U.S. Gold Corp. Announces Mine Operating Permit Approval for the CK Gold Project in Wyoming

Rhea-AI Summary

U.S. Gold Corp. announced the approval of the Mine Operating Permit for the CK Gold Project in Wyoming, marking a significant milestone towards project development. The company has received the Surface Gold Mine Permit from the Wyoming Department of Environmental Quality, with remaining conditions including reclamation bond approval and final WYPDES and AQD permits. U.S. Gold Corp. shifted focus to the CK Gold Project in 2020, with work on feasibility studies now underway.

Positive

• Approval of the Mine Operating Permit for the CK Gold Project in Wyoming signifies a major milestone towards project development.

• U.S. Gold Corp. has successfully navigated regulatory hurdles with the receipt of the Surface Gold Mine Permit from the Wyoming Department of Environmental Quality.

• The company's management team, consultants, and regulatory authorities in Wyoming have demonstrated dedication and hard work towards advancing the CK Gold Project.

Negative

• Remaining conditions for the Mine Operating Permit include approval of the reclamation bond, final WYPDES permits, and required WDEQ-Air Quality Division permits.

• Work on feasibility studies was suspended due to the COVID-19 pandemic and changes resulting from WDEQ's review, potentially causing delays in project timelines.

Insights

Mining Analyst

The issuance of the Mine Operating Permit for U.S. Gold Corp's CK Gold Project is a pivotal step in transitioning from exploration to development, which can significantly affect the potential value and operational timeline of the company. The permit demonstrates regulatory confidence in the project's environmental and operational plans and indicates progress towards the start of production. Investors should note the conditions attached to the permit, such as the approval of a $5,010,000 reclamation bond, which reflects the company's financial commitment to environmental stewardship. The focus on prefeasibility and feasibility studies suggests that the company is moving towards more concrete project planning and execution, which can lead to a better understanding of the project's economics, including capital and operational expenses and potential revenue. It is important to monitor the completion of these studies as they will provide critical data for assessing the project's viability.

Environmental Compliance Expert

From an environmental compliance perspective, the acquisition of the Mine Operating Permit signals U.S. Gold Corp's adherence to regulatory standards and their ability to navigate complex environmental oversight processes. This includes the management of potential impacts on water, air quality and local ecosystems. Investors should find assurance in the company's successful environmental baseline studies, but must remain aware of the requirement for additional approvals, like the WYPDES permits for managing discharges, which could present a future risk if not granted. The acknowledgement of design changes to address WDEQ's comments highlights the company's proactive approach to environmental management. The commitment to meeting environmental standards is not only a regulatory necessity but can also enhance the company's reputation among environmentally-conscious investors and can mitigate the risk of future environmental liabilities.

Financial Analyst

From a financial standpoint, the permit approval marks a transition from sunk costs associated with exploration to capital expenditure geared towards production. Investors should consider the implications of the reclamation bond and WYPDES permitting as potential financial burdens or delays. The permit approval is likely to be factored into the company's share price as it reduces the regulatory risk profile. Furthermore, feasibility studies will provide the detailed financial and operational roadmaps needed for investors to gauge the return potential and risk. It's important to consider that the timing of these studies will affect the project's capital requirements and could influence the company's financing strategy, including possible equity offerings or debt financing, which would have implications on shareholder value.

Attains Major Permitting Milestone Towards the Development of the CK Gold Project

CHEYENNE, Wyo., May 8, 2024 /PRNewswire/ -- U.S. Gold Corp. ("U.S. Gold," the "Company," "we," "our" or "us") (Nasdaq: USAU), today announced that its wholly owned subsidiary, Gold King Corp., has been issued its Surface Gold Mine Permit, dated April 29, 2024 (the "Mine Operating Permit"), from the Director of the Wyoming Department of Environmental Quality ("WDEQ"), subject to certain conditions.

In commenting on the approval, George Bee, President, CEO and Director of U.S. Gold Corp. said, "Having previously been granted the Industrial Siting Permit in June last year and now the Mine Operating Permit we have cleared the major regulatory hurdles towards project development. Work to meet final authorization for development is well underway. The remaining conditions are the approval of the reclamation bond which has already been submitted, the Wyoming Pollutant Discharge Elimination System ("WYPDES") permitting process, which is in the final stages of approval, and the WDEQ Air Quality Division ("AQD") permits, where technical work is under review. We remain on track to receive the necessary permits around mid-year, as per prior guidance."

