- Record gold prices render PEA, due diligence assumptions,
and March 2020 internal estimates
conservative
- Expands strategic direction to pursue developing
environmentally sound mining operations at the CK Gold
Project
ELKO, Nev., Sept. 9, 2020 /PRNewswire/ -- U.S. Gold Corp.
(NASDAQ: USAU) (the "Company"), a gold exploration and development
company, is pleased to provide an exploration update for the CK
Gold Project (formerly Copper King), located 25 miles west of
Cheyenne, Wyoming.
Prefeasibility Study:
The CK Gold Project Prefeasibility Study (PFS) is now well
underway with permits in place to conduct the follow-up drilling
program initiated on September
3rd. The drilling is, amongst other things, aimed
at gathering fresh mineral samples for confirmatory metallurgical
tests. As previously reported, flotation concentrate from sulfide
and mixed sulfide sample composites for the project contained 26%
copper and 89 g/t gold with little or no deleterious elements
contained for later smelting. Fresh samples should allow flotation
recoveries, already reported as averaging 72.5% gold and 81.5%
copper across the resources, to be optimized. Prior tests on older
samples may well have been negatively affected by oxidation
inhibiting flotation recovery. Additionally, better grade and
likely coarser gold in the vicinity of the oxide cap, which
represents 10% of the total resource, as currently interpreted, are
planned to be tested for a gravity recovery response prior to
flotation to enhance gold recovery. Process optimization was not a
focus of prior metallurgical work supporting the Preliminary
Economic Assessment (PEA), dated December 5,
2017, and the new fresh samples should allow this work to be
carried out.
A further objective for the current drilling program is to
convert previously reported inferred resources to the measured and
indicated category material and extend the resource to the
southeast. Drilling is expected to conclude sometime in October,
whereupon a resource update is intended to be completed
encompassing the new data and a complete re-evaluation of the
existing core, which is now largely completed. The relogging
exercise of the existing core under the supervision of geologic
specialists, who have a wealth of experience from around the world
specializing in copper-gold deposits, reveals new textures to
assist with assessing gold and copper deposition, and the presence
of native copper which could have impacted metallurgical recovery
in prior test work.
While the field activities and drilling are taking place, the
Company is taking advantage of the time to capture data that should
support geotechnical, hydrological and other studies, including
detailed baseline conditions. Following what is anticipated to be a
positive affirmation and improvement over prior work, the
additional data is anticipated to advance the project towards the
next stage of development. Key to permitting, a local specialist in
environmental and State permitting disciplines is expected to
assist in augmenting the extensive data already available in the
area. Site-specific baseline information collection and
characterization of the surrounding environment for the proposed
project will be initiated during September.
Commentary on Due Diligence Activities:
As part of the August 12, 2020
announcement of the acquisition of Northern Panther Resource
Corporation, Mr. George Bee,
recently appointed President of U.S. Gold Corp. conducted his own
due diligence exercise with specific focus on the CK Gold
asset.
Reviewing the PEA analysis by Mine Development Associates (MDA)
and supporting information in the U.S. Gold Corp. data room,
several aspects about the Copper King resource stood out . Firstly,
prior work completed at $1,250 per
ounce gold and $2.25 per pound copper
needed to be updated to reflect more recent metal prices.
Considering a conservative 12-month rolling average at the time
(April 2020) of $1,461 per ounce gold and $2.28 per pound copper, the economic prospects
for the project greatly improved. With the recent gold and copper
upward price trends and the absence of substantial inflation, the
CK Gold Project is expected to look very attractive when the PFS is
completed.
Secondly, more 137,000 feet of historic drilling has resulted in
robust, data driven, interpretations of the mineral inventory which
outcrops at surface. A hypothetical open pit properly phased into
an annual mine plan potentially will deliver what is likely to
become ore at a very low waste to ore ratio. This implies early
feed to process facilities with little waste to mine. The result is
expected to be quick access to revenue bearing rock at lower mining
cost. Additionally, the cross sections and data suggest that better
gold and copper grades are nearer to surface and a feature of the
upcoming metallurgical work will be capturing the more of the value
through improved copper and gold recoveries.
