The feasibility study outlines a total production of 931,000 ounces of gold equivalent over an 11-year mine life, with an average annual production of 85,000 ounces. The project is expected to generate strong free cash flow, averaging $160 million annually during the peak production years. The initial capital cost is estimated at $394 million, which includes a contingency of $47 million, and the project boasts a low total cash cost of $1,748 per ounce of gold equivalent.
U.S. Gold Corp. emphasizes the project's attractive production profile, which focuses on early higher grades, and a low strip ratio of 0.89:1, minimizing pre-stripping costs. The company has engaged Halyard-Micon International, Inc. as the lead engineer for the project, ensuring that the feasibility study meets all regulatory requirements and industry standards.
CEO George Bee commented on the study, stating that it represents the culmination of five years of work to engineer and permit a U.S. domestic project ready for immediate development. The CK Gold Project is positioned to advance in a favorable market environment for gold, copper, and silver, supported by strong U.S. sentiment towards domestic production and mineral security.
The company plans to host a conference call and webcast to discuss the feasibility study results, providing an opportunity for investors and stakeholders to engage with the management team. With the feasibility study now complete and all permits in hand, U.S. Gold Corp. is poised to move forward with construction and development of the CK Gold Project, which is expected to create approximately 198 direct permanent jobs in the local community.
