U.S. Gold provides drilling update

Kevin Francis, V.P. Exploration and Technical Services, of U.S. Gold Corp., said: “While we know that we have a high-grade zone starting at surface with minimal waste rock stripping required, we are encouraged by further evidence of higher grades than currently modelled. Hole CK21-01c drilled through the heart of the reserve was designed to intercept the proposed ultimate pit wall for geotechnical purposes. This area of the proposed pit is scheduled to be mined early in the mine life as outlined in the PFS contributing to the very attractive production profile for the first three years of operation, averaging 135 300 gold (Au) equivalent oz/yr. While the hole pierced higher than average grades as estimated by the grade model, the actual grades intersected in CK21-01c are significantly higher. The grade block pierced by the 10-ft intercept of 11.8 g/t Au (0.344 oz/t) and 7.8% copper (Cu) was estimated to contain 1.6 g/t Au and 0.3% Cu. There is difficulty capturing extreme grades in a resource model due to geologic uncertainty at our nominal 150 drill hole spacing. We are unlikely to pursue changes in our resource and reserve estimate for the project, but we believe it lends confidence in our estimates. Historic mining at what was named Copper King in the 1920s also suggests that high-grade mineralisation occurs because in those days constraints in technology made it simply uneconomic to mine the recently modelled average grade at the CK Gold Project. The project has significant leverage to rising metal prices and at recent US$2000/oz Au and US$4.75/lb Cu, the economics look extremely attractive.”

Francis added: “The deposit does not conveniently fit into one of the standard genetic models for gold and copper mineralisation. With proven and probable reserves that currently stand at over 1 million oz Au and 248 million lbs Cu in a rising price environment, we believe that developing this US domestic production will have widespread benefits. While we know that there are additional mineral resources both underlying and laterally contiguous to the modelled reserve, requiring further drilling definition, our focus is to realise the value of the commercially attractive gold-copper project identified in our PFS, published 1 December 2021.”

Read the article online at: https://www.globalminingreview.com/exploration-development/17032022/us-gold-provides-drilling-update/