Advanced-Stage Gold and Copper Exploration and Development
The Copper King property is located in the Silver Crown mining district of southeast Wyoming, approximately 20 miles west of the city of Cheyenne, on the southeastern margin of the Laramie Range. The property comprises about 1,120 acres (2 square miles) and is 100% owned by U.S. Gold Corp. In 2017, the company updated the project’s Preliminary Economic Assessment (by MDA, Dec-2017) while also making a discovery of a new mineralized zone in hole CK17-01 drilled in the Fall, 2017. The project offers the company near-term, low CAPEX, open-pit production potential as well as compelling value.
The Copper King deposit is a development stage, large-tonnage, gold-copper deposit with high-grade mineralization exposed at the surface surrounded by a large, low-grade zone with potential for expanding resources. The project’s main zone deposit provides a NI 43-101 compliant resource as follows*:
- 926,000 Measured and Indicated oz Au and 223mm lbs Cu
- 174,000 Inferred oz Au, 62.5mm lbs Cu
The Copper King resource is based upon 120 drill holes totaling 18,105m and contains oxide, mixed oxide-sulfide, and sulfide rock types. The Copper King mineralization is characterized by an extraordinary even distribution of metal grades occurring as a large body of disseminated and vein / stockwork gold, silver, and copper mineralization.
The updated PEA study using base case prices of $1275/oz gold and $2.80/lb copper indicates a 17-year project with a low capital requirement of $113.7 million. Over the project life a total of 182 million pounds of copper and 692,000 ounces of gold are projected to be recovered based on the PEA recovery assumptions. The project shows a pre-tax NPV (5%) of $178.5 million and an IRR of 33.1%. The project enjoys an ideal geopolitical location in Wyoming; the State has been very supportive of efforts to advance the project
In 2017, U.S. Gold Corp. continued to expand the deposit with a newly discovered mineralized zone 200 meters west of the main zone. Both resource expansion and new discovery possibilities remain high at Copper King. In 2108, the company will be embarking upon a far larger drilling program to provide for additional main zone definition and possible expansion, metallurgical testing, to follow-up on the discovery indicated in hole CK17-01, and conduct additional exploration drilling.
U.S. Gold Corp. has assembled a team to both continue expanding Copper King’s current gold and copper resource and to advance the project towards production. In addition, the company is developing effective community and government relations programs in order to minimize any future social challenges.