U.S. Gold Corp (NASDAQ:USAU) chairman Luke Norman spoke with Proactive about the company’s progress at the CK Gold Project and the renewed focus on its Keystone Project in Nevada.
Norman explained that US Gold Corp is moving “full steam ahead” into the final stage of the definitive feasibility study at CK Gold, with site preparation now underway.
He noted that the company has signed an agreement with Black Hills Energy for power transmission and is beginning road construction, with financing decisions expected by the end of the year.
Turning to the Keystone Project, Norman described it as a “district scale project just across from the richest gold complex on the planet.”
He highlighted the geological similarities between Keystone and Barrick’s nearby Cortez Complex, where a recent discovery at Four Mile has added significant value to Barrick’s portfolio.
Norman emphasized the scale of the arsenic anomaly at Keystone, calling it “the richest endowment of arsenic that many geologists in Nevada have ever seen,” which is a strong indicator for gold mineralization in Carlin-type systems.
While historic drilling has been limited, Norman said the project now offers a consolidated district with all the geological markers for a major discovery.
He acknowledged that capital will be needed to advance Keystone but noted its potential could be transformative for the company.
Proactive: Welcome back inside our Proactive newsroom. And joining me now is Luke Norman. He is the Chairman of US Gold Corp. I want to talk a bit about one of your portfolio companies, the Keystone Project. But before we get into that, can you give us a quick update on CK Gold, the flagship project?
Luke Norman: Of course. We are moving headlong into the final stage of the definitive feasibility study. It may sound boring, but it is not. We have put out some updates, including signing a deal with Black Hills Energy. Power transmission to the project will soon be underway. We are about to begin breaking dirt and building roads on site.
Everything is moving full steam ahead. By the end of this year, we should see decisions made on project financing. Our goal is to get this project producing as quickly as possible, especially with the strong gold price environment.
Absolutely. Now, while that is happening, there is also talk about your Keystone Project. For those not familiar, can you give some background?
My previous company, Gold Standard Ventures, had a district-scale project in Nevada that grew from an $18 million CAD market cap to nearly $1 billion at its peak. Keystone was the flagship project at US Gold Corp before we shifted our focus to CK Gold.
Recently, activity around Keystone has become very exciting. It sits near Barrick’s Cortez Complex. Barrick announced a major discovery at Four Mile, which added $30–40 billion to its market cap.
Keystone is a direct geological analog to Cortez. We have the same rock types, the same stratigraphy, and a very similar geological package.
One key indicator in these systems is arsenic. At Keystone, the arsenic anomaly is enormous. Some geologists have told me it is the largest they have ever seen in Nevada. We now sit on a huge, district-scale project directly across from the richest gold complex on the planet.
There has been some drilling there already.
Yes, but mostly historic drilling. Much of it was done by Placer Dome before Barrick took over Cortez. Over the years, some claims were lost or fragmented. It took nearly 25 years for US Gold Corp’s geologists to consolidate the Keystone District. We have done a small amount of scout drilling.
The results included over 1,800 feet of altered limestone host rock, which is the same rock package that hosts gold at Cortez. We think we drilled too close to the intrusive, which may have cooked the gold out, but the system is intact. These are the markers you see in Nevada’s biggest gold deposits.
How do you balance the excitement of Keystone with the work at CK Gold?
It is a challenge. You do not want to overshadow the incredible work at CK Gold. But a discovery at Keystone could have billion-dollar implications. The scale of the opportunity is staggering.
Can you learn from what Barrick has done at Four Mile?
Yes. The geology and methodology are identical. Our project has a 13-mile-long structural corridor and multiple intrusives. These act as fluid traps where groundwater circulates, carrying and depositing gold into the limestone. These deposits can be hard to find, as they are undercover. At Cortez, it took about 70 holes before they hit a discovery hole with 1,000 feet at one ounce per ton. Keystone has the same potential.