CHEYENNE, Wyo., Sept. 4,
2024 /PRNewswire/ -- U.S. Gold Corp. (NASDAQ:
USAU) (the "Company"), a gold exploration and development company,
is pleased to provide the following update on the CK Gold Project
engineering and updated Prefeasibility Study progress.
With the approval of the Mine Operating Permit on April 29, 2024, work on the Prefeasibility Study
(PFS) update resumed in June 2024. As
a result of changes related to permit commitments and ongoing
engineering optimization studies to enhance project economics, the
Company deems it highly beneficial to consider the results of these
studies prior to completing the updated PFS. With gold, copper and
silver prices approaching historic highs, far and above the
original PFS of December 2021,
management believes the time to optimize plant and operations is
the present, as equity markets in the junior sector trail a new
reality and a durable and well thought out mining operation is
established.
Set out below are opportunities under consideration.
Engineering Studies Underway:
Tailings Management Facility (TMF) Optimization: In a
review of the stacking sequence and access roads to the TMF, the
Company hired Tierra Group International (TGI), a Denver, Colorado based geotechnical
engineering firm, to review the overall design of the TMF, and, in
particular, to improve road access, stacking and operability.
During their review, TGI has identified opportunities to improve
the capacity and ease the constructability of the TMF through
improved design at, potentially, a reduced capital cost. This does
not alter the TMF footprint or design concepts described in the
permit approval, which now incorporates a membrane composite liner
rather than a modified soil liner as contemplated in the
December 2021 PFS.
Water Management Plan: In June
2024, the CK Gold Project received the water discharge
permit (WYPDES) from the Wyoming Department of Environmental
Quality with specific standards. As a result of the WYPDES
approval, TGI has been asked by the Company to evaluate and make
recommendations to the site-wide water management plan and water
balance model. The Company has an agreement in place with the
Cheyenne Board of Public Utility
to purchase water to operate the mine. TGI is currently evaluating
the possibility of improving water harvesting within the property
boundary and storage capacity thereby reducing the amount of makeup
water the Company would need to purchase.
Process Plant Trade-off Study: The December 2021 PFS contemplates a 20,000 ton per
day sulfide concentrator employing conventional crush, grind,
flotation and uses a series of flotation cells to generate a
sulfide concentrate. The Company has recently been made aware of
enhanced recovery processes using alternative flotation cell
technology rather than the conventional technology in its current
design. A compelling presentation was made pointing to operational
experience at other mines to suggest that alternative flotation
equipment and grinding has the potential of improving metal
recoveries, lowering capital by reducing the mill building size and
the number of conventional flotation cells, and operating costs by
reducing personnel and power consumption. As such, the Company has
determined the best approach is to investigate the use of this
technology prior to finalizing the PFS. Accordingly, 150 kg of
ore-grade material has been shipped to a metallurgical laboratory
to determine the suitability of the Jameson Cell and IsaMill
equipment for the Company's ore.
In commenting on the engineering studies, 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 remain laggard in their
response. 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 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." Mr. Norman added, "Of course any of
these potential changes would be subject to discussion with
interested parties and additional permitting."
About U.S. Gold Corp.
U.S. Gold Corp. is a publicly traded, U.S.-focused gold and
copper exploration and development company. U.S. Gold Corp. has a
portfolio of exploration properties. Our CK Gold Project is located
in Southeast Wyoming and has a PFS
technical report, which was completed by Gustavson Associates, LLC.
Our Keystone exploration property is on the Cortez Trend in
Nevada. Our Challis Gold Project
is located in Idaho. For more
information about U.S. Gold Corp., please visit
www.usgoldcorp.gold.
U.S. Gold Corp. periodically sends news via email to its
shareholders and interested investors. If you would like to receive
these communications, please sign up to receive U.S. Gold Corp.
news releases at: 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 include statements related to the
opportunity to improve the capacity of the TMF and constructability
at a reduced capital cost, the possibility of improving water
harvesting within the property boundary and storage capacity
resulting in reduced water needing to be purchased by the Company,
and the potential benefits of using alternative flotation equipment
and grinding. 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, 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
Corp. 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 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.
