US Gold Corp (NASDAQ:USAU) has released an updated pre-feasibility study (PFS) for its CK Gold Project in Wyoming, highlighting its economic potential and increased mineral reserves.
The study supports advancing to a feasibility study (FS) by the end of 2025, with construction potentially beginning in late 2025 or 2026 and initial production targeted for 2027 or 2028.
The PFS estimates average annual production of 111,250 gold equivalent (AuEq) ounces over a 10-year mine life, totaling approximately 679,548 ounces of gold, 208.3 million pounds of copper, and 2.04 million ounces of silver.
At base case prices of $2,100 per ounce of gold, $4.10 per pound of copper, and $27 per ounce of silver, the project has a pre-tax Net Present Value (NPV) of $459 million with an Internal Rate of Return (IRR) of 36%.
Under a higher price scenario, the NPV could increase to $952 million with an IRR of 60.8%.
The all-in sustaining cost is estimated at $937 per AuEq ounce, while initial capital requirements are projected at $277 million.
The project's mineral reserves stand at 1.67 million AuEq ounces, including just over 1 million ounces of gold, 259.7 million pounds of copper, and over 3 million ounces of silver, reflecting a 16% increase over the previous PFS.
'Robust, high-value project'
US Gold CEO George Bee said the study underscores the project's strong economics and the company's commitment to advancing toward feasibility and construction.
“We now have an advanced updated glimpse of a very robust, high-value project poised for the next stages of engineering and development, following a board decision to proceed,” the CEO said in a statement.
Bee also emphasized potential financing strategies aimed at preserving shareholder value.
"With avenues to project financing which preserve shareholder positions through a number of arrangements that avoid overly dilutive equity offerings, we believe that development on the CK asset can proceed in the relative short-term, fulfilling the company's pivot to development of the CK Gold asset and ultimately allowing the company to return to exploration in its high-potential exploration portfolio."
Gold prices surging
The CK Gold Project is located about 20 miles west of Cheyenne, Wyoming.
The PFS envisions a surface truck shovel mining operation with a standard comminution and flotation process to produce a high-value copper-gold concentrate. Tailings are planned to be dewatered and dry-stacked to conserve water.
The company also sees potential upside from aggregate materials not included in the current economic model, as well as additional exploration opportunities that could extend the mine’s life or increase production.
The announcement comes as gold prices have surged nearly 27% in 2024, marking the largest annual increase since 2010 and reaching record highs in early 2025.