U.S. Gold Corp. (USAU) Investor update summary

Project status, permitting, and development

• Fully permitted, shovel-ready project in Wyoming with all major state permits secured, including air quality, mine operating, industrial siting, and WYPDES permits as of November 2024; no federal permits required.

• Pre-feasibility study (PFS) updated, showing a 16% increase in reserves to 1.672 million gold equivalent ounces and a 42% increase in pre-tax NPV to $459 million.

• Mine plan supports a 10-year life at 20,000 tons per day, producing about 110,000–111,250 gold equivalent ounces annually with a low strip ratio (0.9:1).

• Initial capital cost is $277 million, with sustaining capital at $13–16.6 million, and a low all-in sustaining cost (AISC) of $937/oz.

• Feasibility study is well advanced, with completion targeted for late Q2 or Q3 2025, and potential for gold production by end of 2027 if fast-tracked.

Economic highlights and upside opportunities

• Base case uses conservative prices: $2,100/oz gold and $4.10/lb copper, with significant NPV and IRR upside at higher metal prices; at $3,000 gold and $4.50 copper, NPV approaches $952 million and IRR reaches 60.8%.

• Aggregate (waste rock) sales not included in current economics; 40 million tons of high-quality rock could add $400 million in potential revenue and reduce closure costs.

• Market study shows strong regional demand for aggregate, with potential for forward sales or barter arrangements to support project financing.

• Additional resource expansion and metallurgical improvements (e.g., Jameson Cell technology) could further enhance project value, with gold recovery potentially boosted by up to 30%.

• Free cash flow is projected at $693 million pre-tax and $557 million post-tax over the mine life.

Engineering, operations, and cost management

• Compact site with low strip ratio, short hauls, and access to low-cost power and labor; mining uses surface truck-shovel method.

• Simple, proven processing flowsheet with dry stack tailings to minimize water use and environmental impact; process plant includes crush, grind, flotation, regrind, filter press.

• Sustaining capital reduced due to optimized tailings facility design and efficient use of waste rock.

• Most engineering and geotechnical work completed; remaining feasibility work is largely desktop-based.

• Inflation and permitting-driven enhancements (e.g., composite liner) account for most of the CapEx increase.