Form 8-K
8-K — U.S. GOLD CORP.
Accession: 0001493152-26-023905
Filed: 2026-05-15
Period: 2026-05-13
CIK: 0000027093
SIC: 1000 (METAL MINING)
Item: Regulation FD Disclosure
Item: Financial Statements and Exhibits
Documents
8-K — form8-k.htm (Primary)
EX-99 — EX-96.1 (ex96-1.htm)
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XML — IDEA: XBRL DOCUMENT (R1.htm)
8-K
8-K (Primary)
Filename: form8-k.htm · Sequence: 1
false
0000027093
0000027093
2026-05-13
2026-05-13
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported):
May
13, 2026
U.S.
GOLD CORP.
(Exact
name of registrant as specified in its charter)
Nevada
001-08266
22-1831409
(State
or other jurisdiction of incorporation)
(Commission
File
Number)
(I.R.S.
Employer
Identification Number)
1910
E. Idaho Street, Suite 102-Box 604 Elko, NV
89801
(Address
of principal executive offices)
(Zip
Code)
Registrant’s
telephone number, including area code:
(800)
557-4550
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
☐
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class
Trading
Symbol(s)
Name
of each exchange on which registered
Common
stock
USAU
Nasdaq
Capital Market
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging
growth company ☐
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD
On May 13, 2026, U.S. Gold Corp.
(the “Company”) finalized a Technical Report Summary detailing the results of its feasibility study for the CK Gold
Project, titled “S-K 1300 Technical Report Summary Feasibility Study for the CK Gold Project, Wyoming, USA” effective as of
March 30, 2026. The Technical Report Summary was prepared by the Company and Micon International Limited in accordance with Subpart 1300
of Regulation S-K. A copy of the Technical Report Summary is furnished with this Current Report on Form 8-K as Exhibit 96.1.
The information furnished under
this Item 7.01, including the Technical Report Summary, shall not be deemed “filed” for purposes of Section 18 of the Securities
Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as
amended, except as shall be expressly set forth by reference to such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.
Description
96.1*
Technical Report Summary of CK Gold Project for U.S. Gold Corp., Laramie, Wyoming, USA, effective as of May 13, 2026.
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
* The foregoing exhibit relating to Item 7.01 is intended
to be furnished to, not filed with, the Securities and Exchange Commission pursuant to Regulation FD.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
U.S.
Gold corp.
Date:
May 15, 2026
By:
/s/
Eric Alexander
Name:
Eric
Alexander
Title:
Chief
Financial Officer
EX-99 — EX-96.1
EX-99
Filename: ex96-1.htm · Sequence: 2
Exhibit
96.1
Table
of Contents
1
EXECUTIVE
SUMMARY
1
2
INTRODUCTION
19
2.1
ISSUER
19
2.2
TERMS
OF REFERENCE
19
2.3
SOURCES
OF INFORMATION
20
2.4
DETAILS
OF INSPECTION
20
2.5
QUALIFIED
PERSONS
21
2.6
PREVIOUS
REPORTS ON THE PROJECT
21
2.7
LIST
OF ABBREVIATIONS AND UNITS
22
2.7.1
Abbreviations
and Acronyms
22
2.7.2
Units
of Measure
23
3
PROPERTY
DESCRIPTION
24
3.1
PROPERTY
LOCATION
24
3.2
MINERAL
TITLES, CLAIMS, RIGHTS, LEASES, AND OPTIONS
24
3.2.1
Mining
Leases
24
3.2.2
Option
Agreements
24
3.3
OTHER
PROPERTIES
27
3.4
ENVIRONMENTAL
IMPACTS, PERMITTING, OTHER SIGNIFICANT FACTORS, AND RISKS
27
3.5
ROYALTIES
AND AGREEMENTS
28
4
ACCESSIBILITY,
CLIMATE, PHYSIOGRAPHY, LOCAL RESOURCES AND INFRASTRUCTURE
29
4.1
TOPOGRAPHY,
ELEVATION, AND VEGETATION
29
4.2
ACCESSIBILITY
AND TRANSPORTATION TO THE PROPERTY
29
4.3
CLIMATE
AND OPERATING SEASON
29
4.4
LOCAL
INFRASTRUCTURE AVAILABILITY AND SOURCES
31
4.4.1
Power
31
4.4.2
Water
31
5
HISTORY
32
5.1
HISTORICAL
EXPLORATION AND PRODUCTION
32
5.1.1
HISTORICAL
DRILLING DETAILS
32
5.1.2
OTHER
EXPLORATION
33
5.2
HISTORICAL
MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
34
5.3
HISTORICAL
METALLURGY
35
5.4
QP
COMMENTS
35
6
GEOLOGICAL
SETTING, MINERALIZATION AND DEPOSIT
36
6.1
REGIONAL
GEOLOGICAL SETTING
36
6.1.1
Local
and Property Geology
38
6.1.2
Lithology
38
6.1.3
Alteration
43
6.2
MINERALIZATION
47
6.3
DEPOSIT
TYPE
52
6.3.1
Discussion
52
6.3.2
Interpretations
and Conclusions
55
CK Gold Project S-K 1300 Technical Report i May 2026
7
EXPLORATION
57
7.1
SUMMARY
OF EXPLORATION ACTIVITIES
57
7.2
DRILLING
57
7.2.1
Historical
Drilling
57
7.2.2
Saratoga
2007 – 2008
59
7.2.3
U.S.
Gold 2017 – 2020
59
7.2.4
U.S.
Gold 2020 Drilling Campaign
59
7.2.5
U.S.
Gold 2021 Drilling Campaign
60
7.3
HYDROGEOLOGY
60
7.4
GEOTECHNICAL
DATA
61
7.5
NON-DRILLING
EXPLORATION ACTIVITIES
61
7.5.1
Geophysics
61
7.5.2
Geochemical
63
8
SAMPLE
PREPARATION, ANALYSES AND SECURITY
64
8.1
INTRODUCTION
64
8.2
HISTORICAL
SAMPLING
64
8.3
SAMPLE
PREPARATION
64
8.3.1
Saratoga
2007 – 2008
64
8.3.2
CK
Gold Project 2017 - 2021
65
8.3.3
U.S.
Gold 2021
65
8.4
SAMPLE
ANALYSIS
66
8.4.1
Legacy
Campaigns
66
8.4.2
Saratoga
2007 – 2008 Campaign
67
8.4.3
U.S.
Gold 2017 – 2020 Campaign
68
8.4.4
U.S.
Gold 2021 Campaign
68
8.5
RESULTS,
QC PROCEDURES AND QA ACTIONS
69
8.5.1
Saratoga
2007 – 2008
69
8.5.2
U.S.
Gold 2017 – 2020
69
8.5.3
U.S.
Gold 2021 Campaign
71
8.6
QP
OPINION
71
9
DATA
VERIFICATION
72
9.1
PROCEDURES
72
9.2
DATA
VALIDATION
72
9.2.1
Drilling
and Sampling
72
9.2.2
Resource
Dataset Overview
75
9.2.3
QA/QC
Independent Verification
75
9.2.4
Observations
and Compliance
75
9.3
PREVIOUS
AUDITS / OWNERS
76
9.3.1
Historical
Exploration, Sampling and QA/QC
76
9.4
HISTORICAL
ASSAY QUALITY
76
9.5
QP
OPINION
77
10
MINERAL
PROCESSING
78
10.1
INTRODUCTION
78
10.1.1
SGS
Program 11868-001 (2008–2009)
78
10.1.2
SGS
Program 11868-002 (2010)
78
10.1.3
KCA
Program 8276C (2020-2021)
78
10.1.4
BML
Program BL-0789 (2021)
79
CK Gold Project S-K 1300 Technical Report ii May 2026
10.1.5
BML
Program BL-0835 and 0882 (2021-2022)
79
10.1.6
BML
Program BL-0980 and 1066 (2022)
79
10.1.7
BML
Program BL-1702 (2024)
79
10.1.8
BML
Program BL-1859 (2025)
79
10.1.9
XPS
Program 4025701.00 (2025)
80
10.1.10
BML
Program BL-1990 (2025)
80
10.2
METALLURGICAL
SAMPLING AND HEAD ANALYSIS
80
10.2.1
SGS
Program (2008-2010)
80
10.2.2
KCA
Program 8276C (2020 – 2021)
81
10.2.3
BML
Programs (2021-2025)
82
10.2.4
XPS
Program
87
10.3
MINERALOGY
87
10.3.1
SGS
Program 11868-001 (2008)
87
10.3.2
KCA
Program (2020-2021)
88
10.3.3
BML
Programs (2022)
88
10.4
COMMINUTION
90
10.4.1
SGS
Program 11868-001 (2008-2009)
90
10.4.2
BML
Programs (2021-2025)
90
10.4.3
Hazen
Research Programs
91
10.5
FLOTATION
92
10.5.1
SGS
Programs
92
10.5.2
KCA
Program
93
10.5.3
BML
Programs
95
10.5.4
XPS
Program 4025701.00.
106
10.6
GRAVITY
CONCENTRATION
107
10.6.1
KCA
Program (2020-2021)
107
10.6.2
BML
BL-0789 Program (2021)
107
10.6.3
BML
BL-1990 Program (2025)
108
10.7
CYANIDATION
108
10.7.1
KCA
Program (2020-21)
108
10.7.2
BML
BL-0835/0882 Program (2021-22)
108
10.8
FINAL
CONCENTRATE CHARACTERIZATION
108
10.8.1
Dewatering
108
10.8.2
Chemical
Analysis
108
10.9
TAILINGS
CHARACTERIZATION
112
10.9.1
Dewatering
112
10.9.2
Geotechnical
116
11
MINERAL
RESOURCE ESTIMATES
117
11.1
INTRODUCTION
117
11.2
MINERAL
RESOURCE ESTIMATE
117
11.3
GEOLOGICAL
MODEL
117
11.4
OXIDATION
ASSIGNMENT
122
11.5
BLOCK
MODEL ORIENTATION AND DIMENSIONS
122
11.6
COMPOSITING
122
11.7
EXPLORATORY
DATA ANALYSIS
123
11.8
BULK
DENSITY DETERMINATION
127
11.9
GRADE
CAPPING/OUTLIER RESTRICTIONS
128
11.10
VARIOGRAPHY
129
CK Gold Project S-K 1300 Technical Report iii May 2026
11.11
ESTIMATION/INTERPOLATION
METHODS
131
11.12
CLASSIFICATION
OF MINERAL RESOURCES
133
11.13
GRADE
MODEL VALIDATION
134
11.14
REASONABLE
PROSPECTS OF EVENTUAL ECONOMIC EXTRACTION
137
11.15
MINERAL
RESOURCE STATEMENT
139
11.16
RELEVANT
FACTORS THAT MAY AFFECT THE MRE
145
11.17
QP
OPINION
145
12
MINERAL
RESERVE ESTIMATES
146
12.1
BASIS,
ASSUMPTIONS, PARAMETERS, AND METHODS
146
12.1.1
Pit
Optimization 2021
146
12.1.2
Value
Per Ton Cut-Off Grade Calculation
147
12.1.3
Differences
In Input Parameters from Final Financial Model
148
12.1.4
Dilution
and Ore Loss
149
12.2
MINERAL
RESERVES
151
12.3
CLASSIFICATION
AND CRITERIA
151
12.4
RELEVANT
FACTORS
151
13
MINING
METHODS
152
13.1
INTRODUCTION
152
13.2
GEOTECHNICAL
PARAMETERS AND GENERAL RECOMMENDATIONS
152
13.3
BLENDING
AND FINALIZING DESIGNS
153
13.3.1
Benching
Trials
153
13.3.2
Transitioning
from Single to Double Benches
153
13.3.3
Controlled
Blasting
155
13.3.4
Changes
to the Slope Design
156
13.3.5
Bench
Scaling and Cleaning Catch Benches
157
13.3.6
Slope
Monitoring
157
13.3.7
Visual
Inspection Monitoring
157
13.3.8
Ongoing
Data Acquisition, Verification and Updating Design Criteria
157
13.3.9
Slope
Depressurization Measures
158
13.3.10
Hydrogeological
Monitoring
158
13.3.11
Surface
Water Control
159
13.3.12
Contingency
Planning
159
13.4
HYDROGEOLOGICAL
PARAMETERS
159
13.5
MINE
DESIGN
164
13.5.1
Mine
Design Parameters
165
13.5.2
Waste
Rock Facility and Ore Stockpile design
165
13.6
STOCKPILE
STRATEGY
165
13.6.1
LG
Ore strategy
165
13.6.2
HG
Ore Strategy
167
13.7
MINE
SCHEDULE
167
13.8
WASTE
ROCK MANAGEMENT
168
13.9
MINING
FLEET REQUIREMENTS
168
13.9.1
Trade
Off Study Contractor vs Owner Operated
168
13.9.2
Equipment
Productivity and Usage
168
13.10
MINE
PERSONNEL REQUIREMENTS
169
13.11
MINE
END OF PERIOD PROGRESSION MAPS
171
CK Gold Project S-K 1300 Technical Report iv May 2026
14
PROCESS
AND RECOVERY METHODS
176
14.1
INTRODUCTION
176
14.2
PROCESS
PLANT DESIGN
178
14.2.1
Process
Design Criteria
178
14.2.2
Operating
Schedule and Availability
178
14.3
PROCESS
PLANT DESCRIPTION
178
14.3.1
Primary
Crushing
178
14.3.2
Crushed
Ore Stockpile and Reclaim
179
14.3.3
Grinding
Circuit
179
14.3.4
Flotation
and Regrind Circuits
180
14.3.5
Concentrate
Dewatering and Storage
182
14.3.6
Tailings
Dewatering and Storage
182
14.3.7
Reagent
Handling and Storage
183
14.3.8
Water
Systems
184
14.3.9
Air
Supply Systems
185
14.4
PROCESS
PLANT LABOR
185
15
INFRASTRUCTURE
187
15.1
ROADS
187
15.1.1
Project
Access Road
187
15.1.2
Ex-Pit
Haul Roads
187
15.2
ORE
STOCKPILE
193
15.3
WASTE
ROCK FACILITIES
197
15.4
TAILINGS
DISPOSAL
200
15.4.1
Chemical
Characteristics
200
15.4.2
TMF
Design and Construction
200
15.4.3
TMF
Environmental Management
209
15.4.4
Pit
Backfilling
209
15.5
MINE
INFRASTRUCTURE
209
15.6
PROCESS
PLANT
209
15.6.1
PLANT
FACILITY EARTHWORK
209
15.6.2
Layout
212
15.6.3
Equipment
216
15.6.4
Building
217
15.7
BUILDINGS
217
15.7.1
Admin
and Change House Building
217
15.7.2
Warehouse
218
15.8
POWER
AND WATER
219
15.8.1
Power
Supply
219
15.8.2
Power
Distribution
219
15.8.3
Water
Supply
220
15.8.4
Potable
Water
221
15.8.5
Waste
Disposal
221
16
MARKET
STUDIES
222
16.1
FLOTATION
CONCENTRATES
222
16.2
GENERAL
CONSIDERATIONS
222
16.2.1
Accountable
and Deleterious Metals
223
16.2.2
Production
Schedule
223
16.2.3
Metal
Pricing
225
16.2.4
Smelting
and Refining Charges
225
16.2.5
Transportation
226
16.3
MINING
CONTRACT
226
16.4
OTHER
CONTRACTS
226
CK Gold Project S-K 1300 Technical Report v May 2026
17
ENVIRONMENTAL
STUDIES
227
17.1
INTRODUCTION
227
17.2
ENVIRONMENTAL
STUDIES
227
17.2.1
Baseline
Characterization
227
17.2.2
Groundwater
Modeling
238
17.2.3
Tailings
Seepage and Stability Analysis
243
17.2.4
Geochemical
Characterization of Mine Rock and Tailings
243
17.3
REQUIREMENTS
AND PLANS FOR WASTE AND TAILINGS DISPOSAL, SITE MONITORING, AND WATER MANAGEMENT
246
17.3.1
Waste
Rock and Tailings Management
246
17.3.2
Site
Monitoring
250
17.3.3
Water
Management
251
17.4
REQUIRED
PERMITS AND STATUS
261
17.4.1
Approved
Jurisdictional Determination
261
17.4.2
Public
Water Supply Permit
262
17.4.3
Exploration
Permit
262
17.4.4
Mine
Operating Permit
262
17.4.5
Air
Quality Permit to Construct and Operate
263
17.4.6
Industrial
Siting Permit
264
17.4.7
Water
Quality Division Permits
265
17.4.8
State
Engineer’s Office Permits for Water Use and Related Facilities
266
17.4.9
State
Historical Preservation Office
267
17.4.10
State
Fire Marshal Permits
267
17.4.11
Laramie
County Permits
267
17.5
LOCAL
INDIVIDUALS AND GROUPS
267
17.6
MINE
CLOSURE
268
17.7
ADEQUACY
OF PLANS
269
17.8
COMMITMENTS
TO LOCAL PROCUREMENT OR HIRING
270
18
CAPITAL
AND OPERATING COSTS
271
18.1
CAPITAL
COST ESTIMATE
271
18.1.1
Initial
Capital Cost Summary
271
18.1.2
Direct
Cost
272
18.1.3
Indirect
Cost
276
18.1.4
Contingency
276
18.1.5
Owner’s
Cost
277
18.1.6
Assumptions
and Exclusions
277
18.1.7
Initial
and Sustaining Capital Cost
277
18.2
OPERATING
COST ESTIMATE
278
18.2.1
Mining
279
18.2.2
Process
Plant
285
18.2.3
Lubricants
290
18.2.4
Contracts
(Support/Maintenance, Fixed and Variable)
290
18.2.5
Abnormal/Miscellaneous
Items and Contingencies
290
18.2.6
Fresh
Water
291
18.2.7
Tailings
Fixed Cost
291
18.2.8
Training
291
18.2.9
Assay/General
Laboratory - Plant Costs
291
18.2.10
General
and Administrative
291
CK Gold Project S-K 1300 Technical Report vi May 2026
19
ECONOMIC
ANALYSIS
293
19.1
INTRODUCTION
293
19.2
CAUTIONARY
STATEMENT
293
19.3
ECONOMIC
MODEL
294
19.4
MODEL
PARAMETERS
294
19.5
PRODUCTION
AND SALES
296
19.6
CAPITAL
EXPENDITURES
299
19.7
OPERATING
COSTS
300
19.8
AGGREGATE
PRODUCTION AND SALES
301
19.9
TAXES,
ROYALTIES, DEPRECIATION AND DEPLETION
301
19.10
BASE
CASE CASHFLOW
303
19.11
SENSITIVITY
STUDY
306
19.12
CONCLUSION
307
20
ADJACENT
PROPERTIES
308
21
OTHER
RELEVANT DATA
309
21.1
AGGREGATE
PRODUCTION
309
21.2
AGGREGATE
MARKET STUDY
309
21.2.1
Aggregate
Quality
309
21.2.2
Market
Opportunity
309
21.2.3
Production
Scenarios
310
21.2.4
Economics
and Pricing
310
21.2.5
Resources
and Mine Life
310
21.2.6
Strategic
and Environmental Benefits
310
21.3
AGGREGATE
PRODUCTION AND SALES
310
22
INTERPRETATION
AND CONCLUSIONS
312
22.1
METALLURGICAL
TESTWORK INTERPRETATION
312
22.1.1
General
312
22.1.2
Sampling
313
22.1.3
Mineralogy
314
22.1.4
Comminution
314
22.1.5
Gravity
Concentration
318
22.1.6
Rougher
Concentrate Regrind
318
22.1.7
Flotation
Parameters
319
22.1.8
Concentrate
Dewatering
319
22.1.9
Tailing
Dewatering Parameters
320
22.1.10
Metallurgical
Recovery Prediction
320
22.2
RISKS
AND OPPORTUNITIES
324
22.2.1
Risks
324
22.2.2
Opportunities
325
22.3
OTHER
RELEVANT DATA AND INFORMATION
327
CK Gold Project S-K 1300 Technical Report vii May 2026
23
RECOMMENDATIONS
328
23.1
PROJECT
ADVANCEMENT
328
23.2
PROJECT
DEVELOPMENT
328
23.2.1
Deposit
Understanding
328
23.2.2
Future
Metallurgical Testwork
328
23.2.3
Ore
Processing
329
23.2.4
Design
and Engineering
329
23.2.5
Concentrate
Off-Take Agreements
330
23.2.6
Environmental,
Permitting and Social
330
23.3
BUDGET
FOR FURTHER WORK
331
23.4
RECOMMENDATIONS
331
24
REFERENCES
332
24.1
TECHNICAL
REPORTS, PAPERS AND OTHER PUBLICATIONS
332
24.2
WEB
BASED SOURCES OF INFORMATION
334
25
RELIANCE
ON INFORMATION PROVIDED BY REGISTRANT
335
25.1
MINERAL
TENURE AND SURFACE RIGHTS
335
25.2
ROYALTIES
AND INCUMBRANCES
335
26
DATE
AND SIGNATURE PAGE
336
27
CERTIFICATES
337
28
APPENDIX
338
CK Gold Project S-K 1300 Technical Report viii May 2026
