3D Model Provides Geological Constraint to 1.2 Kilometers Depth, Opens New Gold-Silver Exploration Areas in Quebec

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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.

ESGold Corp. (ESAU:CSE; ESAUF:OTCQB; Z7D:FSE) reported the completion of its expanded Phase 2 Ambient Noise Tomography survey and an updated property-scale three-dimensional geological model for its Montauban Project, approximately 120 kilometers west of Québec City, Québec.

The expanded ANT-2 survey extended geophysical coverage northward from the original ANT-1 survey area. The updated model integrated the ANT interpretation with 1,637 drill holes, 1,707 regional multi-element ICP samples, lithology, historical assays, structural interpretation, and regional mapping across approximately 70 square kilometers of the Montauban Project.

CAUR Technologies Inc. completed the ANT-2 survey across the northern portion of the property using 200 three-component geophone stations at an average spacing of approximately 400 to 600 meters. The stations continuously recorded ambient seismic noise for 32 days between March 19 and April 19, 2026. The resulting data was used to generate a three-dimensional shear-wave velocity model evaluated across 1,251 grid nodes.

The ANT-2 model provided geological constraints from approximately 86 meters to about 1.2 kilometers below surface. The interpretation identified broad near-horizontal low-velocity layers and narrower near-vertical low-velocity corridors trending approximately 020 degrees. ESGold integrated these features into the property-scale 3D geological model for structural interpretation and exploration targeting.

The integrated interpretation supported the concept of Montauban as a gold- and silver-rich volcanogenic massive sulphide system in which structural controls have influenced the current mineralized geometry. According to the company, the known Au-Ag-rich VMS mineralization occurs within a structurally complex environment where folding, faulting, and deformation may have displaced, repeated, or stacked favorable geological units and mineralized horizons.

The company said the ANT features are not interpreted as mineralization on their own. Their exploration significance increases where they coincide with favorable geology, known mineralized trends, historical drilling, and Zn, Cu, Ba, and Ag geochemical pathfinders.

The updated model highlighted southern, eastern, southeastern, and northern areas for exploration. In the south, favorable geological units and modeled mineralized shells can be evaluated beyond the historic workings. To the east and southeast, geological units associated with known Montauban mineralization can be traced into less-explored areas where structural trends and geochemical responses occur. The expanded northern ANT-2 area remains comparatively under-tested.

"Completing ANT-2 and integrating it with our historical drilling, geochemistry, and geological data gives us a much stronger framework for how we evaluate the broader Montauban property," Chief Executive Officer and Director Gordon Robb said. "We now have a property-scale model that allows us to systematically rank opportunities and make more informed decisions about where we deploy exploration capital."

Robb said drilling was already underway around the historic mine area and that the expanded model provided a foundation for evaluating a larger portion of the property.

ESGold outlined three phases for its 2027 exploration planning. The first involves a formal audit and validation of the historical drillhole database, refinement of lithological and structural interpretations, integration of additional geochemical and geophysical information, improved positioning of historical underground workings, and maintenance of the 3D model as a version-controlled exploration platform.

The second phase involves ranking targets based on the coincidence of geological criteria, including favorable stratigraphic or lithological position, structural architecture, Zn-Cu ± Ba-Ag geochemical responses, and supporting geophysical observations. The company said particular attention would be given to possible structural repetitions, folded or displaced favorable units, and stacked target geometries.

The third phase involves the development of a targeted drilling program following target validation and ranking. Initial drilling would focus on targets supported by multiple datasets, including selected opportunities in the southern and eastern corridors. Selected conceptual targets in the northern ANT-2 area may subsequently be evaluated where the combined geological, structural, geochemical, and geophysical interpretation supports drill testing. Results would be incorporated into the 3D model for subsequent targeting.

Geomatic World Inc. completed the data integration, geological interpretation, and 3D modeling, while CAUR Technologies completed the ANT survey and interpretation. ESGold said the model can be updated as additional drilling, geological mapping, structural measurements, assay datasets, and geochemical results become available.

Gold and Silver Markets Await Fed Decision

Trading Economics reported on September 16 that silver had climbed above US$64 per ounce for a second consecutive session as gains in oil prices and bond yields lost momentum ahead of the U.S. Federal Reserve's latest policy decision. Silver was quoted at US$64.713 per ounce, up 1.68% for the day. It was down 1.59% over the previous month but up 55.28% over the previous year.

According to Trading Economics, oil prices had pulled back from multi-month highs following an unexpected increase in U.S. crude inventories, although supply disruptions in the Middle East continued to support prices. Global bond yields had also steadied following their recent increase as markets awaited several major central bank decisions.

Atrium Research reiterated a "Buy" rating and CA$1.30 price target.

Trading Economics said the Federal Reserve was widely expected to raise interest rates by 25 basis points, which would represent its first increase in approximately three years.

Markets were also watching for indications of another potential increase later in the year, with expectations building around October or December. The Bank of Japan was likewise expected to raise borrowing costs during the week, while the Bank of England was expected to leave rates unchanged.

Silver's move occurred alongside higher gold prices. Trading Economics reported gold at US$4,342.48 per ounce on September 16, up 1.17% for the day and 18.63% over the previous year. 

According to a September 14 Kitco News report, gold began the trading week near a one-month low and below US$4,300 per ounce as markets looked ahead to the Federal Reserve's interest-rate decision. Sprott Inc. President Ryan McIntyre pointed to sovereign debt and fiscal stability as longer-term considerations for the gold market.

