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U.S. Gold Corp. announces CK Gold Project prefeasibility study

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Global Mining Review,

U.S. Gold Corp., a gold exploration and development company, has completed the prefeasibility study (PFS) for the company's CK Gold Project and has published its SK-1300 Technical Report Summary.

PFS highlights

  • Mineral resources – 1.58 million gold equivalent (AuEq) oz of measured and indicated (M+I) resources.
    • An additional 0.357 million AuEq oz of inferred resource.
    • M+I includes: 1.11 million oz Au and 280 million lbs copper (Cu).
  • Mineral reserves:1.44 million AuEq oz of proven and probable (P1 and P2) reserves.
    • P1 and P2 includes: 1.01 million oz Au and 248 million lbs Cu.
  • 10-year mine life at 20 000 short tpd process rate.
  • Average AuEq production: 108 500 oz/yr.
    • First three years: 135 300 AuEq oz/yr.
  • Initial capital: US$221 million.
    • Potential attractive financing terms from equipment suppliers and development capital sources.
    • Two-year payback.
  • Robust economics: 39.4% IRR before tax and 33.7% IRR after tax
    • NPV (5%): $323 million and US$266 million, before and after tax, respectively.
    • All in sustaining cost (AISC) at US$800/AuEq oz.
    • Assumes US$1625/oz gold price and US$3.25/lb copper price.
    • Highly leveraged to increasing metals prices.
    • Upside potential.
  • Aggregate sales from mine waste rock, proven to be excellent quality.
  • Feasibility study (FS) level value engineering and plant optimisation.
    • Ongoing metallurgical testing to enhance recovery of gold and copper.
    • Resource expansion potential at depth and to the south-east.
    • Permitting and development.
    • Project footprint under the jurisdiction of Wyoming agencies.
    • Potential to submit mine permit in 2022 and receive approval in 2023.

Development plan progress highlights

  • 2021 field season – a successful field season concluded November 2021.
  • Detailed geotechnical and hydrological data to finalise FS.
  • Environmental monitoring and test wells in place.
  • Site geotechnical test pits (121), drill holes (12), and seismic lines complete.
  • Ongoing testwork – geochemical, metallurgical for completion in 1Q22.
  • Interviewing FS and EPCM engineering firm candidates, with RFPs to be submitted.
  • Target to complete a FS in 2022.
  • Engaging with major process equipment original equipment manufacturers (OEMs) to establish lead times.
  • Continued social and Wyoming government outreach.
  • Over 45 separate meetings held with over 150 individuals, officials and citizens.
  • Completed second informational meeting with immediate neighbours.

U.S. Gold Corp.'s President and CEO, George Bee, commenting on the study and progress said: “We have taken our time to carefully consider and optimise the potential of the CK Gold Project. From the outset and prior to me joining U.S. Gold Corp., the potential of the project in today's market was obvious. A deposit that outcrops on surface with a very low waste-to-ore ratio seemed to be attractive. The fact that the project is located in an excellent jurisdiction, well versed in the extractive industries, with everything that we need on the project doorstep, makes it a very attractive. The work that we have done over the last year has confirmed and improved upon previous metallurgical test work and we have set about doing the work to ensure that there will be little or no non-manageable negative impacts on the environment and local community. On the contrary, some 200-plus full-time high-paying jobs, royalty payments to the state for K-12 education, tax payments and investment in the community all accrue from a project that is relatively simple with no danger from tailings, no refinery or smelter emissions, and a benign process.”

The Founder of U.S. Gold Corp., Ed Karr, added: “We pivoted the company to focus on development of the CK Gold Project, setting aside, for now, the compelling exploration portfolio we have in Nevada and Idaho. This decision has proven to be exceptional as we are poised to capture improvements in the gold and copper market in a project that can be brought to book in short order. Considering the findings of the PFS study in the context of today's metal prices, we seem to be on the precipice of realising exceptional value from a project whose time has come. We also are intrigued by the upside potential the CK Gold Project holds as we look at the potential value of the aggregate the project can produce at a time when development in the vicinity of the project is increasing and the US embarks on its infrastructure renovation and development programme.”

Karr, with extensive experience in capital markets, concluded: “In a safe jurisdiction with the potential for extremely competitive debt lines on both development capital and equipment purchases, we believe we will be able to raise the necessary capital to fund project development.”

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US mining news Copper mining news Gold mining news