List
of Tables
Table
1.1: Mineral Resource Statement Effective Date March 30, 2026
5
Table
1.2: Mineral Resource Statement (Metric) Effective Date March 30, 2026
6
Table
1.3: Mineral Reserve Statement Effective Date March 30, 2026
7
Table
1.4: LoM Capital Costs
14
Table
1.5: Feasibility Study Parameters and Results
16
Table
1.6: Metal Price Sensitivity
17
Table
2.1: Qualified Persons Names and Details
21
Table
2.2: Abbreviations and Acronyms
22
Table
2.3: Units of Measure
23
Table
5.1: Historical Resource Estimates
34
Table
8.1: U.S. Gold Drilling Program Sample Standards
70
Table
8.2: U.S. Gold Drilling Program Results 2021
71
Table
10.1: SGS 11868-001 Composite Head Assays
81
Table
10.2: KCA 8276C Composite Head Assays
82
Table
10.3: BL-0789 Shipment Details
82
Table
10.4: BL-0789 Composite Head Assays
83
Table
10.5: BL-0835 Composite Head Assays
84
Table
10.6: BL-0835 Main Composite Head Assays
85
Table
10.7: Master Composite Head Assays
86
Table
10.8: BL-0980 Head Assay
86
Table
10.9: BL-1702 Program Head Assays
86
Table
10.10: BL-1859 Program Head Assays
87
Table
10.11: BL-1990 Program Head Assays
87
Table
10.12: XPS Met Program Head Assays
87
Table
10.13: FLSmidth Mineralogical Analysis: Copper Deportment
88
CK Gold Project S-K 1300 Technical Report ix May 2026
Table
10.14: BL-0882 Modal Mineralogy
89
Table
10.15: Variability Samples, Comminution Results
90
Table
10.16: BL-0882 Composites, Bond BWi Results
91
Table
10.17: BL-0980 Comminution Results
91
Table
10.18: BL-1990 Comminution Results
91
Table
10.19: Hazen 12827 Comminution Results
91
Table
10.20: Hazen 13295 Comminution Results
92
Table
10.21: KCA Rougher Flotation Summary
93
Table
10.22: KCA Cleaner Flotation Summary
94
Table
10.23: BL-0789 Batch Cleaner Test Results
95
Table
10.24: BL-0789 Locked Cycle Test Results - Master Composites
95
Table
10.25: Variability Cleaner Test Results, BL0835
97
Table
10.26: Variability Cleaner Test Results, BL0882
98
Table
10.27: BL-0882 Batch Cleaner Test Results
100
Table
10.28: BL-0835/0882 LCT Conditions
100
Table
10.29: BL-0835/0882 LCT Results
101
Table
10.30: Batch Cleaner Tests on LG Composites
101
Table
10.31: LG Composites, LCT Conditions
102
Table
10.32: LG Composites, LCT Results
102
Table
10.33: BL-1702 Rougher Test Results
102
Table
10.34: BL-1702 Cleaner Test Results
102
Table
10.35: BL-1702 Jameson Dilution Test Results
103
Table
10.36: BL-1702 LCT Results
103
Table
10.37: BL-1859 Rougher Test Results
104
Table
10.38: BL-1859 Cleaner Test Results
104
Table
10.39: BL-1859 LCT Results
104
Table
10.40: Batch Rougher Tests on BL-1990 Composites
105
CK Gold Project S-K 1300 Technical Report x May 2026
Table
10.41: Batch Cleaner Tests on BL-1990 Composites
105
Table
10.42: LCTs on BL-1990 Blended Composites
105
Table
10.43: XPS Jameson Rougher Test Results
106
Table
10.44: KCA Hole 4 Gravity + Flotation vs. Flotation Only
107
Table
10.45: Gravity Test on High-Grade Oxide LCT Tailings
107
Table
10.46: BL-1990 Oxide Comp, Gravity Results
108
Table
10.47: BL-0882 LCT Minor Element Analysis
109
Table
10.48: BL-0980 and BL-1066 LCT Minor Element Analysis
110
Table
10.49: BL-1990 LCT Minor Element Analysis
111
Table
10.50: Static Settling Test Results
113
Table
10.51: Vacuum Filtration Test Results
115
Table
10.52: J&J Tailing Samples Percentile Particle Diameter
116
Table
10.53: Tailings Compressibility, Particle Density and Bulk Density Results
116
Table
10.54: Summary of Minimum Outlet Size Required for a Hopper (P-FACTOR = 1.00)
116
Table
11.1: Block Model Dimensions
122
Table
11.2: Drill Hole Original Sample and Composite Statistics
122
Table
11.3: Drill Hole Database Summary
123
Table
11.4: Bulk Density Values by Rock Type
127
Table
11.5: Capping Thresholds and Metal Loss Table
129
Table
11.6: Variogram Parameter Table
132
Table
11.7: Estimation Search and Sample Parameters
132
Table
11.8: Global Estimation Comparison
136
Table
11.9: AuEq Definitions
138
Table
11.10: AuEq Cut-Off Grades
138
Table
11.11: Metal Prices (LG and AuEq Cut-off)
138
Table
11.12: Varying Metal Recoveries by Material Type (LG)
138
Table
11.13: Mineral Resource Statement Effective Date March 30, 2026
140
CK Gold Project S-K 1300 Technical Report xi May 2026
Table
11.14: Mineral Resource Statement (Metric) Effective Date March 30, 2026
141
Table
11.15: Mineral Resource Statement (Exclusive of Mineral Reserves) Effective Date March 30, 2026
143
Table
11.16: Mineral Resource Statement (Metric) (Exclusive of Mineral Reserves) Effective Date March 30, 2026
144
Table
12.1: Pit Optimization Parameters
147
Table
12.2: VPT calculation input parameters
149
Table
12.3: Mine Dilution Considered for Mineral Reserves Estimate
151
Table
12.4: Ore Loss Considered for the Mineral Reserves Estimate
152
Table
12.5: Mineral Reserve Statement
152
Table
13.1: Recommended Slope Designs for Presplit Blasted Benches
154
Table
13.2: Mine Design Parameters
166
Table
13.3: Waste Rock Facility and Stockpile Design Parameters
166
Table
13.4: Mine Schedule
168
Table
13.5: Mining Model Trade Off Table
169
Table
13.6: Variable Usage Equipment
170
Table
13.7: Annual Schedule of Variable Usage Equipment
170
Table
13.8: Fixed Usage Equipment
170
Table
14.1: Major Design Criteria
179
Table
14.2: Salaried Personnel
187
Table
14.3: Hourly Personnel
196
Table
15.1: Annual Quantity of Tailings and Waste Rock to the TMF
204
Table
15.2: TMF Design Criteria
204
Table
15.3: Plant Area Quantities
209
Table
16.1: Minor Element Summary
237
Table
16.2: Concentrate Production Schedule Estimate – Low Mass Pull
224
Table
16.3: Concentrate Production Schedule Estimate – High Mass Pull
224
CK Gold Project S-K 1300 Technical Report xii May 2026
Table
16.4: Feasibility Study Base Case Metal Prices
225
Table
16.5: LoM Average Smelting and Refining Terms
225
Table
17.1: Baseline Monitoring Wells with Constituent Concentrations Exceeding Water Quality Standards
233
Table
18.1: Summary of Initial Capital Cost by Discipline
271
Table
18.2: Exchange Rates
271
Table
18.3: Derivation of Quantities
272
Table
18.4: Design Growth by Discipline
273
Table
18.5: Supply and Install Cost Source
273
Table
18.6: Concrete Material Take-Off
274
Table
18.7: Steelwork Material Take-Off
275
Table
18.8: Initial Capital Costs
278
Table
18.9: Project Operating Cost Summary
283
Table
18.11: Mine Operating Cost Trade Off Summary
293
Table
18.12: Mine Operating Cost Summary
293
Table
18.13: Drill and Blast Cost Summary on Annual Basis with mine Drilling Profile
293
Table
18.14: Haulage Cost Summary by Destination on Annual Basis
295
Table
18.15: Indirect Contracting Costs on Annual Basis
295
Table
18.16: Mining Operation Fuel Consumption Summary on Annual Basis
295
Table
18.17: Tailing Haulage Operation Fuel Consumption Summary on Annual Basis
296
Table
18.18: Mining Operation DEF Consumption Cost on Annual Basis
296
Table
18.19: DEF Consumption Cost for Tailings Haulage on Annual Basis
296
Table
18.20: Engineering Technical Services Summary Cost on Annual Basis
297
Table
18.21: Mine Operation Technical Summary Cost
298
Table
18.22: Enterprise Finance and Asset Maintenance Software Summary Cost
298
Table
18.23: Summary of Tailing Haulage Cost on Annual Basis
300
CK Gold Project S-K 1300 Technical Report xiii May 2026
Table
18.24: Process Plant Operating Cost Summary
300
Table
18.25: Process Plant Fixed Operating Cost
300
Table
18.26: Process Plant Variable Operating Cost Summary
301
Table
18.27: Power Consumption Cost Summary
303
Table
18.28: Reagent Consumption Cost Summary
303
Table
18.29: Grinding Media Consumption Cost Summary
303
Table
18.30: Wear Liners Consumption Cost Summary
304
Table
18.31: Filtration Plant Consumables Consumption Cost Summary
304
Table
18.32: Raw Water Consumption Cost Summary
305
Table 18.33: General and Administrative Summarized
Cost over LoM
306
Table
19.1: Economic Model Parameters
309
Table
19.2: LoM Production Statistics
310
Table
19.3: Key Selling Cost Parameters
312
Table
19.4: LoM Capital Cost Summary
313
Table
19.5: Summary of Operating Costs (Excluding Aggregate)
314
Table
19.6: Aggregate Production and Sales
315
Table
19.7: Summary of Royalties & Taxes
316
Table
19.8: LoM Cash Flow Summary
318
Table
19.9: Annual Production and Cash Flow Forecast
319
Table
19.10: Economic Evaluation Results
320
Table
19.11: Metal Price Sensitivity
321
Table
21.1: Aggregate Production Scenarios
325
Table
21.2: Aggregate Cost Buildup
326
Table
22.1: Grindability Test Quantities
330
Table
22.2: Metallurgical Model Test Database
336
Table
22.3: Concentrate Grade Statistics
336
Table
22.4: Metallurgical Model Concentrate Grade Targets
337
Table
22.5: Metallurgical Model Concentrate Grade Targets
338
Table
25.1: Information provided by U.S. Gold Corp
352
CK Gold Project S-K 1300 Technical Report xiv May 2026
List
of Figures
Figure 1.1: Regional and Local Map
1
Figure 3.1: Regional and Location Map
25
Figure 3.2: Project Map
26
Figure 4.1: Accessibility to the Property
30
Figure
6.1: Regional Geological Setting of the Project Area
37
Figure 6.2: Mesoproterozoic Intrusive within the Cheyenne
Suture Zone
38
Figure 6.3: Bedrock Geology in the Vicinity of the
Project Area
39
Figure 6.4: CK Gold Project - Typical Lithological
Cross-Section
40
Figure 6.5: Relatively Undeformed Granodiorite
41
Figure 6.6: Mylonitized Granodiorite
41
Figure 6.7: Felsic (Pegmatite) Dike (top row) within
Granodiorite
42
Figure 6.8: Typical Mafic Dike (Center of Photo) Intruding
Granodiorite
42
Figure 6.9: Moderate, Localized Potassic Alteration
in Granodiorite
44
Figure 6.10: Intense, Pervasive Potassic Alteration
in Granodiorite
44
Figure 6.11: Intense Potassic Alteration with Associated
Stockwork Epidote Veining
45
Figure 6.12: Localized Weak Potassic Alteration with
Associated Epidote Veining
45
Figure 6.13: Phyllonite (Mylonite which has undergone
Phyllic Alteration)
46
Figure 6.14: Silicified Mylonite
47
Figure 6.15: CK Gold Project - Oblique View of the
Distribution of Gold Mineralization
49
Figure 6.16: CK Gold Project - Cross-Sectional View
Central to the Primary Zone of Mineralization
50
Figure 6.17: CK Gold Project - Plan View of the Location
and Trend of the Northwest and Copper King Faults
51
Figure 6.18: Schematic Illustration of the Transformation
of Brittle to Ductile Deformation in Granitic Rocks at Depth
53
Figure 6.19: Pyrite +\- Chalcopyrite Aligned with Mylonitic
Foliation
54
Figure 7.1: Drill Hole Map
58
CK Gold Project S-K 1300 Technical Report xv May 2026
Figure 8.1: Umpire Analysis Gold Correlation
70
Figure 8.2: Umpire Analysis Copper Correlation
71
Figure 9.1: U.S. Gold Hole CK21-11c Drilling in Progress
73
Figure 9.2: Oxide Copper Mineralization in Outcropping
Granodiorite Host Rocks
74
Figure 10.1: Location of Metallurgical Holes
81
Figure 10.2: Variability Program Copper Deportment
85
Figure 10.3: Grind Analysis – Rougher Flotation
Results, Copper and Gold
96
Figure 10.4: Variability Samples, Au Recovery v CuOx/CuT
Ratio
99
Figure 10.5: Variability Samples, Copper Recovery v
CuOx/CuT
99
Figure 10.6: Pressure Filtration Testwork Results
114
Figure 10.7: Vacuum Filtration – Feed Sample
PSD
115
Figure 11.1: Vertical Section Showing Lithological
Boundaries and Drill Hole Grades
119
Figure 11.2: Vertical Section Showing Oxidation Boundaries
and Drill Hole Weathering
120
Figure 11.3: Fault Map with Drill Hole Grades
120
Figure 11.4: Vertical Section A-A’ Showing Location
of Interpreted NE 2 Fault Zone, Oxidation Boundaries and Drill Hole Grades (AUEQ g/t)
121
Figure 11.5: Vertical Section A-A’ Showing Mineralized
Domain, Modeled Oxidation, Structures and Drill Hole Grades (AUEQ g/t)
121
Figure 11.6: Log Box Plot for AUCAP (g/t) Variable
by Host Rock
124
Figure 11.7: Log Box Plot for CUCAP (%) Variable by
Host Rock
125
Figure 11.8: Contact Plot Showing Binned Mean Sample
Grades for the Au and Cu Variables
126
Figure 11.9: Geology and Mineralization with Drill
Hole Grades (g/t AUEQ)
127
Figure 11.10: Density of Granodiorite vs Depth
127
Figure 11.11: Sample Distribution
128
Figure 11.12: Gold Composite Points for Resource Drill
Holes used for Spatial Modeling – Variography
129
Figure 11.13: Copper Composite Points for Resource
Drill Holes used for Spatial Modeling -Variography
130
CK Gold Project S-K 1300 Technical Report xvi May 2026
Figure 11.14: Pairwise Relative Variograms and Modeled
Structures
130
Figure 11.15: Longitudinal Through the 3D Block Model
133
Figure 11.16: Cross-Section Slice (2021 Drill Holes
Displayed with Black Collar Points)
134
Figure 11.17: Model Validation Slices (Longitudinal
and Cross-Section
140
Figure 11.18: Swath Plots Showing Mean Grades and Volume
Histograms for the AUOK/AUNN, CUOK/CUNN and AGOK/AGNN Models
137
Figure 11.19: Cross-Section Showing AuEq Resources
and Constraining LG Pit Shell
139
Figure 11.20: Section Showing Blocks >0.2 g/t AuEq
with Nested Resource and Reserves Pit Shells
142
Figure 12.1: Cross-Section of all Blocks on Bench 6950
within the Final Pit Design
149
Figure 12.2: Ore Distribution within Bench 7010 of
the Final Pit Design, HG ore (yellow) and LG ore (blue). Some isolated LG blocks can be seen
150
Figure 13.1: Pit Sectors and Recommended Slopes
154
Figure 13.2: Design Face (Df) versus Face Condition
(Fc) Chart
166
Figure 13.3: Predicted Drawdown at the End of Mining
and Post-Mining Year 150
161
Figure 13.4: Groundwater Monitoring Locations
162
Figure 13.5: Predicted Open Pit Groundwater Inflows
163
Figure 13.6: 2025 FS Final Pit Design
164
Figure 13.7: Waste Rock Facility and Ore Stockpile
Designs
166
Figure 13.8: Mine Progression – End of Year 1
171
Figure 13.9: Mine Progression – End of Year 2
171
Figure 13.10: Mine Progression – End of Year
3
172
Figure 13.11: Mine Progression – End of Year
4
172
Figure 13.12: Mine Progression – End of Year
5
173
Figure 13.13: Mine Progression – End of Year
6
173
Figure 13.14: Mine Progression – End of Year
7
174
Figure 13.15: Mine Progression – End of Year
8
174
Figure 13.16: Mine Progression – End of Year
9
175
CK Gold Project S-K 1300 Technical Report xvii May 2026
Figure 14.1: Block Flow Diagram – Processing
Facility
177
Figure 15.1: Project Access Road
188
Figure 15.2: Site Infrastructure Plan
189
Figure 15.3: Haul Roads
190
Figure 15.4: Haul Road Sections
191
Figure 15.5: Pre-Production Site Plan
192
Figure 15.6: Ore Stockpile
194
Figure 15.7: Ore Stockpile Drains
195
Figure 15.8: Ore Stockpile Drain Sections
196
Figure 15.9: SWWRF
198
Figure 15.10: WWRF and EWRF
199
Figure 15.11: TMF Phase Plan
203
Figure 15.12: TMF Section
205
Figure 15.13: TMF Underdrain
206
Figure 15.14: TMF Underdrain and Overdrain Sections
207
Figure 15.15: TMF Overdrain
208
Figure 15.16: Open-Pit Backfill and Pit Wall Grading
209
Figure 15.17: Mill and Truck Area
