The Keystone Project, managed by U.S. Gold Corp. (NASDAQ:USAU), is located within Nevada’s Cortez Trend, a region renowned for its substantial gold deposits. This project is a significant exploration project aimed at uncovering untapped gold reserves in one of the United States’ most prolific mining areas.

The Cortez Trend has been a focal point for gold mining, hosting several large-scale operations. The region’s geological composition, characterized by favorable stratigraphy and structural features, has contributed to its rich mineralization. The Keystone Project’s location within this trend positions it strategically for potential discoveries.

Home to several world-class deposits, the trend boasts geological formations that are highly conducive to gold mineralization, including favorable stratigraphy and structures that allow gold to accumulate in economically viable concentrations.

The region is part of Nevada’s broader “Gold Belt,” which has made the state one of the top gold producers globally. Advances in geological understanding and mining technology have enabled companies to continually uncover new resources in the Cortez Trend, reinforcing its status as a critical hub for gold mining. Its success serves as a model for exploration efforts in other parts of the world, emphasizing the importance of detailed geological studies and sustained investment.

Keystone Project 

Encompassing approximately 20 square miles, the Keystone Project is an under-explored area with complex intrusive-centered gold-bearing hydrothermal systems. U.S. Gold Corp. has consolidated mineral rights over this district, enabling comprehensive exploration efforts. The project’s geology shares similarities with other significant deposits in the Cortez and Carlin Trends, including comparable stratigraphy, lithologic characteristics, structure, and alteration patterns.

Since acquiring the Keystone Project, U.S. Gold Corp. has implemented systematic exploration programs, including gravity surveys, geochemical sampling, geological mapping, and scout drilling. These efforts have identified extensive areas with strong gold and pathfinder geochemistry, indicating the presence of a large epithermal gold system. Notably, the 2019 drilling program in the Nina Skarn target area encountered significant gold mineralization, with one hole reporting two thick intervals of oxidized, cyanide-soluble, gold-bearing skarn mineralization.

In September 2023, U.S. Gold Corp. completed a hyperspectral study of the Keystone Project, utilizing WorldView-3 satellite data to identify near-surface hydrothermal alteration zones. This study led to the discovery of multiple high-priority targets, enhancing the project’s exploration potential. Field investigations and sampling of these hotspots are underway to refine drill targets further.

The Importance of New Mining Projects

Developing new mining projects like Keystone can significantly impact local and state economies. Such projects often lead to job creation, infrastructure development, and increased tax revenues. In regions like Nevada, where mining is a critical industry, new projects contribute to economic diversification and stability.

As existing mines approach the end of their productive lives, discovering new deposits is needed to ensuring the long-term viability of the sector. Newer exploration techniques, such as hyperspectral imaging, advanced geophysical surveys, and machine learning, have enhanced the ability to locate previously hidden reserves, and U.S. Gold Corp. will look to leverage these latest techniques and technologies as it expands the exploration potential of the Keystone Project.

 

 

 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

U.S. Gold Corp’s (NASDAQ:USAU) CK Gold Project, located in Wyoming’s Silver Crown Mining District, is progressing toward development. The project aims to extract gold and copper, potentially influencing the state’s mining sector and local economy.

Mining projects bring significant economic opportunities to the regions where they operate, particularly in rural or less-developed areas. The direct benefits include job creation in mining operations, support industries, and local services, which can substantially reduce unemployment rates in these regions. Additionally, these projects often stimulate local economies by creating new infrastructure development with roads, power supply, and water management systems that benefit entire communities.

Beyond direct employment, mining projects contribute to regional economic growth through tax revenues and royalties. These funds can be allocated to improve public services such as education, healthcare, and transportation, creating a ripple effect of socio-economic development. For many communities, a well-managed mining operation can represent a lifeline, transforming the economic landscape and creating long-term growth opportunities.

The CK Gold Project is located approximately 20 miles west of Cheyenne, Wyoming, encompassing about 1,120 acres. U.S. Gold Corp acquired the property in 2016, focusing on developing an open-pit mine to extract gold and copper reserves. The project’s preliminary feasibility study, completed in December 2021, reported proven and probable reserves of 1.44 million gold equivalent ounces, including 1.01 million ounces of gold and 248 million pounds of copper.

Economic Structure

The CK Gold Project is projected to have a significant economic impact on Wyoming. A report by the University of Wyoming’s Center for Business and Economic Analysis estimates the creation of approximately 2,600 direct and indirect jobs over the project’s lifespan. These positions span various sectors, including mining operations, support services, and local 

The project is also expected to contribute to state and local revenues through taxes and royalties. U.S. Gold Corp projects an economic impact of $70-80 million in taxes and royalties, providing a financial boost to the region.

The development of the CK Gold Project necessitates infrastructure enhancements, including road improvements and utility extensions. These developments could benefit the local community by improving transportation and access to services. The project’s proximity to major 

U.S. Gold Corp emphasizes adherence to environmental standards in the CK Gold Project. The company plans to use froth flotation for mineral extraction, avoiding the use of cyanide. Additionally, a dry stack tailings system is proposed to recycle water, addressing water scarcity 

Community Engagement

Community involvement is a key aspect of the CK Gold Project. U.S. Gold Corp has conducted over 40 meetings with more than 120 stakeholders in Cheyenne and Laramie to discuss the project and address concerns. The company has also opened an office in Cheyenne to provide a local presence and facilitate communication with interested parties.

The project has achieved significant regulatory milestones. In May 2024, the Wyoming Department of Environmental Quality issued a surface mine permit, allowing U.S. Gold Corp to advance work on updating the pre-feasibility study. The company is also working on obtaining additional permits, including water discharge and air quality permits, to comply with state regulations.

As global demand for metals like copper and gold continues to rise, the development of efficient and environmentally responsible mining operations becomes essential. Modern mining projects often integrate advanced technologies that enhance mineral recovery, reduce waste, and minimize environmental impact. These advancements not only improve operational efficiency but also set new standards for sustainability in a traditionally resource-intensive industry.

New projects also serve as testbeds for innovation, incorporating renewable energy sources, advanced machinery, and digital monitoring systems. These efforts align with growing public and regulatory expectations for responsible resource extraction, for which U.S. Gold Corp. is proving to be an industry leader.

 

 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

U.S. Gold Corp. (NASDAQ:USAU) has reached a major milestone for its CK Gold Project, located in southeast Wyoming. The company has obtained all the necessary permits, bringing the project closer to production. The final Air Quality Permit, issued by the Wyoming Department of Environmental Quality (DEQ) Air Quality Division, was secured on November 18, 2024. This marks the completion of permitting requirements under the Surface Gold Mine Permit granted earlier in April 2024.

With permitting finalized, U.S. Gold Corp. has shifted its focus toward advancing the project’s development. The company resumed work on an updated Prefeasibility Study (PFS) in mid-2024 and has continued conducting engineering optimization studies. These efforts are aimed at improving operational efficiency and enhancing the project’s economic viability.

Key areas of focus include:

• Tailings Management: The company is collaborating with Tierra Group International to optimize the design and construction of the tailings management facility. Adjustments in capacity and layout are being considered to potentially reduce capital expenditure.
• Water Management: A comprehensive site-wide water management and balance plan is underway. This follows the receipt of the Wyoming Pollutant Discharge Elimination System permit earlier this year, which provided the framework for the project’s water management strategy.
• Processing Technology: U.S. Gold Corp. is investigating advanced processing methods, including the use of modern flotation equipment and grinding technologies. These enhancements aim to improve metal recovery rates while reducing operating costs.

The updated PFS is expected by the end of 2024. Following its completion, the company plans to move forward with a Feasibility Study, which will provide a more detailed plan for project execution.

To support ongoing development efforts, U.S. Gold Corp. also recently announced a $10.2 million registered direct offering on November 27, 2024. The offering includes common stock and warrants, with proceeds earmarked for advancing the CK Gold Project and general corporate purposes. This funding is expected to further facilitate the completion of studies and early-stage development work.

The CK Gold Project is a flagship development for U.S. Gold Corp., with the potential to impact the company’s future operations and plan for profitability. With permits in place and an updated PFS underway, the company is positioned to transition the project from planning to execution in the coming years. Further updates on engineering progress and feasibility are expected as the company works toward production readiness.

