ELKO, Nev., July 26, 2017 /PRNewswire/ -- U.S. Gold
Corp. (NASDAQ: USAU) today is pleased to provide an overall update
on its Copper King property 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 that
include two Wyoming State Mining Leases covering the S½ Section 25,
NE¼ Section 35 (lease# 0-40858), and all of Section 36 (lease#
0-40828), T14N, R70W, 6th PM, Laramie
County, Wyoming.
Investment Highlights
- A base case summary of the historic Preliminary Economic
Assessment (PEA) indicates that Copper King will generate Net Cash
Flow of $273.7 million and has a NPV
of $159.5 million*
- The Copper King Project enjoys an ideal geopolitical location
in mining friendly Wyoming; the
state has been very supportive of US Gold Corp's efforts to advance
the project
- Historic reports indicate potential to expand the project
beyond its current scope
- A June 2017 survey suggests an
obvious northwest extension, which U.S. Gold Corp. considers a
prime additional exploration target
- U.S. Gold Corp. is conducting detailed geophysical studies to
confirm the northwest extension target, after which the company
intends to develop drill targets, followed by an exploration drill
program expected to commence in Fall 2017
*Assuming $1,100 per ounce gold
price and $3.00 per pound of copper
and a 5% discount rate
Historical Overview
Limited exploration and mining were conducted on the Copper King
property in the late 1880s and early 1900s. Approximately 300 tons
of material was reported to have been produced from a now
inaccessible 160-foot-deep shaft with two levels of cross-cuts. A
few small adits and prospect pits with no significant production
are scattered throughout the property.
Since 1938, at least nine historic (pre-Strathmore) drilling
campaigns by at least seven companies plus the U. S. Bureau of
Mines ("USBM") have been conducted at Copper King. The current
project database contains 91 drill holes totaling 37,500 feet that
were drilled before U.S. Gold Corp. acquired the property.
All but six of the drill holes are within the current
resource area. Other work conducted at Copper King by
previous companies has included ground and aeromagnetic surveys, as
well as induced polarization ("IP") surveys along with geochemical
sampling, geologic mapping, and a number of metallurgical
studies.
Wyoming Gold conducted an exploration drill program in 2007 and
2008. Thirty-five diamond core drill holes were completed for
a total of 25,500 feet. The focus of that work was to confirm
and potentially expand the mineralized body outlined in the
previous drill campaigns, increase the geologic and geochemical
database leading to the creation of the current geologic model and
resource estimate, and to provide material for further
metallurgical testing. The Copper King assay database for
some 120 holes contains 8,357 gold assays and 8,225 copper assays.
At least 10 different organizations or individuals conducted
metallurgical studies on the gold-copper mineralization at the
request of prior operators between 1973 and 2009. It was
concluded that the process with the highest potential to yield good
extractions of gold and copper would likely be flotation, followed
by cyanidation of the flotation tailings.
According to an August 24, 2012
updated technical report, prepared in accordance with National
Instrument 43-101 by Mine Development Associates ("MDA"), the
Copper King Project contains 59.75 million tons of measured and
indicated mineral resources with average grades of 0.015 ounces/ton
Au and 0.187% Cu, containing approximately 926,000 ounces of gold
and 223 million pounds of copper. In addition, the Copper
King Project contains approximately 15.62 million tons of inferred
mineral resources with average grades of 0.011 ounces/ton Au and
0.20% Cu, containing 174,000 ounces of gold and 63 million pounds
of copper. Under the base case summary of Copper King's
Pre-Tax Economic Results in the NI 43-101, with the assumption of
$1,100 per ounce gold price and
$3.00 per pound of copper, the Copper
King Project will generate Net Cash Flow of $273.7 million and the Project has a Net Present
Value of $159.5 million at a 5%
discount rate. The Copper King Project also enjoys an ideal
geopolitical location in mining friendly Wyoming which is home to a highly experienced
workforce.
Geology
The Copper King project is underlain by Proterozoic rocks that
make up the southern end of the Precambrian core of the Laramie
Range. Metavolcanic and metasedimentary rocks of amphibolite-grade
metamorphism are intruded by the ~1.4 billion year old Sherman
Granite and related felsic rocks. Within the project area,
foliated granodiorite is intruded by aplitic quartz monzonite
dikes, thin mafic dikes, and younger pegmatite dikes. Shear
zones with cataclastic foliation striking N60°E to N60°W are found
in the southern part of the Silver Crown district, including at
Copper King. The granodiorite typically shows potassium
enrichment, particularly near contacts with quartz monzonite.
Copper and gold mineralization occurs primarily in unfoliated to
mylonitic granodiorite. The mineralization is associated with
a N60°W-trending shear zone and disseminated and stockwork
gold-copper deposits in the intrusive rocks. Some authors
have categorized it as a Proterozoic porphyry gold-copper deposit.
Hydrothermal alteration is overprinted on retrograde
greenschist alteration and includes a central zone of
silicification, followed outward by a narrow potassic zone,
surrounded by propylitic alteration. Higher-grade
mineralization occurs within a central core of thin quartz veining
and stockwork mineralization that is surrounded by a zone of
lower-grade disseminated mineralization. Disseminated
sulfides and native copper with stockwork malachite and chrysocolla
are present at the surface, and chalcopyrite, pyrite, minor
bornite, primary chalcocite, pyrrhotite, and native copper are
present at depth. Gold occurs as free gold.
