Saskatchewan’s GFG Resources Inc. (TSX-V: GFG) (OTCQB: GFGSF) is offloading a gold asset in Central Wyoming so that it can hone its focus on Ontario mining properties in the Timmins gold district. GFG has three of considerable size.
The company announced a definitive agreement for the sale on Friday following a letter of intent in May. It will be handed off to Patriot Gold Vault Ltd. for C$3.3 million.
“This deal enhances shareholder value through staged cash payments that strengthen our treasury while minimizing future dilution,” GFG chief executive Brian Skanderbeg said in May, “as well as equity participation in Patriot that provides exposure to future successes.”
Rattlesnake Hills sits about 100 kilometres southwest of Casper. Historically, over 100,000 metres of drilling have been completed at the site.
Mediocre grades have been intercepted over substantial lengths at the property. Most notably, 1.85 grams per tonne gold over 236 metres and 4.2 g/t Au throughout a 77.7 metre stretch.
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Wyoming to boost gold production significantly
As opposed to a state like Nevada, which produces around 75 per cent of U.S. gold, Wyoming isn’t a major player in the American market for yellow metal.
However, the Cowboy State will soon be boosting its rate of production significantly once the CK Gold Project enters production. It sits about 20 miles west of Cheyenne.
U.S. Gold Corp (Nasdaq: USAU) is currently concluding this project’s permitting process and will begin excavation by the end of the year. It will produce 108,500 gold equivalent ounces for 12 years and about 248 million pounds of copper.
“Our CK Gold Project continues to align with the mission of the city of Cheyenne as we look to provide significant economic activity for Cheyenne and Laramie County,” U.S. Gold chief executive George Bee said in July.
Hear George Bee & Luke Norman of U.S. Gold Corp. update investors on how the CK Gold mine is progressing, their aggressive timelines for development and capital needs to get this highly promising precious metals project over the finish linehttps://t.co/P55iRVL1Ly#ckgoldproject pic.twitter.com/IUt9I1lz1D
— U.S. Gold Corp (@usgoldcorp) August 8, 2024
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