 

 

 

 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The Keystone Gold Project, managed by U.S. Gold Corp. (NASDAQ:USAU), is a large-scale gold exploration project located within the Cortez Trend in Nevada. This region is historically important for its high-yield gold production and is one of the major gold-producing areas in the United States. The project spans approximately 20 square miles and focuses on identifying potential gold deposits in an area known for its geological richness.

The Cortez Trend is part of Nevada’s larger gold-bearing region, which also includes the Carlin and Battle Mountain-Eureka trends. Together, these regions have produced more than 245 million ounces of gold over the last five decades. The Keystone project’s location within the Cortez Trend places it near the Cortez Complex, operated as a joint venture between Barrick Gold Corporation and Newmont Corporation, which has been a major contributor to Nevada’s gold output.

Exploration Efforts and Findings

Since acquiring the Keystone property, U.S. Gold Corp. has conducted a range of exploration activities aimed at identifying Carlin-type gold deposits, which are typical of this region. These activities include geological mapping, geochemical sampling, geophysical surveys, and exploratory drilling.

In 2019, the company reported results from a drilling program, which included a 76.2-meter interval containing 0.224 grams per tonne (g/t) of gold, with a more concentrated sub-interval of 25.91 meters at 0.408 g/t. While these findings indicate potential, the results remain exploratory, and further work is needed to confirm the project’s economic viability.

Recent Developments at the Keystone Project

In September 2023, U.S. Gold Corp. announced the completion of a hyperspectral study at the Keystone site. This advanced remote sensing technique allowed for the identification of multiple high-priority exploration targets by detecting near-surface hydrothermal alteration zones. These zones are often associated with gold deposits and represent areas for further investigation.

The company also secured permits to drill up to 38,200 feet (11,600 meters) across 22 proposed holes. These permits allow the company to test areas that have seen limited or no prior drilling, which could potentially reveal new information about the property’s mineral potential.

Strategic Position and Geological Significance

Keystone’s position within the Cortez Trend is noteworthy. This region is home to some of Nevada’s most productive gold mines, and the local geology is conducive to exploration. The project lies in a zone characterized by favorable stratigraphy and structural settings, both of which are important for gold deposition. However, it is important to note that while the location is promising, exploration is still in the early stages, and no significant discoveries have been confirmed to date.

Future Exploration and Challenges

U.S. Gold Corp. has indicated plans to continue its exploration activities, focusing on refining targets and drilling in areas identified by the recent hyperspectral study. The company is employing advanced techniques to improve the efficiency and accuracy of its exploration programs.

The project’s future will depend on whether these activities result in the discovery of economically viable gold deposits. Until then, the Keystone Gold Project remains a work in progress, with its success tied to both geological factors and the execution of its exploration strategy.

The Keystone Gold Project adds to the list of ongoing exploration efforts in the Cortez Trend, underscoring the continued interest in this prolific gold region. Its outcome could provide valuable insights into the region’s geology and contribute to the understanding of Nevada’s mineral potential, with U.S. Gold Corp set to unlock the value from this project at new levels for the entire area. 

 

 

 

 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

U.S. Gold Corp. (NASDAQ:USAU) continues to make progress in securing the necessary permits for its CK Gold Project in Wyoming. This project, which is looking to transition from exploration to production, involves navigating a complex regulatory framework to meet state and federal requirements. The company’s efforts have shown a methodical approach to compliance and environmental stewardship, with milestones achieved in several critical areas.

Industrial Siting Permit Secured

One of the key permits obtained by U.S. Gold Corp. is the Industrial Siting Permit, granted by the Wyoming Department of Environmental Quality’s Industrial Siting Division on June 20, 2023. This permit is mandatory for projects with projected construction and capital costs exceeding $253.9 million. It authorizes the construction and operation of the proposed CK Gold Project mine, marking a significant step forward for the company.

The Industrial Siting Permit ensures that large-scale industrial projects meet state requirements related to environmental impact, infrastructure, and local community engagement. U.S. Gold Corp.’s successful acquisition of this permit underscores its commitment to regulatory compliance.

Mine Operating Permit and Conditions

On April 29, 2024, U.S. Gold Corp. secured another important approval: the Surface Gold Mine Permit. This permit, issued by the Wyoming Department of Environmental Quality, allows for the commencement of mining operations under specific conditions. These conditions include:

1. Approval of a reclamation performance bond of $5,010,000.
2. Obtaining the Wyoming Pollutant Discharge Elimination System (WYPDES) permits for various discharge points.
3. Securing permits from the Air Quality Division of the Wyoming Department of Environmental Quality.

The reclamation performance bond ensures that financial resources are set aside to restore the mining site to its natural state after operations cease. The conditions tied to the Surface Gold Mine Permit reflect a robust framework for protecting the environment while facilitating economic development.

Progress on Permit Conditions

By June 2024, U.S. Gold Corp. reported fulfilling two of the three conditions associated with the Mine Operating Permit. First, the reclamation bond was formally accepted by the Wyoming Department of Environmental Quality. Second, the company obtained the WYPDES permit, enabling it to manage water discharge in accordance with state regulations.

These developments signal progress toward meeting all regulatory requirements, moving the CK Gold Project closer to operational readiness. The remaining condition—the Air Quality Division permits—requires further review and technical work.

Air Quality Permitting 

The Air Quality Division permits represent the final hurdle for the Surface Gold Mine Permit. As of September 2024, U.S. Gold Corp. has completed the necessary technical work, and the permitting process is under review. Company officials anticipate receiving approval soon, which will complete the primary regulatory steps required for mining operations to begin.

Engineering Optimization and Compliance

While navigating the regulatory process, U.S. Gold Corp. has undertaken engineering optimization studies to improve the project’s design and economic feasibility. These studies aim to align the project’s operational plans with regulatory commitments and industry best practices. Key areas of focus include:

• Tailings Management Facility Optimization: Efforts to improve design, accessibility, and operability for the facility that handles waste materials from mining activities.
• Water Management Planning: Comprehensive evaluation of water usage and discharge to ensure compliance with WYPDES requirements.

The company’s proactive approach in refining the project’s engineering design highlights its intent to operate efficiently while adhering to environmental standards.

Pre-Feasibility Study Updates

In parallel with permitting and engineering activities, U.S. Gold Corp. plans to update the Prefeasibility Study for the CK Gold Project. This update will incorporate changes related to permit conditions and engineering optimizations. The revised study aims to provide a more accurate assessment of the project’s feasibility, costs, and economic potential, offering stakeholders a clearer picture of its viability.

With the expected approval of the Air Quality Division permits and the completion of the updated Prefeasibility Study, U.S. Gold Corp. is well-positioned to move forward with the next phases of project development. By maintaining a focus on environmental compliance and operational efficiency, the company will be aiming to demonstrate its readiness to meet the challenges of mining in a regulated environment.

 

 

 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The CK Gold Project near Cheyenne, Wyoming, managed by U.S. Gold Corp. (NASDAQ:USAU), is known for its planned production of gold and copper concentrates. However, the project has also identified a significant opportunity to increase its profitability by repurposing waste rock as aggregate material for construction purposes.

Project and Waste Rock Details

The open-pit mining operation is projected to generate 35 to 40 million tons of granodiorite waste rock over its lifespan. Granodiorite, an intrusive igneous rock, is commonly used in construction for applications like rail ballast and road base. Traditionally considered a byproduct requiring disposal, this material has been assessed as a potential revenue source due to its commercial value in the construction industry.

Market data from nearby quarries, such as Martin Marietta, suggests that similar rock types are sold for $20 to $25 per ton. If the CK Gold Project successfully markets its waste rock as aggregate, it could create a significant new revenue stream. Estimates suggest that the sale of this material could generate revenue comparable to, or even greater than, the income expected from the project’s gold and copper production.

This approach also aligns with a growing focus in mining industries on waste management practices that extract additional value from byproducts while reducing environmental impacts.

Operational and Logistical Challenges

To implement aggregate sales, the project will need to develop processing facilities to prepare the granodiorite for market. Additionally, transportation logistics must be established to efficiently deliver the material to buyers. Ensuring that these activities do not disrupt the primary mining operations is a critical consideration.

U.S. Gold Corp. has begun the process of securing the necessary permits to sell the aggregate. Engagement with state and local authorities is underway to meet regulatory requirements. Furthermore, the company is working with the local community to address potential concerns and highlight the benefits of repurposing waste materials, including reduced environmental impact.

