US Gold Corp CK Gold's Feasibility Study Highlights Key Opportunities to Expand Project Value

• US Gold Corp has identified value opportunities at the CK Gold Project that extend beyond what its feasibility study (FS) base case captures, with management framing the FS economics as a starting point rather than an endpoint.
• Approximately 900,000 gold equivalent ounces of mineral resource sit within the resource pit shell but outside the current production schedule. This represents over 500,000 gold equivalent ounces of additional production potential, subject to future permit amendments.
• Metallurgical test work indicates gold recovery could increase from approximately 70% to 95% potentially adding approximately 250,000 ounces (oz) of recovered gold from the current mine plan.
• Approximately 40 million tonnes of waste rock has been identified as potential aggregate and rail ballast feedstock, with local pricing of approximately $20-$25 per tonne, interest from a railroad operator 4 miles from the project, and a non-binding letter of intent (LOI) for delivery to a major railway.
• A construction decision for the CK Gold Project is expected in 2026; all five upside vectors are under evaluation and are not required to support that decision.

The FS Base Case & What Sits Outside It

US Gold Corp's feasibility study (FS) for the CK Gold Project in southeast Wyoming establishes an after-tax net present value (NPV) of $632 million at a base case gold price of $3,250 per ounce. Management has identified five value enhancement opportunities that sit outside the current mine plan: resource volume excluded from the production schedule, potential improvement in gold recovery, untested geological extensions, a secondary revenue stream from waste rock, and post-mining land use optionality. None are captured in the FS economics.

A Pit Drawn for Permitting, Not for Geology

CK Gold’s permitting was scoped for state-level approval only, avoiding federal involvement. The project secured a Mine Operating Permit, water discharge permit, reclamation bond acceptance, air quality permit, and Industrial Siting Permit between June 2023 and November 2024, with construction starting in January 2026. The trade-off: the pit boundary reflects permitting requirements, not the full mineralisation.

As a result, approximately 900,000 gold equivalent ounces of mineral resource sits inside the pit shell but outside the current production schedule. At current recoveries, this could add over 500,000 gold equivalent ounces through future permit amendments. This material is a mineral resource, not a mineral reserve: measured and indicated resources carry more uncertainty than proven or probable reserves, and inferred resources carry the highest uncertainty. The permitting approach preserved material that could extend mine life if the amendment pathway proceeds.

The Deposit Beyond the Current Drill Data

80% of historical drill holes at CK end in mineralisation or are not closed off laterally and the deposit is open at depth below 800 feet and to the southeast along strike, with 2,900 feet of strike length untested. The deposit is hosted in a granodiorite shear zone, is postulated to be porphyry in origin, and sits within the historic Silver Crown Mining District. US Gold Corp. describes CK's resource as drill-constrained, not economically constrained, a distinction that matters for how investors assess the resource ceiling.

Depth and strike length size are sufficient to double the current gold-copper resource if mineralisation continues along strike. This is a geological observation based on current drilling data, not a production target or reserve estimate. Resource expansion opportunities will be pursued over time, including inferred conversion and step-out growth, as mineralisation remains open at depth and along strike. 

Gold Recovery: From Approximately 70% to 95%

The FS models a life-of-mine average gold recovery of 71.5% using a flotation circuit that includes semi-autogenous grinding, Jameson cell rougher flotation, Vertimill regrind, scavenger cleaner flotation, and vacuum filtration for dry-stack tailings disposal. Gold is recovered through flotation only in the current process design. 

Metallurgical test work indicates that recovery could increase from approximately 70% to 95% through cyanidation of flotation tailings with tailing treatment could boost recovery by 15% to 18%. The potential addition is approximately 250,000 ounces (oz) of recovered gold from the current mine plan, and approximately 225,000 additional gold oz from an expanded pit. For reference, the FS base case models life-of-mine payable gold of 707.2 koz gold over 11 years. This is an opportunity under evaluation. Potential engineering optimization is subject to amendments to the current operating permit.

Waste Rock as a Secondary Revenue Stream

The FS mine plan involves extracting approximately 70 million tonnes of total rock over the mine life, with approximately 40 million tonnes identified as potentially suitable aggregate and rail ballast feedstock. The host rock is granodiorite, the same material produced at a Martin Marietta quarry approximately 5 miles from the CK site, meaning the quality material is well known in the region. Local pricing for crushed stone is approximately $20 to $25 per tonne. Market studies commissioned by US Gold indicate a local need for 2 to 3 million  tonnesMt of aggregate per year. A railroad operator 4 miles from the site has expressed interest in 400,000 tonnes per annum of ballast, and a separate non-binding letter of intent (LOI) has been signed for delivery of ballast to a major railway.

The site plan already incorporates pre-sorted rock storage facilities for later commercialisation, and any expansion of the pit would increase the volume of waste rock available. The investor presentation notes the opportunity is not fully captured in the FS and is undergoing further study.

Post-Mining Optionality: The Open Pit as Infrastructure

The approved mine closure plan contemplates partial pit backfill and the return of land to pasture and wildlife habitat. A separate potential closure scenario, not yet approved, envisions the completed pit serving as a regional water storage facility for the City of Cheyenne, with planned connections to the Cheyenne Board of Public Utilities for water supply and the possibility of a pump storage power generation project. Hydrology, water monitoring, and technical studies to assess viability are ongoing.

The financial logic identified is that extending mine life may defer closure costs and enhance long-term project value. The FS includes a reclamation cost provision of $27 million. At this stage it remains a scenario under technical study, not an approved plan.

Broader Context & What to Watch

CK Gold is approaching a construction decision while gold prices are well above the FS base case of $3,250 per ounce. At spot prices of $4,500 per ounce gold, $5.50per pound copper, and $70 per ounce silver, the after-tax NPV rises to $1.30 billion and the internal rate of return (IRR) reaches 42%, with an AISC of $1,785 per gold equivalent ounce. The five upside vectors discussed here are not included in these figures.

The project sits on state land in Wyoming with no federal permitting, holds all major permits, and construction began in January 2026. With a strengthened balance sheet, the company is positioned to pursue resource expansion, recovery enhancements, and incremental revenue streams.

The most immediate milestone is the 2026 construction financing decision, which is independent of the upside opportunities. Concurrently, management plans to finalize project financing, advance the drill and recovery programs, and capitalize on the aggregate opportunity through potential partnerships.

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