Nevada Gold Explorer Starts Dual-Rig Drill Program at Comstock

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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 started diamond core drilling at its Comstock District project in Nevada as part of a larger 20,000-meter Phase 1 campaign.

The company mobilized a second rig on August 20, 2026, to begin the 5,000-meter core portion, while a reverse circulation rig, already active since June, continues shallow oxide testing.

Why the Timing Matters for Investors

Gold prices have climbed sharply in 2026, recently trading above US$4,500 per ounce. This environment favors companies with large, consolidated land packages in historic high-grade districts that have seen little modern exploration.

Key Investor Takeaways

• Mackay controls the largest claim position in the Comstock District's 167-year history after recent acquisitions that consolidated the main lodes under one owner.
• A fully funded US$60 million treasury supports the full 20,000-meter Phase 1 program without immediate need for additional financing.
• The new core rig targets an untested 30-meter vein intersection recorded in the 1870s Sutro Tunnel, more than 450 meters below surface.
• RC drilling at Occidental South has already completed 25 holes for roughly 4,000 meters, with first assays expected within weeks.
• Historical production from the district reached approximately 8.2 million ounces of gold and 192 million ounces of silver, while the historic bonanza lodes averaged approximately 35 g/t gold and 726 g/t silver.
• Commentary from The Paydirt Prospector highlights the opportunity to test both shallow oxide and deeper high-grade targets before initial results arrive.

Company Advantage: Consolidated Land Position

Mackay now holds roughly 4,343 hectares across the Comstock, Occidental-Brunswick, and Silver City lodes. Earlier, fragmented ownership had blocked systematic district-scale work for more than a century.

The company completed an April 2026 go-public financing that drew roughly US$120 million in interest and allowed it to raise US$60 million.

Priority Targets and Next Catalysts

The core rig's first holes will step out at 100-meter intervals above, below, and along strike from the historic Sutro Tunnel intersection. No prior drill hole has tested this area.

The RC rig focuses on shallow oxide-gold mineralization at Occidental South linked to a one-kilometer gold-in-soil anomaly. Earlier drilling by previous operators intersected 25 meters grading 13.49 g/t gold and 48 g/t silver.

Conceptual exploration goals include outlining 1 million to 2 million ounces of oxide gold at 1 to 2 g/t and advancing historic resources on the main Comstock Lode toward modern standards.

Broader Sector Timing and Gold Price Strength

Spot gold reached near US$4,594.60 per ounce on August 21, 2026, while silver traded at US$69.47, supported by a softer U.S. dollar and shifting rate expectations. Kitco NewsWire reported on August 21

Longer-term forecasts from Thomas Kaplan point to substantially higher gold prices over time, though no specific timeline is attached.

Views and Valuation Context

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 effort to systematically explore a district long left untested due to ownership fragmentation.

The authors added the company to their portfolio and recommended buying an initial tranche ahead of the first assays from the Occidental-Brunswick target area.

Share Structure and Near-Term Events¹

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 hold about 2 percent, institutions hold about 9 percent, and the balance is held by retail investors.

First assay results from the RC program are expected in the coming weeks, followed by ongoing core drilling results from the deeper target.

Common Questions from Investors

What triggered the start of core drilling? The arrival of the diamond rig on August 20, 2026, allowed Mackay to begin the 5,000-meter core portion of its Phase 1 program while the RC rig continues shallow testing.

Which areas are being drilled first? The core rig targets the untested depth extension of the Occidental-Brunswick vein at the historic Sutro Tunnel intersection; the RC rig is stepping out around the gold-in-soil anomaly at Occidental South.

How large was the historical production from the district? Between 1859 and 1926, the Comstock produced approximately 8.2 million ounces of gold and 192 million ounces of silver, with bonanza zones averaging 35 g/t gold and 726 g/t silver.

What financing supports the program? An April 2026 financing raised roughly US$60 million, leaving the company fully funded for the entire 20,000-meter Phase 1 campaign.

What do independent analysts recommend? The Paydirt Prospector team added Mackay to its portfolio on August 20 and advised purchasing an initial position ahead of the first assay results from the deeper target.

Mackay's dual-rig approach provides retail investors with two distinct opportunities to watch within the same program: near-surface oxide potential and deeper high-grade vein extensions. Continued assay flow and any expansion of the current land position will remain key items to monitor through the balance of 2026.