Gold-Silver Explorer Chases High-Grade Bonanzas in Nevada's Comstock District

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Mackay Gold and Silver Corp. (MACK:TSXV; MKGSF:OTCMKTS) has mobilized a diamond core drill rig to its wholly owned Comstock District project in Nevada, where drilling is now underway, according to an August 20 release.

This second rig launches the approximately 5,000-meter core drilling portion of Mackay's inaugural 20,000-meter Phase 1 program and will work alongside the reverse circulation (RC) rig that has been active since mid-June.

The core rig's first priority is the historic Sutro Tunnel intersection, where tunneling conducted in the late 1870s reportedly crossed a 30-meter section of the Occidental-Brunswick vein approximately 450 meters beneath surface, the release said. Despite the significance of the historical intersection, no drill hole has previously tested the area. Mackay plans to position core holes at roughly 100-meter intervals above, below, and along strike from the tunnel intersection.

Meanwhile, the RC rig has completed 25 holes totaling approximately 4,000 meters at Occidental South, where drilling is targeting shallow oxide-gold mineralization associated with a prominent gold-in-soil anomaly.

Mackay said assay results remain outstanding for all completed holes, with the first RC results expected in the coming weeks. The company is fully financed following an April 2026 go-public financing that raised approximately US$60M.

"Pace has quickened with the addition of the second rig, enabling us to drill both our priority target areas at the same time," commented Mackay Chief Executive Officer Darwin Green. "The RC rig continues to systematically test a shallow oxide-gold target along the southern end of the Occidental-Brunswick Lode, while the core rig goes after what we believe is one of the largest and most compelling untested targets in the district – the Occidental-Brunswick Lode at depth."

He continued, "During its construction 150 years ago, the nearly 4-mile-long Sutro Tunnel crosscut a 100-foot-wide interval of the Occidental-Brunswick vein that has never been followed up with a single drill hole. This represents the starting point of our exploration of the deeper portions of the multi-kilometer-long Occidental-Brunswick Lode, which we believe has excellent potential to host high-grade mineralization like the famous 'bonanzas' of the Comstock Lode."

A Parallel Lode in a Legendary District

The Occidental-Brunswick Lode forms a mineralized structure approximately five kilometers long east of and parallel to the historic Comstock Lode, sharing its general orientation and geological characteristics, the company said in the release. Mackay believes later faulting displaced the Occidental-Brunswick downward relative to the Comstock, potentially placing the depth range that hosted the Comstock's richest deposits beneath the historic Occidental-Brunswick workings. That deeper section remains beyond the reach of historical mining and has not been tested by modern drilling.

The Sutro Tunnel provides physical evidence that the vein continues at depth. Completed in the late 1870s as a 6.5-kilometer drainage tunnel linked to the 500-meter level of the main Comstock workings, the tunnel crossed the district's lodes at right angles and reportedly intersected a 30-meter-wide section of the Occidental-Brunswick vein more than 450 meters below surface. Historical records describe the interval as mineralized, although grades reportedly fell below the approximately 8 to 10 g/t Au cutoff used at the time. The tunnel is no longer accessible, and no drill hole has tested the historical intersection.

Mackay's diamond drilling is designed to investigate the projected depth continuation of the Occidental-Brunswick vein at roughly 100-meter intervals, with holes planned above, below, and to either side of the historic Sutro Tunnel intersection. Core drilling should provide detailed information on the structure, geology, geometry, and grade distribution of the vein at depth.

The broader Comstock District ranks among the highest-grade epithermal gold-silver systems in the United States, the release said. Historical mining between 1859 and 1926 produced approximately 8.2 million ounces (Moz) of gold and 192 Moz of silver, while the famed "bonanza lodes" averaged about 35 grams per tonne (g/t) gold and 726 g/t silver. Despite that production record, the district has received limited modern systematic exploration because historical mining focused on high-grade zones that could be reached with nineteenth-century technology, and fragmented ownership prevented district-wide exploration for more than 100 years.

