en.Wedoany.com Reported - US Gold Corp (Nasdaq: USAU) has received full permits and commenced construction for its CK Gold open-pit gold-copper project in Wyoming. A March 2026 feasibility study prepared by Halyard Micon International in accordance with the SEC's Regulation S-K 1300 shows a project after-tax net present value (NPV) of $632 million, an internal rate of return (IRR) of 27%, and initial capital expenditure fixed at $394 million, based on a gold price of $3,250 per ounce.

George Bee, President and CEO of the company, stated that permitting is often the stage where many projects face delays or fail to advance. CK Gold has obtained all major permits, eliminating regulatory risk and allowing the company to fully focus on financing and execution. Construction of the mine access road began in January 2026.

The economic analysis in the feasibility study is considered conservative at current gold prices. At a gold price of $4,000 per ounce, the after-tax NPV rises to $946 million, and the IRR increases to 36.3%. Sensitivity analysis shows that for every $500 increase in the gold price per ounce, the after-tax NPV increases by approximately $206 million to $209 million, and the project still generates a positive after-tax NPV at a gold price of $2,000 per ounce. Total net free cash flow over the mine life is $967 million, with an annual average of $124 million.

The project's proven and probable reserves stand at 1.598 million gold equivalent ounces, defined by 215 drill holes. 80% of historical drill holes terminated within the mineralized zone or were not closed off laterally, with 2,900 feet of strike length remaining untested in the southeast direction. The deposit remains open below a depth of 800 feet. A hypothesis published by geologist Richard Sillitoe in June 2022 suggests CK Gold is porphyry in origin. Company materials indicate that if mineralization continues along strike, there is potential to double current resources.

All-in sustaining costs over the mine life are $1,785 per gold equivalent ounce, with total site operating costs at $18.46 per ton of material processed. The project is located approximately a 20-minute drive from downtown Cheyenne, three miles north of Interstate 80, eliminating the need for a worker camp. Mining will utilize a conventional open-pit truck and shovel fleet with a strip ratio of 0.89, producing gold-copper concentrate using Jameson flotation cells and dry-stack tailings management.

The project holds an approved mine operating permit, a Wyoming Pollutant Discharge Elimination System (WYPDES) wastewater discharge permit, a mine reclamation bond, an air quality permit, and an industrial siting permit. A jurisdictional determination by the U.S. Army Corps of Engineers confirmed that the project footprint does not affect U.S. waters, exempting it from National Environmental Policy Act (NEPA) review. The project is located on Wyoming mineral lease lands, with a 2.1% net smelter return (NSR) royalty designated for state education, fully reflected in the feasibility study economics. The permitting process involved over 200 individual meetings with more than 300 people.

According to the quarterly report for the period ending January 31, 2026, the company holds $36.1 million in cash, covering pre-construction and early engineering activities. The company is targeting both traditional and non-traditional funding sources. As of May 1, 2026, fully diluted shares outstanding were approximately 20.3 million.

The feasibility study model does not incorporate revenue streams from aggregate and railroad ballast, representing unpriced NPV upside. Market research cited by the company indicates an annual demand of approximately 1 million tons within trucking distance, and a non-binding letter of intent to supply ballast to a major railroad is in place. Local quarry benchmark prices are approximately $20 to $25 per ton, and any contracted offtake volume would reduce effective cash costs as a by-product credit.

In addition to CK Gold, US Gold Corp holds the Keystone Gold project in Nevada and the Challis Gold project in Idaho. The Keystone project covers 20 square miles of the Cortez trend, located 11 miles south of Nevada Gold Mines' Cortez complex, sharing key geological characteristics with the Cortez system, which has produced over 51 million ounces of gold, but has not yet undergone systematic drilling. The Challis project at Johnny's Point has a historical non-current resource of approximately 313,825 ounces of gold at a grade of 1.22 grams per tonne.

CK Gold is fully permitted and construction has commenced. Remaining risks primarily relate to financing terms, construction timeline, and commodity prices. The feasibility study calculates NPV based on a gold price of $3,250 per ounce and assigns zero value to aggregate and railroad ballast sales. Given that 80% of historical drill holes remain open, current reserves may represent a floor rather than a geological limit. Upcoming catalysts for the project include project financing announcements, the release of the full S-K 1300 technical report, and the advancement of aggregate offtake discussions to binding terms.

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