This aspect of the project reflects an emphasis on sustainable practices within the mining sector, aiming to reduce waste while maximizing resource utilization.

Economic and Environmental Implications

The potential sale of waste rock not only offers significant economic benefits but also addresses environmental challenges associated with large-scale mining projects. By finding a use for material that would otherwise require costly disposal, the CK Gold Project could set an example for other mining operations looking to improve sustainability and profitability.

While the project’s primary focus remains on extracting gold and copper, the integration of aggregate sales could alter its financial structure and profitability. The strategy, if successfully implemented, could redefine the economic viability of the CK Gold Project and potentially serve as a model for other mining operations considering similar initiatives.

 

 

 

 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The CK Gold Project, owned by U.S. Gold Corp. (NASDAQ:USAU), is an advanced-stage gold and copper mining project located near Cheyenne, Wyoming. The project incorporates multiple sustainability practices aimed at minimizing its environmental impact while adhering to regulatory standards and supporting the local economy.

Environmental Management Strategies

The project plans to use a dry stack tailings system instead of traditional tailings ponds. This system involves dewatering the tailings, creating a solid material that can be stacked and stabilized. These tailings will be mixed with non-ore-bearing rock, covered with topsoil, and revegetated after mining operations. This approach reduces water use and mitigates the risks associated with tailings dam failures.

Water use is regulated under a permit from the Wyoming Department of Environmental Quality (WDEQ), which sets standards for water discharge. The project also aims to improve water harvesting within its boundaries to reduce dependency on external water sources.

The CK Gold Project will use froth flotation for mineral extraction, avoiding the use of cyanide. This method reduces chemical risks commonly associated with gold mining processes.

Community and Economic Impact

A report from the University of Wyoming’s Center for Business and Economic Analysis also estimates that the project could generate approximately 2,600 direct and indirect jobs throughout its operational lifespan. Local hiring and the engagement of contractors within the Cheyenne and Laramie County areas form a part of the project’s operational strategy, contributing to the regional economy.

Permitting and Regulatory Compliance

The project has now secured key permits, including an industrial siting permit and a conditional mine operating permit. To meet the latter’s requirements, the project has already secured water discharge and reclamation bond permits and is awaiting an air quality permit. These permits ensure compliance with state and federal environmental regulations.

The CK Gold Project also benefits from its proximity to established infrastructure, including major highways and urban centers. This location reduces logistical challenges and provides easy access to necessary resources and labor.

 

 

 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

US Gold Corp (NASDAQ:USAU) is advancing efforts to optimize its CK Gold Project in Wyoming, focusing on new flotation technologies that could significantly enhance operational efficiency and metal recovery rates. The company has initiated testing on innovative processes to improve the economic framework of the project.

At present, the CK Gold Project uses conventional flotation techniques to separate gold and copper from mined ore. While effective, these methods come with limitations in recovery rates and costs. Looking to improve on this foundation, US Gold Corp is investigating advanced technologies like Jameson Cell and IsaMill, which have shown success in other mining operations.

To determine their potential application, the company has submitted 150 kilograms of ore-grade material to a metallurgical lab for testing. These evaluations are expected to provide data on whether the technologies can yield better results for the CK Gold Project.

Potential Benefits of the New Technologies

Adopting advanced flotation methods could lead to several advantages. Improved recovery processes may allow the company to extract more gold and copper from the same volume of ore, enhancing overall yield. At the same time, the new technologies might reduce both capital and operational costs by requiring fewer flotation cells, a smaller mill building, and lower energy consumption. Such efficiencies are seen as critical to the project’s long-term profitability.

Ongoing Optimization Initiatives

The exploration of new flotation technologies is part of a broader strategy by US Gold Corp to optimize the CK Gold Project. Additional engineering studies are underway, including a review of the project’s Tailings Management Facility (TMF). This review aims to enhance capacity and constructability while reducing costs.

Water management is another key focus area. The company is assessing plans to improve water harvesting and storage on-site, potentially lowering the need for external water purchases. These efforts reflect the company’s commitment to sustainability and cost-effectiveness.

Next Steps and Timeline

The results of the flotation technology tests will be integrated into an updated Pre-feasibility Study (PFS) for the CK Gold Project. This comprehensive study will provide a clearer picture of the project’s economic potential and guide future development decisions.

 

 

 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

The Keystone Gold Project, located on the renowned Cortez Gold Trend in Nevada, is one of U.S. Gold Corp.’s (NASDAQ:USAU) most ambitious exploration project. Positioned within one of the most productive gold mining belts in the world, Keystone offers immense potential for discovering significant Carlin-type gold deposits. The project encompasses 20 square miles of highly prospective land, and although still in the exploratory phase, it has already generated considerable interest due to its promising geology and proximity to some of Nevada’s largest and most successful gold operations. As U.S. Gold Corp. continues to advance this project, Keystone could unlock major economic and geological opportunities, both for the company and for Nevada’s mining industry.

Nevada’s Cortez Gold Trend: A World-Class Mining District

The Cortez Gold Trend in Nevada is part of the larger Battle Mountain-Eureka Trend, one of the most productive and geologically favorable regions for gold mining in the U.S. Over the past 50 years, this area has yielded over 245 million ounces of gold, with major deposits being developed by industry giants such as Barrick Gold and Newmont Corporation. Keystone is located strategically between Barrick-Newmont’s massive Cortez Hills operation and McEwen Mining’s Gold Bar project.

Keystone’s location is a significant advantage, as the geology of the Cortez Trend has been well-documented, and its potential for further discoveries remains high. In this region, Carlin-type deposits are characterized by the presence of finely disseminated gold in sedimentary rocks. These deposits have low concentrations of gold by volume but are spread across large areas, making them economically viable when mined at scale​.

Geological Characteristics and Exploration Potential

What sets Keystone apart is its largely under-explored status. Although multiple companies conducted drilling programs in the 1980s and early 2000s, much of the area remains geologically untested by modern methods. U.S. Gold Corp. has implemented an extensive exploration strategy designed to systematically unlock the region’s potential. This has included geological mapping, geochemical and geophysical surveys, and “scout” drilling programs aimed at identifying promising targets.

The geology of Keystone is highly complex, featuring a mix of lower-plate carbonate host rocks, intrusive systems, and extensive faulting, all of which are conducive to Carlin-type gold mineralization. The discovery of these favorable rock formations, similar to those found at the Cortez Hills and Goldrush deposits, has strengthened the case for a major gold system being present at Keystone​.

U.S. Gold Corp.’s initial exploration efforts have yielded encouraging results. Soil and rock geochemistry surveys have revealed large areas with strong gold anomalies, along with elevated concentrations of pathfinder elements such as arsenic and mercury, which are typically associated with Carlin-type systems. Additionally, the company’s drilling campaigns have confirmed the presence of thick sequences of Devonian and Mississippian-aged host rocks, which are known to host significant gold deposits elsewhere in the Cortez Trend​.

Systematic Exploration Approach and Challenges

Exploring a large, underdeveloped project like Keystone requires a methodical approach. U.S. Gold Corp. has prioritized gathering as much geological data as possible to refine its drilling targets. The company’s exploration team has conducted gravity and magnetic surveys to better understand the region’s subsurface structure, helping to pinpoint potential gold-bearing zones. In addition, extensive geochemical sampling has provided critical information about the distribution of gold and associated minerals within the project area​.

Despite the promising early findings, challenges remain. Carlin-type deposits, while highly valuable, are notoriously difficult to locate due to the fact that the gold is often finely dispersed and hosted in low-grade ore. Furthermore, the extensive faulting and folding of the rocks in the region create complex geological conditions that require careful interpretation of drilling results. U.S. Gold Corp. must continue to fine-tune its exploration techniques and invest in advanced drilling programs to fully assess Keystone’s potential​.

The Importance of Keystone in U.S. Gold Corp.’s Portfolio

Keystone plays a crucial role in U.S. Gold Corp.’s broader strategy of developing high-potential gold assets in mining-friendly jurisdictions. While the company’s CK Gold Project in Wyoming is further along in terms of development, Keystone represents the “blue sky” potential in the company’s portfolio. Should a major gold discovery be made at Keystone, it could significantly elevate U.S. Gold Corp.’s standing within the industry and attract the attention of larger mining companies looking to expand their resource base.

