7 Ways Wyoming Gains From CK Gold, Starting With a 2.1% Royalty

Project Overview

U.S. Gold Corp (Nasdaq: USAU) is developing CK Gold, a gold-copper open-pit project about 20 minutes west of Cheyenne and about 3 miles north of Interstate 80. Under the March 2026 feasibility study (FS), CK Gold has an after-tax net present value at a 5% discount rate of US$632 million and an after-tax internal rate of return of 27%, based on US$3,250 per ounce for gold, US$4.50 per pound for copper, and US$40 per ounce for silver. CK Gold would process about 20,000 tons per day over an 11-year mine life, with an initial capital of US$394 million. 

CK Gold lies on land leased from the State of Wyoming. The project's lease, permits, water agreements, and closure planning tie its output to state revenue, to Cheyenne's water supply, and to the condition of the land once mining ends.

1. State Land Keeps CK Gold Under Wyoming Regulators

Every major CK Gold approval came from a Wyoming agency, and the project has no direct federal involvement. The Wyoming Department of Environmental Quality approved the Mine Operating Permit in April 2024 for a 10-year, renewable term, following 2 years of preparatory work and about 20 months of agency review. The same department approved the water discharge permit in May 2024, accepted the mine reclamation bond in June 2024, and approved the air quality permit application in November 2024.

A US Army Corps of Engineers jurisdictional delineation found that the project footprint does not affect waters of the US. The Industrial Siting Permit, granted in June 2023 on a 3-year renewable term, is updated through December 2027.

President and Chief Executive Officer of U.S. Gold Corp, George Bee, measures how few projects share that permit status: 

"Count on your left hand the number of fully permitted projects ready to go in a stable jurisdiction." 

Construction began on site in January 2026 under the Industrial Siting Permit.

2. A 2.1% Mineral Lease Royalty Is Earmarked for Education  

The State of Wyoming lease carries a 2.1% mineral royalty, and its operating restrictions have been lifted. A mineral lease royalty is a share of mine revenue paid to the owner of the land, which, for CK Gold, is the state.    

Royalty revenue from the lease is earmarked for education.

3. Gold, Copper & 255 Local Jobs Broaden Wyoming's Mineral Economy

Wyoming's extractive-sector revenue comes from coal, oil, and gas, as well as trona, a mineral mined for soda ash. CK Gold's gold and copper production would diversify the state's mineral tax proceeds. 

The project would create about 255 local direct jobs, plus indirect and induced employment. The site is a short commute from Cheyenne and requires no man-camp, and the company's administrative office is in town, about 20 miles away. Labor and support services are nearby in Cheyenne.

4. Waste Rock Could Pay Wyoming a Second Royalty

Waste rock from the pit could be sold as construction aggregate and rail ballast, and those sales would give the state another royalty revenue stream alongside the metal royalty. The FS does not fully capture aggregate and rail ballast sales, and the mine plan includes pre-sorted rock storage facilities for later commercialization.    

Market studies suggest offtake of 1 million tons per year within trucking distance, which could expand through delivery to a railhead. Construction firms have shown interest in the aggregate, and U.S. Gold Corp has a non-binding letter of intent to deliver ballast to a major railway. For reference, the local quarry sells crushed stone for about US20toUS25 per ton. Selling the rock would also reduce the project footprint and the closure cost.   

Bee grounds the aggregate case in the rock the mine will move:  

"We're in an area where we can actually sell our waste rock, and we know that our waste rock will produce great aggregate, even good rail ballast."   

Further study of the aggregate market is underway.

5. Water Is Recycled During Mining & Released After It 

U.S. Gold Corp is developing water resources for CK Gold, and the plant is engineered to cut consumption by recycling water during operation. An Outside Water Users Agreement with the Cheyenne Board of Public Utilities (BOPU) was completed in November 2025, and the Cheyenne City Council ratified the water purchase agreement with BOPU the same month.    

Tailings, the finely ground waste left after processing, are dewatered by vacuum filtration, and the filtered water is recycled back into the plant. The filtered tailings are stored as dry stack, stacked as a solid rather than held as a slurry.  

Once mining ends, the water developed for the operation becomes available for domestic consumption.    

6. The Exhausted Pit Could Store Water for Cheyenne  

The approved mine closure plan contemplates partial backfilling of the pit and the return of the land to pasture and wildlife habitat. A potential alternative closure scenario would keep the completed open pit as water storage, which would eliminate the need to build additional storage for the City of Cheyenne's future growth.       

That scenario would also avoid the need to reclaim and relocate recreation facilities around the local park and would use planned connections to the BOPU water supply. A pump storage power generation project, which pumps water uphill to store energy and releases it through turbines to generate power, is a further possibility at the site.  

The alternative closure scenario is aimed at reducing costs, and hydrology, water monitoring, and technical studies are assessing the viability of water storage in the exhausted pit.

7. Outreach Has Reached More Than 300 People   

U.S. Gold Corp has held more than 200 separate meetings with over 300 people, from the Governor to various agencies, interested parties and individuals, as part of ongoing outreach on CK Gold. The company presented the project to a Wyoming legislative committee in October 2022; its outreach has included Wyoming State Parks and Curt Gowdy State Park, and the Industrial Siting Council approved the siting permit unanimously. 

Progress meetings with local landowners on project plans are ongoing.

Key Takeaways for Investors   

• CK Gold's major permits were issued by Wyoming agencies, with no direct federal involvement in the project. 
• The state mineral lease has a 2.1% royalty, and the royalty revenue is earmarked for education.
• Waste rock sold as aggregate and rail ballast would add a second royalty stream for the state.  
• An alternative closure scenario would keep the exhausted pit as water storage for the future growth of Cheyenne.
• The project would create about 255 local direct jobs, with a short commute from Cheyenne and no man-camp.

Bottom Line  

U.S. Gold Corp has built CK Gold's approvals, lease, and closure planning around the State of Wyoming. The state lease includes a 2.1% royalty earmarked for education, and the mine's gold and copper output would diversify a mineral tax base built on coal, oil, and gas, and trona. Waste rock sold as aggregate would add a second royalty stream, and the water developed for the operation becomes available for domestic use once mining ends. An alternative closure scenario would turn the exhausted pit into water storage for Cheyenne's growth. For investors assessing jurisdiction, CK Gold's landlord and regulator is the same state, and Wyoming and Cheyenne stand to gain royalty, tax, aggregate, and water benefits from the mine from production through closure.