With gold trading at approximately $3,300 an ounce, momentum is building for the CK Gold Project located about 20 miles west of Cheyenne, Wyoming, Cowboy State Daily reports.
The project, owned by US Gold Corp., is moving through its final local permitting stages and may benefit from current favorable market conditions.
The CK Gold Project has already secured most of its state permits, and a hearing with the Laramie County Board of Commissioners is scheduled for June 17 to consider remaining local approvals. These developments come at a time when gold prices are generating increased interest among investors and mining firms alike.
The project is situated in Wyoming’s historic Silver Crown Mining District, where gold and copper were once extracted in the early 20th century. US Gold Corp. acquired the site in 2016 and has since pursued development with an eye toward modern techniques and market viability.
While gold’s spot price recently reached $3,323 per ounce, US Gold Corp. is basing its projections on a more conservative estimate of $2,100. Jason Begger, external affairs consultant for the company, said this approach is meant to demonstrate that the project is not dependent on unusually high prices to remain viable.
Independent financial analysts have expressed optimism as well. H.C. Wainwright, a New York-based investment firm, recently raised its target price for US Gold Corp. stock from $14 to $15. Shares were trading at $11.29 on Wednesday.
The CK Gold Project, named after the historic Copper King mine, is estimated to contain about 1.01 million ounces of gold and 248 million pounds of copper over a 10-year mine life. A 2021 economic impact study by the University of Wyoming Center for Business and Economic Analysis estimates the project could generate up to $80 million in taxes and royalties and support approximately 2,600 direct and indirect jobs.
Infrastructure enhancements such as road improvements, power supply, and water systems required for the mine are expected to provide long-term economic benefits beyond the life of the project.
US Gold Corp. also emphasizes its use of environmentally conscious mining methods. Unlike traditional smelting, the CK Gold Project will use a flotation process to separate gold and copper from the ore, which reduces emissions and limits chemical usage. The project plans to recycle water through a filtration press system to minimize water consumption in the arid region.
Company executives have stressed that modern mining technology makes it feasible to extract value even from lower-grade ores, a challenge that hindered previous mining efforts in the area. President and CEO George Bee described the project as “technically very simple” and noted that its location and infrastructure access make it an attractive prospect.
Pending local approval, construction will require an estimated $300 million in capital investment.
