U.S. Gold Corp. Announces Updated Prefeasibility Study Results

Permitted CK Gold Project shows compelling economic indicators
(Company webinar Tuesday February 11^th, 2025, at 11:00am EST)

CHEYENNE, Wyo., Feb. 11, 2025 /PRNewswire/ -- U.S. gold Corp. ("U.S. Gold," the "Company," "we," "our" or "us") (NASDAQ: USAU ), is pleased to announce the results of its updated pre-feasibility study ("PFS") for its CK Gold Project ("CK", or "CK Gold") in Wyoming, U.S.A. Incorporating provisions resulting from the completed permitting activities and optimization advances in engineering studies, the PFS continues to show robust potential economic performance of CK. The PFS outlines the basis to proceed to a feasibility study ("FS') while the Company continues to explore significant areas of upside and additional optimization to the project.

PFS Highlights

Updates and improvements in the permitted project's PFS include strong economic performance with increased reserves and resources. Project highlights include:

• Average gold equivalent (AuEq) production of 1,112,000 AuEq ounces over the mine life, or 111,250 AuEq ounces per year, assuming a 10-year mine life. The first three years average 143,278 AuEq ounces annually. Over the life of the mine, the PFS estimates total production of approximately 679,548 ounces of gold, 208.3 million pounds of copper, and 2.04 million ounces of silver.
• Base case Net Present Value ("NPV") of $459 million (pre-tax), at a discount rate of 5%, and Internal Rate of Return ("IRR") of 36.0% , each based on price assumptions of $2,100 per ounce of gold, $4.10 per pound of copper and $27 per ounce of silver. The project payback improved by 15%, and the NPV improved by 42% over the prior PFS study. Reflecting potential higher price assumptions of $3,000 per ounce gold and $4.50 per pound copper, the NPV increases to $952 million (pre-tax) with a 60.8 % IRR .
• All-in sustaining cost of $937 per AuEq ounce (life of mine average).
• Initial capital requirements of $277 million, which includes capital retention payments post-construction.
• Mineral Reserves of 1.672 million AuEq ounces, supporting an eight-year mine life and 10 years of processing. This includes 1.022 million ounces of gold, 259.7 million pounds of copper, and 3.008 million ounces of silver-a 16% increase over the AuEq ounces reflected in the prior PFS.
• Aggregate potential, not included in the study economics presented, could provide significant upside potential for an additional revenue stream should the beneficial use of aggregate produced from mine waste be recognized and commercialized.
• Advancing toward FS completion by the end of 2025, with key groundwork already completed to facilitate fast-tracking. No extensive additional fieldwork or major expenses are required for FS completion.
• Exploration potential exists to expand resources at depth and to the southeast of the main orebody, potentially extending mine life or increasing production.

George Bee, President and Chief Executive Officer of U.S. Gold Corp., stated, "We are pleased by the results of the pre-feasibility study update, which builds upon advanced work with our engineering consultant, Samuel Engineering Inc. ("Samuel"), originally contracted in 2022 to fast track toward a FS. Work on the FS was discontinued until the permits were in place, which also gave time, post COVID-19, for market uncertainties and inflation to subside. We now have an advanced updated glimpse of a very robust, high-value project poised for the next stages of engineering and development, following a board decision to proceed."

"Given the project's excellent economics, including a 36% IRR with a 1.7-year payback period at a gold price of $2,100 per ounce of gold and $4.10 per pound of copper, we continue with optimization leading to the feasibility study on a permitted project, with the goal of commencing construction as soon as late-2025 or 2026 to support first production of concentrate in 2027 or 2028."

Mr. Bee continued, "With avenues to project financing which preserve shareholder positions through a number of arrangements that avoid overly dilutive equity offerings, we believe that development on the CK asset can proceed in the relative short-term, fulfilling the Company's pivot to development of the CK Gold asset and ultimately allowing the Company to return to exploration in its high-potential exploration portfolio."

In addition to this press release, please join us for a webinar, the details of which are provided below.

The February 2025 PFS can be found on the Company's website at .

Pre-feasibility Study Overview

The CK Gold Project is located approximately 20 miles to the west of Cheyenne, and benefits from established infrastructure, including nearby roads and power lines. The proximity to Cheyenne offers a prime location to attract a skilled workforce that can be housed in the local community. Furthermore, the presence of a considerable representation of experienced contracting firms, consultants and equipment dealerships is a benefit to the project as it looks for competitive pricing for goods and services.

The PFS is based on a Mineral Reserve Estimate of 73.2 million tons ("Mt") at 0.014 ounces per ton (0.48 grams per tonne ("g/t") for 1.672 million contained gold equivalent ounces. The PFS contemplates simple surface truck shovel mining of the low 0.9 strip ratio (waste:ore) deposit, with a simple standard comminution and flotation flowsheet to process 7,200,000 tons of ore per annum, producing a saleable high-value copper-gold concentrate with no anticipated penalty elements. Tailings will be dewatered and dry-stacked to recycle and conserve water.

