corporate depreciation.
2025 Guidance – Molybdenum Business Unit
| Units | 2025 Guidance |
Three Months Ended March 31, 2025 |
||
| Production | ||||
| Total molybdenum roasted(1) | Mlbs | 13 – 15 | 3.0 | |
| Total molybdenum sold | Mlbs | 13 – 15 | 4.2 | |
| Costs and Profitability – Langeloth | ||||
| (Loss) earnings from operations | $M | (3) – 5 | (1.0) | |
| EBITDANG | $M | 2 – 8 | 0.1 | |
| Capital Expenditures | ||||
| Additions to PP&E | $M | 132 – 150 | 32.4 | |
| Thompson Creek Mine | $M | 130 – 145 | 32.3 | |
| Langeloth | $M | 2 – 4 | 0.1 | |
| Total capital expendituresNG | $M | 132 – 150 | 25.9 | |
| Sustaining capital expendituresNG – Langeloth | $M | 2 – 4 | 0.1 | |
| Non-sustaining capital expendituresNG – Thompson Creek Mine | $M | 130 – 145 | 25.8 | |
| Other Items | ||||
| Depreciation and amortization | $M | 3 – 5 | 1.1 | |
| Langeloth | $M | 3 – 5 | 1.1 | |
| Care & Maintenance Cash Expenditures – Endako | $M | 6 – 8 | 1.4 | |
| Reclamation – Endako | $M | 4 – 7 | 1.6 | |
- 2025 guidance figure does not include any toll material roasted.
2025 Guidance – Global Exploration and Evaluation Projects
| Units | 2025 Guidance | Three Months Ended March 31, 2025 |
|
| Project Exploration and Evaluation Costs | |||
| Exploration Costs | $M | 40 – 50 | 9.0 |
| Brownfield Exploration | $M | 25 – 30 | 5.4 |
| Greenfield and Generative Exploration | $M | 15 – 20 | 3.6 |
| Evaluation Costs | $M | 8 – 12 | 1.2 |
| Other Kemess Costs | |||
| Care & Maintenance | $M | 13 – 15 | 3.1 |
Mount Milligan
Mount Milligan produced 35,880 ounces of gold and 11.6 million pounds of copper in the first quarter of 2025, which was lower than planned primarily due to lower gold grades encountered in areas of phases 6 and 9 that are at the periphery of the ore body. During the first quarter of 2025, a total of 11.1 million tonnes was mined from phases 5, 6, 7, 9 and 10 of the open pit. Process plant throughput for the first quarter of 2025 was 4.7 million tonnes, averaging 52,575 tonnes per day, which included a one-week long planned maintenance shutdown. The site-wide optimization program at Mount Milligan continues to progress. The Company has seen improvements in the mine with higher truck availability and increased operating hours. Gold sales were 36,627 ounces and copper sales were 12.1 million pounds in the first quarter. The Company maintains 2025 production guidance at Mount Milligan of 165,000 to 185,000 ounces of gold and 50 to 60 million pounds of copper. Both gold and copper production and sales are expected to be weighted towards the second half of the year.
Gold production costs in the first quarter 2025 were $1,384 per ounce. AISC on a by-product basisNG was $1,168 per ounce, 5% higher than last quarter due to slightly increased sustaining capital expenditures and lower ounces sold during the quarter. 2025 Mount Milligan gold production costs and AISC on a by-product basisNG guidance are unchanged.
In the first quarter 2025, sustaining capital expendituresNG at Mount Milligan were $9.2 million, focused on the tailings storage facility dam construction.
In the first quarter of 2025, Mount Milligan generated $39.4 million of cash flow from mine operations and free cash flowNG of $27.4 million.
At Mount Milligan, work on a Pre-feasibility Study to evaluate the substantial mineral resources to unlock additional value beyond its current mine life is on track to be completed in the third quarter of 2025. The Company is optimistic that the mine life can be extended beyond the current mine life of approximately 2036, which is based on the available space in the existing TSF. Centerra is evaluating options for additional tailings capacity. It is also expected that the PFS will incorporate an increase of annual mill throughput in the range of 10% through ball mill motor upgrades and additional downstream flowsheet improvements at a modest overall capital expenditure, which may also provide the benefit of improved overall metal recovery.
