About 400 Samples Are Pending Assay After Drilling Hits Multiple Sulphide-Bearing Intervals

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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 that its 2026 diamond drilling program at the Montauban Project in Québec had surpassed 2,000 meters, with multiple holes encountering alteration, quartz-carbonate veining, and locally sulphide-bearing intervals.

As of September 15, ESGold had advanced 19 drill holes totaling approximately 2,030 meters of its planned 5,000-meter program. Observed sulphides included pyrite, pyrrhotite, and galena, occurring locally within or adjacent to quartz-carbonate veins, altered gneissic units, and structurally affected intervals.

Approximately 400 core samples had been submitted to SGS Laboratories in Val-d'Or for analysis, with assay results pending. Nine drill holes had also intersected historic underground workings or voids, providing geological control for comparing the modern drilling with the geometry of the former mine.

"Passing 2,000 meters is an important milestone in our 5,000-meter program, but what is particularly encouraging for us is what we continue to see in the core," CEO and Director Gordon Robb said. "We are repeatedly encountering alteration, quartz-carbonate veining, and sulphide-bearing intervals within the geological environment associated with the historic Montauban mineralized system."

Core logging identified repeated sequences of amphibolite and quartz-feldspar-, biotite- and muscovite-bearing gneisses, together with zones of silicification, chlorite-sericite alteration, deformation, and quartz-carbonate veining. Sulphides were observed within or adjacent to quartz-carbonate veins, altered gneissic units, and structurally affected intervals in holes, including MM-26-03, MM-26-04, and MM-26-11.

The company said the observations provided information on alteration, structural features, and lithological contacts associated with the historic Montauban mineralized environment. ESGold cautioned that visual observations were not necessarily indicative of economic mineralization and that laboratory assays were required to determine metal grades.

The 2026 drill program was designed first to confirm the presence and continuity of mineralization along the main mineralized structure, then extend beyond the historical underground workings to test additional targets and potential extensions of the system. The program was testing a geological interpretation developed from historical mine information, ESGold's drillhole compilation, ANT surveys by CAUR Technologies, and 3D geological modeling by Geomatic World.

Core logging, cutting, and sampling were continuing as drilling advanced toward the planned 5,000 meters. The entire drill core was being sampled and analyzed during the first exploration phase. ESGold said assay results would be reported after they were received, reviewed, and validated under its QA/QC procedures.

The company planned to combine geological, structural, and assay information to refine its integrated 3D geological model, evaluate relationships among mineralization, lithological contacts, alteration, and structural features, and prioritize additional shallow and deeper drill targets designed to test potential extensions of the Montauban system.

Gold and Silver Markets Navigate Rate and Dollar Pressures

Trading Economics reported that gold traded around US$4,270 per ounce on September 25 and was on track for a weekly decline of more than 2%. The precious metal had been pressured by a stronger U.S. dollar and rising Treasury yields as expectations increased that the Federal Reserve could raise interest rates further to address inflation. The report noted that 10-year and 30-year Treasury yields had reached their highest levels since 2007 and 2004, respectively, while the dollar had climbed to a nearly two-month high. Trading Economics said the moves had followed "stronger-than-expected U.S. economic data and elevated oil prices" that fueled concerns about persistent inflation and higher interest rates.

Silver faced similar conditions. According to Trading Economics, silver held below US$64 per ounce on September 25 and was on track for a weekly decline of approximately 4%. Despite the shorter-term pullback, the data showed silver had gained 40.26% over the previous year. Trading Economics described silver as having both industrial and investment applications, including use in electronics, solar panels, and medical technologies, while also serving as a store of value and portfolio diversification tool.

Atrium Research analysts Riley Venton and Ben Pirie maintained a "Buy" rating and CA$1.30 price target for ESGold.

A September 25 report by CNBC-TV18 also described volatility across precious metals markets amid shifting U.S. interest-rate expectations, a stronger dollar, and elevated Treasury yields. In overseas trading cited by the report, gold futures had risen 0.01% to US$4,275.38 per ounce, while silver futures had gained 0.02% to US$63.80 per ounce.