The PFS outlines a 30-month construction period, potentially beginning in late 2025, with initial gold concentrate production targeted for 2028. However, with sufficient financing and detailed project engineering, the construction timeline could be shortened.

The following table summarizes key inputs, operating statistics and results of the CK Gold PFS:

Mining and Processing

The PFS mine plan assumes surface mining in four push-back phases, with mining operations concluding after eight years, followed by just over two years of stockpile processing. Surface mining will utilize off-highway truck-shovel equipment, including trucks in the 100- to 150-ton class and 20-yard loaders, supported by dozers, graders, and water trucks for dust suppression.

The PFS is based on Proven and Probable Mineral Reserves of 73.2 million tons ("MT") at a grade of 0.014 ounces per ton (0.48 grams per tonne ("g/t")), containing 1.672 million gold equivalent ounces. The mine plan has been optimized to prioritize the processing of higher-grade ore in the early years, with lower-grade ore stockpiled for processing in the final two years of the project. Mine production during the first three full years is expected to average 212,061 AuEq ounces annually, driven by higher-grade ore mined early in the project. Over the mine life, average AuEq mine production is projected to be approximately 164,000 AuEq ounces per year for 10.2 years, based on an average AuEq head grade of 0.023 ounces per ton (0.78 g/t).

The PFS is based on a process flowsheet consisting of crushing and grinding to a particle size P80 of 90 μm, followed by rougher sulfide flotation. The rougher concentrate will be reground to a particle size P80 of 30 μm, followed by scavenger cleaner flotation. A market study has indicated that the high-value copper/gold sulfide flotation concentrate will be suitable for processing by smelters. Test work results indicate that the final concentrates do not contain deleterious elements above smelter penalty thresholds. Average payability for the flotation concentrate is expected to be 97.5% for gold, and 96.5% for copper.

The production schedule as outlined in the PFS is presented in the table below:

Capital Expenditures

The PFS estimates initial project capital costs of approximately $277 million, which includes development of the surface mine and facilities, construction of a 7,200,000 ton per annum processing plant encompassing primary crushing, grinding, flotations, tailings and concentrate filtration, a fully lined phase 1 dry tailings storage facility, and additional infrastructure, including haul and access roads, water supply, power distribution and site services and retainer on initial capital in first year of production.

The PFS includes several updates to the prior PFS published in December 2021 resulting from provisions made during permitting and enhancements to the project. This includes liners under the tailings and ore stockpiles as an added measure to prevent any potential acid rock drainage ("ARD").

The following table breaks down the initial capital estimate:

CK Gold Project Price Sensitivity Estimates

The table below shows the gold price sensitivity for the project:

Mineral Resource and Mineral Reserve Estimates

The PFS incorporates an updated Mineral Resource Estimate ("MRE") for the CK Gold Project, with an effective date of January 6, 2025. Drill hole spacing is approximately 50 feet by 50 feet over the majority of the deposit footprint, with denser drilling in the high-grade core of the deposit. The updated MRE incorporates detailed understanding of the geologic controls.

To support the MRE, a comprehensive sensitivity analysis was completed on assumptions and parameters used in the estimate, which identified the optimum top cutting strategy, composite length, block size, search parameters and domaining strategy. The MRE satisfies reasonable prospects of eventual economic extraction ("RPEEE") by demonstrating the spatial continuity of the mineralization based on a 0.35 g/t AuEq reporting cut-off grade and optimized stope volumes. The cut-off grade assumes prices of $1,860 per ounce of gold, $3.92 per pound of copper, and $22.52 per ounce of silver. The MRE was classified as Measured and Indicated Mineral Resources, informed by drill spacing supported by a drill hole spacing study, QA/QC, quality of data, confidence in geological and mineralization interpretations. Inferred resources are also reported.

The MRE is based only on Measured and Indicated Mineral Resources identified in the block model; however, prices of $1,755 per ounce of gold, $3.77 per pound of copper and $23 per ounce of silver were assumed. Optimized pit slopes were utilized with respect to the design and economic criteria established, such as cut-off grade, deposit geometry criteria and ultimate pit limit generate utilizing a Lerchs–Grossman open pit optimizer. The open pit was then sequenced to into a series of four pushbacks employing 30 ft. benches and utilized a stockpile strategy over the life of mine-plan. The mine plan envisions approximately eight years of active mining followed by two years of lower-grade stockpile reclamation, resulting in a total 10-year mine life. Mineral Reserves are calculated using an in-situ cut-off based on a per-ton value model, with material included if it generates at least $0.01 per ton after accounting for processing, administrative, transportation, refining, and royalty costs.

The MRE for the CK Gold Project is shown below and is effective as of February 10, 2025.