Wyoming’s U.S. Gold Corp. (Nasdaq: USAU) recently secured a surface mining permit from authorities in the state, a key milestone for the company’s flagship CK Gold Project.
The gold and copper miner’s President George Bee, who has had an extensive career in the mining industry spanning about four decades, discussed the permit’s implications in an interview with Proactive Investors Wednesday. He has worked for major operators like Barrick Gold Corporation (TSX: ABX) and Rio Tinto Group (ASX: RIO).
The essential authorization enables U.S. Gold to resume work on the operation’s pre-feasibility study following a pause initiated last year. The company still has a couple more regulatory hurdles to clear, but expects to have all necessary permits mid-way through 2024.
A comprehensive feasibility study will then be completed prior to eventual production.
“Presto! We’re here with an approved project, so that’s great news,” Bee said in the interview. “There’s a couple of conditions that we need to meet, but they are well in hand.”
The CK operation spans about 1,120 acres and is 100 per cent owned by U.S. Gold. It is situated 20 miles west of the city of Cheyenne in the southeast corner of the Laramie mountain range. The site’s deposit contains more than 1.5 million measured and indicated gold equivalent ounces.
U.S. Gold just secured a US$4.9 million investment for the gold-copper resource from select company shareholders. Once shovels hit the ground later this year, it will become Wyoming’s first hard rock mine in many years.
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Wyoming is a mining state, Bee says
He is definitely correct. In fact, Wyoming’s Powder River Basin is known to produce around 40 per cent of the coal used in the United States.
However, Despite U.S. Gold’s robust resource at CK, the state hasn’t historically been known for substantial gold production.
The CK Gold Project received significant attention in the media when the recent permit was obtained as it will enhance Wyoming’s stature in the gold mining industry considerably. Bee expects the operation to generate about US$300 million in profit for the company.
U.S. Gold obtained its primary mining project from the state’s uranium and rare earths producer Energy Fuels Inc. (NYSE American: UUUU) in 2014. That company’s Sheep Mountain operation in Wyoming holds about 30 million pounds of yellowcake uranium.
Wyoming is the country’s top uranium producing state. In addition, the region produces commodities such as trona, which gets refined into soda ash/sodium carbonate; bentonite, needed for drilling mud and other applications; and diamonds.
U.S. Gold is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
