US Gold Corp. provide PFS update

Surface sample results

The company anticipates that following drilling in 2017, 2018 and the current 2020 drill programme, there will be an updated block model and new pit limit as part of the final PFS report, expected in 1H21.

Surface samples taken at the CK Gold Project represent samples of interest that may have originated from either surface outcrop, surface erosional float or dump material discarded from an old 80 ft shaft, lateral development or adits into the near surface portion of the resource. The grades of the samples, while encouraging and indicative of values that might be encountered in the deposit, do not necessarily reflect any significant change to the overall resource grade as reported in the Preliminary Economic Assessment completed in 2017 by Mine Development Associates.

Pre-feasibility and project study progress

The following outline progress to date:

• August initiated PFS for the CK Gold Project with associated consultants.
• 5 August 2020 commenced complete re-log of historic drill core with oversight from highly experience consulting geologists.
• 5 September 2020 kick-off meeting with diamond drill crew at project site.
• 2 October 2020 completed last of seven diamond core drill holes totaling 4651 ft (1418 m) to gather metallurgical samples from representative areas of the known resource.
• 3 October 2020 initiated the first of five planned geotechnical and hydrological diamond core holes to be completed in early November. Approximately 4800 ft planned.
• 15 October 2020 R/C drill rig on site to commence drilling on six well/monitoring holes for site water characterisation and up to 10 exploratory holes aimed at infill drilling to convert inferred resource to measured/indicated category, as well as expand limits of known resources. Drilling will continue into November dependent on weather and progress and we anticipate a total footage of 12 000 ft before demobilised for winter.
• Contracted hydrological consultants to characterise local groundwater hydrology, opencast hydrology and surface hydro-geochemistry. Also, to establish project baseline for the natural hydrological conditions. Falling head and packer testing is ongoing during the drilling programme.
• Contracted geotechnical consultants to establish opencast stability and design parameters. Specific geotechnical logging, point load testing and lab sample selection is ongoing during the drilling programme.
• Contracted local environmental and permitting specialist to assist with environmental baseline programme design and capture, permit application preparation. This includes the deployment of a monitoring station and assessment of drainages for any potential wetland impact.
• Monitoring the delivery, chain of custody and QA/QC for assay values at the laboratory, prioritising metallurgical samples to allow metallurgical work to commence later in the year as soon as representative composites can be identified once assay results are in.

George Bee, President of US Gold Corp., commented: "We are grateful for the collaboration that we have had from all our consultants and drill contractors. They are doing an outstanding, safe and responsible job. We also thank our local hosts, including the respective Wyoming agencies who have been very helpful to date and the local ranch owner who holds grazing rights on our mineral leases."

Bee continued: "It is very encouraging to see the good grade samples from outcrops on surface that support our thesis about the project. We are also going well beyond the minimal PFS requirements and capturing baseline data to put the company into a position to rapidly advance the project once we have the PFS results in hand."

Read the article online at: https://www.globalminingreview.com/exploration-development/10112020/us-gold-corp-provide-pfs-update/