Oxide material category shows major improvement (10% to
60%) in copper recovery and a 27% improvement in gold
recovery
Company expects improved recoveries will have meaningful
positive impact on the project's economic projections
CHEYENNE, Wyo., March 8, 2021
/PRNewswire/ -- U.S. Gold Corp. (Nasdaq: USAU) (the "Company"), a
gold exploration and development company, is pleased to provide an
update on its ongoing metallurgical test program. Last fall, the
company executed a successful field season between mid-September
and the end of November completing 30 drill holes for a variety of
purposes aimed at propelling the CK Gold Project along the
development pathway. Eight (8) of the drill holes targeted
representative samples of the mineral resources identified in the
Preliminary Economic Assessment (PEA) by Mine Development
Associates, last updated December 5,
2017. The eight drill holes yielded 4,652 feet of
mineralization with over 1,100 sample intervals, which will be
combined into three master composites and yield material for
variability testing to characterize the metallurgical response
across the resource.
The 2009 and 2010 metallurgical testing of the CK Gold
Project, referenced in the initial Mine Development Associates PEA,
dated August 24, 2012, reported oxide
gold and copper recoveries of 55% and 10%, respectively. These
values were carried into the Mine Development Associated PEA update
in December 2017. At the same time,
the 2008-2009 SGS testwork, reported in 2009, also achieved gold
and copper recoveries of 68% and 77%, respectively, on sulphide and
mixed (sulphide/oxide) material.
In 2020, Kappes Cassidy and Associates, (KCA), in Reno, Nevada, was retained to conduct further
testwork on new sulphide and oxide samples, with the objective of
confirming, and if possible, improving on previous test results.
Three metallurgical composites have been prepared, (a high-grade
oxide, overall oxide and overall sulphide) together with a suite of
variability samples. Work commenced in November 2020 with visual inspection of the core,
study of the core assays and selection of individual core samples
to prepare the three composites. In addition, over twenty
variability samples were selected representing different
lithologies, areas, depths and grades. The first composite,
representing a central and upper zone of the deposit, that could be
mined early in the project life and described as high-grade oxide
was delivered to KCA in December 2020
and testwork commenced. Over forty rougher and cleaner flotation
tests have been carried out to date, investigating primary and
regrind size, various reagent combinations and pulp pH. Gold and
copper recoveries of 65-72% and 55-60%, respectively, have
consistently been achieved. Cleaner concentrates containing over
25% copper and 150 g/t gold have been produced, which would
represent an attractive smelter feed. Locked Cycle Tests are now
planned to confirm these results. It is noted that these results
have been achieved on a high-grade sample, that represents a
relatively small component of the deposit, but overall gives the
Company considerable encouragement to the project and the next
phase of testwork.
Commenting on the preliminary results, George Bee, President and CEO of U.S. Gold
Corp., said: "The projected oxide portion of the deposit represents
some of the first material that could be mined. It is an important
component because the oxide material with very little waste
stripping comes out up front in the mine plan and there are some
really attractive grades, as indicated in several of our recent
press releases. We anticipate that the improved recoveries could
have a meaningful positive impact on the project's economic
projections."
Mr. John Wells, consulting
metallurgist and process design engineer, directing the
metallurgical test work commented: "We believe that we have found
the right formula for our initial oxide material and will move on
to locked cycle tests and the application of what we have learned
with the KCA test program to the remaining two composites,
predominately containing sulfide mineralization. Gravity
concentration test results have shown that copper recovery can be
further improved by up to 5%, and it is anticipated that a gravity
recovery element will be incorporated into the plant design to deal
with some of the native copper and any coarse gold that the project
may encounter."
Qualified Person. Mr. John Wells,
FSAIMM, MCIM, ARSM, has reviewed this statement and concurs
with the substance and finds the statements to be reasonable. Mr.
Wells graduated from the Royal School of Mines, 1967 with a degree
in Minerals engineering. Having worked with some of the largest
mining and engineering firms, including Barrick Gold Corporation
and Hatch, he now has over 50 years of experience in the Mining
Industry in operations, engineering and consulting. Much of the
last thirty years has been in South
America where he has been involved in supervising test
programs, and many copper and gold projects, from preliminary and
feasibility studies through to EPCM.
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. 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