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.