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. In 2018, the Company's primary focus was confirming and expanding upon this newly discovered zone of mineralization. 2018 drilling consisted of 8 drill holes and encountered multiple, thick zones of copper, gold, zinc, and silver mineralization in five of the eight drill holes. The Company also commissioned DataMine Associates, of Denver, to assist in the building of an expanded exploration model for the Copper King deposit. This looked more thoroughly at the deposit, especially with respect to its boundaries, internal high-grade zones, and the other metals of value which are present, but that have not been previously factored into the economics of the deposit. The Datamine model shows that the deposit remains open to the southwest and also to the southeast and appears to have a curved configuration as opposed to a more confined, previous west-northwestward tabular configuration. The 2019 Copper King exploration programs are being designed upon the Datamine study - the primary focus of which will be to expand the resource and deposit size.

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.