210
Figure 15.18: Mill and Truck Area Grading
211
Figure 15.19: Process Plant
213
Figure 15.20: Process Plant – Grinding Area
213
Figure 15.21: Process Plant –Flotation Regrind
and Tailing Filters
214
Figure 15.22: Process Plant – Tailing Thickener
214
Figure 15.23: Process Plant – Tailings Loadout
215
Figure 15.24: Process Plant – Reagent Storage
215
Figure 15.25: Process Plant – Concentrate Storage
216
Figure 15.26: Process Plant Building
217
CK Gold Project S-K 1300 Technical Report xviii May 2026
Figure 15.27: Admin and Change House Building
218
Figure 15.28: Warehouse
219
Figure 15.29: Water Pipeline
221
Figure 17.1: Project Site and Access Road Location
230
Figure 17.2: Locations of the Meteorological Station
and PM10 Monitoring Station
231
Figure 17.3: Surface and Groundwater Sampling Locations
232
Figure 17.4: Field Survey Soil Sample Locations and
Map Unit Modifications
235
Figure 17.5: USGS Land Cover Vegetation
236
Figure 17.6: Hydrogeological Units, Groundwater Level,
and Flow Direction
240
Figure 17.7: Cross-Section of Groundwater Levels
241
Figure 17.8: Predicted Drawdown at the End of Mining
and 150 Years Post-Mining
242
Figure 17.9: Mine Rock Sample Spatial Distribution
244
Figure 17.10: Results of ABA Tests
245
Figure 17.11: Results of Humidity Cell Tests
245
Figure 17.12: Water Balance
254
Figure 17.13: New Water Source and Approximate Alignment
to Fresh Water Tank
255
Figure 17.14: Proposed Water Transmission Infrastructure
256
Figure 17.15: Project Site Layout
260
Figure 19.1: Mining Production Profile
297
Figure 19.2: Product Mass and Metal in Concentrate
297
Figure 19.3: NSR Composition by Metal
298
Figure 19.4: NSR Contribution by Metal
299
Figure 19.5: Unit Production Costs
301
Figure 19.6: LoM Annual Cash Flow
303
Figure 19.7: Sensitivity of NPV After Tax
307
Figure 19.8: Sensitivity of IRR After Tax
307
Figure 22.1: Grinding Circuit Simulation
317
Figure 22.2 CK Gold Pebble Crushing Zones
318
Figure 22.3: Cu Recovery Adjustments for Conc Grade
and Open Circuit Losses
321
Figure 22.4: Au Recovery vs Au Headgrade - Sulfide
322
Figure 22.5: Cu Recovery vs Cu Headgrade – Sulfide
323
Figure 22.6: Ag Recovery vs Ag Headgrade – Sulfide
323
CK Gold Project S-K 1300 Technical Report xix May 2026
1
EXECUTIVE SUMMARY
1 Overview
Micon
International Limited (Micon) was commissioned by U.S. Gold Corp. (U.S. Gold) to prepare a Feasibility Study (FS) for the CK Gold Project
(Project or Property). This is a Technical Report Summary (TRS) summarizing the findings of the FS in accordance with Securities Exchange
Commission Part 229 Standard Instructions for Filing Forms Regulation S-K subpart 1300 (S-K 1300). This TRS presents the mineral resources,
mineral reserves, and economics for the CK Gold Project. The effective date of this Report is March 30, 2026.
2 Property
Description and Location
The
Project is located in Laramie County, Wyoming, USA, in the southeastern portion of Wyoming, approximately 20 miles west of the State
Capital, Cheyenne (In addition to these leases, to accommodate the related mine facilities and the primary tailings storage facility
which cannot be accommodated on State Section 36, a lease agreement for a further 712 acres on portions of Section 25 and Section 31
has been secured with the private landowner.
Figure 1.1.
It is centered in the north half of Section 36, T14N, R70W. The Property encompasses approximately 1,120 acres of mineral leases on Section
36, the south half of Section 25, and the northeast quarter of Section 35. In addition to these leases, to accommodate the related mine
facilities and the primary tailings storage facility which cannot be accommodated on State Section 36, a lease agreement for a further
712 acres on portions of Section 25 and Section 31 has been secured with the private landowner.
Figure
1.1: Regional and Local Map
Source:
Trihydro, 2023.
CK Gold Project S-K 1300 Technical Report 1 May 2026
3 Geology
and Mineralization
The
Silver Crown Mining District, where the Project is located, is underlain by Proterozoic rocks that make up the southern end of the Precambrian
core of the Laramie Range. Metavolcanic and metasedimentary rocks of amphibolite-grade metamorphism have been intruded by the approximately
1.4-billion-year-old Sherman Granite and related felsic rocks. Within the Project area, foliated granodiorite has been intruded by aplitic
quartz monzonite dikes, thin mafic dikes, and younger pegmatite dikes. Shear zones with cataclastic foliation striking N60°E to N60°W
are found in the southern part of the Silver Crown District, including at the Project site. Copper and gold mineralization within the
Project area occurs primarily in unfoliated to mylonitic granodiorite. The granodiorite typically shows potassium enrichment, particularly
in the vicinity of the contact with the quartz monzonite. The mineralization is associated with a N60°W-trending shear zone.
The
Project mineralization has been interpreted as being located within a shear-zone, as a disseminated and stockwork gold-copper deposit
within Proterozoic intrusive rocks. Most of the mineralization is contained within the granodiorite, with lesser amounts in the quartz
monzonite and the thin mafic dikes. Hydrothermal alteration has overprinted on retrograde greenschist alteration and includes a central
zone of silicification, followed outwardly by a narrow potassic zone, surrounded by propylitic alteration. Higher grade mineralization
occurs within a central core of thin quartz veining and stockwork mineralization surrounded by a zone of lower grade disseminated mineralization.
Disseminated sulfides and native copper with stockwork malachite and chrysocolla are present at the surface, with chalcopyrite, pyrite,
minor bornite, primary chalcocite, pyrrhotite, and native copper present at depth. Gold occurs predominantly associated with chalcopyrite
and there is a minor proportion of free gold.
4 Mineral
Processing
Extensive
metallurgical testing has been conducted on CK Gold project mineralization since 2008, encompassing oxide, mixed, and sulfide domains.
Multiple laboratories (including SGS Lakefield, KCA, BML, Hazen Research, and XPS) completed sequential programs to characterize mineralogy,
comminution behavior, flotation performance, gravity response, and tailings dewatering characteristics. Overall, results demonstrate
that the CK Gold deposit can reliably produce a clean copper-gold concentrate with recoveries strongly influenced by copper mineralogy
and grind size.
Historical
testwork began with SGS programs (2008–2010),
which identified the need for fine primary and regrinds and highlighted variable copper deportment driven by chalcopyrite, chalcocite/covellite,
and native copper. Later KCA programs (2020–2021) expanded sample coverage, improved flotation schemes, and confirmed the presence
of significant oxide and cyanide soluble copper fractions, which limit recovery in certain composites. Flotation performance generally
improved with finer grinds (80 µm to 90 µm primary; 18 µm to 25 µm regrind), though mass pull and concentrate
grade trade offs were observed.
BML
test programs (2021–2025) contributed major
advancements, including variability testing across lithology, oxidation levels, and production year composites (Y1–Y3). Locked
cycle tests consistently produced copper concentrates around 20% to 26% Cu with 60 g/t Au to 90 g/t Au and recoveries exceeding 70% Cu
and 60% to 70% Au for sulfide-dominant samples. Oxide and mixed composites showed weaker response due to higher chrysocolla and oxide
copper content. Jameson Cell testwork (including rougher dilution tests and pilot-scale trials) demonstrated improved froth stability
and recovery at higher mass pull, supporting Jameson technology in the flowsheet.
CK Gold Project S-K 1300 Technical Report 2 May 2026
Gravity
concentration, initially considered due to visible
native copper in oxide zones, delivered limited benefit. Tests showed coarse native copper presence but did not meaningfully improve
overall gold or copper recovery, leading to gravity removal from the flowsheet.
Comminution
studies across several programs reported Bond ball
mill work indices of ~13 kWh/t to 17 kWh/t and rod mill indices near 16 kWh/t, classifying material as moderately hard. SMC and abrasion
index testing further informed SAG/Ball mill design criteria, confirming stable throughput characteristics.
Dewatering
and tailings characterization included settling tests,
flocculant screening, pressure/vacuum filtration, and geotechnical analysis of filter cake. Tailings samples showed good settling response
with high molecular weight flocculants (e.g., Magnafloc 10) at pH ~11, achieving 55% to 63% solids underflow. Pressure filtration achieved
lower moistures (~13%) than vacuum filtration (>20%). Filter cake displayed cohesive behavior requiring careful bin design and gentle
handling to prevent ratholing or arching.
Mineralogical
analyses (QEMScan) across programs consistently highlighted
chalcopyrite as the dominant copper sulfide in sulfide composites, with limited oxide copper in deep sulfide materials. High CuOx/CuCN
proportions in many samples correlate strongly with reduced flotation recoveries. Gold was typically associated with sulfide minerals,
hence responding positively to improved sulfide recovery.
Overall,
the combined testwork provides strong foundation for Feasibility level design, confirming:
● Robust
flotation performance for sulfide composites at optimized grind sizes.
● Predictable
recovery reductions in oxide rich domains due to non-floating copper minerals.
● Feasible
tailings dewatering with manageable variability.
● Clean
concentrate chemistry with minimal smelter penalty elements.
● Flowsheet
stability using Jameson Cell rougher/cleaner technology.
This
comprehensive data set is considered sufficient by the QP to support process design, metallurgical modeling, and operational planning
for the Project.
CK Gold Project S-K 1300 Technical Report 3 May 2026
5 Mineral
Resource Estimates
The
Mineral Resource Estimate (MRE) for the Project has been updated from the S-K 1300 Technical Report Summary dated February 10, 2025,
to incorporate revised economic parameters for the FS. The underlying geological and grade model is otherwise unchanged from the prior
estimate. Database corrections applied since the prior estimate, including downhole survey corrections and a re-evaluation of pre-1997
assay quality, were confirmed as non-material through sensitivity analysis and are documented in Section 9 of this Report.
Mark
Shutty, CPG, MAIG, Principal Geologist at Drift Geo LLC, is the Qualified Person (QP) responsible for the MRE. Mineral Resources were
estimated using Ordinary Kriging within Leapfrog Geo/Edge and reported within a Lerchs-Grossmann optimized pit shell using MinePlan,
incorporating metal prices of US$3,000/oz Au, US$4.40/lb Cu, and US$35/oz Ag, domain-specific metallurgical recoveries, and total operating
costs of US$12.65/st. AuEq cut-off grades of 0.22 g/t (oxide), 0.21 g/t (transitional), and 0.20 g/t (sulfide) have been applied. The
full estimation methodology, economic parameters, and classification criteria are documented in Section 11.
In
the QP's opinion, the MRE represents a reasonable and defensible representation of the in-situ mineral inventory of the Project based
on all available data as of the effective date of this Report.
Table
1.1 and Table 1.2 present the Mineral Resource Statement, inclusive of Mineral Reserves, as of March 30, 2026. Mineral Resources exclusive
of Mineral Reserves are summarized in Section 11.15, Table 11.15 and Table 11.16. Approximately 84% of the Measured and Indicated Resources
convert to Mineral Reserves at the FS economic parameters reflecting the high-grade and the well-defined nature of the deposit. Mineral
Resources exclusive of reserves include material below the reserve cut-off within the reserve pit shell and material between the reserve
and resource pit shells in areas of wider drill spacing.
CK Gold Project S-K 1300 Technical Report 4 May 2026
Table
1.1: Mineral Resource Statement Effective Date March 30, 2026
(in
accordance with the definitions set forth in SEC Regulation S-K, Subpart 1300)
Resource
Category
Mass
Tons
(000’st)
Gold
Copper
Silver
(Ag)
Au Equivalent
Au
(koz)
Au
(oz/st)
Cu
(million
lbs)
Cu
(%)
Ag
(koz)
Ag
(oz/st)
AuEq
(koz)
AuEq
(oz/st)
Measured
39,914
627
0.0157
144
0.18
1,862
0.0467
879
0.022
Indicated
58,585
582
0.0099
177
0.15
2,178
0.0372
911
0.0156
Measured
+ Indicated
98,499
1,209
0.0123
322
0.16
4,040
0.041
1,790
0.0182
Inferred
47,088
407
0.009
142
0.15
1,436
0.03
677
0.014
1. Mineral
Resources are estimated using OK, constrained by geological domains based on lithology and
mineralization controls. The underlying datasets supporting the MRE, including drill hole
surveys, assay data, and density measurements, have been reviewed, validated, and verified
by the QP. Database corrections made since the PFS, including downhole survey corrections,
were confirmed as non-material through sensitivity analysis; the pre-1997 assay quality assessment
is addressed in Section 9.
2. Mineral
Resources are reported in short tons within an optimized pit shell, using gold equivalent
(AuEq) cut-off grades of 0.22 g/t (0.00642 oz/st) for Oxide material, 0.21 g/t (0.00613 oz/st)
for Mixed material, and 0.20 g/t (0.00583 oz/st) for Sulfide material. No dilution or mining
recovery factors have been applied. Mineral Resources are reported inclusive of Mineral Reserves;
Mineral Resources exclusive of reserves are summarized in Table 11.15 and Table 11.16.
3. AuEq
grades were calculated using metal prices of US$3,000/oz Au, US$4.40/lb Cu, and US$35/oz
Ag, after application of a 2.1% NSR royalty, yielding realized prices of US$2,937/oz Au,
US$4.31/lb Cu, and US$34.27/oz Ag. Metallurgical recoveries represent mill recovery to concentrate
and vary by oxidation domain as follows:
Metal
Oxide
Mixed
Sulfide
Gold
67%
70%
73%
Copper
22%
75%
90%
Silver
55%
65%
72%
Smelter
payability factors of 98% Au, 97% Cu, and 95% Ag, as detailed in Table 12.2, are applied as separate deductions in the reserve economic
analysis and are not embedded in the above recovery figures. Domain-specific AuEq conversion factors, derived from the ratio of each
metal's NSR contribution to gold's NSR contribution, are: Oxide - Ag 0.009577 g/g, Cu 0.330 g/%; Mixed - Ag 0.010833 g/g, Cu 1.078 g/%;
Sulfide - Ag 0.011507 g/g, Cu 1.240 g/%. LoM average recoveries of 72.5% Au, 85% Cu, and 72% Ag, as reported in (Table 14.1), reflect
the scheduled ore feed mix, which is weighted toward sulfide material, and differ from simple domain averages due to mine sequence.
