U.S. Gold Corp. Provides Update on Engineering Optimization Studies for CK Gold Project

CHEYENNE, Wyo., Sept. 4, 2024 /PRNewswire/ -- U.S. Gold Corp. (NASDAQ: USAU) (the "Company"), a gold exploration and development company, is pleased to provide the following update on the CK Gold Project engineering and updated Prefeasibility Study progress.

With the approval of the Mine Operating Permit on April 29, 2024, work on the Prefeasibility Study (PFS) update resumed in June 2024. As a result of changes related to permit commitments and ongoing engineering optimization studies to enhance project economics, the Company deems it highly beneficial to consider the results of these studies prior to completing the updated PFS. With gold, copper and silver prices approaching historic highs, far and above the original PFS of December 2021, management believes the time to optimize plant and operations is the present, as equity markets in the junior sector trail a new reality and a durable and well thought out mining operation is established.   

Set out below are opportunities under consideration.

Engineering Studies Underway:

Tailings Management Facility (TMF) Optimization: In a review of the stacking sequence and access roads to the TMF, the Company hired Tierra Group International (TGI), a Denver, Colorado based geotechnical engineering firm, to review the overall design of the TMF, and, in particular, to improve road access, stacking and operability. During their review, TGI has identified opportunities to improve the capacity and ease the constructability of the TMF through improved design at, potentially, a reduced capital cost. This does not alter the TMF footprint or design concepts described in the permit approval, which now incorporates a membrane composite liner rather than a modified soil liner as contemplated in the December 2021 PFS.

Water Management Plan: In June 2024, the CK Gold Project received the water discharge permit (WYPDES) from the Wyoming Department of Environmental Quality with specific standards. As a result of the WYPDES approval, TGI has been asked by the Company to evaluate and make recommendations to the site-wide water management plan and water balance model. The Company has an agreement in place with the Cheyenne Board of Public Utility to purchase water to operate the mine. TGI is currently evaluating the possibility of improving water harvesting within the property boundary and storage capacity thereby reducing the amount of makeup water the Company would need to purchase.

Process Plant Trade-off Study: The December 2021 PFS contemplates a 20,000 ton per day sulfide concentrator employing conventional crush, grind, flotation and uses a series of flotation cells to generate a sulfide concentrate. The Company has recently been made aware of enhanced recovery processes using alternative flotation cell technology rather than the conventional technology in its current design. A compelling presentation was made pointing to operational experience at other mines to suggest that alternative flotation equipment and grinding has the potential of improving metal recoveries, lowering capital by reducing the mill building size and the number of conventional flotation cells, and operating costs by reducing personnel and power consumption. As such, the Company has determined the best approach is to investigate the use of this technology prior to finalizing the PFS. Accordingly, 150 kg of ore-grade material has been shipped to a metallurgical laboratory to determine the suitability of the Jameson Cell and IsaMill equipment for the Company's ore.

In commenting on the engineering studies, George Bee, President and CEO said, "The time to make changes to a project is during the initial engineering so that the Feasibility Study (FS) is well thought out and durable. Nothing upsets project controls and cost management more than change orders once construction has started, and we will go into development with a well-engineered project consistent with the permit constraints and optimized for the best possible outcome."

Luke Norman, Chairman added, "While gold, copper and silver prices are pushing new highs, the equity markets in the junior sector remain laggard in their response. Although the CK Project is permitted in principle and ready for development, we have time to accomplish these optimization opportunities. Testing alternative, mine-proven flotation technologies offers potential to further increase the economic framework of the mine.  Furthermore, we are still looking to build value, based on investigations to commercialize the rock that we mine and set aside to extract the gold and copper ore. Adding a potential revenue stream from the aggregate could also offer additional benefits to both U.S. Gold Corp. and the State which would garner additional royalty payments. This commercialization also has the potential to offer alternative closure scenarios where the exhausted pit could serve as future water storage to reduce cost and disruption in the nearby Curt Gowdy Park where the current city reservoirs are situated." Mr. Norman added, "Of course any of these potential changes would be subject to discussion with interested parties and additional permitting."

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 PFS technical report, which was completed by Gustavson Associates, LLC. Our Keystone exploration property is on the Cortez Trend in Nevada. Our Challis Gold Project is located in Idaho. For more information about U.S. Gold Corp., please visit www.usgoldcorp.gold.

U.S. Gold Corp. periodically sends news via email to its shareholders and interested investors. If you would like to receive these communications, please sign up to receive U.S. Gold Corp. news releases at: www.usgoldcorp.gold.

Safe Harbor
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 the opportunity to improve the capacity of the TMF and constructability at a reduced capital cost, the possibility of improving water harvesting within the property boundary and storage capacity resulting in reduced water needing to be purchased by the Company, and the potential benefits of using alternative flotation equipment and grinding. 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, 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

[email protected]

www.usgoldcorp.gold

SOURCE U.S. Gold Corp.