A permitted, funded drill program into high-grade oxide gold
Initiation of coverage — 15 September 2026.
Commissioned research: This report was commissioned and paid for by K2 Gold Corporation. Cashu Research received a fee for its preparation and distribution. The fee was agreed in advance and was not contingent on the conclusions, rating or price target. K2 Gold reviewed a draft for factual accuracy only and had no editorial control over the rating, valuation or opinions expressed.
K2 Gold is undertaking the largest drill program yet completed at its 100%-owned Mojave Project in Inyo County, California. The company has reported high-grade oxide-gold results from the first seven holes of its 2026 campaign, while 16 further holes were awaiting assays at the date of this report.
The investment case
- High-grade initial results: Dragonfly drilling includes 39.62m at 5.35 g/t Au, 10.67m at 7.75 g/t Au, 27.43m at 4.08 g/t Au and 3.05m at 17.55 g/t Au.
- Permitted and funded: 23 holes for 4,182m had been completed within a 14,000m program that K2 describes as fully permitted and fully funded.
- District-scale target pipeline: Dragonfly lies on the greater-than-6.5km Eastside Gold Trend alongside Gold Valley, Newmont and Flores, with Morningstar providing additional polymetallic exposure nearby.
- Strong balance sheet: K2 reported more than C$27m in cash on 18 August 2026 and no warrants outstanding.
- Experienced team: K2 is part of Discovery Group, whose track record includes Great Bear Resources, Great Bear Royalties, Kaminak Gold and Northern Empire.
Rating and valuation
Cashu Research initiates coverage with a Speculative Buy rating and a 12-month price target of C$1.25, compared with a last verified close of C$0.84 on 14 September 2026. The target is based on a conceptual 2.0Moz scenario valued at C$150 per ounce and spread across approximately 263.3m fully diluted shares.
The ounce scenarios are Cashu Research conceptual exploration targets, not K2 Gold disclosures or Mineral Resource Estimates under NI 43-101. No probability weighting is applied, and there is no certainty that further exploration will result in a mineral resource.
Principal risks
- Mojave has no Mineral Resource Estimate or Ore Reserve.
- True widths at Dragonfly are unknown and may be materially narrower than reported drilled widths.
- Metallurgical recoveries and a processing route have not been established.
- Sixteen pending holes could return weaker grades away from the discovery area.
- Any mine-development approval in California would be separate from the existing exploration permit.
- K2 is a thinly traded, pre-resource explorer and carries a high risk of permanent capital loss.
The complete seven-page report includes the target inventory, drill tables, conceptual valuation scenarios, peer context, balance-sheet analysis, catalysts, risks and full disclosures.
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This information is general in nature and does not constitute personal advice. It does not consider your objectives, financial situation or needs.