Öksüt
Öksüt produced 23,499 ounces of gold in the first quarter of 2025. Production in the quarter was lower than planned due to lower grades resulting from mine sequencing and impacts from unfavourable weather conditions. The Company expects to access higher grade areas of the mine in the second half of 2025. During the quarter, mining activities were focused on phase 5 and phase 6 of the Keltepe pit and in phase 2 of the Güneytepe pit. A total of 3.1 million tonnes of ore and waste were mined in the quarter and 1.0 million tonnes were stacked at an average grade of 0.73 g/t. Öksüt’s 2025 production guidance is maintained at 105,000 to 125,000 ounces and is expected to be weighted towards the second half of the year.
At Öksüt, gold production costs and AISC on a by-product basisNG for the first quarter 2025 were $1,102 per ounce and $1,563 per ounce, respectively. These costs were higher compared to last quarter primarily due to lower gold production and sales and a higher royalty expense per ounce due to elevated gold prices. 2025 Öksüt gold production costs and AISC on a by-product basisNG guidance are unchanged. However, AISC on a by-product basisNG guidance could be impacted if gold prices remain at current elevated levels, due to resulting higher royalty expense.
In the first quarter 2025, sustaining capital expenditures at Öksüt were $8.7 million, focused on capitalized stripping, heap leach pad expansion, and waste rock dump expansion and Öksüt delivered cash flow from mine operations of $50.3 million and free cash flowNG of $41.6 million.
In the second quarter of 2025, approximately $45 to $50 million of current income tax is expected to be paid at Öksüt. Additionally, the annual Turkish government royalty payment will be made in the second quarter 2025. This payment is expected to be approximately $40 million. Together, these cash payments will require a cash outflow in the second quarter 2025 of approximately $85 to $90 million, subject to steady exchange rates.
Molybdenum Business Unit
In the first quarter of 2025, MBU used $6.0 million of cash for operations and had a free cash flow deficitNG of $33.9 million, which was primarily due to increased capital spending related to the restart of Thompson Creek.
Thompson Creek Mine
The restart of Thompson Creek is advancing, with approximately 14% of the total capital investment complete. Centerra maintains a robust cash position of $608.2 million, ensuring sufficient liquidity to finance ongoing project activities.
As expected during the ramp-up phase, tons moved in the first quarter 2025 were lower than planned, however, overall progress remains on track with first production expected in the second half of 2027.
In the first quarter of 2025, non-sustaining capital expendituresNG were $25.8 million. Since the restart decision, non-sustaining capital expendituresNG were $55.4 million. The 2025 guidance for additions to PP&E, all of which are non-sustaining capitalNG is unchanged at $130 to $145 million. The project remains in line with the total initial capital expendituresNG estimate of $397 million as outlined in the feasibility study.
Langeloth
In the first quarter of 2025, Langeloth roasted and sold 3.0 million pounds and 4.2 million pounds of molybdenum, respectively, and generated a loss from operations of $1.0 million and a positive EBITDANG of $0.1 million.
In the first quarter of 2025, cash flow used in operations was $2.3 million, primarily due to a build up of working capital from the timing of cash collection on shipments, partially offset by positive EBITDANG.
About Centerra
Centerra Gold Inc. is a Canadian-based mining company focused on operating, developing, exploring and acquiring gold and copper properties in North America, Türkiye, and other markets worldwide. Centerra operates two mines: the Mount Milligan Mine in British Columbia, Canada, and the Öksüt Mine in Türkiye. The Company also owns the Kemess Project in British Columbia, Canada, the Goldfield Project in Nevada, United States, and owns and operates the Molybdenum Business Unit in the United States and Canada.