"The nominal interest rate argument is gonna diminish as there is increasing fiscal uncertainty," McIntyre said. He also referred to gold as the "North Star" of monetary assets and discussed its status as an asset without a corresponding sovereign liability in the context of fiscal concerns.

McIntyre also said U.S. institutional investors remained relatively underexposed to gold despite the metal's performance during the year. Discussing the relationship between economic growth and government interest expenses, he said, "My view is once the interest expense exceeds the nominal growth rate in the United States, then you run into trouble because you literally can't even pay off the interest. The economy's not growing itself out of the interest." He also pointed to persistent inflation pressures and the financial effects of higher borrowing costs.

Reuters reported the same day that gold prices had advanced as the U.S. dollar weakened and oil prices declined ahead of the Federal Reserve's interest-rate decision.

Tradu.com senior market analyst Nikos Tzabouras attributed the move to several market factors. "Gold firms up today on easing dollar strength, a cooldown in oil prices and a pullback in U.S. bond yields," he said.

Reuters reported that a weaker U.S. dollar made dollar-denominated metals less expensive for buyers using other currencies, while higher interest rates increased the opportunity cost associated with holding non-yielding bullion.

Tzabouras described forces working in different directions for gold. "As long as supply disruptions keep crude and consumer prices elevated, pressure for monetary tightening will persist, weighing on bullion," he said. He also pointed to fiscal pressures as another factor influencing investor behavior. "On the other hand, ballooning deficits are eroding confidence in the greenback and fuelling the debasement trade, driving investors toward hard assets like gold."

Analyst Highlights ESGold's Montauban Potential

Atrium Research analyst Ben Pirie reiterated a "Buy" rating and CA$1.30 price target for ESGold on September 3, 2026, following the company's announcement that it had commenced its 2026 surface diamond drilling program at Montauban. Pirie described the start of drilling as a "critical milestone."

Pirie noted that Montauban was fully permitted and funded, with first production targeted for the second half of 2026 at a 1,000-tonne-per-day mill processing five legacy tailings sites. He said the tailings reprocessing operation avoided drilling and blasting and cited operating costs of approximately CA$35 per tonne and forecast margins of approximately 72%.

According to Pirie, the anticipated near-term cash flow would allow ESGold to internally fund exploration across its land package. He said this structure could allow new ounces to become production feed without requiring additional mill capital expenditures.

Pirie also compared ESGold's valuation with its peers, reporting that the company traded at approximately 0.4 times net asset value and approximately 3.0 times estimated 2027 cash flow. He said peers traded at approximately 0.6 times net asset value and approximately 5.3 times price-to-cash-flow. Based on those comparisons, Pirie said there was room for a re-rating as production approached.

Montauban Work Programs and Operational Milestones

ESGold's Q2 2026 presentation described Montauban as a fully permitted and fully funded tailings reprocessing project designed to produce gold, silver, and mica from historic mine waste. The presentation said the mill building had been completed with processing capacity rated at 1,000-tonne-per-day and that the project was advancing toward commissioning. The site's infrastructure included a 20,000-square-foot processing facility and laboratory, 1.3 kilometers of service hydropower, and all-weather roads and site access.

The presentation reported that comprehensive drilling and verification work had been completed across the tailings zones, including 352 drillholes totaling 1,654 meters, 1,170 sampled intervals representing 1,498 meters, and 35 trenches totaling 77 meters. Independent QAQC included blanks, standards, and re-analysis, with assays completed by SGS Québec. The dataset formed the basis for the 2025 NI 43-101 resource estimate.

The 2025 PEA listed total indicated tailings resources of 603,700 tonnes at 0.40 g/t gold and 31.45 g/t silver and total inferred resources of 319,300 tonnes at 0.41 g/t gold and 36.93 g/t silver. The presentation also reported gold recovery of 89.3% and silver recovery of 77%. It identified processing the mine tailings in Notre-Dame-de-Montauban, stopping water contamination, reuse of neutralized tailings, restoration of mine tailings sites to their natural state, and creation of approximately 30 jobs as elements of the project.

The presentation described a parallel-phase strategy consisting of bringing the Montauban tailings into production and establishing recurring cash flow alongside a district-scale exploration program guided by integrated 3D ANT modeling and the expanded land footprint. The exploration program included step-out drilling, which the presentation anticipated for spring 2026, subject to permitting and logistics.

ESGold reported that more than CA$15 million had been invested in developing Montauban. The presentation listed all major permits as secured, plant and infrastructure as largely installed, resource verification and metallurgical testing as complete, the integrated 3D geological model as completed, the expanded land package as secured, and commissioning as underway.

The presentation's 2025 PEA economic highlights included a 105% pre-tax internal rate of return, a CA$44.5 million pre-tax net present value at a 5% discount rate, and a payback period of less than two years. The PEA used a gold price of US$2,900 per ounce and a silver price of US$32 per ounce.

The presentation identified construction and commissioning updates, processing throughput results, first gold operations in 2026, step-out diamond drilling anticipated in spring 2026, subject to permitting and logistics, and exploration and expansion updates into 2027 as upcoming catalysts. It also said the expanded ANT survey covering approximately 70 square kilometers and drill targeting were underway.

The company's land position had been expanded to 485 claims covering approximately 24,414 hectares, or 244 square kilometers, surrounding Montauban. The presentation said recent staking was completed to secure structural trends and potential extensions identified through modeling.

Ownership & Share Information¹

ESGold Corp. has a market cap of CA$63.82 million, with 110.21 million shares outstanding. The company's 52-week range is CA$0.42-CA$1.08.

Institutions own 5% of shares, while Management & Insiders own 60%. The remaining 35% of shares are Retail.