4. The
optimized pit shell was generated using the LG method incorporating metal prices of US$3,000/oz
Au, US$4.40/lb Cu, and US$35/oz Ag, operating costs of US$2.50/st mining (strip-adjusted),
US$7.00/st processing, US$1.65/st tailings, and US$1.50/st G&A (total US$12.65/st), domain-specific
metallurgical recoveries as detailed in Footnote 3, a 2.1% NSR royalty, and a 48° slope
angle. A theoretical breakeven AuEq cut-off of 0.205 g/t was calculated by dividing total
operating costs (US$12.65/st, equivalent to US$13.94/mt) by the NSR per gram of AuEq at average
domain recoveries. Reported AuEq cut-offs of 0.20 g/t to 0.22 g/t were validated against
a net block value flag incorporating grade-bin and domain-specific recovery schedules; application
of the AuEq cut-offs produces M+I resources within 0.2% of contained AuEq ounces compared
to the value-flag defined resource, confirming the grade-based cut-offs are a non-material
proxy for underlying block economics. A rehandling cost of US$1.00/st applicable to stockpiled
ore is excluded from the resource cut-off cost basis as it represents a mine sequencing cost
rather than a fundamental extraction cost; this cost is incorporated in the reserve economic
analysis.
5. Metal
prices of US$3,000/oz Au, US$4.40/lb Cu, and US$35/oz Ag were selected for resource reporting
based on 2-year trailing average prices as of February 2026 and comparison to peer company
assumptions. These prices were used to evaluate potential resource upside beyond the mineral
reserve base (US$2,100/oz Au, US$4.10/lb Cu, and US$27/oz Ag as detailed in Section 12).
Resource prices are above the 36-month historical average of US$2,593/oz Au, US$4.28/lb Cu,
and US$30.63/oz Ag (calendar years 2023-2025, sources: World Gold Council, London Metal Exchange,
London Bullion Market Association).There are no known legal, political, environmental, social,
or permitting factors that would materially affect the reported MRE.
6. There
are no known legal, political, environmental, social, or permitting factors that would materially
affect the reported MRE.
7. Mineral
Resources are classified in accordance with the definitions set forth in SEC Regulation S-K,
Subpart 1300. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources
that are not Mineral Reserves have not demonstrated economic viability.
8. Mineral
Resources are reported within U.S. Gold’s mineral tenure holdings, which include Lease
No. 0-40828 and Lease No. 0-40858, as described in Section 3.2.1. There are no known encumbrances,
liens, or third-party interests that would materially affect U.S. Gold’s ability to
develop the Mineral Resources reported herein.
9. Rounding
of reported figures may result in minor apparent discrepancies in totals of tonnage, grade,
and contained metal.
10. There
is no certainty that all or any part of the Mineral Resources will be converted into Mineral
Reserves. The MRE may be materially affected by environmental, permitting, legal, marketing,
or other relevant issues.
11. Mineral
Resources are reported on a 100% Project basis. U.S. Gold holds 100% interest in the CK Gold
Project.
12. The
effective date of this Mineral Resource Estimate is March 30, 2026.
CK Gold Project S-K 1300 Technical Report 5 May 2026
Table
1.2: Mineral Resource Statement (Metric) Effective Date March 30, 2026
(in
accordance with the definitions set forth in SEC Regulation S-K, Subpart 1300)
Resource
Category
Mass
Tonnes
(kt)
Gold
Copper
Silver
(Ag)
Au Equivalent
Au
(koz)
Au
(g/t)
Cu
(kt)
Cu
(%)
Ag
(koz)
Ag
(g/t)
AuEq
(koz)
AuEq
(g/t)
Measured
36,210
627
0.54
66
0.18
1,862
1.60
879
0.76
Indicated
53,147
582
0.34
81
0.15
2,178
1.27
911
0.53
Measured
+ Indicated
89,357
1,209
0.42
146
0.16
4,040
1.41
1,790
0.62
Inferred
42,717
407
0.30
64
0.15
1,436
1.05
677
0.49
1. Mineral
Resources are estimated using OK, constrained by geological domains based on lithology and
mineralization controls. The underlying datasets supporting the MRE, including drill hole
surveys, assay data, and density measurements, have been reviewed, validated, and verified
by the QP. Database corrections made since the PFS, including downhole survey corrections,
were confirmed as non-material through sensitivity analysis; the pre-1997 assay quality assessment
is addressed in Section 9.
2. Mineral
Resources are reported in metric tonnes within an optimized pit shell, using gold equivalent
(AuEq) cut-off grades of 0.22 g/t (0.00642 oz/st) for Oxide material, 0.21 g/t (0.00613 oz/st)
for Mixed material, and 0.20 g/t (0.00583 oz/st) for Sulfide material. No dilution or mining
recovery factors have been applied. Mineral Resources are reported inclusive of Mineral Reserves;
Mineral Resources exclusive of reserves are summarized in Table 11.15 and Table 11.16.
3. AuEq
grades were calculated using metal prices of US$3,000/oz Au, US$4.40/lb Cu, and US$35/oz
Ag, after application of a 2.1% NSR royalty, yielding realized prices of US$2,937/oz Au,
US$4.31/lb Cu, and US$34.27/oz Ag. Metallurgical recoveries represent mill recovery to concentrate
and vary by oxidation domain as follows:
Metal
Oxide
Mixed
Sulfide
Gold
67%
70%
73%
Copper
22%
75%
90%
Silver
55%
65%
72%
Smelter
payability factors of 98% Au, 97% Cu, and 95% Ag, as detailed in Table 12.2, are applied as separate deductions in the reserve economic
analysis and are not embedded in the above recovery figures. Domain-specific AuEq conversion factors, derived from the ratio of each
metal's NSR contribution to gold's NSR contribution, are: Oxide - Ag 0.009577 g/g, Cu 0.330 g/%; Mixed - Ag 0.010833 g/g, Cu 1.078 g/%;
Sulfide - Ag 0.011507 g/g, Cu 1.240 g/%. LoM average recoveries of 72.5% Au, 85% Cu, and 72% Ag, as reported in (Table 14.1), reflect
the scheduled ore feed mix, which is weighted toward sulfide material, and differ from simple domain averages due to mine sequence.
4. The
optimized pit shell was generated using the LG method incorporating metal prices of US$3,000/oz
Au, US$4.40/lb Cu, and US$35/oz Ag, operating costs of US$2.50/st mining (strip-adjusted),
US$7.00/st processing, US$1.65/st tailings, and US$1.50/st G&A (total US$12.65/st), domain-specific
metallurgical recoveries as detailed in Footnote 3, a 2.1% NSR royalty, and a 48° slope
angle. A theoretical breakeven AuEq cut-off of 0.205 g/t was calculated by dividing total
operating costs (US$12.65/st, equivalent to US$13.94/mt) by the NSR per gram of AuEq at average
domain recoveries. Reported AuEq cut-offs of 0.20 g/t to 0.22 g/t were validated against
a net block value flag incorporating grade-bin and domain-specific recovery schedules; application
of the AuEq cut-offs produces M+I resources within 0.2% of contained AuEq ounces compared
to the value-flag defined resource, confirming the grade-based cut-offs are a non-material
proxy for underlying block economics. A rehandling cost of US$1.00/st applicable to stockpiled
ore is excluded from the resource cut-off cost basis as it represents a mine sequencing cost
rather than a fundamental extraction cost; this cost is incorporated in the reserve economic
analysis.
5. Metal
prices of US$3,000/oz Au, US$4.40/lb Cu, and US$35/oz Ag were selected for resource reporting
based on 2-year trailing average prices as of February 2026 and comparison to peer company
assumptions. These prices were used to evaluate potential resource upside beyond the mineral
reserve base (US$2,100/oz Au, US$4.10/lb Cu, and US$27/oz Ag as detailed in Section 12).
Resource prices are above the 36-month historical average of US$2,593/oz Au, US$4.28/lb Cu,
and US$30.63/oz Ag (calendar years 2023-2025, sources: World Gold Council, London Metal Exchange,
London Bullion Market Association).There are no known legal, political, environmental, social,
or permitting factors that would materially affect the reported MRE. There are no known legal,
political, environmental, social, or permitting factors that would materially affect the
reported MRE.
6. There
are no known legal, political, environmental, social, or permitting factors that would materially
affect the reported MRE.
7. Mineral
Resources are classified in accordance with the definitions set forth in SEC Regulation S-K,
Subpart 1300. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources
that are not Mineral Reserves have not demonstrated economic viability.
8. Mineral
Resources are reported within U.S. Gold’s mineral tenure holdings, which include Lease
No. 0-40828 and Lease No. 0-40858, as described in Section 3.2.1. There are no known encumbrances,
liens, or third-party interests that would materially affect U.S. Gold’s ability to
develop the Mineral Resources reported herein.
9. Rounding
of reported figures may result in minor apparent discrepancies in totals of tonnage, grade,
and contained metal.
10. There
is no certainty that all or any part of the Mineral Resources will be converted into Mineral
Reserves. The MRE may be materially affected by environmental, permitting, legal, marketing,
or other relevant issues.
11. Mineral
Resources are reported on a 100% Project basis. U.S. Gold holds 100% interest in the CK Gold
Project.
12. The
effective date of this Mineral Resource Estimate is March 30, 2026.
CK Gold Project S-K 1300 Technical Report 6 May 2026
6 Mineral
Reserve Estimates
The
Mineral Reserve estimate for the Project represents a key outcome of this FS, providing a robust evaluation of the economically mineable
portion of the Project’s Measured and Indicated Mineral Resources. The reserves were defined within a final pit design guided by
a validated pit optimization process and supported by updated economic, metallurgical, and operational parameters. This assessment confirms
that the CK Gold deposit can be mined profitably under the assumptions adopted for this Study.
A
comprehensive pit optimization was first completed in 2021 using the Lerchs–Grossmann methodology. As part of the FS, this work
was revalidated with updated inputs, including revised metal prices, operating costs, recoveries, and dilution/ore loss assumptions.
The updated analysis demonstrated that the 2021 pit shell remained conservative, with the FS optimization generating more favorable economic
limits. Importantly, all blocks previously classified as ore using original parameters remained economic under the revised inputs, confirming
the stability of the ore–waste classification and the suitability of the design pit for reserve conversion.
Cut-off
determination was based on a value per ton (VPT) milling cut-off methodology, which assesses the net value of each block after processing,
tailings, rehandle, and G&A costs. Mining costs were excluded from the cut-off calculation, consistent with industry practice. A
block was classified as ore if its VPT was zero or higher. Updated metal prices (including US$2,100/oz gold, US$4.10/lb copper, and US$27/oz
silver) and improved processing assumptions were incorporated into the FS level VPT calculation.
Dilution
and ore loss were modeled using a detailed block by block analysis of ore–waste contacts across the pit. Due to large block sizes
relative to the mining equipment and the disseminated nature of the mineralization, dilution effects were found to be low. Dilution of
1.25% for low-grade ore and 0.25% for high-grade ore was applied, along with ore loss allowances of 2.0% and 0.5%, respectively. These
adjustments reflect expected operational variability without materially impacting on the economic viability of the deposit.
Based
on these parameters, the total Proven and Probable Mineral Reserves estimated are summarized in Table 1.3.
Table
1.3: Mineral Reserve Statement Effective Date March 30, 2026
(in
accordance with the definitions set forth in SEC Regulation S-K, Subpart 1300)
Reserve
Category
Mass
Tons
(Mst)
Gold
Copper
Silver
Au
Equivalent
Au
(koz)
Au
(oz/st)
Cu
(lb
millions)
Cu
(%)
Ag
(koz)
Ag
(oz/st)
AuEq
(koz)
AuEq
(oz/st)
Proven
(P1)
33.8
582
0.017
129
0.191
1,542
0.046
872
0.026
Probable
(P2)
40.8
433
0.011
130
0.16
1,489
0.037
726
0.018
P1
+ P2
74.5
1,015
0.014
260
0.174
3,032
0.041
1,598
0.021
1. Reserves
tabulated above a “milling cut-off value” per ton (see text).
2. Dilution
of 1.5% and 0.25% applied for LG and HG ore material, respectively.
3. Ore
loss of 2.0% and 0.5% applied for LG and HG ore material, respectively.
4. AuEq
values calculated assuming gold price of US$2,100/oz, silver price of US$27/oz, copper price
of US$4.10/lb and metallurgical recovery ranges of 67% to 75% for Au, 50% to 70% Ag and 25%
to 92% Cu as described in Table 1.2.
5. Totals
may not sum due to rounding.
6. The
effective date of this Mineral Reserve estimate is March 30, 2026.
CK Gold Project S-K 1300 Technical Report 7 May 2026
7 Mine
Design, Optimization, and Scheduling
The
Project FS-level mine plan presents a comprehensive strategy for developing and operating an open pit mine that is aligned with the geological,
geotechnical, hydrogeological, and operational characteristics of the orebody. Open pit surface mining was selected based on the near
surface location of the deposit, the disseminated mineralization style, and economic outcomes from pit optimization studies.
A
detailed geotechnical assessment conducted by Piteau Associates established the recommended slope designs for the 30 ft bench configuration.
Sector specific inter ramp angles, face angles, and catch bench widths were defined to maintain safe operating conditions. Controlled
blasting practices, benching trials, and ongoing geotechnical observation form the basis for maintaining slope integrity throughout excavation.
Continued monitoring using survey prisms, radar systems, and visual inspections is recommended to ensure early detection of slope deformation
and to support safe mining operations.
The
hydrogeological characterization performed by NEIRBO Hydrogeology indicates that groundwater inflows to the open pit will be low and
manageable using passive dewatering through in pit sumps. Localized depressurization will be required along the east and southeast slopes
to meet stability criteria. Monitoring of pore pressures with vibrating wire piezometers, together with integrated slope monitoring systems,
will ensure depressurization targets are achieved and maintained. Post closure modeling shows that backfilling the pit with tailings
and waste rock will prevent pit lake formation and maintain hydraulic containment.
The
mine design incorporates a starter pit and three phases of expansion, including one small satellite pit to optimize early mill feed quality
during Year 1. Ore production is planned at a nominal rate of 20,000 st/d, resulting in a mine life of approximately eight and a half
years, followed by nearly two years of stockpile reclamation. Mine design parameters, including bench geometries, ramp widths, and slope
criteria, are aligned with geotechnical recommendations and equipment capabilities.
Ore
handling strategies include the creation of both high-grade (HG) and low-grade (LG) stockpiles. LG ore will initially be fed directly
into the mill and will be stockpiled after Year 3 and reclaimed once the pit is depleted. The designed LG stockpile is planned to hold
roughly 15.6 Mst once pit operations are completed. Processing of this material, after the pit is depleted, will take approximately 2
years
A
total of 65.8 Mst of waste rock will be mined, of which 7.7 Mst is classified as Potentially Acid Generating (PAG). PAG
material will be placed within the lined portion of the Tailings Management Facility (TMF), while the majority of the Non-Acid Generating
(NAG) material will be used to construct TMF containment berms. Remaining NAG waste will be stored in the East, West and Southwest Waste
Rock Facilities, which have a combined capacity of 25.6 Mst. Between Years 7 and 9, up to 6.7 Mst of NAG waste will be rehandled
from the WRFs to support ongoing TMF berm construction.
A
contractor operated mining model was selected as the preferred fleet approach, based on detailed trade off analysis demonstrating comparative
mining unit costs relative to an owner operated model with minimum upfront capital risk. Fleet sizing was developed using haulage modeling,
benchmarked productivity parameters, and detailed equipment utilization assumptions. Project employment will peak at approximately 330
personnel, with staffing distributed across mine operations, tailings placement, site administration, technical services, and environmental
management.
Overall,
the mine plan provides a technically robust and operationally efficient framework for safe, responsible development of the Project. Integrated
geotechnical, hydrogeological, operational, and economic analyses support a feasible and well-structured approach to ore extraction,
material handling, and long term mine.
CK Gold Project S-K 1300 Technical Report 8 May 2026
8 Mineral
Processing
The
Project process plant has been designed to treat 20,000 st/d of gold-copper sulfide ore and produce a saleable flotation concentrate
containing copper, gold, and silver. The facility incorporates conventional comminution, modern Jameson Cell flotation technology, and
a dry-stack tailings system to achieve high metallurgical performance, operational reliability, and responsible water and tailings management.
The
processing flowsheet begins with ore delivery from the open pit mining operation to a primary crushing system, followed by crushed ore
storage and reclaim to a two-stage grinding circuit consisting of a semi-autogenous grinding (SAG) mill in closed circuit with a pebble
crusher and a ball mill in closed circuit with hydrocyclones. Ground slurry feeds a multi-stage flotation circuit comprising rougher,
scavenger, regrind, and cleaner stages designed to efficiently recover and upgrade copper and gold mineralization.
Life
of Mine (LoM) design criteria support concentrate grades of approximately 12% to 16% Cu and 1 oz/st Au, with targeted recoveries of 80.6%
copper, 71.5% gold, and 68.7% silver . The final concentrate is thickened, filtered to below 10% moisture, and stored onsite prior
to shipment.
Flotation
tailings are thickened and processed through vibrating vacuum belt filters to produce a dry filter cake averaging around 14.5% moisture
content, which is hauled to a dry-stack tailings facility. The tailings and concentrate thickening circuits are integral to the site’s
water-recycling strategy, returning overflow and filtrate streams to the process water system and reducing raw-water demand from the
Crystal Lake Reservoir.
The
plant’s reagent systems include PAX and A-208 collectors, MIBC frother, lime for pH control, and flocculants for thickening and
filtration. These reagents are prepared and handled in dedicated, MSHA-compliant facilities equipped with appropriate containment, instrumentation,
and safety systems.
