Benzinga | May 4, 2021 08:41AM EDT

US Gold Outlines Potential Plans For 2021 Summer Field Season Program At CK Gold Project

U.S. Gold Corp. (NASDAQ:USAU) (the "Company"), a gold exploration and development company, is pleased to announce its potential 2021 summer field season program at its CK Gold Project, located in southeast Wyoming. This program intends to fill any remaining gaps identified in the coming Pre-Feasibility study (PFS) program due mid-year and lead to the Feasibility Study (FS) for the project, expected toward the end of the year or early 2022.

The studies in progress for the PFS have expanded the Company's understanding of the project and the program will be aimed at a number of areas where a planned second phase of data collection will be necessary to finalize a project FS toward the end of 2021. In the case of geotechnical work for mine slope stability, and hydrology to assure an understanding of the groundwater behavior during mining, drilling is necessary to fill data gaps and confirm assumptions put forth in the PFS. Advances in the studies to date reveal the detailed scope and precise needs for the follow-up work leading to the FS, following normal course for project development.

While ongoing metallurgical testing on sample extracted from the prior field season continues to support and further develop the initial findings for recovery of gold, copper and silver from the project, further testing to ensure those assumptions for recoveries are consistent across the deposit (variability testing) will be continued beyond the mid-year PFS on sample already extracted, supporting the FS.

As a consequence of the detailed geological studies, relogging of historic core, optical down-the-hole televiewer data and field mapping, the understanding of the CK Gold Project resource has improved dramatically. A new resource should eliminate smearing of metal grades across hard geologic boundaries, incorporate new drill data and apply rigorous best-practice standards to the resource estimates that are then used in the mine planning to establish proven and probable reserves. The updated resource and reserves, when published, is expected to incorporate an estimate silver content which was previously not reported. The silver, while not a large contributor to project economics, will further help and should be in sufficient quantities to reap some payment from concentrate sales.

George Bee, U.S. Gold Corp.'s President and CEO, states, "We continue to advance the CK Gold Project along the development track and remain on schedule. We now have accumulated baseline environmental data for over six months and we expect to be in a position to submit a permit application early in 2022. The identified project footprint, having been declared non-jurisdictional by the US Army Corp of Engineers, now falls entirely within the jurisdiction of the regulatory bodies of the state of Wyoming. With no tailings dam, no smelter stack emissions from a process plant and the gravity and flotation process employed for metal recovery, the project avoids many of the concerns that have been a feature of similar mining ventures. We hope that the simple nature of the project, well supported by local infrastructure, will lead to the fast-track approval and development, in benefit of local stakeholders and U.S. Gold Corp. shareholders."