2017 Exploration Program
Several historical geophysical techniques have been tried on the
Copper King property. U.S. Gold Corp. has the historical data
including a ground magnetic survey done in 1997. The known
deposit mineralization correlates directly with a strong magnetic
anomaly rising in excess of 400nT over background. Historical
drilling confirmed the anomaly to be produced by magnetite which
correlates well with known mineralization. Historic reports
make the observation that two other anomalies to the east and
southeast are similar in character to the one associated with
mineralization and identifies these as exploration targets.
It is unclear if these were ever drill tested in the
past.
U.S. Gold Corp. contracted with Jim
Wright of Wright Geophysics to perform a ground magnetic
survey that was completed in June 2017. A full copy of the
just completed report can be found at:
http://c.eqcdn.com/usgoldcorp/files/docs/COPPER_KING_GMAG_2017.pdf.
The new data agrees well with the earlier work of Garland
(1997). However, the current survey is more detailed (50 m lines)
and more expansive. In addition, the data is in digital form which
permits computation of secondary products, unlike the sole image of
the Garland (1997) survey's total field map.
The ground magnetic survey agrees with earlier magnetic work and
defines a complex lithologic / structural setting with two major
fault sets. The north-south set is a major feature related to the
eastern range front of the Laramie Mountains. Numerous magnetic
anomalies, with character similar to the magnetic response of the
Copper King mineralization, are offset by the structures. An
obvious northwest extension of the magnetic response at the Copper
King mine appears to not have been explored. This is considered a
prime exploration target.
The pending induced polarization (IP) survey is scheduled to be
completed later this summer. In addition, a complete
compilation of historic drilling is being done. The compilation is
critical to verifying the northwest extension target. After
the detailed geophysical studies are completed and interpreted,
U.S. Gold Corp. plans to develop drill targets. It is
anticipated that a moderate exploration drill program will commence
in the Fall of 2017. Further details will be provided as the
program expands.
Permitting
U.S. Gold Corp.'s Operations Manager Neil Whitmer has been managing the overall
Copper King permitting process. Neil is working closely with
the local regulators to advance the project towards an eventual
production permit. The Copper King claims are located on all
State of Wyoming lands and the
State officials in Cheyenne have
been very supportive of US Gold Corp's efforts to advance the
project. The State of
Wyoming has a 5% Net Smelter Royalty (NSR) on the
project.
About U.S. Gold Corp.
U.S. Gold Corp. is a publicly
traded, U.S. focused gold exploration and development
company. U.S. Gold Corp. has a portfolio of development and
exploration properties. Copper King is located in
South East Wyoming and has an
historical Preliminary Economic Assessment (PEA) done by Mine
Development Associates in 2012 for Strathmore Minerals
Corporation. Keystone and Gold Bar North are exploration
properties located on the Cortez trend in Nevada, identified and consolidated by
Dave Mathewson. For more
information about U.S. Gold Corp., please visit
www.usgoldcorp.gold.
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Safe Harbor
The information provided in this press
release may include forward-looking statements relating to future
events, such as the exploration success of U.S. Gold Corp.,
development of new Dataram products, pricing and availability of
raw materials or the future financial performance of the
Company. Actual results may differ from such projections and
are subject to certain risks including, without limitation, risks
arising from: changes in the price of gold and mining industry cost
inputs, memory chips, changes in the demand for memory systems,
increased competition in the memory systems industry, order
cancellations, delays in developing and commercializing new
products, risks with respect to US Gold Corp faced by junior
companies generally engaged in exploration activities, 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, including the Risk Factors with respect to
U.S. Gold Corp. contained in the Current Report on Form 8-K filed
on June 13, 2016, 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 does not assume any
obligations to update any of these forward-looking
statements.
Cautionary Note to U.S. Investors Concerning Mineral
Resources
We may use certain terms on this website, such
as "measured," "indicated," or "inferred" mineral resources, which
are defined in Canadian Institute of Metallurgy guidelines, the
guidelines widely followed to comply with Canadian National
Instrument 43‐101‐‐ Standards of Disclosure for Mineral Projects
("NI 43‐101"). We advise U.S. investors that these terms are
not recognized by the United States Securities and Exchange
Commission (the "SEC"). The estimation of measured and indicated
resources involves greater uncertainty as to their existence and
economic feasibility than the estimation of proven and probable
reserves under the SEC's disclosure rules. Under U.S.
standards, mineralization may not be classified as a "reserve"
unless the determination has been made that the mineralization
could be economically and legally produced or extracted at the time
the reserve determination is made. Mineral resources that are not
mineral reserves do not have demonstrated economic viability. U.S.
investors are cautioned not to assume that measured or indicated
mineral resources will be converted into reserves. Inferred mineral
resources have a high degree of uncertainty as to their existence
and their economic and legal feasibility. It cannot be assumed that
all or any part of an inferred mineral resource exists, or is
economically or legally viable. Under Canadian rules, estimates of
"inferred mineral resources" may not form the basis of feasibility
studies, pre‐feasibility studies or other economic studies, except
in prescribed cases, such as in a preliminary economic assessment
under certain circumstances. Disclosure of "contained ounces" in a
resource is permitted disclosure under Canadian regulations;
however, the SEC normally only permits issuers to report
mineralization that does not constitute "reserves" by SEC standards
as in place tonnage and grade without reference to unit
measures.
For additional information, please contact:
U.S. Gold Corp. Investor Relations:
+1 800 557 4550
ir@usgoldcorp.gold
www.usgoldcorp.gold
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SOURCE U.S. Gold Corp.