Posted May 6, 2025
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New Break Resources Ltd. (CSE: NBRK) (OTCQB: NBRKF) (FSE: O91) has received results from the last four holes of a ten-hole, 1,996 metre summer drilling program in the Zavitz gold zone at the Company's 100% owned Moray gold project. In total, New Break has completed 5,372 metres of drilling in 32 drillholes in 2026. Moray is located 49 km southeast of Timmins, Ontario and 32 km northwest of the Young-Davidson gold mine operated by Alamos Gold Inc. Select results from the final four of ten holes drilled in the summer drilling program are presented below in Table 1, while drillhole collar locations are detailed in Table 2 in Appendix A. Table 1 – Moray Summer 2026 Final Drill Results Hole ID Length (m) From (m) To (m) Width (1) (m) Au Grade (2) (g/t) NBR-26-29 322.0 77.3 78.8 1.5 0.42 and 138.0 139.1 1.1 0.38 and 162.5 173.3 10.8 (3) 1.61 and 227.4 229.0 1.6 1.21 and 231.5 232.1 0.6 1.72 NBR-26-30 250.0 37.0 38.0 1.0 0.30 and 102.8 103.5 0.7 0.60 and 121.5 122.5 1.0 0.36 and 124.5 125.5 1.0 0.33 and 128.5 129.0 0.5 0.90 and 131.0 132.0 1.0 0.36 and 169.8 174.0 4.2 2.65 and 178.0 179.5 1.5 0.77 and 183.5 186.6 3.1 1.22 and 190.0 190.5 0.5 1.06 and 191.5 192.5 1.0 1.48 and 196.0 200.5 4.5 2.53 and 203.5 204.0 0.5 2.15 and 206.5 212.0 5.5 1.57 NBR-26-31 274.0 169.0 170.5 1.5 0.37 and 184.5 186.0 1.5 0.51 and 197.0 200.0 3.0 0.94 and 201.5 202.0 0.5 0.50 and 203.5 210.0 6.5 (3) 3.12 NBR-26-32 352.0 73.5 74.0 0.5 0.44 and 174.0 174.6 0.6 0.52 and 194.0 195.0 1.0 0.66 and 199.8 203.3 3.5 2.29 and 227.3 228.0 0.7 0.97 (1) Intervals are drill intersections and do not necessarily represent true widths. (2) All intervals are presented using a cut-off grade of 0.3 g/t Au and internal dilution of no more than 1.0 metres at grades less than 0.3 g/t Au and assays are not capped (see QA/QC Procedures). (3) Drill core photos shown in Appendix B. Figure 1 – Newly Reported Drillholes NBR-26-29, 30 Figure 2 – Newly Reported Drillholes NBR-26-30, 31, 32 Note: The bottom of NBR-26-30 deviated southeast and is represented in both sections. Figure 1: Section B-B1 incorporates drillholes NBR-26-06, 07, 08, 25, 26, 27, 28, 29 and part of 30. Gold mineralization extends southeast into the syenite as exhibited in NBR-26-29. NBR-26-30 is identified in both sections A-A1 and B-B1 as the drillhole was collared along section A-A1 but deviated southeast, intersecting gold mineralization in the mafic volcanics in section B-B1. Figure 2: A-A1 incorporates drillholes NBR-26-03, 04, 05, 23, 24, 30, 31 and 32. NBR-26-31 exhibits gold mineralization both within the syenite (at the contact) and within a "flow breccia" within the hematite altered mafic volcanic at the contact. NBR-26-32 is typified by blocky faulted ground with lamprophyre dykes and gold mineralization in the hematite altered mafic volcanics in a brecciated quartz vein with angular syenitic fragments. William Love, Chief Executive Officer of New Break commented, "Ongoing drilling this summer in the Zavitz gold zone continues to deliver significant gold values, with gold mineralization intercepted in every drillhole. As depicted in Figures 1 and 2, gold mineralization has been encountered predominantly within the mafic volcanics. Importantly, drillholes NR-26-29 and NR-26-32, the deepest drilled to date, demonstrate that gold mineralization extends into the syenite to the southeast at the contact with the mafic volcanics." He further noted, "The intrusive-mafic volcanic contact in the Zavitz gold zone has a distinctive magnetic high. This could be reflective of the higher proportion of iron in these mafic volcanics, which is associated with the higher gold values. This same magnetic and IP signature has been identified elsewhere in areas also believed to be along the intrusive-mafic volcanic contact. Drilling these never before tested targets with the goal of identifying gold mineralization similar to that encountered in the Zavitz zone represents the potential for significantly expanding the Moray gold discovery. There is also the belief that the Zavitz zone could represent the first of a series of stacked mineralized gold zones, which would point to the potential for a much larger gold system at depth. We plan to test this through deeper drilling directly into the Zavitz zone." About the Moray Gold Project The Moray property is located in the heart of the Ontario Abitibi greenstone belt, 49 km southeast of Timmins surrounded by a number of significant gold producing companies and existing mills (see Figure 3). The Young-Davidson gold mine operated by Alamos Gold Inc., with its 8,000 tonne per day mill is the closest and within a short trucking distance of approximately 45 km by