Gaurav Garg, Head of Research at Lemonn, said both metals had remained under pressure on a weekly basis from a stronger dollar, U.S. Treasury yields above 5%, and expectations that the Federal Reserve could keep rates higher for longer.

According to the same report, Giottus.com CEO Vikram Subburaj identified the global interest-rate outlook, stronger dollar, and higher U.S. yields as key factors weighing on precious metals. Higher yields could reduce the relative appeal of non-yielding assets such as gold and silver.

Physical demand had remained steady but cautious. Darshan Desai, CEO of Aspect Bullion & Refinery, said buyers had become more selective at elevated price levels and were waiting to see how prices developed. He also said traders would need to manage inventory carefully and respond to actual physical demand.

Atrium Maintains Buy Rating as Montauban Drilling Advances

Atrium Research analysts Riley Venton and Ben Pirie maintained a "Buy" rating and CA$1.30 price target for ESGold in a September 25 research note following the latest Montauban drilling update. The analysts wrote, "We are maintaining our BUY rating and target price of CA$1.30/share on ESGold."

The analysts highlighted the approximately 2,030 meters drilled across 19 holes and the roughly 400 core samples awaiting assays. "We patiently await upcoming results, particularly given what the Company is seeing in the core," they wrote. Atrium also noted that nine holes had intersected historic underground workings or voids, which it said would help ESGold reconcile the new results with historic mine data.

Atrium also pointed to the expanded ANT survey and updated property-wide 3D model. The survey covered approximately 70 square kilometers, while favorable geology had been traced toward the east and southeast, identifying deeper structural corridors and targets laterally and at depth. The analysts said ESGold viewed the southern and eastern corridors as priorities.

In its assessment, Atrium wrote that ESGold "continues to push forward on all fronts, and in our view, is approaching a key inflection point." The analysts added that while the 3D model had indicated an exploration opportunity at Montauban, "drill results ultimately need to prove out this upside, and results are on the way." They also said commissioning progress was providing increased visibility on potential cash flow that could support the company's exploration plans.

Atrium reported that ESGold was trading at approximately 0.3 times NAV and 3.5 times estimated 2027 cash flow, compared with peer figures of approximately 0.6 times NAV and 5.5 times estimated 2027 price-to-cash-flow. The analysts said those comparisons implied room for a re-rating as production approached.

Montauban Advances on Parallel Production and Exploration Tracks

Alongside the ongoing drill program, ESGold's September 2026 corporate presentation outlined work toward commissioning its Montauban tailings reprocessing operation and continued exploration of the broader property. The presentation described Montauban as fully permitted and fully funded through first doré pour, with the mill building completed and rated for processing capacity of 1,000 tons per day.

The project's infrastructure included a 20,000-square-foot processing facility and laboratory, 1.3 kilometers of service hydropower, all-weather roads, and site access. ESGold controlled 485 claims covering approximately 24,414 hectares, or 244 square kilometers.

The company said major processing equipment was arriving and being integrated. All major permits had been secured, resource verification and metallurgical testing had been completed, and the integrated 3D geological model had also been completed. ESGold stated that it had invested more than US$15 million in developing Montauban.

The tailings operation was designed to produce gold, silver, and mica from historic mine waste. The September presentation described a parallel-phase strategy under which Phase 1 involved bringing the Montauban tailings into production and establishing recurring cash flow, while Phase 2 involved district-scale exploration guided by integrated ANT 3D modeling and the expanded land package.

The 2025 PEA outlined a tailings resource that included 603,700 tonnes of indicated material grading 0.40 g/t gold and 31.45 g/t silver, and 319,300 tonnes of inferred material grading 0.41 g/t gold and 36.93 g/t silver. The presentation reported gold recovery of 89.3% and silver recovery of 77%. It also identified the creation of approximately 30 jobs among the project's stated objectives.

The presentation reported a pre-tax internal rate of return of 105%, a pre-tax NPV at a 5% discount rate of CA$44.5 million, and a payback period of less than two years. The PEA used gold at US$2,900 per ounce and silver at US$32 per ounce.

