The Return of Wyoming Gold Mining
Gold played a significant role in the state’s early history, but modern Wyoming gold mining has largely remained dormant. Now, a small mining exploration and development business believes it can resurrect the state’s gold and copper industries.
Like the broader hard rock mining industry, gold and copper production peaked and fell decades ago. The state’s reserves still exist today. However, high costs prevented companies from accessing these resources for years. The sheer existence of metals lured many mining ventures, but exploration expenses quickly drove them away. Since the mine shut down immediately before World War II, at least seven firms launched exploratory drilling operations near Laramie County’s Copper King Mine, located approximately 20 miles west of Cheyenne.
Wyoming Gold Mining: A New Feasibility Study
Nevada-based U.S. Gold Corp currently holds the mineral lease for this historic copper mine site. As one of only two gold exploration operations in Nevada, the company stands a strong chance of succeeding here in Wyoming. After the company conducted a $4 million pre-feasibility study last week, executives reported positive findings that warrant a complete feasibility study.
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Evaluating Project Costs and Permitting
Third-party analysts conducted this study over the past year and a half. The team analyzed critical criteria such as project costs, resource availability, the permitting process, and environmental impacts. The upcoming feasibility study aims to focus deeply on these specifics. For example, the company must acquire individual bids and prices for building and equipment to determine exact actual costs. Operators plan to use flotation tanks to remove gold and copper particles from a mixture of rock and water within the pit. U.S. Gold Corp expects this new technology to lower production expenses significantly.
The process will produce a concentrate containing around 26% copper and 3 ounces of gold per ton. The company will then send this concentrate off for further processing at an external facility. The State of Wyoming will handle permitting since the lease sits 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 early 2025.
Economic Impact of the CK Gold Project
Aside from Nevada and Idaho, U.S. Gold Corp actively works on several additional experimental mining projects. However, the Wyoming location presently serves as the company’s main focus. Company founder Ed Karr stated: “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.” This strategy allows the company to immediately capitalize on rising gold and copper prices.
A 5% state production royalty will apply to the mine’s entire gold and copper output. This royalty sits on top of a 2% severance tax and several other local fees. The business expects the investment to generate over $50 million in state income throughout the mine’s 10-year lifespan. If this renewed era of Wyoming gold mining succeeds, executives believe more exploration projects will quickly follow.
Project Operations and Employment Outlook
U.S. Gold Corp will locate the proposed open-pit mine near Curt Gowdy State Park, west of Cheyenne. Underneath the ground, drillers found a clearly defined metal deposit. Gold and copper make up the bulk of these metals, though the deposit contains many others, including zinc and silver. Workers will sort all of the metal and sell it as scrap metal. According to the company’s official website, which features a promotional film, executives also want to sell the mine’s waste rock.
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Gold currently commands a very high market price. Companies can mine these specific metals more efficiently because the deposit sits close to the surface. The mining operation remains in its infancy right now. The company formally issued its pre-feasibility study on Wednesday, December 1. Following the final feasibility assessment, the corporation will decide whether to execute complete mining development.
U.S. Gold Corp expects the mine to employ roughly 200 people during its 10-year operational lifetime. This total strictly excludes construction and reclamation employment.
