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New Alert: U.S. Gold Corp. (NASDAQ: USAU)
USAU is our new NASDAQ breakout opportunity.
USAU has a history of experiencing significant volatility in a short period of time.
Following our January alert, the company rallied upwards of 60% in a little over a month.
Now, USAU could be positioning for another big move higher.
In the event that USAU holds above its 50 day moving average of 7.49, it could experience increased upside.
USAU is a NASDAQ listed, "publicly traded, U.S. focused gold and copper exploration and development company".
USAU has a "World-class portfolio, in stable and mining friendly U.S. jurisdictions, offering investors both near-term gold-copper production potential with blue-sky exploration upside."
"Its fully permitted CK Gold Project is located in Southeast Wyoming", "just 20 miles west of Cheyenne, offers abundant access to infrastructure and recently achieved the critical milestone of being granted a Surface Mine Permit from the Wyoming Department of Environmental Quality."
"Together with the district-scale Keystone Gold Project, located 11 miles from Nevada Gold Mines' second largest gold producer in the Cortez Trend, and the prospective Challis, Idaho Gold Project, U.S. Gold Corp. is ideally positioned to benefit from an upward trending precious metal and copper market."
As the company states on its investor presentation:
- "On track to be the next 100,000+oz /yr. Gold-Copper Producer"
Over the past few months, gold has been trading near all-time highs.
A popular way to get exposure to gold is through mining and mineral exploration companies.
"Gold mining stocks are effectively a leveraged bet on gold prices".
"As the value of gold moves further above a miner's cost of production, profitability scales up dramatically".
In other words:
When the price of commodities and assets like gold moves higher, small mining and exploration companies often present the highest growth potential.
All of this could be very positive for companies like USAU.
USAU announced multiple accomplishments in 2024, including:
- "U.S. Gold Corp. Announces Mine Operating Permit Approval for the CK Gold Project in Wyoming"
- "U.S. Gold Corp. Announces Further Approval for the CK Gold Project in Wyoming"
- "Achieves Water Discharge Permit associated with recently granted Mine Operating Permit"
- "U.S. Gold Corp. Completes Second of Three Mine Operating Permit Conditions for the CK Gold Project in Wyoming"
- "Receives Mine Reclamation Bond Acceptance for the Mine Operating Permit"
- "U.S. Gold Corp. Provides Update on Engineering Optimization Studies for CK Gold Project"
- "U.S. Gold Corp. Receives Air Quality Permit, Finalizing the Mine Operating Permit for the CK Gold Project"
- "U.S. Gold Corp. Provides Commentary on $10.2 Million Non-Brokered Registered Direct Offering and CK Gold Project Update"
Most recently, in February, the company announced:
"U.S. Gold Corp. Announces Updated Prefeasibility Study Results"
"CHEYENNE, Wyo., Feb. 11, 2025 /PRNewswire/ -- U.S. Gold Corp. ("U.S. Gold," the "Company," "we," "our" or "us") (NASDAQ: USAU), is pleased to announce the results of its updated pre-feasibility study ("PFS") for its CK Gold Project ("CK", or "CK Gold") in Wyoming, U.S.A. Incorporating provisions resulting from the completed permitting activities and optimization advances in engineering studies, the PFS continues to show robust potential economic performance of CK. The PFS outlines the basis to proceed to a feasibility study ("FS') while the Company continues to explore significant areas of upside and additional optimization to the project."
"PFS Highlights":
"(All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted and gold equivalents (AuEq) are reported based on copper, and silver being expressed in terms of gold ounces using the following prices, gold $2,100/oz., copper $4.10/lb. and silver $27/oz.)"
"Updates and improvements in the permitted project's PFS include strong economic performance with increased reserves and resources. Project highlights include:"
- "Average gold equivalent (AuEq) production of 1,112,000 AuEq ounces over the mine life, or 111,250 AuEq ounces per year, assuming a 10-year mine life. The first three years average 143,278 AuEq ounces annually. Over the life of the mine, the PFS estimates total production of approximately 679,548 ounces of gold, 208.3 million pounds of copper, and 2.04 million ounces of silver."
- "Base case Net Present Value ("NPV") of $459 million (pre-tax), at a discount rate of 5%, and Internal Rate of Return ("IRR") of 36.0%, each based on price assumptions of $2,100 per ounce of gold, $4.10 per pound of copper and $27 per ounce of silver. The project payback improved by 15%, and the NPV improved by 42% over the prior PFS study. Reflecting potential higher price assumptions of $3,000 per ounce gold and $4.50 per pound copper, the NPV increases to $952 million (pre-tax) with a 60.8% IRR."
- "All-in sustaining cost of $937 per AuEq ounce (life of mine average)."
- "Initial capital requirements of $277 million, which includes capital retention payments post-construction."
- "Mineral Reserves of 1.672 million AuEq ounces, supporting an eight-year mine life and 10 years of processing. This includes 1.022 million ounces of gold, 259.7 million pounds of copper, and 3.008 million ounces of silver—a 16% increase over the AuEq ounces reflected in the prior PFS."
- "Aggregate potential, not included in the study economics presented, could provide significant upside potential for an additional revenue stream should the beneficial use of aggregate produced from mine waste be recognized and commercialized."
- "Advancing toward FS completion by the end of 2025, with key groundwork already completed to facilitate fast-tracking. No extensive additional fieldwork or major expenses are required for FS completion."
- "Exploration potential exists to expand resources at depth and to the southeast of the main orebody, potentially extending mine life or increasing production."
Here are some of the company's comments from this press release:
"George Bee, President and Chief Executive Officer of U.S. Gold Corp., stated, "We are pleased by the results of the pre-feasibility study update, which builds upon advanced work with our engineering consultant, Samuel Engineering Inc. ("Samuel"), originally contracted in 2022 to fast track toward a FS. Work on the FS was discontinued until the permits were in place, which also gave time, post COVID-19, for market uncertainties and inflation to subside. We now have an advanced updated glimpse of a very robust, high-value project poised for the next stages of engineering and development, following a board decision to proceed.""
Importantly:
"Given the project's excellent economics, including a 36% IRR with a 1.7-year payback period at a gold price of $2,100 per ounce of gold and $4.10 per pound of copper, we continue with optimization leading to the feasibility study on a permitted project, with the goal of commencing construction as soon as late-2025 or 2026 to support first production of concentrate in 2027 or 2028."
"Mr. Bee continued, "With avenues to project financing which preserve shareholder positions through a number of arrangements that avoid overly dilutive equity offerings, we believe that development on the CK asset can proceed in the relative short-term, fulfilling the Company's pivot to development of the CK Gold asset and ultimately allowing the Company to return to exploration in its high-potential exploration portfolio.""
In addition, last week, the company announced:
"U.S. Gold Corp. Announces Inaugural Digbee Assessment Results"
- "As U.S Gold Approaches Financing Activities for the CK Gold Project, the Assessment Demonstrates that the Company is on the Right Track to Satisfy Lenders"
USAU could be in a position to experience increased growth.
Make sure to do your own due diligence.
Sources: Presentation, TS, PR1, PR2, PR3, PR4, PR5, PR6, PR7, PR8, PR9, Website, Chart
Happy Trading!
AwesomeStocks
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