1911 Gold’s True North Project Sees Momentum with Rising Gold Prices and Verified Resource Continuity—However, Securing Funding Remains the Critical Factor

Favorable Market Conditions for Gold Project Revitalization

Current market dynamics present an ideal environment for restarting gold mining projects. Gold prices have experienced a dramatic surge—rising 63% in 2025—with forecasts suggesting an additional 17% increase in 2026. This upward momentum is largely fueled by sustained global demand, particularly from two main groups: central banks in Asia are acquiring gold to protect against currency depreciation, while institutional and retail investors are diversifying their portfolios by adding gold as a new asset class.

These strong price trends are more than just favorable headlines; they are crucial for attracting the investment needed to restart operations like the True North project. The healthy balance between supply and demand is supporting higher prices, making the economics of development increasingly attractive. For companies such as 1911 Gold, which is actively advancing the True North project through underground drilling, robust gold prices help lower financial risks and enhance the potential returns of a restart. This signals to the market that there is a willingness to pay for new gold supply, a key factor in securing the capital necessary to bring a mine back into production.

In summary, the current commodity landscape strengthens the financial argument for a project restart. While the price rally provides momentum, its longevity depends on continued strong demand. At present, the combination of central bank purchases and growing institutional interest makes restarting projects more viable than in recent years.

Reducing Project Risk: Resource Validation and Economic Assessment

Efforts to reduce technical risk at the True North project are progressing, with recent underground drilling offering vital confirmation of both the resource and the project's economic prospects. The main objective is to minimize uncertainty ahead of a potential production restart, and early results are encouraging.

The drilling campaign, initiated in October 2025, targeted zones prioritized for early extraction in the Preliminary Economic Assessment (PEA). These efforts successfully verified the continuity of gold mineralization in two critical areas: the V-810 vein within the Hinge Zone and the V-1030 and V-1040 veins in the L10 Zone. This confirmation is essential, as it supports the geological model that forms the basis of the mine plan. Notably, the new data indicates that these mineralized zones are, on average, wider than previously estimated—a development that could significantly increase the amount of recoverable ore and improve grades for the initial mining phase.

Several drill intercepts underscore the quality of the resource. In the Hinge Zone, one hole yielded 10.79 grams of gold per tonne over 2.20 metres, while another returned 6.62 grams per tonne across 3.40 metres. The L10 Zone also demonstrated strong continuity, with a hole intersecting 4.38 grams per tonne over 1.00 metre. These and other high-grade results confirm that the resource is both present and robust in the targeted areas.

The economic rationale for restarting the project is grounded in the PEA, which outlines strong returns with relatively low upfront capital requirements. For a company like 1911 Gold, which faces financial constraints, this low-cost profile is a significant advantage, making it more feasible to advance the project using existing resources and benefiting from the current high gold price. The confirmation of resource continuity and increased widths in early mining zones directly supports the PEA's assumptions, further strengthening the financial outlook.

In essence, ongoing drilling is systematically lowering project risk. By validating and even improving upon previous resource models, the company is laying a stronger foundation for subsequent steps, such as bulk sampling and test mining later in the year. This technical progress is vital for turning favorable market conditions into a credible financial plan.

Financial Challenges: Bridging the Funding Gap

Despite technical advancements, the financial pathway to restarting operations remains a significant challenge. 1911 Gold currently faces a precarious financial situation, heavily dependent on external funding to move forward with major development. For the nine months ending September 30, 2025, the company reported a net loss of $2.255 million. Coupled with an accumulated deficit exceeding $154 million, it is clear that the company lacks the internal cash flow needed to self-finance a restart. The available financial runway is limited, and the scale of capital required for development and mining is beyond the company's current means.

While efforts to reduce technical risk continue in anticipation of a possible production restart next year, immediate capital investment is essential. The recent deployment of a second surface drill rig to explore near-surface extensions is a positive step toward confirming additional resources, but it also adds to ongoing expenses. The total funding needed for a full restart is substantial, covering not only drilling but also infrastructure upgrades, permitting, and equipment purchases. As of now, this funding has not been secured, leaving the restart plan in a holding pattern. Although high gold prices support the project's economics, they cannot substitute for the necessary cash in hand.

Ultimately, there is a significant funding shortfall. The company's financial statements reveal a net loss and limited liquidity, while the project's capital requirements remain unmet. Current operations, focused on de-risking through drilling, are a vital preliminary step but do not resolve the financial gap. To make a production restart possible, 1911 Gold must successfully raise the required capital, a task that will test its ability to persuade investors in a market that often favors established, near-term producers.

Key Drivers and Risks: Navigating the Road to Production

The journey from resource confirmation to active mining is now shaped by a series of upcoming milestones and notable risks. While ongoing underground drilling is essential for reducing technical uncertainty, the true catalysts for a restart are financial and operational achievements that must be realized in the near future.

The most critical driver is securing the capital needed for development. For 1911 Gold, this will likely require either a strategic partnership or a successful fundraising effort. Given the company's financial position—including a net loss of $2.255 million for the first nine months of 2025—external funding is essential. While strong gold prices provide a supportive backdrop, the project's financial model depends on these prices remaining elevated. A key threshold to monitor is $4,500 per ounce; although recent gains have surpassed this level, sustained strength is necessary to maintain investor confidence and underpin the project's economics. Without new capital, the project cannot advance beyond its current stage.

The most immediate risk is the company's limited cash reserves, which currently stand at just over $11 million. While this provides some runway, the funds required for a full restart are much greater. Ongoing costs for drilling, as well as upcoming expenses for bulk sampling, test mining, and infrastructure improvements, will quickly consume available resources. The accumulated deficit of over $154 million highlights the company's inability to self-fund, creating urgent pressure to secure additional capital before reserves are exhausted.

Another significant risk lies in execution. Turning confirmed resources into a profitable mining operation demands precise engineering, effective permitting, and strong operational management. Although recent drilling has validated resource continuity in key zones, the project must now tackle the complexities of underground development, including designing a safe and efficient mine plan, updating permits as needed, and building the operational capacity for a successful restart. Any delays or cost overruns in these areas could undermine the project's economics, regardless of gold price trends.

In conclusion, the project's future hinges on a delicate balance of opportunities and risks. While favorable market conditions and technical progress create a promising foundation, they are not enough on their own. The company's ability to secure funding at attractive terms and execute the restart plan effectively will determine whether True North evolves from a promising prospect into a producing asset. Investors should watch for announcements regarding financing and updates on bulk sampling activities as key indicators of progress in the months ahead.