Cash flow from the DSO gold mine is advancing the company’s mid-tier precious metals ambitions.
Manh Choh fuels Contango’s next generation
Shane Lasley, September 10, North of 60 Mining News
Cash flowing from the Manh Choh mine is helping Contango Silver and Gold Inc. advance a pipeline of precious metals projects envisioned to carry the company from direct shipping ore operations to a larger hub-and-spoke mining company in Alaska and British Columbia.
“Manh Choh continues to generate strong free cash flows for the company to use to advance our high-grade precious metals portfolio,” said Contango CEO Rick Van Nieuwenhuyse.
Operated by Kinross Gold Corp., which owns a 70% joint venture interest, Manh Choh is a satellite mine that ships ore to Kinross’ Fort Knox operation near Fairbanks, Alaska, where it is processed in batches.
During the first half of 2026, the Kinross Alaska mill at Fort Knox recovered 56,508 ounces of gold from two batches of Manh Choh ore. Contango’s 30% share of that production came to 16,952 oz.
Over the same period, Contango received $18 million in cash distributions from the Peak Gold JV at Manh Choh.
A third 2026 batch of Manh Choh ore began processing Aug. 20 and is expected to continue through September. Contango anticipates its share of this campaign will total between 11,000 and 12,000 gold-equivalent ounces.
The stronger production expected from this campaign reflects the transition to higher-grade sulfide ore from Manh Choh’s South Pit.
Contango is investing cash generated by Manh Choh into a pipeline of projects in Alaska and B.C. that support its longer-term goal of becoming a mid-tier producer capable of producing more than 200,000 oz of gold and roughly 5 million oz of silver annually.
“From advancing underground development and drilling at Lucky Shot to completing critical road construction, geotechnical drilling, and comprehensive environmental and cultural resource studies at Johnson Tract, our team has maintained an exceptional pace of execution,” Van Nieuwenhuyse said.
The windfall means another $128 million for Permanent Fund dividends, enough to raise this year’s payment to $1,200 per recipient. Those payments will start Oct. 1.
Wartime oil prices continue to benefit Alaska’s state treasury, new figures show
James Brooks, September 11, 2026
The price of North Slope crude oil topped $100 per barrel on Wednesday, crossing that mark for the first time since June, according to figures published by the Alaska Department of Revenue.
Though the rising cost of diesel, heating oil and gasoline is hitting individual Alaskans hard — nationally, the price of diesel topped $6 per gallon on Thursday — the high cost of crude oil caused by the Iran war continues to increase the amount of money available for services and Permanent Fund dividends in Alaska.
Preliminary figures published Aug. 31 show the state earned just under $7 billion in general-purpose revenue during Fiscal Year 2026, which ended June 30.
That estimate will be revised and updated later this fall, acting Revenue Commissioner Janelle Earls said in a memo containing the estimate.
The new figure is more than $500 million above a prediction from March, which itself was another $500 million higher than a prediction from last fall.
This spring, legislators and Gov. Mike Dunleavy approved $6.4 billion in general-purpose spending on services and this year’s Permanent Fund dividend.
They also made plans for what would happen if more money was available, and those plans are now being executed, Earls said.
The wartime windfall means another $128 million for Permanent Fund dividends, enough to raise this year’s payment to $1,200 per recipient. Those payments will start Oct. 1.
It also means an extra $115 million for local school districts and $15 million more for the state’s bulk fuel loan program, which fronts local governments the money needed to buy fuel for the winter.
After that spending, more than $341 million was left over for a deposit into the state’s Statutory Budget Reserve, a savings account that can be accessed with a majority vote of the state House and Senate and the assent of the governor.
Since July 1 and the start of Fiscal Year 2027, oil prices — and thus state revenue — have continued to run ahead of the March forecast.
In March, the Department of Revenue forecast that North Slope oil prices would average $75 per barrel for FY27. Through the first two months of the fiscal year, prices have instead averaged $84 per barrel.
On Wednesday, President Donald Trump said he does not expect oil prices to decline until after the Nov. 3 midterm elections.
If that holds true, the result would be tens — if not hundreds — of millions of dollars extra for state lawmakers and Alaska’s new governor to budget when the 35th Alaska State Legislature convenes in January.
Already, the Legislative Finance Division is projecting a $106 million surplus in FY27, according to a newsletter published Sept. 4.
NE