Exploration Update For The CK Gold Project In Wyoming

ELKO, NV — U.S. Gold Corp. reported an exploration update for the CK Gold Project, located 25 miles west of Cheyenne, Wyoming. The CK Gold Project Prefeasibility Study (PFS) is now well underway with permits in place to conduct the follow-up drilling program. The drilling is, amongst other things, aimed at gathering fresh mineral samples for confirmatory metallurgical tests. Flotation concentrate from sulfide and mixed sulfide sample composites for the project contained 26% copper and 89 g/t gold with little or no deleterious elements contained for later smelting. Fresh samples should allow flotation recoveries, already reported as averaging 72.5% gold and 81.5% copper across the resources, to be optimized. Prior tests on older samples may well have been negatively affected by oxidation inhibiting flotation recovery. Additionally, better grade and likely coarser gold in the vicinity of the oxide cap, which represents 10% of the total resource, as currently interpreted, are planned to be tested for a gravity recovery response prior to flotation to enhance gold recovery. Process optimization was not a focus of prior metallurgical work supporting the Preliminary Economic Assessment (PEA), dated December 5, 2017, and the new fresh samples should allow this work to be carried out.

A further objective for the current drilling program is to convert previously reported inferred resources to the measured and indicated category material and extend the resource to the southeast. Drilling is expected to conclude sometime in October, whereupon a resource update is intended to be completed encompassing the new data and a complete re-evaluation of the existing core, which is now largely completed. The relogging exercise of the existing core under the supervision of geologic specialists, who have a wealth of experience from around the world specializing in copper-gold deposits, reveals new textures to assist with assessing gold and copper deposition, and the presence of native copper which could have impacted metallurgical recovery in prior test work.

While the field activities and drilling are taking place, the Company is taking advantage of the time to capture data that should support geotechnical, hydrological and other studies, including detailed baseline conditions. Following what is anticipated to be a positive affirmation and improvement over prior work, the additional data is anticipated to advance the project towards the next stage of development. Key to permitting, a local specialist in environmental and State permitting disciplines is expected to assist in augmenting the extensive data already available in the area. Site-specific baseline information collection and characterization of the surrounding environment for the proposed project will be initiated this month.

PEA analysis and supporting information show several aspects about the Copper King resource. First, the economic prospects for the project greatly improved. With the recent gold and copper upward price trends and the absence of substantial inflation, the CK Gold Project is expected to look very attractive when the PFS is completed.

Secondly, more 137,000 feet of historic drilling has resulted in improved, data driven, interpretations of the mineral inventory which outcrops at surface. A hypothetical open pit properly phased into an annual mine plan potentially will deliver what is likely to become ore at a very low waste to ore ratio. This implies early feed to process facilities with little waste to mine. The result is expected to be quick access to revenue bearing rock at lower mining cost. Additionally, the cross sections and data suggest that better gold and copper grades are nearer to surface and a feature of the upcoming metallurgical work will be capturing the more of the value through improved copper and gold recoveries.

Thirdly, not only does the property sit on Wyoming State mineral lease land, the surface is also administered by the State. The resource extraction business is a considerable economic driver for the local economy and the state hosts much know-how and talent. Furthermore, the project location near to road, rail, power and support services implies that many of the major elements of capital cost, beyond the process plant and mine, will be minimized.