en.Wedoany.com Reported - Revival Gold is accelerating its Mercur gold project in Utah, USA, targeting a construction decision in early 2028. The company holds total gold resources of approximately 6 million ounces, with its current market capitalization reflecting only about $30 per ounce, far below the valuation levels of producing peers.
The Mercur project is located in Tooele County, Utah, covering 7,800 hectares with a Carlin-type mineralization system. The area's underground mining history dates back to the 19th century, with Barrick Gold having previously operated heap leach and processing plants on site. The project benefits from brownfield advantages, including existing on-site power lines, paved roads, and confirmed water sources, and is less than a 60-minute drive from Salt Lake City International Airport. The company plans to commence operations through a first-phase open-pit heap leach operation, which is expected to generate $300 million to $350 million in annual free cash flow at current gold prices.
Currently, the company is advancing an approximately 18-kilometer drilling program for 2026, including resource expansion, geotechnical, and combination drilling. Two drill rigs are already operating, with a third set to arrive soon. In metallurgical testing, 20 column leach tests are underway to optimize heap leach recovery parameters. The company plans to complete a Preliminary Feasibility Study (PFS) by the end of the first quarter of 2027, followed by a full feasibility study, with a construction decision targeted for early 2028.
The company's second project, Beartrack-Arnett, located in Idaho, has completed a Preliminary Feasibility Study and has an active deep drilling program. This project is on federal land and involves the U.S. Forest Service permitting process, placing it behind Mercur in development sequence. Management believes this asset is largely unpriced in the current market capitalization, representing a cost-free optionality for investors.
The U.S. domestic mining regulatory environment has undergone substantial changes in the past three years. The 2023 amendments to the National Environmental Policy Act (NEPA) introduced statutory time limits for environmental assessments and environmental impact studies for the first time; President Trump's "Unleashing American Energy" executive order classified minerals as national security and economic priorities; and the 2025 U.S. Supreme Court ruling in "Seven Counties Infrastructure Coalition v. Eagle County, Colorado" reaffirmed NEPA's procedural regulatory nature. Company Senior Advisor Debra Struhsacker described these changes as collectively creating the most favorable U.S. permitting environment in decades.
The primary permitting agency for the Mercur project is the Utah Division of Oil, Gas, and Mining (DOGM), a state-level agency. As the project is on private land, the approval pathway is shorter than for federal land projects. The company has begun baseline studies, targeting completion of mine permitting by the end of 2027. The Beartrack-Arnett project is located in Idaho, where the Silver Valley and Coeur d'Alene Basin in the northern part of the state are among the highest-producing silver and gold mining districts in North American history, giving mining activities political and cultural legitimacy in the state.
Company management stated that it is exploring debt financing options as part of the capital structure for the construction phase. Interest in equity and debt capital for U.S. gold developers is described as exceptionally strong, reflecting both the gold price environment and the strategic interest of large and mid-tier producers seeking to expand U.S. domestic production. The company currently trades at approximately $30 per ounce of gold in the ground, while producing peers trade at significantly higher multiples. Management believes the valuation gap is expected to narrow as development de-risking milestones are achieved.
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