The proximity of Keystone to some of Nevada’s largest gold mines also makes it a valuable exploration asset. U.S. Gold Corp. has been strategically positioning itself in an area that has already proven to be highly productive for some of the world’s largest gold miners. If successful, Keystone could join the ranks of Nevada’s major gold producers, further solidifying the state’s status as the top gold-producing region in the U.S..

Environmental and Regulatory Considerations

As with any mining project, U.S. Gold Corp. must navigate the regulatory and environmental challenges associated with developing a large-scale operation in Nevada. Fortunately, Nevada’s regulatory framework is well-established and generally supportive of mining activities, particularly in regions like the Cortez Trend where mining has been a key economic driver for decades. U.S. Gold Corp. has committed to conducting its exploration activities in compliance with all state and federal regulations, ensuring that environmental impacts are minimized.

Keystone’s location in a historically mined region means that some of the infrastructure needed for future development, such as roads and utilities, is already in place. This reduces the project’s environmental footprint compared to operations in more remote locations. Additionally, U.S. Gold Corp. is focused on responsible resource management, including strategies for water conservation and waste reduction, which are critical in Nevada’s arid climate​.

The Future Outlook for Keystone and Nevada Mining

As U.S. Gold Corp. continues to explore Keystone, the project’s future hinges on the results of its ongoing drilling programs. If the company can confirm the presence of a large, economically viable gold deposit, it would represent one of the most significant discoveries in recent years for the Cortez Trend. The increasing global demand for gold, driven by economic uncertainty and the rising cost of other commodities, has created favorable market conditions for new gold projects.

Nevada, as the leading gold-producing state in the U.S., stands to benefit from any new discoveries at Keystone. The state’s mining industry contributes billions to the economy each year, and the addition of another large gold project would further strengthen this sector.

 

 

 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

As U.S. Gold Corp. (NASDAQ:USAU) advances its gold and copper projects, the company has placed a large emphasis on environmental sustainability. Operating in Wyoming, Nevada, and Idaho, U.S. Gold Corp. recognizes the importance of minimizing the ecological footprint of its mining operations and aligning with stringent environmental regulations. By integrating modern technology and proactive management strategies, the company aims to demonstrate that mining can be conducted responsibly while contributing to local economies and preserving natural resources.

Commitment to Environmental Compliance

At the heart of U.S. Gold Corp.’s environmental strategy is a commitment to compliance with federal and state regulations. Each of its projects—CK Gold in Wyoming, Keystone in Nevada, and Challis Gold in Idaho—has distinct environmental plans tailored to the respective region’s needs. Wyoming, for instance, has robust environmental regulations, and U.S. Gold Corp. has taken steps to ensure its CK Gold Project aligns with these standards. The project’s permitting process has involved extensive assessments to minimize impacts on water, air, and land, key concerns for local stakeholders​.

The company has already received several permits for CK Gold, including the Surface Mine Permit and the Water Discharge Permit, both approved by the Wyoming Department of Environmental Quality. These permits ensure that U.S. Gold Corp. can responsibly manage water usage, limit emissions, and address reclamation throughout the project’s lifecycle. Moreover, U.S. Gold Corp. has committed to meeting all reclamation bond requirements, which are essential for restoring the land after mining activities cease.

Innovative Water Management Practices

Water conservation and management are critical elements of U.S. Gold Corp.’s environmental strategy. Mining operations often require significant water use, and U.S. Gold Corp. is exploring ways to reduce its consumption and protect local water resources. At the CK Gold Project, water management plans include measures to prevent contamination and ensure that water discharge meets quality standards. The project also features recycling systems that reduce water withdrawal from local sources, thus mitigating the impact on Wyoming’s water supply​.

Furthermore, in regions like Nevada, where water scarcity can be a significant concern, U.S. Gold Corp. plans to employ water-saving techniques at its Keystone Project. These initiatives reflect a broader trend in the mining industry to innovate in water conservation, as regulatory scrutiny and public awareness around water usage continue to grow.

Waste Management and Land Reclamation

Mining activities produce large volumes of waste rock and tailings, which can pose environmental hazards if not managed correctly. U.S. Gold Corp. has developed comprehensive waste management plans to address these challenges. The company has demonstrated a proactive approach at the CK Gold Project by identifying alternative uses for waste materials. For instance, it has found that certain types of rock excavated during mining could serve as aggregate for construction, reducing the need for waste disposal while generating an additional revenue stream​.

Reclamation and land restoration are integral to U.S. Gold Corp.’s sustainability efforts. The company’s reclamation plans include returning the land to its natural state post-mining. This process involves recontouring the landscape, replanting native vegetation, and ensuring that ecosystems can recover. These measures not only comply with state regulations but also reflect U.S. Gold Corp.’s commitment to sustainable practices that minimize long-term environmental impacts​.

Reducing Energy Consumption and Emissions

Energy efficiency is another priority for U.S. Gold Corp. The company is exploring methods to reduce its carbon footprint by implementing energy-saving technologies at each of its project sites. For example, the CK Gold Project has been designed to optimize energy use, potentially incorporating renewable energy sources to power certain operations. These initiatives align with broader industry trends, as mining companies seek to lower greenhouse gas emissions and contribute to global climate goals.

By using energy-efficient equipment and considering alternative energy sources, U.S. Gold Corp. aims to lower operational costs while reducing its impact on the environment. Emissions control technologies, including dust suppression systems and air quality monitoring, are also part of the company’s operational plans to ensure compliance with air quality standards and protect the health of nearby communities​.

Engaging with Local Communities and Stakeholders

U.S. Gold Corp. has emphasized community engagement as a core component of its environmental strategy. Recognizing that mining projects can affect local communities, the company has taken steps to involve stakeholders in decision-making processes and address their concerns. Public consultations have been held to gather input on the CK Gold Project, allowing U.S. Gold Corp. to incorporate feedback and build trust with local residents.

Additionally, the company is committed to transparency in reporting its environmental impact. Regular updates on environmental performance, such as water usage, waste management, and reclamation progress, are made available to stakeholders. This approach not only builds credibility but also ensures accountability as the company advances its projects​.

Looking Ahead at U.S. Gold Corp.’s Long-Term Sustainability Goals

As U.S. Gold Corp. moves forward, the company wants to set a standard for sustainable mining in the United States. By focusing on regulatory compliance, reducing its environmental footprint, and engaging with local communities, the company seeks to balance its economic objectives with a strong commitment to sustainability. The CK Gold Project, with its extensive environmental safeguards, exemplifies how U.S. Gold Corp. intends to achieve these goals while contributing to Wyoming’s economic development.

 

 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

U.S. Gold Corp. (NASDAQ:USAU) is positioning itself as a competitive player within the U.S. gold mining industry by advancing three major projects: the CK Gold Project in Wyoming, the Keystone Project in Nevada, and the Challis Gold Project in Idaho. These projects are strategically located in regions known for their mineral wealth and supportive mining policies, giving the company a favorable backdrop as it navigates the challenges and opportunities of gold and copper exploration and development.

The CK Gold Project is U.S. Gold Corp.’s most advanced asset. Situated in southeast Wyoming, this project is nearing the final stages of permitting. In May 2024, the Wyoming Department of Environmental Quality approved the Mine Operating Permit, a significant step that clears the way for the project to begin production. The project could generate an estimated 108,500 ounces of gold equivalent annually over a ten-year mine life. Besides gold and copper, the site offers an unexpected economic advantage: high-quality aggregate rock that could be sold to nearby markets, potentially doubling the project’s net present value. This diversification could help set CK Gold apart from other projects, particularly as demand for aggregates rises with infrastructure development in the region​.

In Nevada, the Keystone Project is a prime exploration asset on the Cortez Trend, a prolific mining area that has produced millions of ounces of gold over the past decades. Although the project is still in the exploratory phase, early findings indicate potential for a large Carlin-type gold deposit. Extensive geological work has been completed to date, including geochemical surveys, geological mapping, and drilling. Keystone’s location near major operations, like Nevada Gold Mines’ Cortez Complex, makes it a valuable prospect. While it still requires significant exploration and development, Keystone has drawn interest for its potential to yield substantial reserves comparable to nearby large-scale operations.

The Challis Gold Project in Idaho is another area of growth. Located within Idaho’s Challis Volcanic Field, the project has a historic resource estimate of approximately 313,825 ounces of gold. Idaho ranks highly as a mining-friendly state, which bodes well for the project’s long-term prospects. However, compared to CK Gold and Keystone, Challis is less advanced and still requires further exploration to fully assess its potential​.