Supporting
infrastructure includes raw and process water storage tanks, stormwater capture and reclaim systems, air supply systems for instrumentation
and filtration, and dust-suppression equipment within the crushing area. Water and air services are distributed through plant-wide ring
mains to ensure operational availability and consistent supply during both routine operation and plant stoppages.
Plant
staffing includes 12 salaried personnel and 76 hourly employees, with operational roles scheduled on rotating 12-hour shifts to provide
continuous coverage across crushing, grinding, flotation, tailings handling, reagent preparation, maintenance, safety, and supervisory
functions.
Overall,
the process plant design for the Project reflects a modern, efficient, and environmentally responsible approach to gold-copper processing.
The selected technologies and operating criteria support a projected 10-year mine life, delivering reliable concentrate production while
maintaining high availability, metallurgical performance, and safe operating practices.
CK Gold Project S-K 1300 Technical Report 9 May 2026
9 Infrastructure
An
access road approximately 4.2 miles long and 26 feet wide will be constructed, generally centered along a 60-foot-wide Right-of-Way (RoW)
outside the project site boundary.
The
infrastructure planned for the Project consists of the following:
● Mine
infrastructure including truck shop, wash bay, dewatering pumps, explosives storage, fuel
storage.
● Tailings
Management Facility (TMF).
● East,
West, and Southwest Waste Rock Storage Facilities.
● Low-Grade
Ore Stockpile.
● Water
collection ponds.
● Process
Plant.
● Concentrate
Storage.
● Administration
Building and Changehouse.
● Warehouse.
● Guardhouse.
The
TMF is sited east of the process plant within a valley formed by the ephemeral South tributary of Middle Crow Creek. It begins to the
east of the South Crow Creek water transmission pipeline easement. The basin's topography contains and directs the placement of tailings
towards the northeast.
The
filtered tailings will be co-deposited with waste rock to provide structural buttresses for stability and a cover to protect against
weathering and wind erosion. The TMF will be developed in three phases, each consisting of a prepared subgrade, underdrain collection
system, composite liner system (CLS), seepage collection system, tailings, and waste rock. The tailings will be placed in the TMF in
10-to-20-foot lifts, and the waste rock buttress and shell will be installed in 10- to 20-foot lifts as the tailings increase in elevation.
Processed tailings will be hauled to and placed in the TMF until Year 8.25. After that, the remaining tailings produced will be hauled
to and placed in the open pit.
Designs
were prepared for the mine maintenance area, administration and warehouse building area, and other supporting facilities. The civil grading
designs utilized 3H:1V to 5H:1V slopes to balance the cut and fill areas, address stormwater run-off, and reduce erosion.
Electrical
power for the Project will be supplied by a local utility company, Black Hills Energy (BHE), under an Industrial Contract Service Agreement.
The power demand for the Project requires that a new 115 kV power line be constructed for the Project by BHE. The power line would be
constructed from BHE’s West Cheyenne substation, located approximately 16 miles east of the Project, to a new BHE owned, built,
and operated 115 kV / 13.8 kV distribution substation (including transformer) near the mine. The estimated construction costs for the
proposed power line, easement cost, and substation can be amortized in addition to the base power unit rate charged.
The
Project will operate in a net water deficit situation, given that the mean annual evapotranspiration exceeds the mean annual precipitation.
The total average Project water consumption will be 562 gallons per minute (gpm). Water to meet processing, mining, and potable water
demand has been identified, and potential well sites have been investigated. A contract to supply water with the Board of Public Utilities
(BOPU) in Cheyenne, Wyoming, has been executed, outlining water sourced from an infiltration station located in the Crystal Reservoir
northwest of the site and piped to the raw water tank. Contingency water sources have been identified in the event of water curtailment
by BOPU. However, an agreement with the Ferguson Ranch and Sutherland Ranch, the surrounding landowners, on a water exploration program
has successfully identified nearby sources proximal to the Project. Following studies by TGI, water generated from pit dewatering, surface
run-off, and waste rock and tailings seepage will be recycled for use in mineral processing and/or dust suppression, reducing the volume
of make-up water.
CK Gold Project S-K 1300 Technical Report 10 May 2026
10 Environmental,
Permitting, and Community Impact
Environmental
studies began in October 2020 to establish the pre-mining site conditions and fulfill the requirements for permitting. The environmental
study reports, including baseline, groundwater modeling, seepage modeling, and geochemical characterization, have been submitted to the
State as part of the permitting process. Applications for the principal state have been granted the Industrial Siting Permit (ISP0, May
2023, and the Mine Operating Permit (MOP) in April 2024. The MOP was conditional on a water discharge permit (WYPDES), furnishing a reclamation
bond, and an Air Quality Permit (AQP), and these conditions were met in May, June, and November, respectively. The Project will occupy
state-owned and private land. Permitting is primarily at the state and local level; no major federal permits are required.
Mining
projects in Wyoming that are not located on Federal Land fall under the jurisdiction of the Wyoming Department of Environmental Quality,
Land Quality Division (DEQ-LQD), which issues the MOP. This is an operating permit needed to advance the Project and start construction.
The Project initially applied for the MOP in September 2022. The Project application went through two rounds of technical review. The
MOP was granted to the Project in April 2024.
The
DEQ-LQD has permitted the Project's exploration activities to date. The Project has posted an exploration bond to guarantee the reclamation
of surface disturbance caused by the development of exploration drill pads, test pits, and some roads. The exploration bond release is
currently pending the re-establishment of revegetated areas.
In
February 2021 the US Army Corps of Engineers (USACE) issued an Approved Jurisdictional Determination, under which two surface water bodies
and associated wetlands in the Project area are considered Waters of the United States and subject to USACE jurisdiction and permitting
for discharging of dredged or fill materials. There are no plans for project discharges or dredge or fill material deposition in these
surface waters. Therefore, no further USACE permitting was anticipated. The USACE provided the Project with a no permit required letter
in April 2024.
The
Project required an Air Quality Permit to Construct and Operate issued by the DEQ’s Air Quality Division (DEQ-AQD). This permit
was approved in November 2024 with a New Source Review, including the development of the Project’s air emission inventory. Electrical
power will be supplied from a local utility rather than on-site generators (an on-site standby generator will be used in case of power
interruptions). The permit application was submitted and underwent agency review and a public comment period before the final agency
review. The air quality permit was granted in November 2024.
The
Project also required an Industrial Siting Construction Permit issued by the DEQ’s Industrial Siting Division (ISD). This permit
is required for projects exceeding US$253.8 million in construction costs. The application, including a socioeconomic and environmental
impact assessment, was submitted in February 2023, following public notifications to affected local government agencies and two public
informational meetings in Laramie County and the adjacent Albany County.
DEQ-ISD granted the Industrial Siting Construction Permit to the Project in June 2023.
CK Gold Project S-K 1300 Technical Report 11 May 2026
The
State Engineer’s Office (SEO) issues permits to appropriate water for beneficial use, as well as permits to construct and operate
water related infrastructure such as wells, mine dewatering systems, and reservoirs, including stormwater or sediment control structures.
SEO permits to construct and abstract water from the Project’s surface water diversion channels and detention ponds were received
in 2022 and 2023. Applications for permits to abstract groundwater flowing into the mine pit and to install a proposed on-site potable
water well were also approved in 2023.
The
DEQ Water Quality Division, State Fire Marshall, and Laramie County will require several other permits. Additionally, the US Environmental
Protection Agency has jurisdiction over public water supply systems in Wyoming and requires a permit to supply potable water from the
proposed on-site well. These permits will entail significantly less time and effort than the principal state permits granted.
In
addition to government agencies’ permitting requirements, the Project’s development will require certain agreements with
private local entities. Agreements with Ferguson Ranch were negotiated for surface use rights, easements, and temporary rights to
on-site water sources. Planning for a power supply agreement is also ongoing with Black Hills Energy. Beyond the extensive outreach
during the ISP, U.S. Gold has and continues to reach out to and provide project information to various additional local public and
private entities that may be affected by and/or interested in the Project. Procurement of goods and services and hiring of personnel
are governed by the Project’s policy of prioritizing local and State of Wyoming sources.
An
Environmental Social Management System (ESMS) is being prepared consistent with Equator Principles which will provide a management and
measurement instrument focused on avoiding or mitigating environmental impacts throughout the Project life cycle. Waste rock and tailings
generated during mining and mineral processing will be deposited in engineered facilities on the Project site. Geochemical testing of
mine rock and tailings using industry standard methods on representative samples indicates a limited probability of producing Acid Rock
Drainage (ARD) and/or metal release to water. Static geochemical testing on tailings samples produced by locked cycle laboratory testing
indicates that the tailings are not acid generating. Static geochemical testing of waste rock samples indicates only a small percentage
of waste rock is PAG. Confirmatory kinetic and leach test results show no or low production of acidic water or metal release for all
tested samples.
The
tailings will be filtered to extract as much moisture as feasible prior to their deposition, maximizing their structural strength and
geotechnical stability, thereby avoiding the need for a tailings dam and the associated stability and seepage risks. Filtered tailings
also maximize the amount of water that can be recycled to mineral processing, reducing make-up water requirements and minimizing overall
water consumption. The tailings will be co-deposited in a TMF with waste rock to provide structural buttresses and a retention shell
for stability. Slope stability analyses of the TMF under static, pseudo-static, and post-peak loading conditions, including liquefaction
assessment, were performed to verify that acceptable safety factors were obtained.
Run-off
and seepage from the TMF will be collected in detention ponds at the downstream toe. A liner will limit seepage to the subsurface. A
seepage collection drain installed above the liner will maintain a low hydraulic head in the bottom of the tailings mass and promote
free drainage of the tailings, minimizing tailings saturation. The seepage collection drain will discharge to the detention pond downstream
of the TMF.
To
minimize fugitive dust emissions from the TMF, the top of the tailings surfaces will be compacted as quickly as feasible following tailings
deposition, spreading the tailings by dozers using a smooth roller compactor to seal the surface. Once the final tailings slope and elevation
have been achieved, the waste rock retention shells will be placed over the exposed tailings slopes. Speed limits will be imposed and
enforced for mobile equipment operating on and around the TMF. Water will be sprayed on active surfaces to control fugitive dust emissions
as required.
CK Gold Project S-K 1300 Technical Report 12 May 2026
Waste
rock will be used for construction of haul roads, erosion control features, and buttresses forming the outer shell of the TMF. Surplus
waste rock will go into the West and East Waste Rock Facilities. These facilities are designed to have a slope angle of 3H:1V, which
is substantially flatter than the rock’s angle of repose, inherently providing an acceptable safety factor for geotechnical stability.
Run-off and seepage will be collected in sedimentation ponds constructed at the downstream toe of the waste rock facilities. While kinetic
testing on waste rock resulted in no ARD/metal leaching, the Project proposes segregating and isolating PAG waste rock, as determined
by NAG pH testing, representing less than 11% of the total waste rock to be excavated and handled. PAG waste rock is proposed to be deposited
in the interior of the lined TMF, as space allows, and, if needed, in the open pit after Year 8.
Extensive
hydrogeological site characterization has been completed to support the development of a regional groundwater flow model. The model simulates
pre-mining conditions and hydrological changes during mining and post-mining. Predicted mine-induced groundwater drawdown decreases rapidly
away from the pit. The 5-ft drawdown will generally remain within the Project site boundary. The nearest domestic wells are 2,000 ft
from the predicted 10 ft drawdown area and are not expected to experience discernable effects. Likewise, the effects on surface water
flow in nearby streams will be negligible. The average annual groundwater pit inflow is expected to be less than 15 gpm, which will be
captured using passive, in-pit sumps. After mining, groundwater and precipitation flowing into the backfilled pit will cause a gradual
rebound of the groundwater level. A pit lake is not expected to form since evaporation losses will keep the groundwater level below the
top of the backfill. This will result in the pit being a hydraulic sink with no groundwater outflows.
The
Project site will be in a net water deficit situation, given that the mean annual evapotranspiration exceeds the mean annual precipitation.
To minimize the overall demand for water from external sources, the Project will implement the following water conservation measures:
●
Tailings
Filtration.
●
Pit
Dewatering Recycling.
●
Surface
Run-Off and Seepage Recycling.
●
Irrigation
Ditch.
●
On-Site
Potable Water Supply Well.
●
Truck
Wash Water Recycling.
●
Dust
Control Water recycling.
Tailings
filtration maximizes the amount of water recycled back into the flotation process, thereby avoiding the need for a tailings dam where
much of the water would be lost to seepage and evaporation.
●
Pit
inflow collection in a sump to use for dust control in the pit.
●
Surface
run-off and seepage collection from waste rock facilities, TMF, and other facilities to use for dust control on site.
●
Conversion
of an existing on-site irrigation ditch providing water during the spring season.
●
On-site
potable water supply well.
●
Truck
wash water recovery and reuse for dust control.
●
Recycling
of water used for in-pit and primary crusher dust control.
CK Gold Project S-K 1300 Technical Report 13 May 2026
The
Project submitted a Reclamation Plan as part of the MOP application. The closure objective is to reclaim the site to enable the resumption
of its current use of cattle grazing and mule deer winter range. A reclamation cost estimate has been developed for the reclamation bonding
process. Concurrent reclamation will be practiced during the LoM to reclaim portions of the project site as soon as feasible before the
end of mining, securing corresponding early releases in bonding obligations. At the end of operations, the process plant and supporting
facilities will generally be demolished, and their footprints will be regraded. The disturbed areas, including the waste rock facilities
and TMF, will be covered in topsoil and revegetated. Micro-topographical undulations and rock outcroppings will be created in the TMF
slope for wildlife habitat and to promote revegetation. After the pit is fully excavated, it will be backfilled with tailings produced
during the last two years of post-mining mineral processing. With a combination of blasting and earthmoving, the pit rim will be bulldozed
into the pit to create a 3H:1V final pit wall slope covering the tailings. To help increase the local area’s long-term water storage
capacity, discussions have begun with BOPU about the possibility of converting the post-mining open pit into a water storage reservoir.
11 Capital
Costs, Operating Costs, and Financial Analysis
A
breakdown of the LoM capital cost estimate for the Project, including pre-production owner’s costs that are expensed, is given
in Table 1.4.
Table
1.4: LoM Capital Costs
Description
Initial
(US$’000)
Sustaining
(US$’000)
LoM
Total
(US$’000)
1000
- Mining
5,500
1,303
6,803
2000
- Process Plant
219,194
20,275
239,469
3000
- Geotechnical Structures
21,623
8,000
29,623
4000
- Infrastructure
21,388
4,946
26,334
5000
- Construction Indirects
43,914
0
43,914
6000
- Consultants
16,136
0
16,136
8000
- Other Indirect Costs
20,116
0
20,116
Contingency
46,514
0
46,514
Sub-Total
Direct and Indirect Capital
394,385
34,525
428,909
0200
- Mining / Mobilization
4,085
0
4,085
9001
- Insurance (Construction)
1,958
0
1,958
9000
- Owner's Costs
21,959
0
21,959
Pre-Production
Owner's Costs
28,001
0
28,001
Closure
Costs
0
26,995
26,995
Total
Capital Expenditure
422,386
61,520
483,906
CK Gold Project S-K 1300 Technical Report 14 May 2026
The
forecast operating costs are zero-based estimates derived inter alia from mining contractor bid unit rates, estimated annual consumption
of fuel, electrical power, reagents and other consumables, and operating, maintenance, technical services and supervisory manpower requirements.
The resulting estimates for mining, processing and general & administrative costs total US$18.48/t processed. Selling cost, royalties
and production taxes bring the total to US$$21.83/t processed, made up as follows:
Mining
US$7.33/t
processed (or US$3.88/t mined).
Processing
Costs – incl. tailings placement
US$9.59/t
processed.
G&A
Costs
US$1.54/t
processed.
Selling
Cost, Royalties and Production Taxes
US$3.37/t
processed.
Total
Operating Cost
US$21.83/t
processed.
An
after-tax, discounted cash flow model was developed to assess the economic performance of the Project. This analysis relies on this report’s
mining schedule, capital and operating cost estimates, and recovery parameters. The model assumes 100% equity funding, a 5% discount
rate, a gold price of US$3,250/oz, copper price of US$4.50/lb. and silver price of US$40/oz. The key parameters and results of the analysis
are shown in Table 1.5. The positive economic outcome of the feasibility study is used to validate the CK Gold Mineral Reserve Estimate.