Mackay has since assembled a major consolidated land position across the district, creating an opportunity to evaluate targets systematically. The company's 2026 exploration campaign combines RC drilling of shallow oxide mineralization at depths of roughly 100 to 250 meters across 80 to 100 planned holes within an approximately 1,000-meter by 400-meter area at Occidental South with the newly launched core program targeting the deeper, higher-grade potential of the Occidental-Brunswick structure.

Rebooting One of America's Great Gold Districts

In an August 20 review of the stock, Jeff Clark, Daniel Flynn, and Sharyn Alexander of The Paydirt Prospector framed Mackay as a well-financed bid to systematically explore a district that fragmented ownership had long left largely untested. CEO Green has helped consolidate Mackay's key ground and, the authors said, assembled what the company calls the largest claim position in the district's 167-year history.

Mackay now controls roughly 4,343 hectares, with the acquisition of the Silver City Lode Properties further consolidating the Comstock District under single ownership and giving the company the scale to work the district as one property. The company frames that footprint as valuable both for making discoveries and for building a consolidated asset that could eventually draw a larger acquirer.

At Occidental South, earlier operators drilled 14 holes between 2018 and 2021 and hit mineralization in every one, including 25 meters grading 13.49 g/t gold and 48 g/t silver; the zone remains open, and a gold-in-soil anomaly runs about one kilometer along strike. Mackay's 15,000-meter Phase 1 RC program is stepping out along strike and down dip to gauge the oxide system's scale, grade, and continuity, with a conceptual goal of outlining 1 million to 2 million ounces (Moz) of oxide gold at 1 to 2 g/t. Mackay also plans to advance the historic Comstock Lode, including converting a historical 1 Moz gold-equivalent inventory to modern standards and testing for more than 3 Moz.

Alexander said the investment case rests on land consolidation within an established high-grade Nevada epithermal district, noting that bringing the Comstock, Occidental-Brunswick, and Silver City lodes under one owner removes the fragmented ownership that long blocked systematic work. The geological parallels with the Comstock and the interpretation that faulting carried Occidental-Brunswick to greater depth create, in her view, a testable model for preserved high-grade mineralization, while Occidental South offers a second target whose soil anomaly reaches well beyond the historically drilled ground. She cautioned that Mackay's resource targets remain conceptual and that the current drilling must show whether meaningful mineralization extends past the limited zones tested historically.

The company said its latest raise drew about US$120 million of investor interest, letting it take in roughly US$60 million and fund an extensive drill campaign without needing to return to the market soon.

"If assays begin confirming shallow oxide potential at Occidental South — or show bonanza-style mineralization at depth — the stock could move quickly," the Paydirt Prospector piece noted, adding, "Mackay is a well-funded attempt to reboot one of America's great gold-silver districts."

Calling the near-term prize Occidental-Brunswick — the parallel lode offering shallow oxide potential and deeper bonanza-style upside — the authors set out their recommendation: "Reboots don't always work. But with the team, money, and land finally in place to test this region properly, we want exposure before those first results. Both Jeff and I have previously established overweight positions, Jeff through an earlier private placement, but we stopped buying a couple of months ago when we knew we would recommend the stock. We recommend buying a first tranche now, ahead of the initial Occidental-Brunswick assays."

The authors said they were "officially adding" Mackay to the Paydirt Prospector's portfolio and would cover all developments going forward.

"Can Mackay prove the Comstock still has multi-million-ounce potential and trigger a material re-rate?" they asked. "We think that possibility is very strong, and our recommendation reflects that view."

The Catalyst: Gold, Silver Moving on Up

Spot gold and silver advanced sharply in early U.S. trading on Friday as a softer U.S. dollar, reduced expectations for a September Federal Reserve rate increase, and concerns about U.S. fiscal conditions supported precious metals, Kitco NewsWire reported on August 21. Spot gold traded near US$4,594.60 an ounce, up 1.69%, while spot silver reached US$69.470, gaining 2.23%.

