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U.S. Gold Corp.

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September 18, 2024 at 8:50 AM (MDT)|Broadmoor Hotel & Resort

George Bee

President & CEO

George Bee
President and CEO

Mr. Bee is a senior mining industry executive, with deep mine development and operational experience. He has an extensive career advancing world-class gold mining projects in eight countries on three continents for both major and junior mining companies. Most recently in 2018 Mr. Bee concluded a third term with Barrick Gold as Senior VP Frontera District in Chile and Argentina to advance Pascua Lama feasibility as an underground mine. This capped a 16-year history with Barrick Gold with positions that included Mine Manager at Goldstrike during early development and operations, Operations Manager at Pierina Mine taking Pierina from construction to operations, and General Manager of Veladero developing the project from advanced exploration through permitting, feasibility and into production.

With his Barrick experience and having had eight years in South Africa working underground gold with Anglo American and open pit copper with Rio Tinto at Palabora Mine, Mr. Bee was well placed to advance projects internationally and domestically as a senior executive. This led to his appointment to various board and leadership positions at various companies. As COO of Aurelian Resources in 2007, he was in charge of project development for Fruta del Norte in Ecuador until Aurelian was acquired by Kinross Gold in 2008. Post-acquisition, moving on from Kinross, where he had also previously worked from 1996 to 1998 advancing projects in El Salvador and Nevada, he joined Andina Minerals as CEO in 2009. Andina and its 6 million-ounce Volcan Gold Project in Chile was acquired by Hochschild in 2013. By this time Mr. Bee had been appointed to the boards of Peregrine Metals and later Stillwater Mining and Jaguar Mining. In 2014, he also assumed the role of Chief Executive Officer of Jaguar Mining, operating mines in Brazil, as the company emerged from a financial restructuring process.

Mr. Bee is a graduate of the Camborne School of Mines in Cornwall, United Kingdom and is a member of the Institute of Corporate Directors with an ICD.D designation.

This is an automatically generated transcript. Denver Gold Group cannot accept responsibility for mistakes, errors, omissions, or any action taken in reliance thereon. Use of this transcript is governed by Denver Gold Group’s Terms of Use.