In the broader market context, U.S. Gold Corp. faces stiff competition from other gold mining companies operating in the United States. Major players like Barrick Gold, which operates the Carlin and Cortez complexes in Nevada, dominate the market. However, U.S. Gold Corp. leverages its smaller, more agile structure to focus on these high-potential projects in mining-friendly jurisdictions, hoping to capitalize on rising gold and copper prices. While it doesn’t have the production scale of the largest firms, its projects could benefit from the industry’s consolidation trend, where major mining companies often acquire smaller firms to quickly expand their reserves.

Analysts have taken note of U.S. Gold Corp.’s strategy, with several projecting higher share prices due to its unique assets and potential production capabilities. In an industry where large-scale discoveries have become less common, U.S. Gold Corp.’s approach—focused on regulatory-friendly locations and innovative uses of site resources—aims to carve out a niche among U.S. mining companies set for growth​ in the coming years.

 

 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

U.S. Gold Corp. (NASDAQ:USAU), through its subsidiary Gold King Corp., has announced the approval of its Air Quality Permit by the Wyoming Department of Environmental Quality (WDEQ). This development clears the final regulatory hurdle for the company’s CK Gold Project, satisfying the final condition of the Mine Operating Permit granted earlier in April 2024. The project is set to bring gold and copper production to southeastern Wyoming.

George Bee, President, CEO and Director of U.S. Gold, commented in a press release: “WDEQ’s approval of the Air Quality Permit satisfies the remaining condition associated with the Mine Operating Permit granted in April 2024, completing a major hurdle in the CK Gold Project’s pathway to development. We are well advanced in our engineering studies and poised to move toward development once the optimization studies announced in September are complete.”

Luke Norman, Executive Chairman of U.S. Gold also commented: “The fulfillment of this remaining condition under the Mine Operating Permit positions the CK Gold Project to be Wyoming’s next producing mine, adding gold and copper production to the State’s resource portfolio. The CK Gold Project with its geographically advantageous location, now fully permitted, is poised to be able to leverage rising commodity prices. This is a rarity in today’s global mining context where a lack of funding for exploration and onerous permitting hurdles have hampered the supply of new projects to satisfy increasing demand. As significant shareholders of the Company, we are committed to forging the pathway to project financing without undue dilution to our fellow shareholders.”

The CK Gold Project, previously known as Copper King, represents a significant transition for U.S. Gold Corp. from exploration to development. Dormant for years after limited underground mining, the project gained momentum in 2020 when the company initiated development efforts. A Preliminary Economic Assessment was conducted in 2012, followed by a pre-feasibility study in December 2021. The mine’s location and regulatory readiness position it as a notable contributor to Wyoming’s resource industry.

Engineering for the CK Gold Project is in advanced stages, focusing on optimizing plans for the processing plant and updating equipment bids. The company halted its feasibility study in March 2023, citing alignment issues with the permit approval timeline, supply chain disruptions from the pandemic, and updates required from WDEQ’s review. An updated pre-feasibility study is expected by year-end, after which final feasibility work will resume.

The project aims to repurpose waste rock into construction materials, addressing local demand and reducing costs. This approach complements the core objective of extracting gold and copper, aligning with broader efforts to optimize the mine’s value.

U.S. Gold Corp., listed on Nasdaq as USAU, has other projects beyond the CK Gold Project, including exploration projects in Nevada and Idaho. However, the CK Gold Project remains its flagship project, reflecting the company’s shift toward production.

U.S. Gold Corp. now looks to secure full project financing on favorable terms while finalizing technical plans before breaking ground. The CK Gold Project is a rare and successful example of a fully permitted mine ready to proceed in an increasingly constrained global mining environment.

 

 

 

 

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

US Gold Corp. (NASDAQ:USAU) has achieved several key milestones in advancing its flagship CK Gold Project in Wyoming. The company secured crucial permits over the past few months, positioning the project closer to production.

The Wyoming Department of Environmental Quality (WDEQ) issued a surface mine permit on May 15, 2024, enabling US Gold to advance work on updating the pre-feasibility study (PFS) of December 2021 which demonstrated CK’s robust economics based on significantly lower gold and copper prices today. The PFS update is expected to be completed around the third quarter of 2024. The company is also focused on completing a full feasibility study (FS) incorporating opportunities for project enhancements, including the high-quality aggregate representing considerable upside to the project’s economics.  According to US Gold Corp’s President and CEO, George Bee, substantial progress has already been made to the FS in terms of advanced engineering, plant design and equipment procurement. 

In accordance with the granting of the surface mine permit, the company completed two of three associated conditions – the pollutant discharge elimination system (WPDES) permit, and reclamation bond acceptance.  The final condition required for advancing the project, the air quality permit, is expected to be completed in the coming weeks, which aligns with the company’s previous guidance.

With the regulatory path mostly clear, US Gold Corp. has turned its attention to optimizing project economics and exploring financing strategies. Based on the PFS of December 2021, the project boasts strong fundamentals, outlining reserves of 1 million ounces of gold and 248 million pounds of copper, using conservative price assumptions of $1,625 per ounce of gold and $325 per pound of copper. Given current higher commodity prices, the project’s economics are even more favorable than initially projected.  Capital costs will also be expected to see an increase although ongoing optimization of the plant and engineering should enhance project economics.  

US Gold Corp. is considering multiple project financing avenues to minimize equity dilution, including non-traditional capital sources and the potential for municipal bonds. Wyoming has a history of funding mining projects through various business development funding, which could cover a portion of the capital expenditures at competitive rates. Additionally, the company is exploring prepayment agreements for forward-selling part of its initial production to offset capital costs.

A major part of US Gold Corp’s strategy includes the monetization of waste rock. The CK Gold project is expected to produce approximately 35-40 million tons of granodiorite during mining operations. This rock, typically viewed as waste, is highly suitable for rail ballasts and roads and could be sold as value-added aggregate. The company sees potential to generate significant revenue by selling this material which nearby Martin Marietta quarry charges $20-25 per ton for the same type of rock.  Adding a potential revenue stream from the aggregate presents optionality and opportunities to US Gold Corp. in addition to the State which would garner additional royalty payments. This represents a unique opportunity to enhance the project’s overall profitability.

Beyond production, US Gold Corp. is also considering the possibility of using the mine pit for water storage after the mine’s closure. This initiative could provide long-term benefits to the local community, contributing to the region’s infrastructure needs.

The CK Gold project is located just outside Cheyenne, Wyoming, approximately 1.5 hours from Denver, Colorado. The proximity to major infrastructure and skilled labor provides a logistical advantage for the development of the project.  Without a doubt, Wyoming’s mining-friendly policies have played a role in the relatively smooth permitting process, helping to keep the project on track.

With the remaining air quality permit expected soon, US Gold Corp. is tracking a timeline that few other companies have been able to achieve. The company continues to optimize its economic outlook in value-accretive ways and alternative financing methods to maximize returns for its investors and minimize dilution.

The CK Gold project is on the verge of becoming a major player in Wyoming’s gold and copper mining industry, with the potential for strong profitability and long-term benefits for the local community.

 

 

 

 

US Gold Corp (NASDAQ:USAU) has provided a significant update on the engineering and optimization efforts for its flagship CK Gold Project in Wyoming. After securing essential permits earlier this year, the company is now focusing on refining the project’s economics and advancing value accretive potential.

With gold, copper, and silver prices nearing historic highs, US Gold Corp is taking steps to optimize its operations. The completion of the updated pre-feasibility study (PFS) for the CK Gold Project, has been paused to incorporate engineering optimization studies and technological advancements for maximum results in addition to rising commodity prices. This strategic decision aims to establish a more efficient and profitable mining operation that aligns with the long-term vision of the company.

Permitting and Pre-Feasibility Study Update

In May 2024, US Gold Corp secured its Mine Operating Permit from the Wyoming Department of Environmental Quality (WDEQ), marking a key regulatory milestone. This permit allows the company to move forward with site preparation and construction while simultaneously resuming work on updating its December 2021 PFS. The updated study, which restarted in June 2024, will take into account changes required by permit commitments, engineering optimizations, and rising metal prices.