Markets remained divided between signs of slowing U.S. economic growth and continuing inflation concerns tied to oil prices and elevated longer-term Treasury yields. Softer consumer and producer-price data, weaker retail sales, and declining consumer sentiment have reduced expectations for another September rate increase, although jobless claims and the Philadelphia Fed survey showed no significant deterioration in employment or regional manufacturing. Recent Fed minutes indicated that several policymakers would support higher rates if inflation remains persistent, but traders continue to favor leaving rates unchanged next month. The 10-year Treasury yield remained near 4.7%, the 30-year yield around 5.25%, and the U.S. dollar index below 99.00, with flash U.S. PMI data next on the economic calendar.

Gold and silver continued to lead moves across major asset classes. Gold pushed through the US$4,500 level and approached resistance near US$4,595, while silver moved above US$66.55 and US$68.02 and neared resistance around US$69.48. The gains came despite elevated long-term yields, indicating that dollar weakness, fiscal concerns, and geopolitical demand were outweighing the pressure from higher rates.

Thomas Kaplan sees considerably more upside for gold, potentially taking the metal to US$30,000 to US$50,000 an ounce, according to a report by Jeremy Szafron for KitcoNews on August 20. Kaplan said a tenfold increase is not simply a possibility but an eventual certainty, stating, "Seeing gold go up another tenfold from here, to me is not just likely, but inevitable," and "I can see gold going to 30, 40, 50,000 dollars without a problem."

Gold stood near US$4,515 an ounce Thursday afternoon after reclaiming the US$4,500 level. A tenfold increase would place the metal at roughly US$45,000 an ounce, within Kaplan's stated range and far above the gains achieved over the past 20 years.

Kaplan offered no timeline for his longer-term forecast and said he could not determine whether the current correction had already run its course or might require another test, Szafron reported. "Maybe it already is, maybe it needs to test again, I don't know," he said of the correction. "It doesn't matter, because in the long term, even in the medium term, gold and silver are going to multiply from where they are."

Ownership and Share Information¹

Mackay Gold & Silver Corp. has a market cap of CA$260.26 million, with 85.72 million shares outstanding. The company's 52-week range is CA$1.96-CA$5.00.

Management and insiders own about 2% of shares, institutions own about 9%, and the rest is retail.

Common Investor Questions

What did Mackay Gold & Silver announce? On August 18, 2026, Mackay reported that a diamond core drill rig had arrived and begun drilling at its wholly owned Comstock District project in Nevada. The core rig launches the roughly 5,000-meter core portion of Mackay's 20,000-meter Phase 1 program and joins the reverse-circulation (RC) rig that has drilled since mid-June.

What are the two targets? The RC rig is testing shallow oxide-gold mineralization at Occidental South, tied to a prominent gold-in-soil anomaly, while the core rig targets the Occidental-Brunswick Lode at depth — beginning at the historic Sutro Tunnel intersection, where late-1870s tunneling crossed a roughly 30-meter section of the vein about 450 meters below surface that has never been drill-tested.

Why is the Occidental-Brunswick Lode considered compelling? It's a roughly five-kilometer mineralized structure running parallel to the legendary Comstock Lode and sharing its geology. Mackay believes later faulting dropped the Occidental-Brunswick downward, potentially placing the depth range that hosted the Comstock's richest deposits below the old workings — a zone beyond the reach of historical mining and untested by modern drilling.

How significant is the Comstock District historically? It ranks among the highest-grade epithermal gold-silver systems in the U.S. Mining between 1859 and 1926 produced about 8.2 million ounces of gold and 192 million ounces of silver, with the famed "bonanza lodes" averaging roughly 35 g/t gold and 726 g/t silver. Fragmented ownership and a focus on shallow high-grade zones left the district largely unexplored by modern methods for over a century.

What do commentators say? In an August 20 review, The Paydirt Prospector's Jeff Clark, Daniel Flynn, and Sharyn Alexander added Mackay to their portfolio and recommended buying a first tranche ahead of the initial Occidental-Brunswick assays, calling it "a well-funded attempt to reboot one of America's great gold-silver districts" while noting "reboots don't always work."