Speaking is managing director George B. Well, thank you for the introduction Alex and thank you to the Denver Gold Group for putting this event on excellent to see everybody. And we'd just like to see some more generalist investors but they'll catch up our forward looking statements. So I'll point you to that at your leisure. And really what I'm going to talk about today is the portfolio of assets that we have in North America. We're looking at the CK gold Project in Wyoming, Keystone in Nevada and Chalice in Idaho. So we've been working very hard on the CK gold project. It is AC K is Copper King. We call it CK gold because it's the gold comes with the copper, it's a copper gold operation. And as I walk into the presentation gold at 2570 copper at 421 what a time to be looking at a shovel ready project permitted shovel ready project in Wyoming in good old us of a so we can meet some of the demand and we haven't lost sight of our Keystone project. A 20 square mile. really opportune opportunistic area on the Cortez trend and of course, Chalice in Idaho. So let's just look at the company, you know, we're a little bit of an anomaly, we are listed in the NASDAQ in the US and we have 10.7 million shares outstanding. So it's a very tightly held stock management insiders. The founders of the company are the folks that really own a big portion of the, of the share register. And as such, we are all aligned with the general investor. We have some warrants outstanding. But currently we're at about a $60 million market cap with a permitted project and an N PV in excess of $300 million we think we should be north of $12 per share, more like $15 per share. And it's just a question in our view of getting the message out. So we're going to talk mostly about the CK gold project, which is what I've been working on for the last four years. We essentially came in and took this project from a standing start. And it had a historic pe a done by Strathmore in 2012, it lay dormant until 2020. And we then picked it up, put together two years of baseline information, a permit application and we have been able to permit the project receiving our mine operating permit of April in April this year. So a few loose ends to clean up that we're permitted and shovel ready and look at the scale of the project. As you see that slide, you can see we're essentially accommodated on two state sections, very compact area in in a great jurisdiction. So focusing in on the location. Let's talk, I say location, location, location like real estate. My background having operated and developing developed mines in many different locations, remote locations, difficult locations. This is really a very easy mine to build. You can see that we're in the little inset there, the the, the little boxes and rectangles there. We our landlord and the leasehold, the mineral rights owner is the Office of State Lands and Investment in Wyoming. And we have a lease with them. We will pay them a 2.1% NSR royalty. But you can see from the location 20 miles to the west of Cheyenne. We're four hours south of Gillette Wyoming, six hours to the to the, to the east of Salt Lake City and an hour and a half north of Denver. So anybody that wants to come and see us in on site an hour and a half away from Denver International Airport. It's a great location but that location and you can see all the green check marks. As we look at those green check marks, we can check off road access, we can check off water. We have water from the city of Cheyenne power from our local power provider who's also a power producer from a coal fired power station in state contractors services. We have certainly all the equipment suppliers. So being on state and surrounded by private ground, we were able to permit this with the state of Wyoming, a great resource destination. And the, you know, the, the state, it's a real win win scenario. The only nexus to the federal government was the Army Corps of Engineers. And our footprint doesn't cover any jurisdictional waters. So all of our permitting effort has been with the state of Wyoming, so easy to get to all the logistics and so on. Very easy to accomplish. And it's a great place to build a project. So what is it? It's a copper gold deposit hosted in a grander diary in a sheer zone. What we did was we focused on just going after the first million ounces of gold contained gold and the 1st 248 million pounds of copper within a pit. Firstly, to demonstrate the value proposition. Secondly, to demonstrate that we could get a permit. We've, we've demonstrated and I'll show you the value proposition in a moment. And the permit is now in hand just before I leave this slide though, I will point out the fact that as we look at the, the resource underneath the pit and to our South East there is additional upside opportunity. And in due course, we will do that. We did not expand the pit to begin with. First focusing on the value proposition and the permit there is upside, it's gonna get bigger. So what is the project essentially it is to go in with a simple truck shovel operation. And with that truck shovel operation, we,, standard sort of 100 150 ton trucks, 20 yard loaders, we load into a primary crusher, we then grind the material and then go into floatation, re grind and then scavenge a cleaner floatation and then water is very precious out west. So as a consequence, we do dry stack tailings so that we can squeeze the water out of the tailings and recycle that back. So being trying to be very responsible with the water in the area, a precious commodity, dead simple technology. Now we just did announce a pause in our PFS update because we're gonna look at the opportunity between conventional flotation and perhaps using the Glencore technology Jamieson Cells to promote recovery and probably have an impact on our operating cost lowering that and our capital cost. So stay tuned for those updates as you, but at the moment when,, you know, in December of 2021 we put out a pre feasibility study and here are the headline numbers so that on a gold equivalent basis, 1.44 million ounces on that initial pit into 10 year mine life processing at 20,000 tons per day. You know that that is just shy of 100 and 10,000 gold equivalent ounces per year for 10 years at an ASIC of $800 per gold equivalent ounce on an initial Capex of $222 million with a modest sustaining Capex. Now, those numbers were done at 1625 gold and 325 copper. And yeah, I just alluded to the current share gold and copper price, it's increasing. So obviously, these numbers are a little bit out of date. You can see that we anticipate with infl inflation that the all in sustaining cost will increase a little. We also feel that the initial capital will increase but so too will the revenue from the sales. So we preserve a very good margin on the basis of the copper and gold. So just to recap simple plain vanilla truck shovel operation, no complexity there. simple processing, we are going to produce a concentrate. It's a gold