P2 Gold Moves Gabbs Project Forward with Definitive Nevada Water Rights Deal

April 3, 2026

Jo Groves

P2 Gold signs a definitive deal for 2,500 acre-feet/yr of Nevada water rights for Gabbs, exceeding process needs, with NDWR approval expected within six to twelve months.

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Company Overview

P2 Gold Inc. [TSXV: PGLD | OTCQB: PGLDF] is a Vancouver-based mineral exploration and development company focused on advancing its gold-copper Gabbs Project on the Walker Lane Trend in Nevada. A positive preliminary economic assessment (PEA) has outlined a long-life, mid-size mine at Gabbs with average annual production of 109,000 ounces gold and 15,000 tonnes copper over a 14.2-year mine life. The project benefits from strong existing infrastructure, including paved highway access and on-site power and water. An infill and expansion drill programme is currently underway, with an updated mineral resource estimate expected in the third quarter.

Definitive Agreement Signed

P2 Gold has announced that its wholly-owned subsidiary, P2 Gabbs Inc., has entered into a definitive agreement with an arm's length private vendor to acquire 2,500 acre-feet per year of water rights in the Gabbs Basin, Nevada. The key terms remain unchanged from those disclosed in the company's news release dated March 25, 2026.

Closing of the acquisition is conditional upon the Nevada Division of Water Resources (NDWR) approving the transfer of approved water usage parameters, covering the water's source locations, intended uses, and methods of use, from irrigation to mining, milling, and dewatering for use at the Gabbs Project.

Water Rights Exceed Current Requirements

The 2,500 acre-feet per year acquired under the agreement exceeds the Gabbs Project's current projected process water requirements. According to the NI 43-101 Technical Report, PEA for the Gabbs Heap Leach and Mill Project, total water needed for operations has been estimated at 215 cubic metres per hour, equivalent to approximately 1,500 acre-feet per year, at a processing rate of 9 million tonnes per year. The excess capacity above current requirements has been acquired in anticipation of potential project expansion.

Regulatory Timeline

The NDWR approval process for the transfer of water rights is anticipated to take between six and twelve months, coinciding with the projected completion of the Gabbs feasibility study (FS) at the end of the fourth quarter.

Next Steps

The transaction is subject to NDWR approval for the transfer of the water rights from irrigation to mining, milling, and dewatering use. This approval process is expected to take six to twelve months coinciding with targeted completion of the FS by the end of the fourth quarter. Separately, the infill and expansion drill programme at Gabbs is underway, with an updated mineral resource estimate targeted for completion in the third quarter.

FAQs (AI-Generated)

What has P2 Gold announced? +

P2 Gold's wholly-owned subsidiary, P2 Gabbs Inc., has entered into a definitive agreement with an arm's length private vendor to acquire 2,500 acre-feet per year of water rights in the Gabbs Basin, Nevada. The key terms remain unchanged from those outlined in the company's earlier news release.

Why does the Gabbs Project need water rights? +

Water is required for the project's process facilities, including mining, milling, and dewatering operations. Total water needed for operations has been estimated at 215 cubic metres per hour, equivalent to approximately 1,500 acre-feet per year, at a processing rate of 9 million tonnes per year.

Why has P2 Gold acquired more water than currently required? +

The 2,500 acre-feet per year of water rights acquired exceeds the current projected process water requirement of approximately 1,500 acre-feet per year. The additional capacity has been secured in anticipation of potential project expansion.

What needs to happen before the acquisition can close? +

Closing is conditional upon the NDWR approving the transfer of the water rights' approved usage parameters, covering source locations, intended uses, and methods of use, from irrigation to mining, milling, and dewatering for use at the Gabbs Project.

When is NDWR approval expected, and what other milestones are coming? +

NDWR approval is anticipated within six to twelve months. This timeline coincides with the projected completion of the Gabbs FS at the end of the fourth quarter. Separately, an updated mineral resource estimate is targeted for completion in the third quarter.

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