US Gold Corp (NASDAQ:USAU) provided an update on its CK Gold Project in Wyoming, outlining progress on engineering studies and an updated Prefeasibility Study (PFS) following the approval of its Mine Operating Permit in April 2024.
The updated PFS will incorporate findings from ongoing engineering optimizations, including improvements to tailings management, water usage, and processing technology.
Denver-based geotechnical firm Tierra Group International (TGI) is evaluating the design of the Tailings Management Facility (TMF).
Its review has identified potential improvements in road access, stacking, and operability, which could increase capacity and reduce capital costs. These changes remain consistent with the TMF design approved in the 2021 PFS.
The CK Gold Project secured a water discharge permit in June 2024 and has an agreement with the Cheyenne Board of Public Utilities to purchase water for mine operations. TGI is assessing opportunities to optimize water harvesting and storage within the property, potentially reducing reliance on external water sources.
Meanwhile, US Gold Corp (NASDAQ:USAU) is exploring alternative flotation cell technology for its processing plant, which was initially designed to handle 20,000 tons per day using conventional methods. Testing is underway to evaluate Jameson Cell and IsaMill equipment, which could improve metal recoveries, lower capital costs, and reduce operating expenses.
George Bee, US Gold Corp CEO, emphasized the importance of early-stage engineering. "The time to make changes to a project is during the initial engineering so that the Feasibility Study is well thought out and durable," Bee said.
“Nothing upsets project controls and cost management more than change orders once construction has started, and we will go into development with a well-engineered project consistent with the permit constraints and optimized for the best possible outcome."
Luke Norman, chairman, highlighted the opportunity presented by current metal prices.
"Although the CK Project is permitted in principle and ready for development, we have time to accomplish these optimization opportunities," Norman said, noting the potential for additional revenue streams from commercializing non-ore rock and exploring future water storage options in the exhausted pit.