-Company's CK Gold Project in Wyoming is expected to produce copper
concentrate from its open-pit mine
-December 2021 PFS demonstrates strong economic
potential with proven and probable reserve of 1.01 million ounces
of gold and 248 million pounds of copper
CHEYENNE, Wyo., Oct. 4, 2023
/PRNewswire/ -- U.S. Gold Corp. ("U.S. Gold," the "Company," "we,"
"our" or "us") (Nasdaq: USAU) provided an update on its CK
Gold Project (the "Project"), which is positioned to become a
domestic United States producer of
copper concentrate. This aligns with the increasing demand for
copper due to electrification and green technologies amid growing
uncertainty about overseas supply sources.
Additionally, in July 2023, the
U.S. Department of Energy (DOE) adopted copper to its Critical
Materials list which assesses materials vital to global clean
energy tech supply chains.
The Project was previously named Copper King but was renamed due
to expectations that approximately 70% of the revenue from the
proposed Project will be derived from the gold within the copper
concentrate. The copper concentrate at the Project is expected to
average around 20% copper and may include up to 2 ounces per ton of
gold, making it readily marketable to smelters due to the absence
of deleterious elements. Concentrate production can commence once
commissioning and construction of the Project are completed
following the current permitting effort, anticipated to conclude in
2024.
The Project lies within the Silver Crown Mining District
approximately 20-miles west of Cheyenne in southeast Wyoming. It is situated 3-miles north of
another mining operation, the Granite Canyon Quarry, operated by
Martin Marietta Materials. Copper was discovered in the late 1800s
as the railroad was being constructed enabling prospectors to
recognize the green staining on rocks outcropping at the surface,
indicating the presence of copper oxide minerals. Although it has
been long abandoned, the mining district once hosted various
underground workings where higher-grade copper, gold and silver
values were mined. The Project's primary focus is on copper and
gold ore recovered from an open pit mine. The December 2021 prefeasibility study shows robust
economic merit for the initial operation focused on its proven and
probable reserve of 1.01 million ounces of gold and 248 million
pounds of copper.
In commenting on the strategic decision by the DOE, George Bee, President and CEO of U.S. Gold Corp.
said, "The CK Gold Project stands to offer much in the form of
royalties to the state from proposed copper and gold production,
taxes, and employment. There are further potential benefits to the
Project that we are still assessing concerning the beneficial use
of the rock mined to expose the copper and gold mineralization and
the potential for water storage in the reclaimed open pit at the
end of the mine life. Along with the benefits that we have already
identified, we're grateful for the opportunity to produce copper in
the United States, where we know
the rules of the game and have a deep understanding of the
political and logistics landscape, considering the difficult times
we are facing in the world. Unlike many copper prospects in remote
or unstable parts of the world that require significantly larger
resources to develop, the CK Gold Project is modest in scale, quick
to develop, and provides an immediate source of copper for the
growing needs of society."
On August 2, 2023, The Copper
Development Association Inc. (CDA) released a statement applauding
the DOE, commenting, "The Copper Development Association (CDA)
congratulates DOE on its thoughtful, forward-thinking analysis that
resulted in copper's inclusion on the Critical Materials list,"
said Andrew G. Kireta, Jr., CDA's
president and CEO. "Copper is a major contributor to U.S. economic
and national security, and with copper demand projections doubling
by 2035, primarily due to plans for the clean energy
transition, electrification, and clean water
infrastructure. The nation would be defenseless without
electricity and copper's vital role in its generation,
transmission, and distribution. The U.S. should do all it can
to protect and promote our domestic copper industry."
About U.S. Gold Corp.
U.S. Gold Corp. is a publicly traded, U.S. focused gold
exploration and development company. U.S. Gold Corp. has a
portfolio of exploration properties. The CK Gold Project is located
in Southeast Wyoming and has a
Prefeasibility Study SK-1300 technical report summary completed by
Gustavson Associates, LLC. In December
2021. The Keystone exploration property is on the Cortez
Trend in Nevada. The Challis Gold
Project is located in Idaho. For
more information about U.S. Gold Corp., please
https://www.usgoldcorp.gold/.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release are forward-looking
within the meaning of the safe harbor provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These statements
may be identified by the use of forward-looking words such as
"proposed," "aims," "forecast," "estimated," "believes,"
"continues" and "intend," among others. These forward-looking
statements include statements related to (i) the CK Gold Project,
including the potential for copper concentrate production and the
expected increasing demand for copper; projections concerning the
revenue derived from gold and copper production; expected
composition of copper concentrate; projected timeline for initial
copper concentrate production and conclusion of mine permitting
efforts; economic feasibility based on projected reserve of 1.01
million ounces of gold and 248 million pounds of copper; potential
state royalties, taxes and employment derived from gold and copper
production; benefits resulting from the use of the rock mined to
expose the copper and gold mineralization and the potential for
water storage in the reclaimed open pit at the end of the proposed
mine's life; and the expected scale, speed of mine development and
immediate availability of copper at the Project and (ii) the U.S.
copper market including increasing demand for copper due to
electrification, green technologies, the clean energy transition,
electrification and clean water infrastructure; uncertainty of
overseas copper supply sources, predictability and consistency of
the United States' regulatory
framework concerning copper production relative to the perceived
political and logistical uncertainty in other countries; copper's
role as a contributor to U.S. economic and national security due to
U.S. dependence on copper in its generation, transmission and
distribution of electricity; and projected doubling of copper
demand by 2035. 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: market and other conditions; the
prevailing market conditions for metal prices and mining industry
cost inputs; environmental and regulatory risks; COVID-19 risks;
changes in interpretations of geological, geostatistical,
metallurgical, mining or processing information; risks faced by
junior companies generally engaged in exploration activities;
whether U.S. Gold will be able to raise sufficient capital to
develop the CK Gold Project and implement future drilling programs;
the success or failure of future drilling programs; 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 undertakes no duty to correct or update any
information contained herein.
For further information
U.S. Gold Corp.
Investor Relations
+1 800 557 4550
ir@usgoldcorp.gold
www.usgoldcorp.gold
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SOURCE US Gold Corp.