US Gold Corp - Advancing the CK Gold Project Towards Near-Term Production in Wyoming

• US Gold Corp has transitioned from pure exploration to project development, focusing on the shovel-ready CK Gold project in Wyoming.
• President & CEO George Bee spoke from the Precious Metals Summit in Beaver Creek. They are seeing a diverse range of conference attendees, including those interested in investment and project development capital.
• US Gold Corp's pivot to development was driven by the potential of their CK project in Wyoming.
• The company is currently well-funded, with $5 million in the bank, and is waiting for project financing to move forward with their development plans.

About US Gold Corp

US Gold Corp (NASDAQ: USAU) is an emerging US-based mining company focused on advancing the high-grade CK Gold Project located in southeast Wyoming. The company was previously involved in early-stage gold exploration efforts in Nevada but recently pivoted under new leadership to focus on bringing the past-producing CK Gold mine back into production.

Led by mining engineer and CEO George Bee, US Gold Corp acquired the CK Gold Project in 2014 and has spent the last few years systematically de-risking and derisking the project through exploration drilling, engineering studies, baseline environmental work, and permitting activities.

The company is now focused on securing the state permits and project financing required to make a full construction decision and return the CK Gold mine to production. US Gold Corp is listed on the NASDAQ exchange under the ticker USAU and has a tight share structure with just 9.4 million shares outstanding.

The CK Gold Project represents a high-grade, open pit project with strong economics at current metal prices. It offers investors a unique opportunity for near-term exposure to gold and copper production in a top-tier mining jurisdiction like Wyoming.

Interview with President & CEO, George Bee

CK Gold Project Overview

The CK Gold Project is a past-producing open pit mine that was operated by Nerco Minerals in the late 1980s and early 1990s. Historic mining records indicate 1.5 million tons of ore grading 0.11 oz/ton gold and 0.55% copper were mined over the project's initial mine life.

US Gold Corp acquired the project in 2014 and has spent the last few years completing a pre-feasibility study, baseline environmental studies, exploration drilling, permitting work, and engineering studies required to advance the project.

In 2021, the company published a pre-feasibility study outlining plans for an open pit mine producing an average of 108,500 oz of gold & 3.6M lbs of copper annually over a 10-year initial mine life. At base case metal prices of $1625/oz gold and $3.25/lb copper, the project generates an after-tax NPV5% of $323.3 million and an IRR of 39.4%.

The pre-feasibility study estimates average life-of-mine all-in sustaining costs of just $800/oz AuEq, highlighting the project's potential to generate strong margins at current metal prices. The Life-of-mine strip ratio is a low 1.7:1.

The project benefits from a simple flowsheet with high recoveries to a clean concentrate product. Metallurgical testing indicates recoveries of 83% for gold and 90% for copper to produce a 25% copper concentrate.

Permitting & Project Funding

US Gold Corp is currently focused on securing the necessary permits and project financing needed to advance CK Gold into construction and production.

The company recently submitted its applications for key permits required from the Wyoming Department of Environmental Quality. This includes the mine permit, reclamation plan, air quality permits, water supply permits, and wetlands permits. Approval of the consolidated mine permit application is expected within 12 months.

With the project nearly shovel-ready pending permit approvals, the company is engaged in discussions around securing the required project financing estimated at approximately $220M. This is expected to come from a combination of debt and equity financing.

The company had around $5M in cash at end of Q2 2023 which provides funding for operations over the next 12 months. This allows flexibility in timing for when to complete the next funding rounds.

Advancing Towards a Construction Decision

According to CEO George Bee, US Gold Corp has completed extensive de-risking activities over the past three years to advance the CK Gold Project to the point where the next major milestone is a full construction decision pending permit approvals and project financing.

With the feasibility study and engineering work nearly complete, updated equipment pricing is all that remains to finalize the study for release. The project development timeline shows construction taking approximately 18 months followed by first gold production targeted for late 2024 or early 2025.

At current metal prices, the project economics look very robust and could potentially support an accelerated production timeline of 12-15 months according to management.

Conclusion

US Gold Corp offers investors near-term exposure to a fully permitted, shovel-ready gold-copper project in an attractive mining jurisdiction. With all major de-risking activities completed and key permits expected within a year, the project appears poised to advance into production by 2025 to take advantage of current strong metal prices.

The company has navigated challenging market conditions for junior mining companies by maintaining a strong cash position and lining up potential sources of debt financing to minimize dilution. Pending permits and project financing, the CK Gold Project appears primed to deliver a rapid production ramp-up and strong cash flows for investors at current gold and copper prices.