- 176.8 meters (600 feet) of
continuous gold, copper and silver mineralization with an
average gold equivalent grade of 1.003 g/t
- Hole CK20-02c drilled from the same pad as CK20-01c,
northerly and perpendicular to 01c
- Thicker, similar grade mineralization relative to
CK20-01c, starting from surface
ELKO, Nev., Dec. 28, 2020 /PRNewswire/ -- U.S. Gold Corp.
(NASDAQ: USAU) (the "Company"), a gold exploration and development
company, is pleased to announce additional results of the recent
twenty-nine hole drilling program for its CK Gold Project, an
advanced stage gold and copper exploration and development project
located just outside of Cheyenne,
Wyoming.
CK Gold Project 2020 drilling results summary table:
www.usgoldcorp.gold/properties/ck-gold-project/2020-drilling
A single 4-foot sample and a single 5-foot sample from hole
CK20-01c and 02c, respectively, was excluded from average grade
calculations, as they were misplaced. These samples have been
located and when assayed will be added to the above released
results, which will result in a minor adjustment of the overall
grades of holes 1 and 2. These changes will be reflected in the
above table in future press releases once they are received.
Assumptions: Grades quoted represent contained metal as assayed.
The calculation of equivalent gold grade assumes the spot prices
for gold, silver and copper as quoted at Kitco.com on December 10, 2020 and does not account for
metallurgical recoveries. Future press releases will utilize these
same metal prices for all gold-equivalent value calculations.
George Bee, President and CEO of
U.S. Gold Corp. commented, "With hole CK20-02c, the second of seven
holes within the resource designed to collect metallurgical
samples, again we confirm two key aspects of the CK Gold resource.
Firstly, the continuous nature of the mineralization with
attractive grades starting at surface. Secondly, looking
towards project development if our PFS and FS show promise, a
project that we believe should produce payable material at the
start of mine operations without the common delays and up-front
costs associated with pre-stripping waste. This has a very
beneficial effect on project economics compared to most other
projects where significant costs are incurred pre-stripping waste
material in order to access mineralized material, enabling the
Company to realize revenue quicker without the additional cost of
mining excess overburden."
Comments on hole CK20-02c results:
- The hole shows continuous gold and copper grades for the length
of the hole with better grades near surface than the neighboring
hole, CK20-01c
- The hole was terminated at its planned depth in lower-grade
mineralization at the edge of the deposit as known; however, the
limits of mineralization were not tested as this hole was designed
to collect a representative sample for metallurgical testing on a
priority basis
- Both holes 1 and 2 ended in granodiorite that did not have the
appearance of being especially mineralized, but still held
mineralization
Geologic Observations:
Mineralization being visually unimpressive, suggests future
definition drill holes will need to be planned to terminate well
outside of the resource boundary as currently known, to chase the
real resource boundary. Primary (sulfide) mineralization
encountered is visually characterized by low overall percentages of
mostly chalcopyrite and lesser pyrite disseminated within variably
sheared or K-feldspar-epidote-magnetite altered granodiorite. The
sheared zones and intensely potassic altered zones are distinct
mappable units in core and at surface. Quartz or other veining is
rare but scattered throughout the entire rock package that is also
cut by nearly barren mafic and pegmatitic dikes. Previous operators
have interpreted this deposit as a porphyry copper but drilling to
date shows it lacks the characteristics of a classic porphyry.
While primarily hosted in a metamorphosed, foliated granodiorite,
The CK Gold Project does not display the classic zoned alteration
shells-typical alteration assemblages seen worldwide in porphyry
copper deposits. CK Gold also displays a lack of multi-stage
porphyry intrusions, lack of multi-stage veining, high overall
average gold grades (>10g/ton locally in the core), low overall
percentages of sulfide dominated by chalcopyrite, with little
pyrite and traces of bornite, and abundant magnetite. While gold
and copper are highly elevated, molybdenum, tungsten and tin,
metals which are commonly elevated in true porphyry coppers and
their cores, are lacking. Of note, we await assay results on a
10-ft interval of massive chalcopyrite and pyrite encountered in a
geotechnical hole to the southwest of the pit, something not seen
to date in the historic drilling. The hole was drilled to establish
rock-mass conditions for pit wall design and the intersection sits
outside the currently postulated open pit limit and the modelled
resource. Work is ongoing concerning better classifying this
deposit.