copper concentrate. and it's free of any deleterious elements, arsenic and mercury fluorine. It's gonna be a very must have type of concentrate because these smelters need to blend, lesser concentrates to be able to meet their feed. You know, as we look at that location. Cheyenne means that we'll be we'll be very competitive in the labor market, attracting some of the better people. They can go home at night. As you look at the capital cost, we don't have to build a man camp. And with the proximity of all those services and the logistics, you know, it means that our capital costs are low and we have a competitive environment. So it's also a win, win for the state of Wyoming. We're on state land, the, the lease and the royalty payments from that lease are going to be paid in favor of K through 12 education in the state. And you know, how good is that, that we can be contributing to the, to the education within Wyoming. We, you know, we will get, we will get bigger. Wyoming is a resource state. Coal has been diminishing over the years. So diversification into copper and gold, very attractive for the state. And you've seen some other names within the state and there's a good deal of opportunity. One of the things that we we haven't permitted and we haven't recognized in our current financials is the opportunity to sell waste. And because of our proximity to Cheyenne 20 miles away and our proximity to the Colorado Front range, you know, we're 100 miles away from Denver Boulder Loveland, Fort Collins. There's a huge market for waste rock and what, what we would have normally called waste rock. But what Martin Marietta minerals, three miles to ourselves call aggregate and rail ballast. So what we're doing while we've been waiting for the permit is investigating the opportunity to sell the overburden. Yeah, we first tested it as an opportunity, a borrow source on our own project to mitigate some of our construction costs. And then realized that there's a very vibrant market for ball rail ballast and for waste rock. So we will look to then monetizing and selling that waste rock into the local market. You know, as the as the pit develops. And as we review and look at our closure plans plans, we are in the distance, we're gonna be buying water from the board of public utilities were plumbed into their system. And in the long term, the board of public utilities need to expand their water storage capacity to meet the growing needs of the company. So at the moment, our pit is partially backfilled, but we really think that the state section, the open pit can be additional water storage for the, for the city of Cheyenne and maybe even a pump storage scheme. So it's a real win for the win win for the state royalty payments over almost $90 million of taxes in our initial plan, jobs, good American jobs producing American gold and copper. So the permitting really has been has been excellent experience with the Wyoming authorities, as I say, they are a resource state and we've had a great deal of cooper operation so that in April we, we received our permit, it was conditional on three things. One was the water discharge permit which we have in place. Now, secondly, that we had a mine reclamation bond in place which has been posted. And thirdly an air quality permit which we expect in the coming in the coming weeks last year, we got an industrial sighing permit. Unanimous approval from the Industrial Citing Council. That's a mechanism in Wyoming in order to be able to help communities in Wyoming to accommodate large capital investments. So this mining enclosure and legacy opportunities, we we're right close to the Kurt Gowdy State Park. Those two big blue impoundments. If we don't use the pit as water storage, they get flooded out. A huge civil project, a huge disruption to the park. We think that we can mitigate and avoid all of that in Cooper operation with the city of Cheyenne. So significant upside. we've got, we've got to see how we can bring in the ballast. We've got over 30 million tons of rock currently slated to be reclaimed in a pile that rock will generate 60 cents per ton of royalty to the state. And our neighbors at Martin Marietta are selling their rock for approximately $20 per ton So there's a huge margin there. We've got the potential to perhaps double on NPV. but it will take a little further work and some additional permitting which we would anticipate we could achieve during the course of construction. So permitting is good. The engineering is well advanced. We're just deciding whether we go conventional float floatation or, or through Jamieson technology, Jamieson C Glencore Technology, water development and aggregate opportunities. So not forgetting that the fact that we have 20 square miles of really prospective ground on the Cortez trend. And you can see that trend on the right hand side, the looking down trend in the foreground. There, you see the Nevada gold mines operated by Barrack, the Cortez Complex. We're a stone's throw down down trend with our Keystone project and then you've got M mining's gold bar mine. So this trend very perspective. If you look if you look at the Cortez Complex, tens of millions of ounces, we're on trend. And as we look at the opportunities near surface oxide, but the big elephants are the deep sulfide deposits. So we're ready to go. We've done the cultural work, we've done the permitting. What we're missing at the moment is the capital. We're looking for partners to be able to to accomplish this exploration. We have a number of targets identified and we've done some remote spectral work from satellite imagery and gone out and checked up on some showings and that red area to the bottom indicates some additional opportunity we need to get in there, but it's expensive and that the time for keystone will come, especially as we start spitting out cash flow from our CK gold project. So, Keystone and Cortez there's a lot of similarities as you look at Cortez, the key, the key formation is the Wen Ban formation. And on the keystone property, we have that we band formation, we have the the pathfinder elements. And really, it's just a question of going in there and following up on some of the showings accomplishing our, our you know, our exploration plan, it's difficult drilling fairly expensive drilling for the deep material, perhaps half a million dollars a hole. But the near surface oxides interesting, we can do much, much better. So up in the comas near surface oxides and then opportunities for deep sulfides and then Idaho near the bear track, our net projects, historic resource. It is something which we're revitalizing a plan of operations and we'll be, we'll be looking into that in due course. So great board, we're doing things in a proper way and we look forward to, to success in this increasing gold market. So with that, thank you very much. Thanks. Thanks very much George. I'm afraid we don't have any time for questions.


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