US Gold Corp’s management believes that this is an opportune moment to finalize the engineering optimization studies that could significantly improve efficiencies and project economics. The company is ideally positioned to capitalize on the current near-historic highs for gold, copper, and silver, by securing optimal mine production parameters before finalizing any production decisions.

In commenting on the engineering studies in a recent press release, George Bee, President and CEO said, “The time to make changes to a project is during the initial engineering so that the Feasibility Study (FS) is well thought out and durable. Nothing upsets project controls and cost management more than change orders once construction has started, and we will go into development with a well-engineered project consistent with the permit constraints and optimized for the best possible outcome.”

Luke Norman, Chairman added, “While gold, copper and silver prices are pushing new highs, the equity markets in the junior sector are still adjusting to a new reality.  Although the CK Project is permitted in principle and ready for development, we have time to accomplish these optimization opportunities. Testing alternative, mine-proven flotation technologies offers potential to further increase the economic framework of the mine.  Furthermore, we are still looking to build value, based on investigations to commercialize the rock that we mine and set aside to extract the gold and copper ore. Adding a potential revenue stream from the vlaue added waste rock aggregate could also offer additional benefits to both U.S. Gold Corp and the State which would garner additional royalty payments. This commercialization also has the potential to offer alternative closure scenarios where the exhausted pit could serve as future water storage to reduce cost and disruption in the nearby Curt Gowdy Park where the current city reservoirs are situated” adding that “any of these potential changes would of course be subject to discussion with interested parties and additional permitting.”

Engineering Optimization for Tailings and Water Management

One of the critical areas under review is the optimization of the Tailings Management Facility (TMF). US Gold Corp has enlisted the expertise of Tierra Group International (TGI), a Denver-based geotechnical engineering firm, to evaluate the TMF’s design. The goal is to improve the stacking sequence and road access to the facility, potentially lowering capital costs without altering the TMF footprint or design concepts. As part of this effort, the TMF will now incorporate a membrane composite liner rather than the modified soil liner initially considered in the 2021 PFS.

Water management is another area where the company sees opportunities for improvement. In June 2024, the CK Gold Project received its water discharge permit (WYPDES) from the WDEQ, which established specific standards for water use and discharge. In response, US Gold Corp has tasked TGI with revising the site-wide water management plan and water balance model. TGI is exploring ways to enhance water harvesting within the project’s property boundaries, which would reduce the amount of external water the company needs to purchase. US Gold Corp already has an agreement in place with the Cheyenne Board of Public Utility to buy water for its operations, but improved internal water management could significantly lower costs.

Process Plant Trade-off Study Aiming for Higher Efficiency

Another focal point of US Gold Corp’s ongoing studies is optimizing the process plant. The 2021 PFS outlined plans for a 20,000 ton-per-day sulfide concentrator, which uses conventional crushing, grinding and flotation to generate a sulfide concentrate. However, recent advancements in flotation technology have prompted the company to reconsider this approach.

US Gold Corp has started investigating alternative flotation equipment that could improve metal recovery rates and reduce operational costs. Specifically, the company is exploring the use of Jameson Cells and IsaMill technology, which have demonstrated potential benefits in other comparable mining operations. These technologies offer the possibility of improving metal recoveries, lowering the capital requirements by reducing the mill building size, and cutting operational costs by decreasing energy consumption and labor needs.

To determine the suitability of these technologies for the CK Gold Project, US Gold Corp has shipped 150 kilograms of ore-grade material to a metallurgical laboratory for testing. The results of these tests will be crucial in shaping the final design of the processing plant, with the goal of improving overall efficiency and maximizing output.

Beyond the 2021 PFS – NPV Upside 

US Gold Corp’s ongoing efforts to optimize the CK Gold Project come at a time when the project’s economics already appear robust – the 2021 PFS has projected 1 million ounces of gold and 248 million pounds of copper in reserves, with all-in sustaining costs (AISC) of $800 per ounce of gold. These estimates were based on conservative metal price assumptions of 1,625 per ounce of gold and $325 per pound of copper.  While AISC is expected to be revised upward to reflect inflation and rise in input costs, the project’s outlook appears rock solid.

The potential sale of 35-40 million tons of granodiorite, which will be extracted during mining operations as aggregate material, could provide a significant additional revenue stream. This waste rock, of a quality suitable for rail ballasts and roads, is similar to material sold by nearby quarries for $20-25 per ton, offering a unique opportunity to significantly enhance the project’s profitability.

CK Expansion Potential 

Another NPV upside not factored into the PFS is the potential for resource expansion. Over 80% of historical drill holes ended in mineralization and/or not closed off laterally. CK is open at depth below 800 ft and southeast along strike with 2,900 ft of strike length still untested; in other words, the deposit is wide open. Furthermore, the depth and strike length volumetrics are sufficient to suggest a doubling of the current gold-copper resource if mineralization proves to continue along strike.  And one can conjecture what that means in terms of more saleable aggregate.

The CK Gold Project is located in a sparsely populated area with favorable air and water quality conditions, all of which has contributed to a relatively smooth permitting process. The company has secured most of the necessary permits, including industrial siting, mine operating, and water discharge permits. The final air quality permit is expected soon, which will fully clear the regulatory path to production.  Cheyenne, located just 1.5 hours from Denver, offers proximity to major infrastructure and skilled workforce, further strengthening the project’s long-term viability.

The Next Steps 

US Gold Corp’s next steps include completing the engineering optimization studies and finalizing the updated PFS later this fall.  The Feasibility Study already well underway is expected in the first quarter of 2025.  With these enhancements, the company expects to significantly improve project economics and prepare for the decision to move toward full-scale production.

While the CK Gold Project continues to advance, US Gold remains committed to finding creative solutions to reduce costs and maximize the project’s value. The company’s focus on operational efficiency, water management, and innovative technologies is setting the stage for a more sustainable and profitable mining operation in Wyoming.

With most of the key regulatory permits in hand and ongoing engineering work nearing completion, the CK Gold Project is well-positioned to move forward. As US Gold Corp continues to optimize the project and explore expansion opportunities, it is clear that the CK Gold Project could become a major project for Wyoming’s gold and copper mining industry.

 

 

 

 

 

 

U.S. Gold Corp. (NASDAQ:USAU), a mining company focused on the development and exploration of precious metal projects in the United States, is making major strides toward realizing near-term production at its flagship CK Gold-Copper Project in Wyoming, matched only by an enviable portfolio of district-scale exploration projects in the mining-friendly states of Nevada and Idaho.  Each asset is a company maker, highly relevant In today’s M&A climate.  

The CK Gold Project, in the State of Wyoming, reached a critical threshold in late April 2024 with the granting of a Surface Mine Permit, bringing the project a major step closer to development and production. Concurrently, its exploration assets in Nevada and Idaho, present exceptional future value potential. The Keystone Project, a 20 square mile land package situated just 11 miles south of Nevada Gold’s (ABX-NEM JV) second largest gold mine, the Cortez Hill Complex, represents a compelling analogue to the discoveries that made the Carlin Trend legendary.  

Let’s take a closer look at these projects and how the company expects to maximize potential at each of them.

CK Gold Project: Near-Term Production Potential

The CK Gold Project, located in the Silver Crown Mining District of southeast Wyoming, approximately 20 miles west of Cheyenne, has been the primary focus of U.S. Gold Corp.’s recent efforts. The project was initially discovered in 1881 and has seen various phases of exploration and limited mining over the years. The company acquired the project from Energy Fuels in 2014 and has since conducted several drilling campaigns to define and expand the resource.

CK Gold is a large-tonnage, development-stage gold-copper deposit with high-grade mineralization exposed at surface, surrounded by a broader, lower-grade zone. According to the company’s SK-1300 Technical Report Preliminary Feasibility Study (PFS) released in December 2021, the project supports a solid reserve and resource base. The PFS highlights proven and probable reserves of 1.44 million gold equivalent (AuEq) ounces, including 1.01 million ounces of gold and 248 million pounds of copper, and 1.58 million AuEq ounces of measured and indicated resources, plus 0.357 million AuEq ounces of inferred resources. 