In commenting on the geological setting of the deposit,
Ken Coleman, Chief Geologist for
USAU said, "We have re-logged all historical drill core available
and look forward to further unravelling the genesis and
opportunities associated with the resource. To that end, we have
contacted, and are in discussions with, the geology department at
the University of Wyoming to assess the
possibility of future graduate studies for CK Gold."
Results from hole CK20-02c continue to demonstrate the
continuity of attractive gold and copper mineralization within this
part of the CK Gold Project deposit. It is especially encouraging
that a thicker, continuous interval of mineralization greater than
1 g/t AuEq is present in CK20-02c, starting at surface. This
verifies indications from the historic drilling that gold grades
increase to the east of this site. See the links below which
provide a cross section of hole CK20-02c and a link to our VRIFY
deck which shows all holes released to date relative to historic
drilling.
3D Visualization
A VRIFY 3D model of the CK Gold Project including the drill
results announced today is available through the following
link:
https://vrify.com/explore/decks/2020-12-28-US-Gold-Copper-King-PR
QA/QC Procedure
U.S. Gold Corp. employs a rigorous QA/QC protocol on all aspects
of sampling and analytical procedure. Drill core is checked,
logged, marked for sampling and sawn in half. One-half of each
drill core is maintained for future reference and the other half of
each drill core is sent to Bureau Veritas an ISO 17025 accredited
laboratory in Reno, Nevada to
complete all sample preparation and assaying. Samples are analyzed
employing fire assaying with atomic absorption finish for gold and
four acid ICP-MS analysis for silver and copper. For QA/QC
purposes, certified standards, blank samples and sample duplicates
are inserted into the sample stream. U.S. Gold Corp. also
periodically submits sample pulps to another independent laboratory
for check analysis.
COVID-19 Policy
U.S. Gold Corp. recognizes the heightened health risks
associated with the current pandemic. At this stage of the CK Gold
Project development, focusing largely on the gathering of
information from the field, our personnel, contractors and
consultants do not need to come into close contact with others
apart from work within individual pods such as the drill crew and
core logging personnel. Much of our work is conducted outdoors and
physically separated. Meetings are conducted from remote locations
using available video conferencing software. When it is necessary
for individuals to meet or visit facilities, health guidelines are
followed to avoid and minimize the risk of spreading the COVID-19
virus. We take the health and safety all those associated with our
activities very seriously. If necessary, we will suspend activities
and observe quarantine regimens until any health uncertainty
passes.
Note on Qualified Person
QP Review: This statement has been reviewed by Kevin Francis, P Geo, SME Registered Member,
Principle of Mineral Resource Management LLC who has inspected the
data furnished in this announcement and has knowledge of the
activities outlined in the CK Gold Project update. Acting within
the scope of his expertise, Mr. Francis as a Qualified Person, has
reviewed the information provided and finds it to be accurate and
reflecting facts.
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 exploration properties. Copper King, now the CK Gold
Project, is located in Southeast
Wyoming and has a Preliminary Economic Assessment (PEA)
technical report, which was completed by Mine Development
Associates available on the US. Gold Corp. website. Keystone
and Maggie Creek are exploration
properties on the Cortez and Carlin Trends in Nevada. The
Challis Gold Project is located in Idaho. For more information about U.S. Gold
Corp., please visit www.usgoldcorp.gold
Safe Harbor
Certain statements in this press release are forward-looking
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements may be identified by the use of
forward-looking words such as "anticipate," "believe," "forecast,"
"estimated," and "intend," among others. These forward-looking
statements are based on U.S. Gold Corp.'s current expectations, and
actual results could differ materially from such statements. There
are a number of factors that could cause actual events to differ
materially from those indicated by such forward-looking statements.
These factors include, but are not limited to, risks arising
from: the prevailing market conditions for metal prices and mining
industry cost inputs, environmental and regulatory risks, risks
faced by junior companies generally engaged in exploration
activities, whether U.S. Gold Corp. will be able to raise
sufficient capital to implement future exploration programs,
COVID-19 uncertainties, 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 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 makes no representation or warranty that the
information contained herein is complete and accurate and we have
no duty to correct or update any information contained
herein.
Cautionary Note to U.S. Investors Concerning Mineral
Resources
We may use certain terms on this press release, 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"). 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. Note that a preliminary economic
assessment is preliminary in nature, and it includes Inferred
mineral resources that are considered too speculative geologically
to have the economic considerations applied that would enable them
to be classified as mineral reserves, and there is no certainty
that the preliminary assessment will be realized.
For additional information, please contact:
U.S. Gold Corp. Investor Relations:
+1 800 557 4550
ir@usgoldcorp.gold
www.usgoldcorp.gold