Nasdaq-listed exploration and development company US Gold has completed a prefeasibility study (PFS) for the CK Gold project, delivering robust economics, and has set its sights on completing a feasibility study next year.
The CK Gold project, in Wyoming, has a mineral resource of 1.58-million gold-equivalent ounces (GEOs) of measured and indicated resources. The PFS establishes that CK will produce an average of 108 500 GEOs a year at an all-in sustaining cost of $800/oz, over a ten-year mine life.
The PFS delivered robust economics with an aftertax internal rate of return of 39.4%, a net present value of $266-million and a two-year payback period.
"We have taken our time to carefully consider and optimize the potential of the CK gold project. From the outset and prior to me joining US Gold Corp, the potential of the project in today's market was obvious. A deposit that outcrops on surface with a very low waste-to-ore ratio seemed to be attractive. The fact that the project is located in an excellent jurisdiction, well versed in the extractive industries, with everything that we need on the project doorstep, makes it very attractive,” said president and CEO George Bee.
US Gold founder Ed Karr, who continues to be involved with the company, noted that the company had temporarily set aside its exploration portfolio in Nevada and Idaho to focus on CK Gold.
“This decision has proven to be exceptional as we are poised to capture improvements in the gold and copper market in a project that can be brought to book in short order. Considering the findings of the PFS study in the context of today's metal prices, we seem to be on the precipice of realising exceptional value from a project whose time has come.
“We also are intrigued by the upside potential the CK Gold project holds as we look at the potential value of the aggregate the project can produce at a time when development in the vicinity of the project is increasing and the United States embarks on its infrastructure renovation and development programme,” said Karr.
He added that US Gold was confident that it would be able the raise the necessary capital to fund project development. The PFS estimates that $221-million will be required.