U.S. Gold Corp. Announces Further Approval for the CK Gold Project in Wyoming
U.S. Gold Corp announced that its subsidiary, Gold King Corp, received the Wyoming Pollutant Discharge Elimination System Permit on May 31, 2024. This satisfies one of the three conditions for the CK Gold Project's Mine Operating Permit. Work on the remaining conditions, including the Air Quality Permit, is underway. The project received its Industrial Siting, Mine Operating, and Water Discharge Permits over the past year, demonstrating progress toward near-term operations. The feasibility study, previously suspended, is being updated, with completion expected post-third quarter 2024.
The CK Gold Project, pivoted from exploration to development in 2020, is advancing with support from regulatory authorities in Wyoming, known for a clear regulatory framework. Engineering work for the process plant is largely complete, and updated bids for major equipment are being solicited.
- Approval of the Wyoming Pollutant Discharge Elimination System Permit on May 31, 2024.
- Completion of one of the three conditions for the Mine Operating Permit of CK Gold Project.
- Anticipation of receiving the Air Quality Permit shortly, keeping the project on track.
- Major permitting almost complete, indicating near-term operations.
- Restart of the prefeasibility and feasibility studies for the CK Gold Project.
- Significant progress in engineering work for the process plant design.
- Suspension of the feasibility study in March 2023 due to COVID-19 price and supply disruptions, and permitting timeframes.
- Uncertainty remains until all permits are fully approved and feasibility studies are completed.
Insights
The issuance of the Water Discharge Permit is a critical milestone for any mining project. This permit ensures that the project complies with environmental regulations related to water management, which is essential to prevent contamination and ensure sustainable operations. This approval indicates that U.S. Gold Corp. has demonstrated adequate plans for water treatment and management, a key component in gaining full operational approval. Short-term implications of this approval include increased investor confidence and reduced regulatory risk. Long-term benefits involve improved community relations and operational sustainability. However, it’s important to monitor the progress of the remaining permits, particularly the Air Quality Permit, as any delays or issues there could impact the project's timeline.
From a financial perspective, the progress in permitting enhances the project's valuation and de-risks its development timeline. The CK Gold Project has been making steady progress and with major permits like the Water Discharge Permit now in place, the company is closer to commencing full-scale operations, which will drive
The CK Gold Project's progression in permitting phases showcases a well-charted path toward operationalization. This is especially relevant given the historical context of the project transitioning from exploration to development. The successful acquisition of the Water Discharge Permit signals not only regulatory compliance but also potential for market positioning within the gold industry. As the project advances, market perceptions may shift, influencing stock performance positively. It's critical to assess how U.S. Gold Corp. positions this development in communications and investor relations, as this can impact market sentiment and stock volatility. The broader market environment, including gold prices and demand, will also play significant roles in shaping the project’s financial viability and attractiveness to investors.
Achieves Water Discharge Permit associated with recently granted Mine Operating Permit
In commenting on the approval, George Bee, President, CEO and Director of U.S. Gold said, "Issuance of the Water Discharge Permit satisfies one of the three conditions associated with the Mine Operating Permit, further cementing that major milestone, as U.S. Gold moves along the pathway toward development. Work to complete the remaining conditions, the acceptance of the already submitted reclamation bond and the Air Quality Permit are anticipated shortly. The Air Quality Permit is currently under review with the WDEQ Air Quality Division, and we remain on track to receive unconditional approval to move forward with the Mine Operating Plan in hand, around mid-year, as per prior guidance."
Luke Norman, Executive Chairman of U.S. Gold, added, "The CK Gold Project continues to advance with the major permitting almost complete. Over the past year, the project has received its Industrial Siting, Mine Operating and Water Discharge Permits, demonstrating a pathway to near-term operations. We would like to recognize our management team, consultants, and the
Background
U.S. Gold Corp. pivoted from a purely exploration focus on its highly prospective assets in
In August 2020, U.S. Gold's management team started along the development path for the CK Gold Project, previously known as Copper King, which had lain dormant for several years. While Copper King has been known about and explored on multiple occasions, following limited underground mining around 100 years ago, the last study on the project was a Preliminary Economic Assessment authored by Mine Development Associates Inc. in 2012.
The Water Discharge Permit application was submitted to WDEQ on December 12, 2023. The 30-day public notice and comment period began in February 2024 and concluded on March 18, 2024. WDEQ approved the Water Discharge Permit on May 31, 2024.
With approval of the Mine Operating Permit and Water Discharge Permit, work on a prefeasibility study update and completion of the feasibility study has been restarted. The feasibility study work, awarded to Samuel Engineering Inc. ("Samuel") in April 2022, was suspended in March 2023. The decision to suspend Samuel's work on a feasibility study was made for three reasons: first, the Company did not want a "stale dated" study in relation to the permit approval timeframe; second, there was still price and supply disruption following the COVID-19 pandemic; and third, there was a need to recognize some of the changes and additions that came about as a consequence of WDEQ's review of the project. Engineering work is well advanced with the process plant design largely complete, and updated bids for major equipment now being solicited. We are on track to update the prefeasibility study by the third quarter of 2024 and finalize the feasibility study sometime thereafter. We are also working to understand and include project upside opportunities in the feasibility study.
About U.S. Gold Corp.
U.S. Gold Corp. is a publicly traded,
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as "anticipate," "believe," "forecast," "estimated," and "intend," among others. These forward-looking statements include statements relating to the CK Gold Project, including, our expected timing and receipt of the Air Quality Permit, the expected timing and acceptance of the reclamation bond, the expected timing and receipt of unconditional approval to move forward with the Mine Operating Plan, the expected timing and completion of the update of the prefeasibility study, the expected timing and completion of the feasibility study, and the ultimate development of the CK Gold Project. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, risks arising from: market and other conditions, the prevailing market conditions for metal prices and mining industry cost inputs, environmental and regulatory risks, changes in interpretations of geological, geostatistical, metallurgical, mining or processing information, risks faced by junior companies generally engaged in exploration activities, whether U.S. Gold Corp. will be able to raise sufficient capital to develop the CK Gold Project and implement future drilling programs, the success or failure of future drilling programs, and other factors described in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the Securities and Exchange Commission, which can be reviewed at www.sec.gov. The Company has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control. The Company undertakes no duty to correct or update any information contained herein.
For additional information, please contact:
U.S. Gold Corp. Investor Relations
+1 800 557 4550
ir@usgoldcorp.gold
www.usgoldcorp.gold
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SOURCE U.S. Gold Corp.
FAQ
What permits has U.S. Gold Corp's CK Gold Project received as of June 2024?
When was the Water Discharge Permit for the CK Gold Project approved?
What are the remaining conditions for the CK Gold Project's Mine Operating Permit?
What is the next expected milestone for the CK Gold Project?
When is the prefeasibility study for the CK Gold Project expected to be updated?