The project’s economics are compelling, even more so given the gold and copper price assumptions back in December 2021 of $1,625 per ounce and a copper price of $3.25 per pound, a far cry from the surging gold price today of over US $2,600 and copper steadily above $4.00. CK’s economics favour gold at around 70% of the project’s value versus copper at an estimated 30%.  And while the 2021 PFS contemplates all-in sustaining costs (AISC) that will likewise reflect the ongoing rise in costs driven by inflation, management still targets a 10-year mine life producing on average 108,500 AuEq ounces [135,300 AuEq in years 1-3], a two-year payback, and very robust net present value and internal rate of return.  The company is in the process of updating the 2021 PFS which is expected to be completed later this year, followed by the Feasibility Study (FS) in the first part of 2025 incorporating project upside opportunities.  

According to George Bee, USAU’s President and CEO acclaimed for developing and operating some of the largest successful mining operations the world over, “the time to make changes to the project is during the initial engineering stage so that the FS will be well thought out and durable, optimized for the best possible outcome”.

CK’s permitting status has been a significant focus for U.S. Gold Corp. which was rewarded in May of this year with the receipt of the Surface Mine Permit from the Wyoming Department of Environmental Quality (WDEQ), a critical milestone that essentially clears the way towards project development.  Of the three ancillary conditions associated with the Permit, only one remains and is expected in the coming weeks. With these permits in place, U.S. Gold Corp. will have cleared all major regulatory hurdles to move forward with the CK Gold Project’s development, potentially attracting interest from major mining companies and financing partners. 

While not currently a feature of the company’s operating plan and pending consideration under a separate or supplemental permit, it has become clear that the rock moved and set aside to get at the copper and gold is not waste rock as is the case with most mines but a valuable resource. The rock has been proven out as a top-quality aggregate and rail ballast resource, made economical by the proximity to a large market in the surrounding area and the northern part of the Colorado front range.

The rock, one of several value-added features, has the potential to virtually double the project’s NPV and set U.S. Gold Corp. apart from other metal mining companies. 

Further Exploration Upside in Nevada

While the CK Gold Project offers near-term production potential, U.S. Gold Corp. is also advancing exploration projects in Nevada, a state known for its rich mineral endowment and favourable mining policies. The company’s key exploration assets include the Keystone Gold Project on the Cortez Gold Trend, a royalty on the Maggie Creek Project adjacent to Newmont’s Carlin operations which have produced over 90 million ounces of gold, and the Challis Gold Project in Idaho. The Nevada trends are home to some of the most productive gold mines in the United States and George Bee should know; he was a mine manager at the Goldstrike Mine for Barrick Gold during the early days of operations that propelled Barrick to where it is today.

The Keystone Project, a massive land position between ABX/NEM’s Cortez Hill operation and McEwen’s Gold Bar Mine, has seen extensive exploration, including geochemical sampling, geophysical surveys and drilling. While U.S. Gold Corp. has yet to undertake a major drilling program at Keystone, the exploration work completed to date suggests significant potential for a major discovery. The company’s strategy involves systematically testing the most promising targets identified through its comprehensive exploration efforts.

Market Outlook

Given the upward trajectory in gold, silver, and copper prices, the company has good reason for its enthusiastic outlook.  

Considering the number of pre-development gold and copper mines battling federal and foreign regulatory hurdles for mining permits, it is no wonder that U.S Gold Corp. is making the radar of analysts in Canada and the U.S.  Alliance Global Partners maintains a price target of $15.25 per share, while H.C. Wainwright & Co. has set a target of $11 per share. These valuations reflect CK’s robust value proposition in a safe jurisdiction, and a highly accomplished technical and management team, but surprisingly very little value is attributed to the exploration upside. 

 

 

 

 

 

MiningFeeds recently had the opportunity to sit down with George Bee, the CEO of U.S. Gold Corp. (NASDAQ:USAU), for an in-depth discussion about his career, the strategic direction of U.S. Gold Corp., and the exciting prospects of the CK Gold Project in Wyoming. George Bee, with his extensive background in the mining industry, offers a wealth of knowledge and experience that has helped guide U.S. Gold Corp. through critical stages of development. The following is an unfiltered view of our conversation, capturing George’s insights as he delves into the past, present, and future of U.S. Gold Corp. and the mining industry.

From Retirement to U.S. Gold Corp: A New Chapter

After a long and successful career with Barrick, where he played an important role in the development of the Goldstrike mine in Nevada, and contributing to some of the most prolific gold trends in mining history, George Bee decided to come out of retirement. When asked what compelled him to take on a new challenge with U.S. Gold Corp., he replied:

“There’s only so much skiing and outdoor activities you can do before thinking, ‘I should use my accumulated experience!’ I sat on a number of boards and was involved in some consulting when I met Luke Norman, our Executive Chairman and co-founder of the company. We were looking at something totally unrelated to US Gold and he then asked me to look at what was then called Copper King. The project looked dead simple, in a great jurisdiction and had good economic potential. I said, ‘that’s easy to develop and can be done on a fast-track basis.’ So, the moral of the story is to be careful what you say, you might get handed the keys, which is what happened.”

The CK Gold Project’s Economic Viability and Resource Expansion 

The CK Gold Project has drawn considerable interest for its gold and copper production profile in a mining friendly state.  However, beyond that is the potential for resource expansion and how by-product waste rock might factor into the project’s economics. In putting it all together, Bee emphasized the practical methodology U.S. Gold Corp. has taken in demonstrating the project’s viability:

“There was some skepticism about the project since it has a modest grade and sits alongside the Curt Gowdy State Park in southeast Wyoming. Before expanding the potential of the deposit, we had to first show that there was a compelling economic incentive to develop the project, and secondly demonstrate that we could get the project permitted. In December 2021 we published our prefeasibility study which showed, on the basis of the copper and gold in the deposit, robust economics evaluated at $1,625/oz gold and $3.25/lb copper. By September 2022 we had completed 2-years of environmental baseline studies and prepared a Mine Operating Permit (MOP) application and submitted it to the Wyoming Department of Environmental Quality – Land Quality Division (DEQ-LQD). In May 2024 we received conditional approval to proceed with the project, having already received another key permit approval, the Industrial Siting Permit, in June of 2023.”

Bee further elaborated on the future potential of the project, hinting at additional resources yet to be explored:

“We know that we have additional resources at depth and the orebody bottoms out in mineralization. There is also a trend to the southeast of the project that warrants additional exploration. The strategy has been to conserve treasury at a time when funds have been difficult to come by without excessive dilution and focus on what we have already defined. There is upside in the resource and we will pursue that in due course.”

“Not All Ounces Are Created Equal”: Insights from the SME Conference

During the recent SME (Society for Mining, Metallurgy & Exploration) conference in New York, George Bee delivered a keynote speech on the notion that “not all ounces are created equal.” He used his extensive experience in various mining projects worldwide to illustrate this point:

“Having worked on remote projects high up in the Andes in South America, the point I was making is that if a project is not close to infrastructure, has no power supply nearby, needs to transport, house and feed personnel, hold large inventories of critical spares to maintain the operation, then there better be higher grade reserves with higher economic margin to support the development. I was able to show the juxtaposition between some of the projects that I have been involved with and the CK Gold Project to demonstrate that the location is vastly superior to other similar projects. We are in a stable jurisdiction with no political risk, we know the rules of the game through established statutes governing the activity, the infrastructure is second to none, people can work and go home after their shift, and we are well supported locally by contractors who are well equipped to serve our needs. The point is that an ounce of gold on top of a mountain in the Andes is not the same as an ounce 20-miles outside of Cheyenne, Wyoming in terms of its economic potential. There are also the technical factors associated with the metallurgical recovery of that ounce but I believe you see my point.”

The Strategic Importance of Rail Proximity

The CK Gold Project stands out for its gold and copper potential and for the strategic opportunities presented by its waste rock. The proximity to rail infrastructure could play a crucial role in maximizing the economic benefits of this by-product, as Bee explains:

“Our current plan and permit are centered around the recovery of gold and copper into a copper gold concentrate, producing around 160 tons per day. This can be trucked away without much impact to the local road infrastructure. In looking at on-site material to support the construction of the project, we found that the ‘waste’ rock that we will have to move and set aside to get at the copper and gold ore is a superior aggregate resource. Our current plans show that we set the waste aside and reclaim and revegetate that waste in piles created adjacent to the open pit. Once we have accounted for the rock that we need to build roads, stabilize tailings and other on-site needs, it’s estimated there will be more than 35 million tons in the piles to be reclaimed. Our neighbors, in a quarry 3-miles to our south, mine rock with no gold or copper in it and sell it at the gate for around $20/ton. What we want to explore is putting the rock we have set aside to beneficial use. It would be a win-win scenario since the State will receive a royalty payment, the mine can sell the rock which we have already paid to mine, we reduce our reclamation footprint and area of impact, and the fuel and energy expended to remove the rock would offset the energy needed to produce the rock someplace else if we put the rock to good use.”