CK Gold Project S-K 1300 Technical Report 15 May 2026
Table
1.5: Feasibility Study Parameters and Results
Item
Unit
Value
Mining
Total
Tonnage Mined
k
ton
140,597
Total
Tonnage Moved (includes stockpile and waste rehandle)
k
ton
163,546
Total
Ore Mined
k
ton
74,527
Strip
Ratio (Waste: Ore)
t:t
0.89
Operating
Mine Life
years
11
Contained
Gold
koz
Au
1,015
Contained
Copper
k
lbs Cu
259,880
Contained
Silver
koz
Ag
3,030
Contained
Gold Equivalent
Moz
AuEq
1.4
Processing
LoM
Average Gold Recovery
%
71.5
LoM
Average Copper Recovery
%
80.6
LoM
Average Silver Recovery
%
68.7
Payable
Metals in Concentrate
LoM
Gold Payable
koz
Au
707.2
LoM
Copper Payable
k
lbs Cu
186,726
LoM
Silver Payable
koz
Ag
1,874
LoM
Gold Equivalent Payable
koz
AuEq
931
Average
Annual Gold Payable - Yr 1 to Yr 11
koz
Au
64.3
Average
Annual Copper Payable - Yr 1 to Yr 11
k
lbs Cu
16,975
Average
Annual Silver Payable - Yr 1 to Yr 11
koz
Ag
170
Average
Annual Gold Equivalent Payable - Yr 1 to Yr 11
koz
AuEq
85
Average
Annual Gold Payable - Yr 2 to Yr 8
koz
Au
77
Average
Annual Copper Payable - Yr 2 to Yr 8
k
lbs Cu
21,495
Average
Annual Silver Payable - Yr 2 to Yr 8
koz
Ag
189
Average
Annual Gold Equivalent Payable - Yr 2 to Yr 8
koz
AuEq
102
Costs
per Ton
Mining
Costs
USS/st
mined total
3.88
Mining
Costs
US$/st
processed
7.33
Processing
Costs – including Tailings Placement
US$/st
processed
9.59
G&A
Costs
US$/st
processed
1.54
Total
Site Operating Cost
US$/st
processed
18.46
Total
Cash Costs
LoM
Total Cash Cost, Net-of-Copper-Silver By-Product
US$/oz
Au
1,007
LoM
Total Cash Cost, Co-Product
US$/oz
AuEq
1,748
LoM
AISC, Net-of-Copper-Silver By-Product
US$/oz
Au
1,094
LoM
AISC, Co-Product (US$/oz AuEq)2
US$/oz
AuEq
1,814
Capital
Expenditure
Initial
Capital – including Contingency
US$
million
394
Pre-Production
Owners Costs
US$
million
28
Sustaining
Capital
US$
million
35
Reclamation
Cost (US$ million)
US$
million
27
Base
Case Metal Price Assumptions
Gold
Price (US$/oz)
US$/oz
Au
3,250
Copper
Price (US$/lb)
US$/lb
Cu
4.5
Silver
Price (US$/oz)
US$/oz
Ag
40
Base
Case Project Economics
After-Tax
IRR
%
27
After-Tax
NPV5%
US$
million
632
Payback
Period
years
2.5
Average
Annual Operating Net Free Cash Flow (US$M)2 – Yr 1 to Yr 11
US$
million
124
LoM
Total Net Free Cash Flow ($M) (incl. capital investment and closure)
US$
million
967
CK Gold Project S-K 1300 Technical Report 16 May 2026
A
sensitivity analysis on metals pricing indicates additional potential for this project at higher metals pricing, Table 1.6. Additionally,
the sensitivity indicates the robustness of the project with positive economic outcomes at reduced metals pricing.
Table
1.6: Metal Price Sensitivity
Gold
Price
(US$/oz)
Before
Tax
After
Tax
NPV
(US$
million)
IRR
(%)
NPV
(US$
million)
IRR
(%)
Payback
(Years)
6,000
2,151
65.00%
1,774
57.50%
1.1
5,500
1,898
59.40%
1,569
52.50%
1.3
5,000
1,645
53.50%
1,363
47.40%
1.4
4,500
1,392
47.40%
1,155
42.00%
1.6
4,000
1,139
41.00%
946
36.30%
1.8
3,500
886
34.30%
737
30.20%
2.2
(Base
Case) 3,250
759
30.70%
632
27.00%
2.5
3,000
633
27.10%
528
23.80%
2.9
2,500
380
19.20%
320
16.80%
3.8
2,000
127
10.20%
98
8.50%
5.6
1,500
-126
0.00%
-147
0.00%
15.8
12 Conclusions
and Recommendations
12.1 General
Recommendations
Based
on the results of the feasibility study, it is recommended that the Project advance to the next stage of development. The study demonstrates
that the selected mining and processing option is technically feasible and economically viable under the stated assumptions. Mineral
production schedules, mine design, processing recoveries, infrastructure requirements, and capital and operating cost estimates have
been developed to a level of accuracy consistent with a feasibility study. Identified technical, environmental, permitting, and execution
risks are considered manageable with further detailed engineering and project controls. Advancement to detailed engineering and permitting
is recommended, with the objective of supporting a construction decision, subject to corporate approval and prevailing market conditions.
12.2 Specific
Work Plan
Economic
analysis (Section 19) indicates the project is financially robust and should advance to financing, detailed engineering, and execution
planning; conservative assumptions support resilient results across scenarios, and the methodology to date is technically defensible.
Deposit
Understanding
As
indicated in Section 6 additional drilling should be performed to solidify understanding of the Copper King fault and mineral deposit
model. However, the density of drilling and the distribution of metal values suggest a high level of confidence in the stated reserves
Metallurgical
Testwork
Additional
metallurgical testwork is recommended (beyond Feasibility Study needs) to reduce risk for detailed engineering and early ops: more low-grade/variability
and comminution testing, confirm Jameson Cell suitability, do vendor regrind testing, and validate/optimize tailings filtration and cake
vibration performance at scale.
CK Gold Project S-K 1300 Technical Report 17 May 2026
Ore
Processing
It
is recommended that an oxide-dominant processing strategy be further evaluated to determine whether blending or campaign (batch) operation
is preferred during Year 1.
Design
and Engineering
To
advance into detailed design and project execution, the following actions are recommended:
●
Finalize
Equipment Specifications and Procurement Packages.
●
Secure
Long-Lead Items.
●
Complete
issued for construction (IFC) level Engineering.
●
Define
Contractor Scopes and Execution Strategy.
●
Validate
contractor scope definitions in alignment with the selected EPCM/EPC execution model.
●
Finalize
concentrate off-take agreements (MOU) and consider alternative concentrate transport options to smelter.
Environmental,
Permitting, and Social
The
following is a summary of the Environmental, Social, and Permitting recommendations:
●
Continue
activities needed to maintain the required state and local permits.
●
Continue
project information disclosure and consultation with local stakeholders, especially focusing on project impact assessment, local
project benefits, and impact mitigation measures.
●
Conclude
the power supply agreement.
●
Establish
preliminary engineering to establish contingency connections to backup water supply sources.
●
Additional
hydrogeological assessment will need to be performed to determine potential impacts of the Red Canyon and Sutherland Ranch well sources.
●
Continue
engagement with the City of Cheyenne regarding the potential post-mining conversion of the pit to a water storage reservoir serving
the city.
●
Complete
and continue to implement a Project ESMS consisting of site-specific plans and procedures governing the environmental management
of project activities causing potential environmental impacts during construction, operations, closure and post-closure.
CK Gold Project S-K 1300 Technical Report 18 May 2026
2 INTRODUCTION
2.1 ISSUER
Micon
International Limited (Micon) was commissioned by U.S. Gold Corp. (U.S. Gold) to prepare a Feasibility Study (FS) for the CK Gold Project
(Project or Property). This is a Technical Report Summary (TRS) summarizing the findings of the FS in accordance with Securities Exchange
Commission Part 229 Standard Instructions for Filing Forms Regulation S-K subpart 1300 (S-K 1300). This TRS presents the mineral resources,
mineral reserves, and economics for the Project. The effective date of this Report is March 30, 2026.
U.S.
Gold is a company focused on gold exploration and development and advancement of high potential gold projects in Wyoming, Nevada and
Idaho, USA. U.S. Gold trades on the US Stock Exchange as USAU (NASDAQ: USAU).
2.2 TERMS
OF REFERENCE
Micon
was engaged by U.S. Gold to prepare a Feasibility Study (FS) for the CK Gold Project (the Project or Property). This TRS has been prepared
in accordance with the disclosure requirements of the U.S. Securities and Exchange Commission’s Regulation S K, Subpart 1300 (S
K 1300).
The
TRS provides a summary of the FS results, including the estimation of mineral resources and mineral reserves, the proposed mine plan,
and the associated technical, operational, and economic evaluations for the Project. All findings, conclusions, and recommendations presented
herein are based on the effective date of March 2026.
The
quality of the information, interpretations, conclusions, and estimates contained herein reflects the professional judgment and level
of effort applied by Micon in the execution of its services. These results are based on:
●
Information
and documentation available to Micon at the time of report preparation; and
●
Data,
assumptions, and supporting materials provided by the Client.
The
assumptions, limiting conditions, and qualifications outlined in this Report are integral to its interpretation and use. Micon has relied
on the accuracy and completeness of the information supplied and has not independently verified all data.
This
Report has been prepared in accordance with applicable regulatory requirements and industry standards governing technical disclosures
for mineral projects. The conclusions and opinions expressed herein are subject to the inherent uncertainties associated with the interpretation
of geological, technical, and economic information. Micon accepts no responsibility for any losses or damages arising from the use of
this report for purposes other than those for which it is intended.
The
Report must be read in its entirety. Sections or excerpts should not be taken out of context. No part of this document may be reproduced
or used for public disclosure without the written consent of Micon.
The
regional geological setting of the CK deposit within the Cheyenne suture belt is significant, as is the nature of occurrence of sulfide
mineralization as disseminations in undeformed granodiorite and alignment with foliation in foliated to mylonitized granodiorite. Based
on the available data and information to date, we suggest that Klein’s (1974) description of the CK deposit as a “structurally
controlled base and precious metal deposit hosted in a Precambrian shear zone” is essentially correct if you want further refinement.
While Klein’s description does not present a conventional deposit model, it does provide a reasonable interpretation on which to
base plans for future exploration. Future drilling exploration (and petrographic and/or mineralogical analysis) should be carefully planned
to test Klein’s interpretation and target data useful in further developing an appropriate deposit model for the Project, whether
conventional or not.
CK Gold Project S-K 1300 Technical Report 19 May 2026
2.3 SOURCES
OF INFORMATION
The
information, opinions, conclusions, and estimates presented in this Report are based on the following:
●
Information
and technical data provided by U.S. Gold.
●
Review
and assessment of previous investigations.
●
Assumptions,
conditions, and qualifications as outlined in the report.
●
Review
and assessment of data, reports, and conclusions from other consulting organizations and previous property owners.
These
sources of information are presented throughout this Report and in the References section. The Qualified Persons (QPs) are unaware of
any material technical data other than that presented by U.S. Gold.
2.4 DETAILS
OF INSPECTION
This
section provides a list of the QPs involved in preparing this TRS and details of their inspections of the Property.
Mark
Shutty, CPG, MAIG, Principal Geologist at Drift Geo LLC, (QP) visited the CK Project site and U.S Gold’s logging and sample storage
facilities in Cheyenne from July 26 to July 27, 2021, and again on July 11, 2024. Mr. Shutty has reviewed the drill hole datasets and
geological information supporting the Mineral Resource Estimate.
Andy
Holloway, P.Eng., metallurgist was unable to visit the Project. John Wells, consulting metallurgist for the registrant, worked closely
with Andy Holloway visited the core storage and witnessed metallurgical labs on multiple occasions listed below throughout validating
the metallurgy:
●
2021
–Project core shed and a selection of samples.
●
2021
- Kappes, Cassiday & Associates (KCA) Laboratory, Reno, Nevada, USA.
●
2022,
2024 and 2025, Base Metallurgical Laboratories Ltd (Base Metallurgical), Kamloops, BC, Canada.
●
2025
XPS, Sudbury, Canada (August 2025)
●
2025
Jenike and Johanson (J&J), Toronto, Canada (September 2025)
Alex
Zaitchenko (QP) and Mohsin Hashmi (QP) of Micon visited the site from December 3 to 4, 2025 to assess the topography and constructability
of the Project, understand the site access, and confirm the proximity to the existing infrastructure in the site vicinity.
Justin
Knudsen, Dominic Rodano and Ron Burgess of Tierra Group International Ltd. (TGI) (QP) visited the property from July 28 to August 1,
2025, and Ron Burgess again on August 5, 2025 to assess general site topography, visible geology, and other site conditions.
Kevin
Francis, SME-RM (QP), Vice President of Exploration and Technical Services with the registrant has management responsibility over the
CK Gold project and visits the site, logging and storage facilities regularly with the last visit in April 2026.
CK Gold Project S-K 1300 Technical Report 20 May 2026
2.5 QUALIFIED
PERSONS
This
Report was prepared by the QPs summarized in Table 2.1, with their respective contributions and responsibilities outlined.
Table
2.1: Qualified Persons Names and Details
Responsible
Company
QP
Individuals
Responsible
Sections
Drift
Geo LLC
Mark
Shutty
1,
9, 11
Halyard,
Inc
Andy
Holloway
1,
10, 16, 22, 23
Ivana
Sabaj
14,
22
Micon
International Limited
Alex
Zaitchenko, Chris Jacobs, Mike Round, Mohsin Hashimi
1,
2, 12, 13, 14, 15.5 , 15.6 , 15.7, 15.8, 18, 19, 21, 22, 23.1 , 23.2.1, 23.2.2, 23.2.3., 23.2.4, 23.2.5, 24, 25
Tierra
Group International Ltd.
Justin
Knudsen, PE
1,
15.1, 15.2, 15.3 ,15.4
U.S.
Gold Corp (Registrant)
Kevin
Francis, SME-RM, VP,
1,
3, 4, 5, 6, 7, 8, 17, 20, 23.2.5,25
2.6 PREVIOUS
REPORTS ON THE PROJECT
U.S.
Gold published a Technical Report and Preliminary Economic Assessment (PEA) for the CK Gold Project (then referred to as the Copper
King Project) in December 2017. This report disclosed a mineral resource under the Canadian Securities Administrators (CSA) NI 43 101
Standards of Disclosure for Mineral Projects reporting requirements.
Gustavson
Associates, LLC (Gustavson) prepared and submitted the first SK-1300 TRS for the CK Gold Project, titled “SK-1300 Technical Report
Summary CK Gold Project” dated December 1, 2021 .
Samuel
Engineering Inc. prepared and submitted the Pre-Feasibility Study (PFS) for the CK Gold Project titled “Technical Report Summary
CK Gold Project” dated February 10, 2025.
The
authors are unaware of any prior TRS submissions by previous owners.
CK Gold Project S-K 1300 Technical Report 21 May 2026
2.7 LIST
OF ABBREVIATIONS AND UNITS
2.7.1 Abbreviations
and Acronyms
Abbreviations
and acronyms used in this Report are listed in Table 2.2. In keeping with standard scientific writing methods, Section 17 contains
italicised Latin names for wildlife species.
Table
2.2: Abbreviations and Acronyms
Unit
Abbreviation
/ Acronym
Unit
Abbreviation
/ Acronym
Two-dimensional
2D
Jenike
and Johanson
J&J
Three-dimensional
3D
Locked
cycle testing
LCT
Air
Quality Permit
AQP
Low-Grade
LG
American
Smelting and Refining Company
ASARCO
Liner
Low-Density Polyethelene
LLDPE
Barringer
Laboratories, Inc.
Barringer
Life-of-Mine
LoM
Black
Hills Energy
BHE
Material
Take Off
Mine
Development Associates
MTO
MDA
Base
Metals Laboratory Results
BML
metasedimentary–metavolcanic
MSED
Burlington
Northern Santa Fe
BNSF
Mountain
Lake Resources
Mountain
Lake
City
of Cheyenne Board of Public Utilities
BOPU
Non-Acid
Generating
NAG
Caledonia
Resources Ltd.
Caledonia
Net
Present Value
NPV
Capital
Costs
CAPEX
Operational
Efficiency
OE
Computational
Fluid Dynamics
CFD
Ordinary
Kriging
OK
Cost
and Freight
CFR
operating
expenditure
OPEX
Canadian
Institute of Mining, Metallurgy and Petroleum
CIM
Office
of State Lands and Investments
OSLI
Compass
Minerals Ltd.
Compass
Quality
Assurance/Quality Control
QA/QC
Copper
King Mining Company
Copper
King
Process
Design Criteria
PDC
Carboxymethylcellulose
CMC
Royal
Gold, Inc.
Royal
Gold
Certified
Reference Material
CRM
Request
for Quotation
RFQ
Construction
Work Package
CWP
semi-autogenous
grinding
SAG
Canadian
Standards Association
CSA
Saratoga
Gold Company Ltd
Saratoga
Department
of Environmental Quality
DEQ
Potentially
Acid Generating
PAG
PPE
Wyoming
Department of Environmental Quality, Land Quality Division
DEQ-LQD
Personal
Protection Equipment
Pre-Feasibility
Study
PFS
Digital
Terrain Model
DTM
Run
of Mine
RoM
Environmental
Management System
EMS
Right-of-Way
ROW
Engineering,
Procurement, and Construction
EP+C
Tenneco
Minerals Company
Tenneco
Engineering,
Procurement and Construction Management
EPCM
Technical
Report Summary
TRS
Ferguson
Ranch Inc.
FRI
Usage
of Availability
UOA
FMC
Gold Company
FMC
Gold
U.S.
Gold Corp.
USAU
Feasibility
Study
FS
U.S.
Bureau of Mines
USBM
Gustavson
Associates, LLC
Gustavson
U.S.
Gold Corp.
U.S.
Gold / USAU
Glencore
Technology
GT
Very
Low-Frequency Electromagnetic
VLF-EM
Installation
Work Package
IWP
value-per-ton
VPT
Issued
for Construction
IFC
Vibrating
Wire Piezometer
VWP
High-Grade
HG
Wyoming
Game and Fish Department
WGFD
Hard
Rock Consulting
HRC
Water
Discharge Permit
WYPDES
Kappes,
Cassiday & Associates
KCA
Wyoming
Gold, Inc.
Wyoming
Gold
Induced
Polarization
IP
Industrial
Siting Permit
ISP0
Source:
Micon, 2026.
CK Gold Project S-K 1300 Technical Report 22 May 2026
2.7.2 Units
of Measure
All
units of measurement used in this TRS are in imperial unless otherwise stated. Tonnages are reported as short tons (st) and/or as metric
tonnes (t), precious metal values (gold and silver) in troy ounces per short ton (oz/st) per tonne (g/t) or parts per million (ppm) and
copper base metal values are reported in weight percent (%) or ppm. Please note that the Mineral Resource Statement Table 1.2, Table
11.14 and Table 11.16 have tonnages declared in metric tonnes. Other references to geochemical analysis are in ppm or parts per billion
(ppb) as reported by the originating laboratories. Unless otherwise stated, all currency amounts and commodity prices are stated in U.S.
dollars (US$). A summary of the units of measure is provided in Table 2.3.