On the exploration side, ESGold's integrated 3D geological model combined Ambient Noise Tomography imaging with historical drilling and mine data. The model defined a mineralized corridor extending to approximately 900 meters depth and identified more than 2 kilometers of strike within the existing survey footprint. The company planned an expanded ANT survey covering approximately 70 square kilometers, with integration of the results into drill targeting.

The company's 5,000-meter surface diamond drilling program comprised 29 proposed holes, principally focused on the historic Montauban mine area. Its stated objectives included testing known mineralized zones and continuity between historical drill holes, targeting potential extensions into under-tested areas, and integrating new results with historical drilling and geophysical data to refine the 3D geological model. ESGold said its goal was to build the modern geological and assay database needed to evaluate a future NI 43-101 resource.

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.

Frequently Asked Questions

What is ESGold Corp., and what is the company doing at the Montauban Project?

ESGold Corp. is advancing the Montauban Project in Québec. Its current work includes a 5,000-meter surface diamond drilling program focused primarily on the historic Montauban mine area, alongside preparations for a fully permitted and funded tailings reprocessing operation.

What did ESGold find in its latest drilling at the Montauban Project?

ESGold reported multiple intervals containing alteration, quartz-carbonate veining, and locally occurring sulphides. Observed sulphides included pyrite, pyrrhotite, and galena. The company cautioned that visual observations were not necessarily indicative of economic mineralization and that assays were required to determine metal grades.

How much drilling has ESGold completed at Montauban in 2026?

As of September 15, ESGold had advanced 19 drill holes totaling approximately 2,030 meters. The full 2026 diamond drilling program was planned for approximately 5,000 meters across 29 proposed holes.

When will ESGold release assay results from the Montauban drilling program?

Approximately 400 core samples had been submitted to SGS Laboratories in Val-d'Or for analysis. ESGold said assay results would be reported as they were received, reviewed, and validated under the company's QA/QC procedures.

What is ESGold targeting with its 5,000-meter Montauban drill program?

The program was designed to confirm the presence and continuity of mineralization along the main mineralized structure before extending beyond the historical underground workings to test additional targets and potential extensions. ESGold also planned to integrate new drilling information with historical data, ANT geophysics, and its 3D geological model.

What is the significance of ESGold's 3D geological model at Montauban?

According to the company's September corporate presentation, integrated 3D modeling identified a mineralized corridor extending approximately 900 meters vertically and more than 2 kilometers along strike within the existing survey footprint. ESGold planned to use new geological, structural, and assay information to continue refining the model and prioritize additional drill targets.

Is ESGold's Montauban Project permitted and funded for production?

ESGold's September corporate presentation described Montauban as fully permitted and fully funded through first doré pour. The mill building had been completed and was rated for a processing capacity of 1,000 tons per day, while major processing equipment was arriving and being integrated.

When is ESGold targeting its first gold production at Montauban?

The company's September presentation identified the first gold production in 2026 as an upcoming milestone. Other catalysts include commissioning updates, processing throughput results, and exploration and drilling results extending into 2027.

What are the gold and silver resources in the Montauban tailings?

The 2025 PEA outlined 603,700 tonnes of indicated material grading 0.40 g/t gold and 31.45 g/t silver, along with 319,300 tonnes of inferred material grading 0.41 g/t gold and 36.93 g/t silver. The presentation reported gold recovery of 89.3% and silver recovery of 77%.

What are the economics of ESGold's Montauban Project?

The September presentation reported a pre-tax internal rate of return of 105%, a pre-tax NPV at a 5% discount rate of CA$44.5 million, and a payback period of less than two years. The PEA used gold at US$2,900 per ounce and silver at US$32 per ounce.

What did Atrium Research say about ESGold stock?

Atrium Research analyst Ben Pirie reiterated a "Buy" rating and CA$1.30 price target for ESGold on September 3. Pirie called the start of the 2026 drilling program a "critical milestone" and discussed the company's planned tailings operation, anticipated cash flow, and exploration strategy.

How have gold and silver prices performed recently?

On September 25, Trading Economics reported gold trading around US$4,270 per ounce and silver below US$64 per ounce. Both metals faced weekly pressure from a stronger U.S. dollar, elevated Treasury yields, and changing expectations for U.S. interest rates. Its data showed silver remained up 40.26% over the preceding year.