Bee continued to highlight the significance of rail proximity for the project’s long-term success:

“The issue is that it is a bulk commodity. While we could move a fair amount by road with the necessary impacts mitigated, it would be much better to move the rock to market by rail. This lowers impacts, extends the commercial area that could be served, and increases the amount that could be sold. Our focus is getting the copper and gold mine up and running. Commercializing the waste rock is an opportunity and the proximity of rail to the site provides a great deal of potential. This is a matter for further planning, discussion with the locals and a permitting exercise.”

Wyoming’s Resource Tradition

Wyoming’s longstanding tradition as a resource state has also influenced the CK Gold Project’s development. Bee compared Wyoming to other jurisdictions he has worked in, highlighting the unique advantages the state offers:

“Wyoming has a population of almost 600,000 people and relies in large part on the revenues generated from the resource sector. Coal, oil, gas, trona, uranium resources are all recovered to help the economy and keep taxes low in the State. Coal mining has been a stalwart activity, but it is coming under pressure as coal-fired power generating stations age and are not replaced as society contends with concerns over emissions. Being well versed in regulating and managing the resource sector, Wyoming is an excellent jurisdiction with regulators, politicians, and people who realize the need for and benefits of the resource sector. The laws and statutes are well understood so an investor knows the ‘rules of the game’ and the regulators are knowledgeable, experienced, and motivated to support the resource sector. The CK Gold Project will be the first ‘hard rock’ mine permitted and brought into production in many years and offers a diversification in the resource sector in Wyoming at a time when coal production is diminishing. This allows US Gold Corp. to benefit from an established support sector for the mining with contractors, labor, and services looking for new opportunities.”

Reflecting on his experience in different parts of the world, Bee noted:

“I have worked in many different jurisdictions with differing levels of political stability, regulatory framework, and experience with the resource sector. I can attest to the fact that Wyoming is ready, willing, and able to support environmentally sound, responsible mining. This is not the case elsewhere and it’s quite frustrating especially in North America with its large land mass, well endowed with mineral wealth. The federal government, provinces and states tout their resource opportunities but often make it so difficult to actually bring those resources into production.”

Local Economic Benefits and Unique Project Attributes

The CK Gold Project is not just another mining operation; it will provide substantial benefits to the local economy and resource profile, receiving strong support from the community. Bee highlighted several factors that make this project unique and advantageous for the region:

“Again, Wyoming is a resource state, and the areas in which we are located are familiar with mining activity. There is a large active quarry (Granite Canyon Quarry) some 3-miles to our south, so people are aware of the activity. Located in southeast Wyoming, there is a greater tolerance of the resource sector. This would be totally different if the project was close to Yellowstone National Park or Jackson Hole. Being situated close to both the Interstate I-25 and I-80 means that the project is well served and an easy drive from Gillette, WY, Denver CO, and Salt Lake City UT, all centers where contractor and equipment support for the mining sector can be readily found. Not having to build a man-camp and long-distance transport, with a locally well-trained workforce that can live in the area around Cheyenne, are all huge factors in our favor as we compete for labor and talent.”

Bee also discussed the significant financial contributions the project is expected to make to the state, further solidifying its local support:

“Additionally, being on State land and operating under a lease with the State, several tens of millions of dollars will be paid in royalties, earmarked for K through Grade12 education, in addition to more than $88 million in taxes. We truly believe that the project will be a huge win for the local area providing good jobs and significant revenues.”

Looking to the future, Bee emphasized the positive legacy that the CK Gold Project could leave for the community:

“Furthermore, with an eye to the future and the positive legacy that we hope to leave when the mining is concluded, we believe that we can provide additional water storage for the city of Cheyenne obviating the need to increase the existing reservoir capacity in the Granite and Crystal Lakes in Curt Gowdy State Park. Eventually, Cheyenne needs more water storage to meet the growing needs of the city as it thrives. Water brought over from the Snowy Range west of Laramie is stored in the reservoirs in Curt Gowdy Park. Using the exhausted pit would avoid the need for a huge civil project to increase the reservoir capacity and the disruptions to the recreation facilities around the park. The reclaimed mine site could even be an extension to the park.”

Looking Ahead, Near Term Catalysts

As U.S. Gold Corp. continues to advance the CK Gold Project, updates to the prefeasibility study (PFS) have become a critical focus, especially in light of recent market changes. George Bee shared his expectations for where the updated PFS will reveal improvements:

“We obviously see that the initial gold and copper prices used at $1,625/oz and $3.25/lb, respectively, will be far outstripped by current prices. Conservatively, our evaluations at $2,000/oz gold and $4.00/lb copper, when the current prices are well in excess of those numbers, suggest significantly more revenue from production. This will be offset to some extent by increased costs due to inflation and higher capital costs since 2021. We believe that the margin will be preserved if not improved. Additionally, we continue to work on improvements and enhancements to the plan, and this is besides the aggregate opportunity.”

Looking forward to 2024, Bee identified several near-term catalysts that will drive the CK Gold Project closer to development:

“Now that we have established the criteria and commitments associated with our permit approval, we can finalize the facility designs and incorporate those into our PFS. We are also looking at a trade-off on some alternative flotation technology which purports better recovery from less equipment than our conventional flot cells in our current estimate. An updated PFS will show the direction we are taking and identify the opportunities that we hope to capitalize on for our feasibility study. Additionally, we hope to reveal partnership and/or financing avenues which demonstrate a pathway to completing development without excessive dilution to our shareholders.”

The Keystone Gold Project – Nevada

While the CK Gold Project remains the primary focus, U.S. Gold Corp. has not forgotten about the Keystone gold project, located just 11 miles south of Barrick-Newmont’s second largest gold operation in Cortez Hills. George Bee discussed the potential of Keystone and how the company plans to tap into it:

“The CK Gold Project has been our intense focus for the last few years, consuming our attention and treasury. We have done some low-cost remote work covering our 20-sq. mile Keystone property. The satellite imagery showed some anomalies in areas beyond our current primary targets. A field inspection and some grab samples revealed additional areas of mineralization and, as yet, additional exploration opportunities. We are very excited about the prospects for Keystone which we believe to have similarities and analogies to the multi-million-ounce Nevada Gold Cortex Complex. The reality though is that the appetite for exploration funding simply has not been there until recently, hence our pivot to the CK Gold Project. Keystone’s time will come and it is potentially a ‘game changer’ but needs several tens of millions of exploration dollars to do it justice. We will be pursuing Keystone in due course.”

In a candid assessment of U.S. Gold Corp’s current market valuation, Bee expressed his belief that the company is significantly undervalued given its assets and progress:

“Well you may have heard this from a number of entities but we truly believe, ‘we are significantly undervalued’ in the market. The current market does not seem to be a ‘normal’ market and the whole sector, not just US Gold Corp. is suffering. Typically proven and probable ounces in the ground should trade around $250 per ounce, implying a value of $360 million, just for the CK Project. The fact that we have a permit to develop the project and have essentially taken away that huge element of risk, should have us trading at around 50% of our NPV. At $325 million identified in our 2021 PFS, that should put USAU north of $150 million market capitalization on CK alone.”

Despite the current market challenges, Bee remains optimistic about the company’s future:

“And yet we are sitting around the $60 million mark, which speaks to a strange dynamic in the market. This being the case, we continue to ‘move the ball down the field’ towards development and the generation of free cash flow to form a stable, low risk project in a great jurisdiction. ‘Build it and they will come’ is the adage that comes to mind. Additionally, we continue to pursue avenues to realize value for our exceptional exploration assets. Stay tuned!”

Our discussion gave a more comprehensive look at U.S. Gold Corp’s strategic direction, the exciting potential of the CK Gold Project, and the challenges and opportunities facing the company. George Bee’s extensive experience and insights provide a clear understanding of why U.S. Gold Corp. is set for success, even in the face of recent short-term market volatility. As the company moves forward with its projects, the mining industry will be keeping a close eye on its progress, eagerly awaiting the next chapter in U.S. Gold Corp’s journey.