Wyoming’s U.S. Gold Corp. (Nasdaq: USAU) has closed a US$4.9 million investment from pre-existing shareholders and will use the funds to develop a robust copper-gold resource in its home state.
The transaction, which closed on Wednesday, has provided the company with funding needed for other corporate purposes too. U.S. Gold expects to have a mine operating plan and closure plan permit in hand for the operation shortly. The project is in the final permitting stages with Wyoming’s government and it will not require federal authorization.
“This capital provides us with ample runway to further develop our CK Gold Project as we ramp up our activities,” Chairman Luke Norman stated. It will have a 10-year lifespan and is nearly shovel-ready, the company says.
The site is expected to produce 108,500 gold equivalent ounces per annum and more than 248 million pounds of copper. The open-pit operation will create over 200 jobs as well.
“We are starting to see excitement around our project and our company,” Norman said in a recent interview with Proactive Investors. He says CK will be Wyoming’s first hard rock mining operation in decades. Gold’s recent ascension to over US$2,300 per ounce is encouraging for the miner’s activities.
Work underway at the CK gold project. Image credit: U.S. Gold
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U.S. Gold develops exploratory assets in Nevada and Idaho
The Keystone operation, situated in Nevada’s Cortez Trend, is a Carlin-style gold asset located 11 miles from the Nevada Gold Mines Cortez Complex. No drilling has been completed at the site since 2019, but U.S. Gold has proposed future drilling and retains an interest in its development.
The company identified a series of high-priority targets to pursue at Keystone last September following a hyperspectral study of the project area.
The Challis gold project near Salmon, Idaho, has a historical resource of over 313,000 ounces at an average grade of 1.2 g/t Au. U.S. Gold is optimistic about its future production potential.
In January, U.S. Gold attended the 2024 Future Minerals Forum in Riyadh, Saudi Arabia. Company representatives then made their way to Toronto’s annual PDAC conference in March to promote their business.
The price of copper has been steadily climbing for the past six months. It is currently worth US$4.39/lb.
rowan@mugglehead.com
