US Gold Corp Outlines Pathways to Unlock Additional Value at CK Gold Project

Company Overview

US Gold Corp [NASDAQ: USAU] is a publicly traded, US-focused gold and copper exploration and development company. Its flagship CK Gold Project is located in southeast Wyoming, near Cheyenne. The company also holds the Keystone exploration property on the Cortez Trend in Nevada and the Challis Gold Project in Idaho.

The Feasibility Study as a Starting Point

After releasing its Feasibility Study (FS), US Gold Corp published a detailed outline of value enhancement opportunities at the CK Gold Project that extend beyond the current mine plan. The FS establishes a  standalone after-tax net present value at a 5% discount rate (NPV5%)

using base case metal prices of $3,250 per ounce gold, $4.50 per pound copper, and $40 per ounce/oz silver. At current market prices of $4,500 per ounce gold, $5.50 per pound copper, and $70 per ounce silver, the after-tax NPV5% rises to $1.30 billion. The company stated that these opportunities are not required to justify the 2026 construction decision.

US Gold Corp Chairman Luke Norman commented on the company's positioning following the FS release:

"The Feasibility Study confirms CK as a fully permitted, construction-ready gold-copper project with robust economics, especially at current metal prices. Importantly, it also represents only the starting point of value at CK. With our recently strengthened balance sheet and the project de-risked, we are now positioned to pursue low-risk, high-impact opportunities to expand resources, enhance recoveries, and unlock additional revenue streams. We believe CK has the potential to evolve well beyond its current plan into a larger, longer-life and more economically robust operation, while delivering meaningful benefits to the State of Wyoming and local communities."

Mine Expansion: Resources Outside the Current Plan

The current FS pit was intentionally constrained within permitting boundaries designed to require only state-level approval. Approximately 900,000 gold-equivalent ounces of mineral resources remain within the mineral resource pit but outside the FS production schedule. At current recovery rates, this represents over 500,000 gold-equivalent ounces of additional production potential.

Existing resources below the current pit can be incorporated through future permit amendments. Mineralization also remains open at depth and along strike so its full extent is still unknown. CK Gold sits within the historic Silver Crown Mining District, which includes several past-producing underground mines providing nearby district-scale exploration targets.

Metallurgical Recovery: Potential to Increase Gold Output

Test work indicates that adding an extra processing step, applying a chemical process to extract more gold from the leftover crushed rock after initial milling, could lift gold recovery from approximately 70% to 95%. Within the current mine plan, this translates to approximately 250,000 ounces of additional recovered gold. Combined with an expanded pit, the potential additional recovery rises by a further approximately 225,000 gold ounces. Evaluation of additional processing methods is included as a formal item in the company's action plan.

Turning Waste into Revenue While Preserving Long-Term Flexibility

The CK Gold Project’s FS envisions moving roughly 70 million tonnes of rock, of which approximately 40 million tonnes could serve as feedstock for aggregate and rail ballast. Local pricing is estimated at $20 to $25 per tonne, with company-commissioned studies indicating regional demand of 2 to 3 million tonnes annually. A nearby railroad, just four miles from the site, has expressed interest in purchasing 400,000 tonnes per year. The mine’s proximity to both rail and highway infrastructure provides efficient access to Wyoming and Colorado markets, and any pit expansion would further increase available feedstock volumes, unlocking an additional revenue stream from material traditionally considered waste.

Beyond near-term revenue, the project offers significant long-term flexibility. The open pit could be repurposed as a water storage facility for the City of Cheyenne, potentially integrating into regional infrastructure plans. Extending the mine life through expansion not only increases feedstock availability but also defers closure costs, creating an additional economic benefit while preserving options for sustainable post-mining land use.

The Next Steps

US Gold Corp has outlined five priority actions for the period ahead:

• Finalize project financing and initiate development of the CK Gold Project
• Finalize the projected upside potential and drill plan targeting resource expansion
• Evaluate additional metallurgical processes to increase gold recoveries
• Capitalize on the aggregate opportunity through partnerships and other commercial avenues
• Evaluate closure optimization, including the potential use of the open pit as a regional water storage facility

The construction decision for the CK Gold Project is expected to be made during 2026. 

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