US Gold Corp's CK Gold Feasibility Study & Upside: 8 Things You Need to Know

• US Gold Corp released its feasibility study (FS) for the CK Gold Project in Wyoming returning an after-tax net present value at a 5% discount rate (NPV5%) of $632 million at a base-case gold price of $3,250 per ounce, an after-tax internal rate of return (IRR) of 27%, and a 2.5-year payback period on initial capital expenditure (capex) of $394 million.
• At recent spot prices of $4,500 per ounce gold, $5.50 per pound copper, and $70 per ounce silver, the after-tax NPV5% rises to approximately $1.30 billion. The company's current market capitalisation is approximately $263.6 million.
• The FS production schedule excludes approximately 900,000 gold equivalent ounces of mineral resource already within the resource pit shell, representing more than 500,000 gold equivalent ounces of additional production potential at current recoveries.
• Life-of-mine (LOM) gold recovery is 71.5% via flotation. Test work indicates chemical extraction from processed material could raise this to approximately 95%, potentially adding approximately 250,000 ounces of recovered gold to the current plan. This is not included in the base-case NPV.
• CK Gold holds all required Wyoming state permits. No federal approvals are needed. A construction decision is expected in 2026.

CK Gold's Feasibility Study & the Value That Sits Outside It

US Gold Corp released its feasibility study for the CK Gold Project and followed it with a release outlining value enhancement opportunities that sit outside the current mine plan. The announcements define the project's current position: a fully permitted, construction-ready gold-copper asset with verified base-case economics, and a set of identified upside pathways that the feasibility study (FS) does not capture. The base case is built on an 11-year mine life, throughput of 20,000 short tons per day, and average annual production of 85,000 gold equivalent ounces.

1. The Base Case Is Conservative Relative to Current Metal Prices

At $3,250 per ounce gold, the FS returns a $632 million after-tax net present value at a 5% discount rate (NPV5%) and a 27% internal rate of return (IRR). The gold price sensitivity shows the after-tax NPV reaching $946 million at $4,000 per ounce, $1.155 billion at $4,500 per ounce, and $1.363 billion at $5,000 per ounce.

The FS was prepared by Halyard Micon International. Base-case assumptions also include $4.50 per pound copper and $40 per ounce silver. The FS incorporates tariff and inflation impacts, current equipment budget pricing, and quoted contract mining rates. The life-of-mine (LOM) total net free cash flow is $967 million. Average annual operating net free cash flow across the 11-year plan is $124 million.

2. The Mine Plan Excludes Significant Resource Already Defined

Approximately 900,000 gold equivalent ounces of mineral resource sit within the resource pit shell but outside the current production schedule. At current recoveries, this represents more than 500,000 gold equivalent ounces of additional production potential.

The current proven and probable reserve totals 1.598 million gold equivalent ounces: 1.015 million ounces gold, 260 million pounds copper, and 3 million ounces silver, across 74.5 million short tons at a strip ratio of 0.89. The reserve pit was intentionally constrained to Wyoming state land boundaries, which avoided a federal permitting requirement. 

The mineral resource exclusive of reserves includes 590,000 gold equivalent ounces of measured and indicated material and 677,000 gold equivalent ounces of inferred material within the resource pit shell. The deposit remains open at depth below 800 feet and along 2,900 feet of untested strike length. Incorporating resources below the current pit would require future permit amendments.

3. Gold Recovery Is the Largest Quantifiable Upside Lever

LOM gold recovery is 71.5% via flotation. Chemical extraction from processed material could raise this to approximately 95%, adding an estimated 250,000 ounces of recovered gold from the current mine plan, with a further 225,000 ounces of potential if applied to an expanded pit.

The FS produces a gold-copper concentrate through a semi-autogenous grinding (SAG) and ball mill circuit, Jameson cell rougher flotation, Vertimill regrind, and scavenger cleaner flotation. Test work indicates processed material is amenable to chemical extraction. The recovery differential between current flotation performance and the test work target represents incremental gold ounces not included in the current FS economics. 

4. Cost Structure Is Competitive, With By-Product Credits Doing Work

Life-of-mine all-in sustaining cost (AISC) on a co-product basis is $1,814 per gold equivalent ounce. Net of copper, silver, and aggregate by-product credits, AISC falls to $1,094 per ounce gold.

Total site operating cost is $18.46 per short ton processed: $7.30 per short ton mining, $9.59 per short ton processing including tailings placement, and $1.54 per short ton general and administrative. Mining uses a contracted truck and shovel fleet with 100 to 150 short ton trucks on short haul distances across easy terrain. LOM payable copper is 186.726 million pounds at a base-case price of $4.50 per pound; payable silver is 1.874 million ounces.

5. Permitting Is Complete & the Project Has No Federal Nexus

CK Gold holds all major Wyoming state-level permits. The project footprint has no direct federal involvement, confirmed by the US Army Corps of Engineers. Construction was initiated under the Industrial Siting Permit in January 2026.

Key permits secured: Mine Operating Permit, Wyoming Pollutant Discharge Elimination System water discharge permit, mine reclamation bond acceptance, air quality permit, and Industrial Siting Permit. 

6. The Aggregate & Rail Ballast Business Is Outside the NPV

The mine plan involves mining approximately 70 million short tons of rock, with roughly 40 million short tons potentially available as aggregate and rail ballast feedstock. Local pricing of $20 to $25 per short ton and identified off-take interest represent a secondary revenue stream not reflected in the base-case NPV.

Market studies commissioned by the company indicate local demand of 2 to 3 million short tons per year. A railroad company located four miles from the project has expressed interest in 400,000 short tons per annum of ballast. Martin Marietta operates a quarry with similar rock characteristics approximately five miles from CK, which provides regional market context for product quality and pricing.

The FS site plan includes pre-sorted rock storage facilities for later commercialisation, and any pit expansion increases available waste rock volume. The full commercial scale of the aggregate business, including potential partnership structures, remains under evaluation.

7. Initial Capital Expenditure Is Fully Loaded, But Financing Remains the Critical Variable

Initial capital expenditure (capex) is $394 million including contingency. The company held $36.1 million in cash as of January 2026, following a $31.2 million private placement closed in December 2025. Pre-production owners' costs add a further $26 million.

A full mine closure provision of $27 million and sustaining capital of $35 million are included in the FS. With 16,458,621 common shares outstanding, the company is exploring traditional and non-traditional funding sources, including vendor financing. Six analysts provide coverage: Paradigm Capital, Alliance Global Partners, H.C. Wainwright & Co., Roth Capital Partners, Beacon Securities, and Velocity Trade Capital.

8. The Closure Plan Carries Long-Term Cost & Revenue Implications

The exhausted open pit may serve as a future water storage facility for the City of Cheyenne. If pursued, this scenario reduces closure costs.

The approved closure plan contemplates partial pit backfill and return of land to pasture and wildlife habitat. The alternative scenario envisions the completed pit integrating with the Cheyenne Board of Public Utilities' water supply network, with a pump storage power generation project also identified as a possibility. Hydrology and technical studies are underway to assess viability. Extending mine life through resource expansion would also defer closure costs. The project is expected to generate approximately 255 direct jobs.

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