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US Gold (USAU) is Sitting on a Substantial Gold-Copper Opportunity
By: Barchart | May 16, 2024

Poised to become a 100,000+ ounce annual gold-copper producer with its 100% owned CK Gold Project in Wyoming, US Gold (USAU) is sitting on a substantial opportunity.

Located in Wyoming’s Silver Crown Mining District, CK Gold’s pre-feasibility study estimated 1.01 million proven and probable ounces of gold, and about 248 million pounds of copper. In addition, CK Gold has a pre-tax net present value of about $323 million with a net present value of 39.4% internal rate of return, with gold and copper prices at $1,625 and $3.25 respectively.

Breaking News: US Gold Was Just Issued a Surface Gold Mine Permit for its CK Gold Project

In early May, US Gold was issued a surface gold mine permit for the development of its CK Gold Project from the Wyoming Department of Environmental Quality.

"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," CEO George Bee said.

“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 permitting process, which is in the final stages of approval, and the WDEQ Air Quality Division permits, where technical work is under review. We remain on track to receive the necessary permits around mid-year, as per prior guidance,” he added.

Moving forward, the final detailed engineering and CK Gold Project development are expected to begin in the latter part of 2024. There’s also the potential to put the operation into production by 2026, as noted by the company.

And while CK Gold’s gold news is exciting, we can’t overlook the tremendous potential of US Gold’s potential 248 million pounds of copper.

CK Gold May Hold Enough Copper for a Million Electric Vehicles

With the potential for 248 million pounds of copper at CK Gold, US Gold could hold the key to global plans for renewable energy and electric vehicles.

According to the Copper Development Association, gas-powered cars need about 18 to 49 pounds of copper. Electric vehicles need as much as 183 pounds, with hybrids requiring more.

In addition, 248 million pounds of copper could create a good deal of stability for supply chains.

Also, with the current copper supply-demand issue, analysts at Citi are projecting that it could run 75% higher by 2025. Even Bank of America analysts forecast that the higher renewable energy targets would boost copper demand by an extra 4.2 million tons by 2030.

Some of its other projects include its Challis Gold Project in Idaho, and its Keystone Project, located on the prolific Cortez Gold Trend – which is considered to be one of the most highly prospective mineral trends.

And while all have substantial potential, CK Gold is its standout crown jewel at the moment.

US Gold’s Keystone Project Also Has Untapped Potential

Jumping back into US Gold’s gold story, the company’s Keystone Project is located on Nevada’s Cortez Trend, one of the most prolific gold mining trends and also home to some of North America’s biggest mines.

“The Keystone project is an under-explored, early-Tertiary, complex intrusive-centered, large gold-bearing hydrothermal system developed in domed permissive, lower-plate, carbonate host rocks. U.S. Gold Corp. has consolidated this entire prospective gold Cortez Trend district currently with 20 square miles of mineral rights control. This is the first time in history of the district that both the entire district has been consolidated by one company, and is being evaluated by systematic, comprehensive, model-driven exploration,” says US Gold.

Immediate term, the key to US Gold’s success is its crown jewel, the CK Gold Project.

With gold and copper prices at record highs, and more news from US Gold expected shortly, keep an eye on shares of USAU.

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