Kinross Commences Drilling at West Point Gold's Jefferson Canyon Project, 7 km from Round Mountain

Kinross has started drilling at Jefferson Canyon; major payments remain contingent on future results.

What the company is saying

West Point Gold Corp. (TSXV:WPG, OTCQX:WPGCF, FSE:LRA0) is highlighting the commencement of drilling by Kinross Gold U.S.A., Inc. at the Jefferson Canyon project in Nevada, effective September 23, 2026. The company frames this as a significant operational milestone, emphasizing the project's proximity to Kinross's Round Mountain mine and the potential for a substantial gold-silver deposit, referencing historical intercepts of 41.2m at 6.4 g/t gold and 402 g/t silver. Management, led by President & CEO Derek Macpherson, stresses the strategic value of the Kinross partnership and the low hurdle rate for defining a mineable deposit. The announcement details the four-year option agreement, which could yield up to US$10 million in future payments if both options are exercised, with West Point Gold retaining a 20% interest and royalty protection below 10%. The company also discloses two investor relations contracts: New Era Publishing Inc. (Katusa Research) for two months at a one-time fee of US$150,000, and Freedom Financial Research, LLC for 90 days at a one-time fee of US$150,000, both payable at commencement and subject to TSX Venture Exchange approval. The tone is confident, focusing on technical potential and partnership validation, but the company is clear that major financial benefits depend on future exploration success and Kinross's decisions.

What the data suggests

The announcement confirms that drilling has begun at Jefferson Canyon, with permits received August 19, 2026, triggering a four-year option period under the 2022 agreement with Kinross. Kinross is obligated to make annual lease payments of US$75,000 and spend US$600,000 on exploration, but the headline figures—up to US$10 million in option payments—are contingent on Kinross exercising its options to acquire up to 80% of the project (70% for US$5,000,000, plus an additional 10% for another US$5,000,000). Historical exploration data is robust, with 145 drill holes and strong intercepts, but no new resource estimate or economic assessment is provided. Soil sampling in 2021 revealed a four-square-kilometre anomaly with peak values up to 4,470 ppb Au, and rock samples returned up to 15.2 g/t gold and 421 g/t silver. The company has committed US$300,000 in marketing spend over two contracts, each paid upfront, with no equity compensation and no securities held by the service providers. All contract terms, payment structures, and regulatory approval requirements are fully disclosed. The data is comprehensive on contractual and technical terms but does not include any realised revenue, profit, or cash flow figures.

Analysis

The announcement is generally positive in tone, highlighting the commencement of drilling at the Jefferson Canyon project and the detailed terms of the Kinross option agreement. The realised milestone—drilling commencement—is concrete and credible, but most of the financial upside (up to US$10 million in option payments, potential project interest, and royalty protection) is contingent on future events such as Kinross exercising its options and successful exploration outcomes. The capital intensity is high, with significant potential payments and required exploration spend, but these are not immediate and are subject to multi-year timelines. The narrative leans on the project's historical drill results and soil anomalies to suggest future potential, but no new resource estimate or economic study is disclosed. The marketing contracts are factual but do not impact operational progress. Overall, the gap between narrative and evidence is moderate: the operational milestone is real, but the financial and project upside is long-dated and uncertain.

Risk flags

• ●The financial upside from the Kinross agreement is entirely contingent on successful exploration and Kinross exercising its options, meaning there is no guarantee of receiving the potential US$10 million in payments or retaining a 20% project interest. This introduces significant execution and counterparty risk, as Kinross can choose not to proceed at any stage.
• ●Operational risk remains high, as the project is still at the early drilling stage with no new resource estimate or economic study. Historical data is promising but does not guarantee future success, and there is no evidence yet that the current drilling will yield economically viable results.
• ●The company is committing substantial funds to marketing (US$300,000 across two contracts) at a time when no revenue or cash flow figures are disclosed. If exploration results disappoint or Kinross does not proceed, these marketing expenditures may not translate into increased investor interest or capital inflows.
• ●The marketing agreements are subject to TSX Venture Exchange approval, introducing regulatory risk. If approval is not granted, the planned investor relations activities may be delayed or cancelled, potentially impacting the company's ability to attract new investors during a critical exploration phase.

Bottom line

West Point Gold has achieved a concrete milestone with Kinross commencing drilling at Jefferson Canyon, but all major financial benefits—including up to US$10 million in option payments—are dependent on future exploration outcomes and Kinross's willingness to exercise its options. The technical data from historical drilling and soil sampling is strong, but no new resource estimate or economic analysis has been provided. The company is investing heavily in marketing, with US$300,000 committed to two short-term contracts, but these efforts will only pay off if exploration results are positive and Kinross advances the project. Investors should focus on upcoming drill results and any indication that Kinross will proceed beyond the minimum spend. The key takeaway is that while the operational progress is real, the path to material financial returns is long, uncertain, and highly dependent on third-party decisions.

Announcement summary

(TSXV:WPG) (OTCQX:WPGCF) (FSE:LRA0) West Point Gold Corp. announced that Kinross Gold U.S.A., Inc., a wholly owned subsidiary of Kinross Gold Corporation, has commenced drilling at West Point Gold's Jefferson Canyon project in Nye County, Nevada, as of September 23, 2026. The Jefferson Canyon project is located approximately 7 kilometres from Kinross's Round Mountain operations. West Point Gold received permits for the project on August 19, 2026, which started the four-year option period under the 2022 Exploration and Option Agreement with Kinross. The Agreement provides for the potential of up to US$10 million in future option payments. West Point Gold retains a 20% project interest if both Kinross options are exercised and will have royalty protection if its interest is diluted below 10%. The Jefferson Canyon project has 145 historical drill holes, including a notable intercept of 41.2 metres at 6.4 g/t gold and 402 g/t silver (hole GJ-81). Soil sampling in 2021 identified a four-square-kilometre gold-in-soil anomaly, with the highest value being 4,470 parts per billion gold. Anomalous soil samples included 29 samples with greater than 500 ppb Au, 99 samples with greater than 200 ppb Au, 234 samples with greater than 100 ppb Au, and 631 samples with greater than 20 ppb Au. Five rock samples collected returned values up to 15.2 g/t gold and 421 g/t silver. Kinross is required to make ongoing lease payments of US$75,000 per year and spend US$600,000 on exploration work, as well as maintain the unpatented claims. Kinross has the option to acquire 70% of the project for a cash payment of US$5,000,000 and form a joint venture LLC, and a second option to acquire an additional 10% for a further US$5,000,000. If either party is diluted below 10% in the LLC, its interest converts to a 1% net smelter returns royalty. The term of the Agreement is four years from permit receipt, with a possible extension of up to two years. West Point Gold has engaged New Era Publishing Inc. (also doing business as Katusa Research) for investor relations and marketing services under a consulting agreement dated September 8, 2026, for a two-month term and a one-time fee of US$150,000, payable at the start of services, with no securities issued as compensation. The agreement with New Era is subject to TSX Venture Exchange approval, and New Era does not own any securities of the company. The company has also engaged Freedom Financial Research, LLC for similar services under a consulting agreement dated September 11, 2026, for a 90-day term and a one-time fee of US$150,000, payable at the start of services, with no securities issued as compensation. The agreement with Freedom Financial is also subject to TSX Venture Exchange approval, and Freedom Financial does not own any securities of the company. Robert Johansing, M.Sc. Econ. Geol., P. Geo., Vice President, Exploration, is the qualified person who reviewed and approved the technical content of the press release.

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