U.S. Gold Corp (NASDAQ:USAU) announced that its wholly-owned subsidiary, Gold King Corp, has signed an engineering and procurement contract with Cheyenne Light, Fuel and Power Company (CLFP), a subsidiary of Black Hills Corp, for the CK Gold Project in southeast Wyoming.
The agreement represents the first step toward the construction of a power line that would provide electricity to the project, the company said.
Under the contract, CLFP will begin pre-construction planning, engineering, and procurement activities in preparation for facilities required to supply energy to the site.
The CK Gold Project is expected to require 30 megawatts of power, which would be delivered through CLFP’s electric power system.
Engineering and procurement work will include development of general arrangement drawings, substation design, scheduling and budgeting for the project, securing land rights, environmental and permitting activities, regulatory filings, and acquisition of long lead-time materials.
"CLFP has provided us with excellent engineering support and power solutions that will enhance the CK Gold Project,” U.S. Gold VP exploration and technical services Kevin Francis said in a statement.