road from Moray. The understanding of gold mineralization at Moray continues to evolve with each round of drilling. The occurrence of gold mineralization extending into the syenite to the southeast of the Zavitz zone and in the deepest drillholes is noteworthy given the presence of syenite-hosted mineralization at Young-Davidison. More recent examination of the drill core also suggests that the gold mineralization discovered to date may resemble an intrusion related style of deposit like Agnico Eagle's Upper Beaver gold deposit east of Kirkland Lake, as opposed to a structurally hosted gold system. Both Young-Davidson and Upper Beaver host multi-million ounce gold deposits. Figure 3 – Moray Location Map: Surrounding Gold Producers and Upper Beaver Gold Project Technical Content and Qualified Person The scientific and technical information contained in this news release has been reviewed and approved by Peter C. Hubacheck, P. Geo, consulting geologist to New Break, and an independent Qualified Person as defined by National Instrument 43-101. Mr. Hubacheck certifies that this news release fairly and accurately reflects the technical information and data presented. New Break conducts its exploration activities in accordance with CIM Best Practices Guidelines. QA/QC Procedures QA/QC procedures were executed to ensure all work is conducted in accordance with best practices. All drill core was sawn in half with one half of the core prepared for shipment and the other half retained for future verification. All core is under watch from the drill site to the core processing facility. Drill core is BQTK size and sample intervals range from 0.5 metres to 1.0 metres in length. Commercially prepared certified reference material ("CRM") standards and blanks were inserted with each shipment at a rate of 1 QAQC sample in every 12 core samples. Samples from New Break's 2026 Moray drilling program were analyzed at Activation Laboratories in Timmins, Ontario, which is ISO 17025 certified, by 30-gram fire assay with atomic absorption finish. Any sample assaying greater than 10.0 g/t Au was re-assayed with fire assay gravimetric analysis. Grade composite intervals over core lengths are calculated using a weighted average grade with a cut-off grade of 0.3 g/t Au. Up to 1.0 m of internal dilution (consecutive interval below cut-off grade) are included within specific geologic domains and alteration assemblages, except as otherwise noted. The composites are constrained geologically by metasomatic alteration processes sourcing from the Fiset syenite intrusion and contact mafic volcanic rocks. Elevated gold values are coincident with hematite, silica, sericite and pyrite mineralization within structurally prepared brecciated corridors flanking the intrusion. Intervals are not true widths and no top cutting has been applied to the higher gold values. About New Break Resources Ltd. New Break is a Canadian mineral exploration company focused on its Moray gold project located 49 km southeast of Timmins, Ontario, in a well-established mining camp within proximity to existing infrastructure, and 32 km northwest of the Young-Davidson gold mine, operated by Alamos Gold Inc. Shareholders are also leveraged to exploration success in Nunavut, Canada, through New Break's 20% carried interest in the Sundog gold project and ownership of 6.0 million shares of Guardian Exploration Inc. (TSXV: GX). The Company is supported by a highly experienced team of mining professionals. Appendix A – Drillhole Data and Locations Table 2 – Moray Summer 2026 Drillhole Collar Locations Hole ID Length (m) UTM Easting UTM Northing UTM Elevation Azimuth (degrees) Dip (degrees) NBR-26-29 322.0 492703 5320285 363 220 -70 NBR-26-30 250.0 492708 5320329 363 220 -47 NBR-26-31 274.0 492708 5320329 363 220 -60 NBR-26-32 352.0 492708 5320329 363 220 -70 Total 1,198.0 Coordinates are reported in UTM Zone 17 North, with units in metres. Figure 4 – Zavitz Gold Zone – Surface Traces of 2025 and 2026 Drillholes. All of the drilling at Moray has been completed by Enviro North Exploration Inc. out of Sturgeon Falls, Ontario. Drilling in the Zavitz gold zone is shown in figure 4, with the 1,996 metres in 10 holes drilled this summer depicted in red, the 2,807 metres in 20 holes drilled from January to April 2026 shown in blue and the 1,817 metres in 8 holes drilled in 2025 shown in black. In total, 6,620 metres in 38 drillholes have been completed in the Zavitz gold zone, while New Break has completed a total of 5,372 metres in 32 drillholes of our planned 2026, 10,000 metre drilling program. Appendix B – Drill Core Photos From NBR-26-29 and NBR-26-31
New Break Resources Ltd. (CSE: NBRK) (OTCQB: NBRKF) (FSE: O91) ha... READ MORE
September 16, 2026