Luke Norman, Executive Chairman of U.S. Gold Corp. added, "This is an outstanding accomplishment. Since shifting the Company's focus in August 2020 from exploration to the development of the CK Gold Project, through the receipt of the Mine Operating Permit, is a remarkable achievement. We would like to recognize our management team, consultants, and the State of Wyoming regulatory authorities for everyone's hard work and dedication advancing the CK Gold Project. The CK Gold Project sits on State and private ground in Wyoming, which is an extraordinary jurisdiction for resource development, with a clear regulatory framework, and authorities that are knowledgeable, experienced, and motivated to safely and responsibly manage the State's mineral wealth."

The remaining mine operating permit conditions as per the WDEQ Director's letter of approval are as follows: 1. No construction or mining activities shall be allowed to commence until the reclamation performance bond, in the amount of $5,010,000 as set forth in the Director's Bond Letter dated February 20, 2024, is approved, 2. The application states multiple discharge points that require WYPDES permits. The operator has applied for these permits and is awaiting final approval. As a non-significant revision ("NSR") to the approved permit, the operator shall provide an updated map of approved discharge locations and a list of WYPDES permit numbers when they are made available to them. The operator is not authorized to conduct discharge activities until the permits are approved and placed into the permit, and 3. No construction or mining activities shall be allowed to commence until the applicant obtains required WDEQ-Air Quality Division ("AQD") permits. As an NSR to the approved permit, a copy of the approved AQD permit(s) shall be inserted into the approved mining plan when they are made available.

Background

U.S. Gold Corp. pivoted from a purely exploration focus on its highly prospective assets in Nevada and Idaho to development of the CK Gold Project in 2020, representing a significant and achievable value creation opportunity for the Company.

In August 2020, the current 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.

In September 2020, the Company commenced work on establishing an environmental baseline for the project area and its surroundings. Following two years of data capture covering surface and subsurface water monitoring, fauna, flora and cultural assessment and modelling, a Mine Operating Plan and Closure Plan Permit application was submitted to WDEQ. By November 2022, the application was deemed technically complete, and the detailed WDEQ review commenced, including a review of certain aspects by experts contracted by WDEQ. In April 2023, WDEQ responded to the Company with comments and the Company spent several months addressing WDEQ's comments and making design changes to provide further comfort to WDEQ that the proposed action contemplated as many eventualities as could reasonably be expected to provide for the health, safety and stewardship of the environment and cultural resources. At the end of February 2024, the 30-day public notice period commenced, which concluded on March 28, 2024. In accordance with the statutory timeline, WDEQ issued the approval of the Mine Operating Permit on April 29, 2024.

With approval of the Mine Operating 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 are now being solicitated. 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, U.S.-focused gold and copper exploration and development company. U.S. Gold Corp. has a portfolio of exploration properties. Our CK Gold Project is located in Southeast Wyoming and has a Preliminary Feasibility Study technical report, which was completed by Gustavson Associates, LLC. Our Keystone exploration property is on the Cortez Trend in Nevada. Our Challis Gold Project, located in Idaho. For more information about U.S. Gold Corp., please https://www.usgoldcorp.gold/.

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 related to our expected timing and receipt of the necessary permits for the CK Gold Project, 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, COVID-19 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 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/us-gold-corp-announces-mine-operating-permit-approval-for-the-ck-gold-project-in-wyoming-302139114.html

SOURCE U.S. Gold Corp.

FAQ

What permit did U.S. Gold Corp. announce approval for in Wyoming?

U.S. Gold Corp. announced the approval of the Mine Operating Permit for the CK Gold Project in Wyoming.

Who issued the Surface Gold Mine Permit to U.S. Gold Corp.?

The Surface Gold Mine Permit was issued by the Director of the Wyoming Department of Environmental Quality to U.S. Gold Corp.

What are the remaining conditions for the Mine Operating Permit?

The remaining conditions include approval of the reclamation bond, final WYPDES permits, and required WDEQ-Air Quality Division permits.

Why was work on feasibility studies for the CK Gold Project suspended?

Work on feasibility studies was suspended due to the COVID-19 pandemic, changes resulting from WDEQ's review, and the need to avoid a 'stale dated' study.