US Gold Corp. has discovered a new zone of base and precious metals mineralisation west of the existing Copper King deposit in Wyoming. In late November and early December 2017, a four-hole, reverse circulation drilling programme (3945 ft/1202 m total) was completed, and assays from Bureau Veritas Minerals (BV Labs), Reno, Nevada, have just been obtained. Hole number CK17-01rc encountered a composite of almost 700 ft of base and precious metal mineralisation beginning almost at the surface.
The Copper King four-hole drilling programme, which took place in the autumn of 2017, was designed to provide a first-pass drill test of anomalies obtained from a ground magnetics survey conducted in June combined with an induced polarization (IP) survey conducted by Zonge Geosciences Inc. in October 2017. Both geophysics programmes were more detailed and comprehensive than previous surveys conducted on the project. Objectives of the IP survey were to 1.) delineate sulfide concentrations via the chargeability and 2.) discriminate lithologies via the resistivity. Rock magnetic expressions were delineated with the earlier ground magnetics survey. Gold mineralisation at Copper King is known to be commonly, but not necessarily exclusively, associated with magnetite. The association of copper sulfide mineralisation with gold mineralisation in the historic mining area suggested that IP would be the more appropriate technique for detection of similarly mineralised material. The Copper King project is largely located on State of Wyoming managed lands. Permitting and bonding for drilling at Copper King through a "Notification of Intent to Explore for Non-Coal Minerals" was readily and quickly facilitated and approved by the State of Wyoming Department of Environmental Quality based in Cheyenne, Wyoming.
Assay results and interval thicknesses obtained in CK17-01rc are similar in value and character to assay intervals encountered in the Copper King deposit "main zone." Assay results and characteristics of mineralisation in this hole indicate the presence of a heretofore previously undiscovered zone of significant mineralisation on the Copper King project. The chargeability anomaly, drilled by hole CK17-01rc, from the Wright Geophysics 5 November 2017 report, is the strongest anomaly obtained by the IP survey on the property, and it is an anomaly that had not previously been specifically tested by drilling.
Vice President of Exploration at US Gold Corp, Dave Mathewson, stated, "This is an exciting turn of events for the Copper King project. Copper King has had a long history of several exploration programmes conducted by numerous companies. This zone of mineralisation, identified in hole CK17-01rc, apparently escaped all previous detection and, just as importantly, the bulk of this particular chargeability anomaly has not been drill-tested. We look forward to the prospect of building a greater metal endowment on the Copper King property. A follow-up drill programme is currently being planned."
President and CEO of US Gold Corp, Edward Karr, stated: "We are very encouraged with this western step-out hole. This new zone of mineralisation is 200 m away from the existing deposit. This new discovery zone has shown consistent mineral grade from near the surface to the bottom of the hole. Mine Development Associates updated our Copper King Preliminary Economic Assessment technical report in December 2017. The current known deposit shows a Net Present Value of US$178.5 million at US$1275 gold and US$2.80 copper. An infill drilling programme is being planned and designed to connect this new discovery zone back to the existing deposit. In addition, the best part of the IP anomaly is further west from this step-out hole. We believe this new discovery zone could extend further west and add additional potential upside to the known deposit. The presence of silver and zinc could also increase the overall future Copper King value."