Table
2.3: Units of Measure
Unit
Abbreviation
Unit
Abbreviation
Ampere
A
Less
than
<
atomic
absorption
AA
Litre
L
Annum
(year)
a
Meter
m
above
mean sea level
amsl
above
sea level
asl
Billion
B
Metric
tonne (tonne)
t
Billion
tonnes
Bt
Microns
µm
Centimeter
cm
Milligram
mg
Cubic
centimeter
cm3
Milligrams
per liter
mg/L
Cubic
meter
m3
Milliliter
mL
Day
d
Millimeter
mm
Days
per year (annum)
d/a
Million
M
Degree
°
Million
short tons
Mst
Degrees
Fahrenheit
°F
Million
tonnes
Mt
Diameter
Ø
Minute
(time)
min
Dollar
(American)
US$
troy
ounces per short ton
oz/st
Dry
Metric Tonnes
dmt
Ounce
oz
Foot
ft
Parts
per billion
ppb
Foot
per hour
ft/hr
Parts
per million
ppm
Gram
g
Percent
%
Grams
per liter
g/L
Pound
(avoirdupois)
lb
Grams
per tonne
g/t
Standard
Deviation
SD
Greater
than
>
Second
(time)
sec
Gallons
per minute
gpm
Specific
gravity
SG
Hour
h
Square
kilometer
km2
Hours
per day
h/d
Short
ton (2,000 lb)
st
Hours
per year
h/a
Short
ton per hour
st/h
Hectare
ha
Thousand
tonnes
kt
Kilo
(thousand)
k
Three
dimensional
3D
Kilogram
kg
Tonne
(1,000 kg)
t
Kilograms
per cubic meter
kg/m3
Tonnes
per day
t/d
Kilograms
per hour
kg/h
Tonnes
per hour
t/h
Kilograms
per square meter
kg/m2
Tonnes
per year (annum)
t/a
Kilometer
km
Gram
g
Kilometers
per hour
km/h
Kilotonne
kt
Source:
Micon, 2026.
CK Gold Project S-K 1300 Technical Report 23 May 2026
3 PROPERTY DESCRIPTION
3.1 PROPERTY
LOCATION
The
Project is located in Laramie County, Wyoming, in the southeastern portion of the state, approximately 20 miles west of Cheyenne (Figure
3.1). It is centered in the north half of Section 36, T14N, R70W. The Property area subject to surface disturbance is approximately 1,090
acres. It includes portions of south ½ of Section 25, the northeast ¼ of Section 35, all of Section 36, and north 2/3 of
Section 31 (Figure 3.2).
3.2 MINERAL
TITLES, CLAIMS, RIGHTS, LEASES, AND OPTIONS
3.2.1 Mining
Leases
The
Property consists of two State of Wyoming Metallic and Non-Metallic Rocks and Minerals Mining Leases:
●
Lease
No. 0-40828 for 640 acres (259 ha), which includes all of Section 36, T14N, R70W. The lease is a 10-year renewable lease that expires
February 1, 2033. The current annual rental is US$2.00/acre, U$S1,280 in total.
●
Lease
No. 0-40858 for 320 acres (130 ha), which includes S½ Section 25 T14N, R70W and 160 acres within NE¼ Section 35, T14N,
R70W. The lease is a 10-year renewable lease that expires February 1, 2034. The current annual rental is US$2.00/acre, US$1,280 in
total.
Both
these mineral leases can be renewed for successive 10-year terms if certain conditions are met.
3.2.2 Option
Agreements
3.2.2.1 Surface
Lease Option Agreements Section 31 and Section 25.
In
August 2021, a lease option agreement to lease surface rights and to provide rights of way for Project development was executed, contemplating
the use of a portion of 712 acres (288 ha) for Project development activities. The option agreement was exercised on March 13, 2026.
The
surface of S½ Section 25 and NE¼ Section 35 is privately owned. An easement agreement providing access has been negotiated
with Ferguson Ranch Inc. (Ferguson Ranch) on the S½ Section 25, T14N, R70W, as well as the W½ Section 31, T14N, R69W. The
original access easement was first signed in November 2006 but replaced and superseded by one effective May 1, 2009; the agreement is
for one year and is renewable annually. Annual payments on the easement agreement are US$5,000 for the first year and US$10,000 for the
next four years if the agreement is renewed. U.S. Gold reports that the agreement has been renewed for the current year. Additionally,
a new temporary easement preferred by the landowner was established in 2021. This new easement follows the same path as the proposed
project access and is subject to the Option Agreement on the land lease and Right-of-Way (RoW). Payments under the lease and right of
way agreement are current and amount to US$63,120. An additional US$40/acre is paid as compensation for loss of grazing from the time
of loss.
The
surface of Section 36 is owned by the State of Wyoming and is leased for agricultural use to Ferguson Ranch as part of the terms for
its surface-use lease option agreement with Ferguson Ranch U.S. Gold has an arrangement to compensate the Ferguson Ranch for the loss
of grazing. Prior to mining development, upon the signing of the Option Agreement and exercising the Lease for the land, annual payments
identified in the Option Agreement would be split between the State of Wyoming and the surface lessee based on a sliding scale (per current
agreement based on a formula provided by the Wyoming Office of State Lands and Investments).
CK Gold Project S-K 1300 Technical Report 24 May 2026
Figure
3.1: Regional and Location Map
Source:
U.S. Gold, 2026.
CK Gold Project S-K 1300 Technical Report 25 May 2026
Figure
3.2: Project Map
Source:
U.S. Gold, 2026.
CK Gold Project S-K 1300 Technical Report 26 May 2026
Various
private owners own the surface of Sections 25 and 35. While the open pit expands onto a small portion of the southern part of Section
25, there is no planned activity on Section 35 other than the placement of a freshwater header tank and communications equipment. U.S.
Gold owns 110.6 acres (45 ha) immediately west of Section 36 in the NE ¼ Section of Section 35 and the water tank and communications
equipment will be placed on U.S. Gold property. There has been an approved minor amendment in the Project description associated with
the current permit to incorporate this land into the Project area. Otherwise, the land on Section 35 will serve as a buffer between the
mine and other residents in the area.
3.3 OTHER
PROPERTIES
In
2021, 2022 and 2025, U.S. Gold acquired three parcels of land immediately west of and adjacent to Section 36 T14N 70W on Section 35.
The three parcels, totaling approximately 110.6 acres, lie outside of Cheyenne city limits; the property tax payments are current. The
U.S. Gold owns the surface rights and leases the mineral rights from the state of Wyoming. The U.S. Gold believes that these parcels
may be used for later Project development other than described in this section and are presently viewed as an investment.
3.4 ENVIRONMENTAL
IMPACTS, PERMITTING, OTHER SIGNIFICANT FACTORS, AND RISKS
Since
2017, U.S. Gold has conducted a field exploration program for drilling, soil characterization, and geotechnical and hydrological investigations.
This program is fully permitted, and the Project currently holds a Wyoming Department of Environmental Quality (DEQ) Exploration Permit
No. DN0440, TFN 7 3/064 issued by the DEQ, which includes cumulative bonding presently totaling US$155,000. In addition, an exemption
of Stipulation 5 of U.S. Gold’s mineral lease 0-40828 has been obtained from the Wyoming Game and Fish Department (WGFD) addressing
mineral lease terms that exclude activity in sensitive big game habitats between November 15, and the end of April each year. Negotiations
with WGFD have been held to outline measures that can be taken if the Project proceeds to contribute to the enhancement of wildlife habitat.
Discussions identified that mitigation measures are reasonable to accomplish, such as programs to install wildlife-friendly fencing,
invasive species (e.g., cheatgrass) mitigation, and land swaps. Currently, U.S. Gold is contemplating a US$300,000 mitigation effort
agreed to, in coordination with WGFD, along with recognition that measures such as “game friendly” fence installation will
be adopted during the Project development.
The
current surface disturbance from exploration activities, including roads and test sites, is 40 acres. Costs associated with the reclamation
of the exploration disturbance were bonded through cash payments to the State and recoverable upon inspection and release by the DEQ.
As
a condition of the Mine Operating Permit, the initial US$5 million projected mine disturbance has been posted with the State as a reclamation
performance bond. The exploration bond is in the process of being terminated and any existing exploration disturbance will be covered
by the surety bond.
There
are no protected areas within the Project boundary.
CK Gold Project S-K 1300 Technical Report 27 May 2026
3.5 ROYALTIES
AND AGREEMENTS
The
Project is subject to a production royalty of 2.1%, payable to the Office of State Lands and Investments (OSLI) for the State to fund
education trust accounts. The royalty is calculated based on the gross sales value of the product sold, less applicable deductions for
costs incurred for processing, transportation, and related costs beyond the point of extraction from the open pit mining operation. Once
the Project is in operation, the Board of Land Commissioners has the authority to reduce the royalty payable to the State. Before commercial
production, a royalty of US$2.00/acre is payable to the OSLI. In addition to the permitting requirements and associated interaction with
the DEQ and other state and local agencies, the development of the Project will require exercising certain agreements with other local
entities, including:
1.
Ferguson
Ranch for land use rights and easements for the access road, power line and water supply well(s) and a pipeline.
2.
Negotiating
a water pipeline route across private property.
3.
An
agreement for a power line easement.
4.
A
power supply agreement with Black Hills Energy, a subsidiary of the Black Hills Corporation.
5.
An
agreement with the Cheyenne Board of Public Utilities (BOPU) selling water to the Project at the prevailing raw water cost times
1.5, presently US$3.55/1000 gallons of water without the premium, and US$5.33/1000 gallons of water with the 1.5 x premium.
CK Gold Project S-K 1300 Technical Report 28 May 2026
4 ACCESSIBILITY, CLIMATE, PHYSIOGRAPHY, LOCAL RESOURCES AND INFRASTRUCTURE
4.1 TOPOGRAPHY,
ELEVATION, AND VEGETATION
The
Project is located on the eastern flank of the Laramie Range between the Rocky Mountains and High Plains sections of the Great Plains
physiographic province. The Laramie Range is a mountain range approximately 130 miles long between Laramie and Cheyenne, Wyoming, USA.
It trends north from the Colorado-Wyoming border towards Casper, Wyoming. The Laramie Range consists of granite/granodiorite peaks and
rolling hills bound to the east non-conformably by shallow eastward dipping sedimentary rocks of the White River Formation. The topography
transitions to flatter plains along the western margin of the Great Plains east of the Project area, towards Cheyenne.
The
gradually sloping sedimentary deposits on the flank of the Laramie Range created what was referred to as a land bridge, allowing the
main east-west rail line to pass the area, avoiding difficult mountainous terrain. Elevations within the Laramie Range in the vicinity
of the property reach over 8,000 ft above mean sea level (amsl), while the city of Cheyenne, located on the western edge of the Great
Plains Province, is at an elevation of 6,100 ft amsl. The Project property has elevations ranging from 6,625 ft to 7,311 ft amsl with
generally low to moderate relief. The exception is the northwest portion of the property, which covers a moderate to steep, northwest-facing
slope that bottoms at 6,900 ft elevation in a northeast-flowing intermittent stream drainage. The Project mineral resource area elevation
ranges from 6,950 ft to 7,172 ft amsl. The currently identified mineral resource is exposed at the surface along a west-northwest trending
ridge, and the topography is conducive to open-pit mining methods.
The
Project area consists primarily of rolling grassland/herbaceous habitat with forested and shrub/scrub-covered drainages. Most of the
project site consists of prairie grasslands, with some areas of xeric forest and sparse areas of foothills, sagebrush shrublands, and
riparian vegetation.
4.2 ACCESSIBILITY
AND TRANSPORTATION TO THE PROPERTY
The
Project is approximately 20 miles west of Cheyenne and is accessible from the paved State Road 210 (also known as Happy Jack Road) to
the County Road 210 (also known as Crystal Lake Road), a maintained gravel road. The Project site access entryway is approximately two
miles off the pavement to the west on County Road 210 and crosses Ferguson Ranch land, subject to a RoW Option Agreement. From the County
Road 210 entryway to Section 31 in the Project site area, approximately four miles of single-track gravel road will be upgraded and maintained
for the life of the Project (Figure 4.1).
4.3 CLIMATE
AND OPERATING SEASON
Based
on data compiled from the Project site weather station and other surrounding stations (the latter includes at least ten years of data),
the daily average temperature ranges from approximately 25°F in February to approximately 70°F in July. The average low temperature
is -11°F in February, and the average high is 90°F in July.
The
Project site is in a net water deficit condition. The average annual precipitation is approximately 17 inches, while the annual evaporation
is around 53 inches, as determined by the on-site meteorological station. May is the wettest month, with an average rainfall of approximately
3 inches; January is the driest, with an average of around 0.6 inches. Snowfall typically occurs from September to May.
CK Gold Project S-K 1300 Technical Report 29 May 2026
Figure
4.1: Accessibility to the Property
Source:
Trihydro, 2026
CK Gold Project S-K 1300 Technical Report 30 May 2026
The
Project site experiences relatively strong winds, with an average monthly wind speed ranging from around 8 mph in July to 17 mph in December.
The average maximum wind speeds are 43 mph and 63 mph, respectively for July and December, with peak wind speeds of 55 mph and 75 mph.
The predominant wind direction is westerly.
The
lease terms for Section 36 have been renegotiated to enable unrestricted full-time, year-round Project construction, mining, and mineral
processing activities.
4.4 LOCAL
INFRASTRUCTURE AVAILABILITY AND SOURCES
Given
the proximity to Cheyenne, the state capital of Wyoming, and the Front Range metropolitan area, personnel needs, delivery of consumables,
and infrastructure needs are available locally and regionally. This should not present a material negative impact to the Project; on
the contrary, the infrastructure allows relatively easy access to major mine supply centers, the closest being Denver, Colorado, Salt
Lake City, Utah, and Gillette, Wyoming. The area has access to Union Pacific and Burlington Northern Santa Fe (BNSF) railroad lines,
the intersection of two major interstate highways, I-80 and I-25, and a regional airport.
4.4.1 Power
Electrical
power for the Project will be supplied by a local utility company, Black Hills Energy (BHE), under an Industrial Contract Service Agreement.
The power demand for the Project requires that a new 115 kV powerline to be constructed for the Project by BHE. The powerline would be
constructed from BHE’s West Cheyenne substation, located approximately 16 miles east of the Project, to a new BHE owned, built,
and operated 115 kV / 13.8 kV distribution substation (including transformer) adjacent to the mine. The powerline alignment would take
advantage of existing easements and planned county roads near the Project. The alignment would require easements from the City of Cheyenne,
the State of Wyoming, and local ranches. BHE will acquire the easements, construct the powerline for the Project at their expense, and
recoup the capital cost through demand charges added to the standard industrial mine power cost.
4.4.2 Water
Sufficient
quantities of water to operate the mine will be sold by the City of Cheyenne Board of Public Utilities (BOPU) via a water agreement between
the Company and the BOPU to supply water from an infiltration gallery to be constructed in the Crystal Reservoir and/or the South Crow
Creek pipeline. Up to 600 gallons per minute are contracted to be sold by the BOPU at 150% of the service area domestic raw water rate.
As published periodically by the BOPU.
Further
details on the Project infrastructure is described in Section 15.
CK Gold Project S-K 1300 Technical Report 31 May 2026
5 HISTORY
The
Project was originally known as the Copper King Mine. It was first discovered in 1881, along with the Climax and Potomac lodes, by James
Adams. The deposit was developed, and a 160 ft (48 m) shaft was sunk, along with the construction of a mill and smelter by the Adams
Copper Mining and Reduction Company. No production figures are available from this period; however, modest-sized waste dumps around the
shaft indicate that the underground mining was not extensive. The Ferguson Ranch, which presently owns or leases most of the surface
land in the Project area, was homesteaded in 1874 by the first native-born children of settlers to the area (Angus Journal, 1996).
The
Copper King Mine was noted as idle by the State Geologist in 1890 when Wyoming attained statehood and assumed ownership of the associated
section of land (Section 36). In 1911, C.E. Jamison, the State Geologist of Wyoming, mentioned several active copper and gold mines within
the Silver Crown Mining District (SCMD) and near the Project, including the Dan-Joe Prospect, Comstock Mine, Fairview Mine, Louise Mine,
Little London Mine, Bull Domingo Prospect, and several additional unnamed prospects.
Mineral
rights transferred several times over the next century, starting with the Orongo Mining Company in 1893, followed by the Hecla Mining
Company until about 1910. By 1910, production at the Copper King Mine had reached 316 tons (287 Mt), producing 27 oz of gold, 483 oz
of silver, and 25,782 lbs (11,700 kg) of copper. From 1890 to 1938, there were at least eight drilling campaigns totaling 37,500 ft (11,430
m) of drilling. Excavation of numerous prospect pits and developing two adits also likely occurred during this time.
The
American Smelting and Refining Company (ASARCO) acquired the property in 1938 and performed the first major drilling campaigns on the
project site. It was subsequently acquired by the Copper King Mining Company (Copper King) in 1952. ASARCO re-optioned the property in
1970. Henrietta Mines Ltd (Henrietta) gained rights to the property in 1972. At some point before 1987, Henrietta’s interest was
folded into Wyoming Gold, Inc. (Wyoming Gold), which William C. Kirkwood and Caledonia Resources Ltd., (Caledonia) the parent company
of Henrietta, jointly owned. Royal Gold, Inc. entered an option agreement to buy Wyoming Gold in 1989. Compass Minerals Ltd. (Compass)
then acquired the property in 1993. Saratoga Gold Company Ltd (Saratoga) bought it in 2006. Strathmore acquired the issued and outstanding
shares of Saratoga in 2012, which were subsequently purchased by Energy Fuels. Energy Fuels then sold the property to U.S. Gold in 2016.
