Mackay Gold & Silver Adds Second Drill Rig to Test the Historic Sutro Tunnel Intersection of the Occidental-Brunswick Lode at Depth, Comstock District, Nevada

Drilling is underway, but no assay results or resource data have been released yet.

What the company is saying

Mackay Gold & Silver Corp. announces the start of diamond core drilling at its 100%-owned Comstock District project in Nevada, emphasizing operational momentum and scale. The company highlights the completion of 25 reverse circulation (RC) holes totaling approximately 4,000 meters at Occidental South, and frames this as a key milestone in its 20,000-meter Phase 1 drill program. A $60M USD go-public financing in April 2026 is presented as evidence that the company is fully funded, with the narrative positioning this as a major de-risking event. The announcement repeatedly references the Comstock District's historic gold and silver production, using figures such as 8.2 million ounces of gold and 192 million ounces of silver to suggest significant potential. Claims of a 'dominant land position' and systematic target testing are made without supporting data. The tone is confident and forward-looking, but the absence of assay results or resource estimates is downplayed.

What the data suggests

The only realised operational data are the mobilisation of a core drill rig and completion of 25 RC holes for approximately 4,000 meters. No assay results, resource estimates, or economic studies are disclosed, so there is no evidence yet of mineralisation, grade, or project value. The $60M USD financing in April 2026 is a substantial capital raise, but there is no disclosure of cash burn, exploration spend, or how long this funding will last. Historic production figures are cited, but these are not indicative of current resource potential or economic viability. The program's planned scope is large—20,000 meters in Phase 1, with 80 to 100 RC holes at Occidental South—but only a fraction has been completed. All key value catalysts, including assay results, remain pending. The financial trajectory cannot be assessed due to a lack of period-over-period financial data.

Analysis

The announcement is upbeat, highlighting the commencement of core drilling and the completion of 25 RC holes, both of which are realised milestones. However, the majority of the narrative focuses on the scale and potential of the ongoing and future drill program, with key results (assays) still pending. The $60M USD financing is a significant capital outlay, but there is no disclosure of profitability, cash flow, or even exploration expense metrics, limiting the ability to assess value creation. The use of historic production figures and references to 'bonanza lodes' inflates expectations, despite no new resource or economic results being disclosed. The forward-looking ratio is moderate, with half the key claims describing planned or expected outcomes rather than realised facts. Overall, the gap between narrative and evidence is moderate: operational progress is real, but the investment case is not yet substantiated by financial or resource results.

Risk flags

• ●The absence of assay results means there is currently no evidence of mineralisation, grade, or economic potential, so the investment case is entirely speculative at this stage.
• ●The $60M USD financing is presented as de-risking, but without disclosure of burn rate, exploration budget, or capital allocation, it is unclear how long the company can sustain operations or whether additional funding will be needed.
• ●References to historic production and 'bonanza lodes' create expectations that may not be met by current drilling, as no modern resource or grade data have been released.
• ●Claims of a 'dominant land position' and systematic target testing are not supported by numerical evidence or third-party validation, raising questions about the scale and exclusivity of the company's holdings.

Bottom line

This announcement signals that Mackay Gold & Silver Corp. is making operational progress at the Comstock District, with drilling underway and initial program milestones met. The $60M USD financing provides runway, but the lack of disclosed assay results, resource estimates, or economic studies means there is no basis yet for assessing the project's value or upside. The use of historic production figures and claims of land dominance are not substitutes for current data. Until assay results or resource estimates are released, the investment thesis remains unproven and high risk. The most important near-term catalyst is the release of assay results; without them, the announcement is not actionable for investors seeking evidence of value.

Announcement summary

(TSXV: MACK) (OTCQB: MKGSF) Mackay Gold & Silver Corp. has mobilized a diamond core drill rig to its 100%-owned Comstock District project in Nevada and has commenced drilling. The core rig marks the start of the approximately 5,000-meter core drilling component of the Company's inaugural 20,000-meter Phase 1 drill program, operating alongside the reverse circulation (RC) rig that has been drilling since mid-June. A total of 25 RC holes for approximately 4,000 meters has been completed to date at Occidental South, targeting shallow oxide-gold mineralization. The Company is fully funded following a go-public financing in April 2026 that raised approximately $60M USD. The Comstock District produced approximately 8.2 million ounces of gold and 192 million ounces of silver between 1859 and 1926, with the historic 'bonanza lodes' averaging approximately 35 g/t gold and 726 g/t silver. The 2026 program pairs RC drill rig testing of shallow, oxide mineralization at 100 to 250 metre depths across 80 to 100 drill holes within a 1,000-metre by 400-metre area at the Occidental South zone, with the core rig now testing the deeper, high-grade potential of the Occidental-Brunswick structure. Assays are pending for all drill holes, with first RC results expected in the coming weeks.

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