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U.S. Gold Corp. Announces Positive Prefeasibility Study Citing a Pre-Tax NPV of $323 Million and IRR of 39.4%
Company Provides Updates on Fast-Track Development Plan Progress CHEYENNE, Wyo., Dec. 1, 2021 /PRNewswire/ -- U.S. Gold Corp. (NASDAQ: USAU) ("U.S. Gold" or
About this update from U.s. Gold Corp.
[{"type":"text","content":"Company Provides Updates on Fast-Track Development Plan Progress\n\n\nCHEYENNE, Wyo., Dec. 1, 2021 /PRNewswire/ -- U.S. Gold Corp. (NASDAQ: USAU) (\"U.S. Gold\" or the \"Company\"), a gold exploration and development company, is pleased to announce that it has completed the prefeasibility study (\"PFS\") for the Company's CK Gold Project and has published its SK-1300 Technical Report Summary. \nPrefeasibility Study Highlights:\nMineral Resources – 1.58 million gold equivalent (\"AuEq\") ounces of Measured and Indicated (M+I) Resources An additional 0.357 million AuEq ounces of inferred resource M+I includes: Gold - 1.110 million ounces and Copper - 280 million lbsMineral Reserves – 1.44 million AuEq ounces of Proven and Probable (P1 and P2) Reserves P1 and P2 includes: Gold - 1.010 million ounces and Copper - 248 million lbs10-year Mine Life at 20,000 short tons per day process rate Average AuEq production: 108,500 ounces per year First 3-years: 135,300 AuEq ounces per yearInitial Capital: $221 million Potential attractive financing terms from equipment suppliers and development capital sources 2-year Payback Robust Economics – 39.4% IRR before tax and 33.7% IRR after tax NPV (5%): $323 million and $266 million, before and after tax, respectively All in Sustaining Cost (\"AISC\") at $800 per AuEq ounce Assumes $1,625/ounce gold price and $3.25/lb copper price Highly leveraged to increasing metals pricesUpside Potential Aggregate sales from mine waste rock, proven to be excellent quality FS level value engineering and plant optimization Ongoing metallurgical testing to enhance recovery of gold and copper Resource expansion potential at depth and to the south-eastPermitting and Development Project footprint under the jurisdiction of Wyoming agencies Potential to submit mine permit in 2022 and receive approval in 2023Development Plan Progress Highlights:\n2021 Field Season – a successful field season concluded November 2021 Detailed geotechnical and hydrological data to finalize Feasibility Study (FS) Environmental monitoring and test wells in place Site geotechnical test pits (121), drill holes (12), and seismic lines completeOngoing Test-Work – geochemical, metallurgical for completion in Q1 2022 Interviewing FS and EPCM engineering firm candidates, with RFPs to be submitted Target to complete a Feasibility Study in 2022 Engaging...