US Gold Corporation's updated prefeasibility study (PFS) for its CK gold project in Wyoming highlights a robust, high-value project with strong economic potential. The study outlines a 10.2-year mine life with an average production of 143,278 ozpa during the first three years, generating an after-tax NPV of $356 million and a 30% IRR.
US Gold Corporation has released an updated prefeasibility study ( PFS ) for its CK gold project situated in Wyoming , USA. This revised study incorporates key insights from the recently completed permitting activities and incorporates engineering optimizations. The study outlines a production capacity of 111,250 ounces per annum (ozpa) of gold equivalent, achieved at an all-in sustaining cost of US$937 per ounce (oz) over a 10.2-year mine life.
Notably, the average production during the initial three years is projected to be 143,278 ozpa.Over the course of the mine's lifespan, total production is estimated to reach 679,548 oz of gold, 208.3 million pounds of copper, and 2.04 million ounces of silver. The project is anticipated to yield an after-tax net present value (NPV) of $356 million, boasting a 30% internal rate of return (IRR) and a 1.7-year payback period following an initial capital expenditure of $277 million. These projections are based on prevailing metal prices of $2,100/oz for gold, $4.10/lb for copper, and $27/oz for silver. The project demonstrates a slightly lower-than-average capital efficiency of $189.8/oz and an NPV/capex ratio of 1.7.'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. … We continue with optimization leading to the feasibility study on a permitted project, with the goal of commencing construction as soon as late 2025 or 2026 to support the first production of concentrate in 2027 or 2028,' stated George Bee, chief executive of US Gold. The PFS envisages surface truck shovel mining with a 0.9 waste-to-ore strip ratio to exploit a reserve of 73.2 million tonnes (Mt) grading 0.48 grams per tonne (gpt) gold equivalent containing 1.022 million oz of gold, 259.7 million lb of copper and 3 million oz of silver, or 1.672 million oz of gold equivalent, a 16% increase over the prior PFS. A standard comminution and flotation flowsheet will process 7.2 Mtpa of ore to produce a copper-gold concentrate with no anticipated penalty elements. Tailings will be dewatered and dry-stacked. A feasibility study is planned for completion by the end of 2025. Based on the PFS, US Gold is advancing to finalize work to optimize the PFS and progress onto the FS, which could be completed by the end of 2025. Activities in 2025 are envisioned to include completing metallurgical testing on Glencore Technology's Jameson flotation cell technology and IsaMill regrind equipment, and a water supply update, along with evaluations regarding the commercialization of waste rock as a source of aggregate and rail ballast. Additional optimization opportunities for the feasibility include detailed project construction planning to shorten the 30-month pre-production period and concentrate pre-production capital costs, the possibility of using Jameson cells to improve metallurgical recovery, which would reduce capital costs, utilizing on-site waste rock for construction as well as commercializing waste rock to meet the aggregate needs of local markets.Shares of US Gold have surged in value by 45% this year, reaching a 52-week high. Currently trading at $8.91, the company is valued at $110 million.
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