US Gold improves economics at CK project in Wyoming

US Gold (NASDAQ: USAU) has improved the economics of its CK gold project in Wyoming with an updated pre-feasibility study (PFS) on the existing one from 2021, incorporating work completed during permitting activities and engineering optimization.

The new study gave the CK project has a pre-tax net present value (NPV) of US$459 million (C$658 million) discounted at 5%), a 36% internal rate of return and a 1.7-year payback period. The NPV represents a 42% increase on the previous estimate, and the payback improved by 15%.

All-in sustaining cost is pegged at $937 per gold-equivalent oz. (life of mine average), higher than the $800 from before. The initial capital requirement is $277 million, up from $221 million.

These economics reflect an updated mineral reserve base that supports a 10-year mine at CK with total production of 680,000 oz. of gold, 208 million lb. of copper and 2 million oz. of silver, or 1.1 million oz. in gold equivalent (AuEq).

Shares of US Gold closed less than 1% stronger on Tuesday in New York, as wider markets slid on tariff fears, for a market capitalization of $112.3 million.

Resource

Excluding reserves, which measure at 1 million oz. gold, 260 million lb. copper and 3 million oz. silver and grew 16% from 2021 in AuEq terms (1.7 million oz.), the CK project also has a resource of 465,000 oz. gold, 153 million lb. copper and 1.6 million oz. silver (957,000 gold-equivalent oz.) in all categories.

In a news release Tuesday, US Gold CEO George Bee said the updated PFS shows “a glimpse of a very robust, high-value project poised for the next stages of engineering and development.”

The PFS work builds on the advanced work with Samuel Engineering, which was contracted in 2022 to fast track the project toward a feasibility study, but that work was discontinued until the permits were in place. Since then, US Gold has completed the permitting process, including the final key air quality permit issued in November 2024.

With “excellent economics” from the new PFS, Bee said that the company will continue with optimization leading to the feasibility study on the project, which it anticipates to be completed by year-end, as no extensive additional fieldwork or major expenses are required.

The goal, according to Bee, is to commence construction of the now-permitted CK project as soon as late 2025 to support first production of concentrate in 2027 or 2028. Additionally, US Gold also sees the potential to expand the resources at depth and to the southeast of the main orebody, potentially extending mine life or increasing production.

The project, located in the Silver Crown mining district of southeast Wyoming, was acquired by the company from Energy Fuels in 2014.