Attains Major Permitting Milestone Towards
the Development of the CK Gold Project
CHEYENNE, Wyo., May 8, 2024 /PRNewswire/ -- U.S. Gold Corp.
("U.S. Gold," the "Company," "we," "our" or "us") (Nasdaq: USAU),
today announced that its wholly owned subsidiary, Gold King Corp.,
has been issued its Surface Gold Mine Permit, dated April 29, 2024 (the "Mine Operating Permit"),
from the Director of the Wyoming Department of Environmental
Quality ("WDEQ"), subject to certain conditions.
In commenting on the approval, George
Bee, President, CEO and Director of U.S. Gold Corp. said,
"Having previously been granted the Industrial Siting Permit in
June last year and now the Mine Operating Permit we have cleared
the major regulatory hurdles towards project development. Work to
meet final authorization for development is well underway. The
remaining conditions are the approval of the reclamation bond which
has already been submitted, the Wyoming Pollutant Discharge
Elimination System ("WYPDES") permitting process, which is in the
final stages of approval, and the WDEQ Air Quality Division ("AQD")
permits, where technical work is under review. We remain on track
to receive the necessary permits around mid-year, as per prior
guidance."
Luke Norman, Executive Chairman
of U.S. Gold Corp. added, "This is an outstanding accomplishment.
Since shifting the Company's focus in August
2020 from exploration to the development of the CK Gold
Project, through the receipt of the Mine Operating Permit, is a
remarkable achievement. We would like to recognize our management
team, consultants, and the State of
Wyoming regulatory authorities for everyone's hard work and
dedication advancing the CK Gold Project. The CK Gold Project sits
on State and private ground in Wyoming, which is an extraordinary
jurisdiction for resource development, with a clear regulatory
framework, and authorities that are knowledgeable, experienced, and
motivated to safely and responsibly manage the State's mineral
wealth."
The remaining mine operating permit conditions as per the WDEQ
Director's letter of approval are as follows: 1. No construction
or mining activities shall be allowed to commence until the
reclamation performance bond, in the amount of $5,010,000 as set forth in the Director's Bond
Letter dated February 20, 2024, is
approved, 2. The application states multiple discharge points that
require WYPDES permits. The operator has applied for these permits
and is awaiting final approval. As a non-significant revision
("NSR") to the approved permit, the operator shall provide an
updated map of approved discharge locations and a list of WYPDES
permit numbers when they are made available to them. The operator
is not authorized to conduct discharge activities until the permits
are approved and placed into the permit, and 3. No construction or
mining activities shall be allowed to commence until the applicant
obtains required WDEQ-Air Quality Division ("AQD") permits. As an
NSR to the approved permit, a copy of the approved AQD permit(s)
shall be inserted into the approved mining plan when they are made
available.
Background
U.S. Gold Corp. pivoted from a purely exploration focus on its
highly prospective assets in Nevada and Idaho to development of the CK Gold Project in
2020, representing a significant and achievable value creation
opportunity for the Company.
In August 2020, the current
management team started along the development path for the CK Gold
Project, previously known as Copper King, which had lain dormant
for several years. While Copper King has been known about and
explored on multiple occasions, following limited underground
mining around 100 years ago, the last study on the project was a
Preliminary Economic Assessment authored by Mine Development
Associates Inc. in 2012.
In September 2020, the Company
commenced work on establishing an environmental baseline for the
project area and its surroundings. Following two years of data
capture covering surface and subsurface water monitoring, fauna,
flora and cultural assessment and modelling, a Mine Operating Plan
and Closure Plan Permit application was submitted to WDEQ. By
November 2022, the application was
deemed technically complete, and the detailed WDEQ review
commenced, including a review of certain aspects by experts
contracted by WDEQ. In April 2023,
WDEQ responded to the Company with comments and the Company spent
several months addressing WDEQ's comments and making design changes
to provide further comfort to WDEQ that the proposed action
contemplated as many eventualities as could reasonably be expected
to provide for the health, safety and stewardship of the
environment and cultural resources. At the end of February 2024, the 30-day public notice period
commenced, which concluded on March 28, 2024. In accordance
with the statutory timeline, WDEQ issued the approval of the Mine
Operating Permit on April 29,
2024.
With approval of the Mine Operating Permit, work on a
prefeasibility study update and completion of the feasibility study
has been restarted. The feasibility study work awarded to Samuel
Engineering Inc. ("Samuel"), in April
2022, was suspended in March
2023. The decision to suspend Samuel's work on a feasibility
study was made for three reasons: first, the Company did not want a
"stale dated" study in relation to the permit approval timeframe;
second, there was still price and supply disruption following the
COVID-19 pandemic, and third, there was a need to recognize some of
the changes and additions that came about as a consequence of
WDEQ's review of the project. Engineering work is well advanced
with the process plant design largely complete and updated bids for
major equipment are now being solicitated. We are on track to
update the prefeasibility study by the third quarter of 2024 and
finalize the feasibility study sometime thereafter. We are also
working to understand and include project upside opportunities in
the feasibility study.
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
Preliminary Feasibility Study technical report, which was completed
by Gustavson Associates, LLC. Our Keystone exploration property is
on the Cortez Trend in Nevada. Our
Challis Gold Project, located in Idaho. For more information about U.S. Gold
Corp., please https://www.usgoldcorp.gold/.
Cautionary Note Regarding Forward-Looking Statements
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 our expected timing and
receipt of the necessary permits for the CK Gold Project, the
expected timing and completion of the update of the prefeasibility
study, the expected timing and completion of the feasibility study,
and the ultimate development of the CK Gold Project. 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, COVID-19 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.