A third aspect that appeared to favor the project revolves
around the project's location. Not only does the property sit on
Wyoming State mineral lease land, the surface is also administered
by the State. The resource extraction business is a considerable
economic driver for the local economy and the state hosts much
know-how and talent. Furthermore, the project location near to
road, rail, power and support services implies that many of the
major elements of capital cost, beyond the process plant and mine,
will be minimized.
Mr. Bee went on to state, "Given the current market conditions
with gold prices rising substantially and crossing the $2000 mark, our PEA and internal estimates
published in March 2020 are now very
conservative. Furthermore, not only does potential development come
at a time when the coal, uranium, and the oil and gas businesses in
Wyoming are facing challenges from
depressed prices, there appears to be many synergies and positive
aspects for the project as a consequence of its location. We have a
very capable team and Board driving the CK Gold project from PEA to
Prefeasibility Study, and onwards toward production. Additionally,
there exists, as yet, unfactored synergies with respect to
surrounding infrastructure and facilities." Summing up, Mr. Bee
said, "We believe that the CK Gold Project is a rare opportunity
whose time has come. I'm delighted to be part of the project
and optimistic about what the project will represent for
shareholders and stakeholders alike. We look forward to
updating everyone on our developments as we progress."
Sustainability Initiatives:
As part of U.S. Gold Corp.'s efforts to build sustainable mining
projects that improve communities where it operates, the Company
announced an expanded strategic direction with the goal developing
environmentally sound mining operations at the CK Gold project in
Southeast Wyoming.
"For too long, mining and sustainability have been perceived as
two forces that will always be at odds. At U.S. Gold Corp., we do
not believe that they have to be that way," stated Company Chief
Executive Officer Edward Karr.
"Being able to operate in an environmentally and socially
responsible manner is at the core of our vision. Our commitment
goes beyond sustainable solutions in equipment, method, and energy
sources. In addition to environmentally sound mining practices, we
are proud to also be exploring opportunities for sustainable
projects and land use after gold extraction is completed."
About U.S. Gold Corp.
U.S. Gold Corp. is a publicly traded, U.S. focused gold
exploration company. U.S. Gold Corp. has a portfolio of exploration
properties. Copper King, now the CK Gold Project, is located in
Southeast Wyoming and has a
Preliminary Economic Assessment (PEA) technical report, which was
completed by Mine Development Associates. Keystone and
Maggie Creek are exploration
properties on the Cortez and Carlin Trends in Nevada. The
Challis Gold Project is located in Idaho. For more information
about U.S. Gold Corp., please visit www.usgoldcorp.gold
Safe Harbor
Certain statements in this press release are forward-looking
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements may be identified by the use of
forward-looking words such as "anticipate," "believe," "forecast,"
"estimated," and "intend," among others. These forward-looking
statements are based on U.S. Gold Corp.'s current expectations, and
actual results could differ materially from such statements. There
are a number of factors that could cause actual events to differ
materially from those indicated by such forward-looking statements.
These factors include, but are not limited to, risks arising
from: the prevailing market conditions for metal prices and mining
industry cost inputs, environmental and regulatory risks, risks
faced by junior companies generally engaged in exploration
activities, whether U.S. Gold Corp. will be able to raise
sufficient capital to implement future exploration programs,
COVID-19 uncertainties, and other factors described in the
Company's most recent Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q, and Current Reports on Form 8-K filed with the
Securities and Exchange Commission, which can be reviewed
at www.sec.gov. The Company has based these
forward-looking statements on its current expectations and
assumptions about future events. While management considers these
expectations and assumptions to be reasonable, they are inherently
subject to significant business, economic, competitive, regulatory,
and other risks, contingencies, and uncertainties, most of which
are difficult to predict and many of which are beyond the Company's
control. The Company makes no representation or warranty that the
information contained herein is complete and accurate and we have
no duty to correct or update any information contained
herein.
For additional information, please contact:
U.S. Gold Corp. Investor Relations:
+1-800-557-4550
ir@usgoldcorp.gold
www.usgoldcorp.gold
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SOURCE U.S. Gold Corp.
