Gold was a significant factor in Wyoming’s founding. In contrast, a small mining exploration and development business believe it can resurrect the state’s gold and copper industries.
Like the hard rock mining industry, gold and copper industries peaked and fell decades ago. The state’s reserves are still in existence. Companies have been unable to contact them due to the high cost. Many mining ventures have come and gone, lured by the existence of metals and then driven away by exploration expenses. At least seven firms have launched exploratory drilling operations near Laramie County’s Copper King Mine, located approximately 20 miles west of Cheyenne since the mine was shut down immediately before World War II.
In contrast, Nevada-based U.S. Gold Corp, the current mineral lease owner for the historic copper mine site and one of only two gold exploration operations in Nevada, may succeed.
After conducting a $4 million pre-feasibility study last week, U.S. Gold Corp reported that the findings were positive enough to warrant a complete feasibility study.
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Third-party analysts conducted it during the last year and a half. It analyzed criteria such as project costs, the availability of resources, the processes for obtaining permits, and the environmental effect. Focusing on such specifics is the goal of the feasibility study. For example, acquiring individual bids and prices for building and equipment is necessary to determine actual costs. Flotation tanks are used to remove gold and copper particles from a mixture of rock and water within the pit. U.S. Gold Corp thinks this new technology will lower production expenses.
It would produce a concentrate containing around 26% copper and 3 ounces of gold per ton that would be sent off for further processing somewhere. Permitting will be handled by the state of Wyoming, given that the lease is on state property. United States Gold Corporation (USGC) aims to complete its feasibility study and submit its permit applications by the end of 2022, gain approval in 2023, and commence operations by the beginning of 2025 at the latest.
Aside from Nevada and Idaho, U.S. Gold Corp. is working on several additional experimental mining projects. However, the Wyoming location is presently the company’s main focus. A statement from the company’s founder, Ed Karr, reads in part: “We have decided to concentrate on the development of our CK Gold Project, putting aside for the time being, the intriguing exploration portfolio we have in Nevada and Idaho.” Thus, we can immediately capitalize on increased gold and copper prices.
This mine’s entire gold and copper output would be subject to a 5% state production royalty on top of the 2% severance tax and several other fees and taxes levied by the state of California.
According to the business, more than $50 million in state income is expected to be generated throughout the mine’s 10-year lifespan if the investment succeeds. If this mine is a success, then more will follow.
The proposed open-pit mine will be located near Curt Gowdy State Park, west of Cheyenne. Underneath the ground, there is a clearly defined metal deposit. Gold and copper make up the bulk of the metals, although many more, including zinc and silver. All of the metal will be sorted and sold as scrap metal. According to U.S. Gold Corp’s website, which has a film promoting the project, the business is also interested in selling the mine’s waste rock.
Gold is once again at a high price. For one thing, the metals can be mined more efficiently since they’re near to where the deposit is. The mining operation is still in its infancy. On Wednesday, December 1, they issued their pre-feasibility study. Following the feasibility assessment, the corporation will decide whether or not to go through with complete mining development.
U.S. Gold Corp expects the mine to employ roughly 200 people for its 10-year lifetime once operational. Construction and reclamation employment are not included in this total.