5.1 HISTORICAL
EXPLORATION AND PRODUCTION
5.1.1 HISTORICAL
DRILLING DETAILS
ASARCO
completed five exploration holes for 1,400 ft (427 m) in 1938, two of the holes yielding significant gold and copper mineralization.
Copper King Mining then completed six more holes in 1952 to 1954 for 2,630 ft (802 m) of drilling, partially subsidized by the U.S. Bureau
of Mines. When ASARCO took control again in 1970, they conducted soil geochemical sampling, geological mapping, Induced Polarization
(IP) and aeromagnetic surveys, and eight additional core holes totaling 3,263.1 ft (874 m).
Henrietta
completed the first reserve and resource estimate in 1973 after they had completed an 11-hole drilling campaign for 3,766 ft (1,148 m)
of drilling, a control survey, geological mapping, IP and vertical-intensity magnetic geophysical surveys, geochemical soil sampling,
relogging of historical core holes, and preliminary metallurgical studies.
CK Gold Project S-K 1300 Technical Report 32 May 2026
John
Nelson of Kirkwood Oil and Gas completed a second reserve estimate around 1986. It does not appear that any additional drilling was done
before this estimate; however, the company did collect 228 surface geochemical samples in 1982, and the Colorado School of Mines Research
Institute had completed some metallurgical work on the Property in 1980.
Caledonia
undertook a new drilling campaign in 1987 of 25 holes for 9,980 ft (3,042 m), designed to improve confidence and prove reserves within
the known extent of the deposit. They also funded a three-sample preliminary metallurgical study that year. Results were used to create
a preliminary resource estimate published in the Wyoming State Geological Survey Bulletin 70. Tenneco Minerals Company (Tenneco) then
produced a reserve estimate in 1988. In 1989, both FMC Gold Company (FMC Gold) and Royal Gold, Inc. (Royal Gold) funded metallurgical
studies and produced reports that discussed small exploration campaigns, which were likely completed in that year, but whose results
were unavailable. The FMC Gold study was completed by Kappes, Cassiday & Associates (KCA) and references some work done to collect
and test mine dump samples in 1986 and 1987. It is believed that the Royal Gold report, completed by Hazen Research, Inc. in 1989, used
the same metallurgical sampling composites in its study. It also includes two holes drilled for 505 ft (154 m) that year; however, this
data is also lost.
5.1.2 OTHER
EXPLORATION
Compass
funded an aeromagnetic survey over the area and 25 new drill holes for 9,202 ft (2,805 m) in 1994. They also conducted two metallurgical
studies in 1994 and 1996 by Metallurgy International and a preliminary resource study by Mine Development Associates (MDA).
Mountain
Lake Resources (Mountain Lake) then funded a ground magnetometer and Very Low-Frequency Electromagnetic (VLF-EM) geophysical survey,
drilled eight holes for 4,740 ft (1,445 m), including two metallurgical test holes, and a metallurgical study by the Colorado Minerals
Research Institute in 1998.
MDA
completed a technical report in 2006. 27 holes for 18,296 ft (5,577 m) were drilled during the spring and summer of 2007, and MDA created
an updated report to include these results through October 31, 2007. Saratoga completed another eight holes in 2008 for 7,167 ft (2,185
m).
Saratoga
commissioned further work focused on flotation methods to extract gold and copper, as reported in 2009 by SGS, Canada Inc. In a report
dated December 8, 2010, a test program was conducted on oxide material from the Copper King deposit to determine a flotation flowsheet
to maximize recoveries of gold and copper. The oxide portion of the resource is minor; however, the work was completed to follow on from
the successful results obtained on sulfide samples where a 26% copper concentrate was produced containing 98 grams per ton of gold. The
oxide concentrate produced was reported as being expected to be marketable. However, further work was identified to support these conclusions.
Gustavson
Associates, LLC (Gustavson), now part of WSP USA, completed a Pre-Feasibility Study (PFS) in December 2021, including
RC drilling by U.S. Gold of two holes in 2017 and eight holes in 2018, totaling 12,040 ft (3,670 m). Both programs were designed to investigate
magnetic and IP anomalies generated by geophysical surveys. Also included was U.S. Gold drilling from 2020, comprising 25 drill holes
totaling 20,449 ft. The PFS resulted in favorable economics, the first mineral reserve, and a recommendation to advance to a FS.
CK Gold Project S-K 1300 Technical Report 33 May 2026
5.2 HISTORICAL
MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
Several
historical mineral resource and reserve estimates have been reported for the Project (formerly the Copper King property) by previous
operators between 1973 and 1997 (Table 5.1). These
estimates were prepared prior to the introduction of NI 43-101 and were developed using reporting standards, assumptions, and classification
systems that differ from those currently in use. Consequently, they are not directly comparable to current mineral resource or mineral
reserve estimates and should be considered as historical in nature only.
Table
5.1: Historical Resource Estimates
Company
Year
Tonnes
(kt)
Gold
Grade (g/t Au)
Cu
Grade
(%)
Classification/Description
Henrietta
Mines Ltd
1973
31,745
0.75
0.21
Total
resource estimate
Henrietta
Mines Ltd
1973
12,245
0.96
0.26
Total
mineable reserve (168 m pit)
Kirkwood
Oil & Gas
~1986
~3,628
1.85
-
Mineable
reserve
Caledonia
Resources
1987
4,082
1.51
-
Preliminary
resource estimate
Tenneco
Minerals
1988
1,270
1.82
0.42
Estimated
reserve (mixed sulfide/oxide)
Tenneco
Minerals
1988
3,175
1.61
0.38
Estimated
total reserve (all sulfide types)
Royal
Gold
1989
6,803
1.61
AuEq
-
Estimated
geological resource
Royal
Gold
1989
3,174–5,714
1.44–1.234
0.32–0.28
Estimated
mineable reserves
Compass
1995
41,994
0.651
0.17
Measured
& Indicated resource (0.34 g/t cut-off)
Compass
1995
13,605
0.926
0.23
Proven
& Probable reserve (0.514 g/t cut-off)
Mountain
Lake Res.
1997
8,753
1.371
0.30
Total
resource (0.69 g/t cut-off)
Source:
US Gold Corp. (2017)
Note:
Historical estimates were prepared prior to the implementation of NI 43-101 and do not conform to current reporting standards. The classifications
shown reflect terminology used by the original authors. These estimates have not been verified by the Qualified Person and should not
be relied upon as current mineral resources or mineral reserves.
The
historical estimates are provided for context only. These estimates pre-date current reporting standards and have not been verified by
the QP. As such, they are not considered to represent current mineral resources or mineral reserves. The mineral resource estimate presented
in Section 11 supersedes all historical estimates discussed herein.
The
range in reported tonnages and grades reflects differences in assumptions applied by previous operators, including cut-off grades, metal
prices, and classification criteria.
The
earliest known estimate was prepared by Henrietta in 1973 (Nevin, 1973), based on the compilation of approximately 33 drill holes, including
both Henrietta drilling and earlier work. This estimate outlined a global mineralized inventory of approximately 32 Mt grading 0.75 g/t
Au and 0.21% Cu, using cut-off grades of 0.27 g/t Au and 0.09% Cu.
An
associated “ore reserve” was also reported using assumed metal prices of US$90/oz gold and US$0.60/lb copper. This reserve
comprised approximately 12.2 Mt at grades of 0.96 g/t Au and 0.26% Cu and was constrained within an open pit extending to approximately
168 m depth, with an overall stripping ratio of around 1.8:1. While metallurgical assumptions were not explicitly documented, preliminary
testwork referenced in the report indicated recoveries of approximately 93% for copper and 72.5% for gold based on flotation testing.
The
classification system applied in the 1973 estimate included categories such as proven, drill-indicated, probable, and possible, which
are not directly comparable with current reporting standards. Excluding material classified as “possible” results in an estimate
of approximately 6.0 Mt grading 1.34 g/t Au and 0.31% Cu.
Additional
estimates were completed by subsequent operators, including Kirkwood Oil and Gas (circa 1986) and others, as summarized in Table 5.1.
However, for several of these estimates, limited information is available regarding the underlying data, assumptions, and estimation
methodologies.
CK Gold Project S-K 1300 Technical Report 34 May 2026
The
QP considers that further work, including review of original data and estimation procedures, would be required before any of these historical
estimates could be classified in accordance with current mineral resource and mineral reserve standards.
5.3 HISTORICAL
METALLURGY
Additional
metallurgical testing programs were undertaken by BML from 2021 to 2025 in Kamloops, B.C. Canada to assess the impact of oxidation state
on floatation recovery, locked cycle testing of low-grade ore. Recoveries were found to be consistent with overall recovery.
Composite
samples of oxide, mixed oxidation and sulfidic ores from the first three years of production were made and blended to produce a range
of oxidation ratios. The blended ore was then subjected to locked cycle testing to determine the recovery of oxide, mixed and sulfide
ore and blends of each that may be encountered during mining. The results led to an adjustment of oxide ore reagents which improved recovery.
Blended ores confirmed that the measured copper and gold recovery could be estimated using the mass-weighted recovery of each oxidation
state.
Locked
cycle testing produced concentrate which was analyzed for deleterious metals and gangue. The concentrate is reasonably devoid of deleterious
elements, and no smelter penalties are anticipated.
Twelve
comminution work index tests were completed by Hazen Research of Denver, Colorado on ore material spatially distributed around the pit.
The results were used to identify appropriate crushing equipment.
5.4 QP
COMMENTS
The
Project has experienced numerous periods of exploration, engineering and minimal underground mining. No records of previous mining exists,
but based on available information and surface disturbance, the underground mining was insignificant.
CK Gold Project S-K 1300 Technical Report 35 May 2026
6 GEOLOGICAL
SETTING, MINERALIZATION AND DEPOSIT
6.1 REGIONAL
GEOLOGICAL SETTING
The
Project area is located on the eastern flank of the southern Laramie Mountains, within the terrane of the Colorado Province and just
south of a northwest-trending crustal suture zone known as the Cheyenne Belt (Figure 6.1). The Cheyenne Belt represents the margin along
which the island-arc terrane of the Colorado Province (or Colorado orogen) accreted to the southern edge of the Wyoming Craton during
the Paleoproterozoic. As a result of this collision, older Archean rocks of the Wyoming Province were intensely deformed and metamorphosed
for at least 75 km inboard of the suture, which is marked today by the Laramie Mountains (Sims et al., 2001).
The
Laramie Mountain Range is an asymmetrical Laramide uplift that exposes a core of Precambrian rocks that extends for approximately 140
miles from north to south. The mountain range is segmented by steeply dipping shear zones and regional-scale thrust faults. The northern
portion of the range is comprised of terrane belonging to the Archean Wyoming Province, while rocks of the Proterozoic Colorado Province
core the southern portion. Near the Project area, the Laramie Mountains are bound to the east by an unconformity between overlying Mesozoic
sedimentary rocks and underlying Proterozoic igneous and metamorphic rocks of the Colorado orogen. The Colorado orogen consists of metasedimentary-metavolcanic
rocks and granitic-gabbroic rocks of island-arc affinity (Sims et al., 2001). In the Laramie Mountains, the metavolcanic and metasedimentary
rocks are modified by batholithic intrusions of two discrete generations, ~1.7 and ~1.4 Ga (Tweto, 1987).
The
oldest (~1.7 Ga) and most abundant intrusions are mainly intermediate composition, foliated hornblende-biotite granodiorite, or monzogranite
of calc-alkalic affinity. These intrusions are generally synchronous with regional deformation attributed to the Colorado orogeny, with
U-Pb zircon ages in the 1.75-1.65 Ga (Reed et al., 1987; Reed et al., 1993). A second major intrusive episode is represented by the Mesoproterozoic
(~1.4 Ga) Laramie Anorthosite Complex (northern Laramie Range) and the ilmenite-bearing Sherman Granite, which outcrops immediately north
of the CK Project area (Figure 6.2). Both anorthosite and granite transect the Cheyenne Belt and intrude crystalline rocks of the Wyoming
Province. These intrusions comprise the northernmost segment of a wide belt of 1.4 Ga granitic intrusions throughout the Colorado orogen
(Sims et al, 2001).
The
green dot is the approximate vicinity of the Project area; the yellow star denotes the location of Vedauwoo. The basement (brown diagonally
lined) north of the Cheyenne Belt is the Archean Wyoming Province; the basement (purple squares with dots) south of the Cheyenne Belt
is the Paleoproterozoic Colorado Province (Edwards and Frost, 2000).
CK Gold Project S-K 1300 Technical Report 36 May 2026
Figure
6.1: Regional Geological Setting of the Project Area
Source:
Sims et. Al (2001).
CK Gold Project S-K 1300 Technical Report 37 May 2026
Figure
6. 2: Mesoproterozoic Intrusive within the Cheyenne Suture Zone
Source:
Edwards and Frosts (2000)
6.1.1 Local
and Property Geology
Bedrock
geology in the vicinity of the Project area has been described in some detail in various previous reports (Brady, 1949; Hausel, 1982,
1989, 1997, and 2012; Klein, 1974; McGraw, 1954; MDA, 2017, etc.). Most of these existing reports rely solely on surface investigation,
though a few discuss observations of historical drill core. While somewhat dated, reports by Klein (1974) and McGraw (1954) are particularly
useful as they provide the results of petrographic analysis in conjunction with detailed field measurements and observations. The following
discussion draws partly from work completed during previous studies but is largely based on first-hand field observations and careful
examination of a combined total of more than 50,000 ft of historical and modern drill core.
6.1.2 Lithology
Within
the Project area, bedrock is largely comprised of Proterozoic metasedimentary and intrusive granitic rocks, both of which are unconformably
overlain by the Tertiary White River Formation (Figure 6.3). The metasedimentary rocks are exposed in outcrop in the far eastern half
of the project area, and these rocks generally consist of interlayered metagraywacke, quartz-biotite schist, and greenschist, all widely
variable in grain size and degree of foliation. Trace amounts of very fine-grained, disseminated pyrite are commonly observed in metasedimentary
drill core.
CK Gold Project S-K 1300 Technical Report 38 May 2026
A
typical cross-section illustrating the lithology relationships is presented in Figure 6.4.
Figure
6.3: Bedrock Geology in the Vicinity of the Project Area
Source:
Love, et al (1985)
CK Gold Project S-K 1300 Technical Report 39 May 2026
Figure
6. 4: CK Gold Project - Typical Lithological Cross-Section
Source:
U.S. Gold, 2024.
The
metasedimentary rocks are intruded by granodiorite that displays a range of textures from primary igneous (Figure 6.5) to intensely mylonitic
(Figure 6.6). These textures are often wildly variable over very short drilling intervals. Undeformed granodiorite is typically hypidiomorphic-granular
with subhedral-to-euhedral hornblende and feldspar phenocrysts, generally less than 1 inch in diameter. Porphyritic granodiorite with
hornblende and/or feldspar phenocrysts in a fine-grained hornblende, feldspar, biotite, and quartz matrix is also common. Deformed granodiorite
varies considerably from proto-mylonitic/weakly foliated to ultra-mylonitic and fine-grained. Sulfide mineralization, predominantly disseminated
pyrite and chalcopyrite in the matrix or as inclusions in hornblende and feldspar, are associated with undeformed and deformed granodiorite.
Undeformed granodiorite exhibits primarily disseminated sulfide mineralization; however, blebs, sulfide veins, and veinlets also occur.
In weakly foliated- to-mylonitic granodiorite, sulfide crystals are commonly aligned with foliation and locally exhibit clustering and/or
veinlet-type mineralization. The intrusive contact between granodiorite and metasedimentary rocks is not exposed within the project area
but was encountered during drilling in drill holes CK20-18c,
CK21-08c, and CK21-09c.
CK Gold Project S-K 1300 Technical Report 40 May 2026
Figure
6.5: Relatively Undeformed Granodiorite
Source:
U.S. Gold, 2021.
Figure
6.6: Mylonitized Granodiorite
Source:
U.S. Gold, 2021.
All
crystalline rocks in the Project area are locally crosscut by pegmatitic to aplitic dikes (Figure 6.7) and very fine-grained mafic dikes
(Figure 6.8). Based on the drill core and field exposures, the felsic dikes range in width from inches to roughly 30 feet, while the
mafic dikes are generally less than 10 feet in width. Occasional zones of potassic enrichment and/or local pyrite mineralization occur
within the felsic and mafic dikes. Potassic-alteration halos of highly variable width and intensity are common along pegmatitic/aplitic
margins.
CK Gold Project S-K 1300 Technical Report 41 May 2026
Figure
6.7: Felsic (Pegmatite) Dike (top row) within Granodiorite
Source:
U.S. Gold, 2021.
Figure
6.8: Typical Mafic Dike (Center of Photo) Intruding Granodiorite
Source:
U.S. Gold, 2021.
CK Gold Project S-K 1300 Technical Report 42 May 2026
The
Sherman Granite is exposed immediately to the north of and adjacent to the Project area. The Sherman Granite has been dated at 1430 +/-
20 Ma by the Rb-Sr whole-rock method (Zielinski et al., 1981). Aleinikoff (1983) obtained a U-Pb upper-intercept age of 1412 +/- 13 Ma
on zircons separated from different host minerals of the Sherman Granite and, because of possible Pb loss, interprets this as a minimum
age. The Sherman intrudes the host granodiorite, which is presumed to be of the ~1.7 Ga generation of regional intrusive events. The
dominant rock type of the Sherman Batholith is coarse-grained, biotite hornblende granite, a distinctly reddish-orange rock that commonly
weathers deeply to a thick grus. The Sherman Granite is sub-porphyritic, with a seriate, hypidiomorphic-granular texture. Local augen
gneiss within the Sherman indicates some late-stage deformation (Houston and Marlatt, 1997). Major phases are microcline, plagioclase,
quartz, hornblende, biotite, and ilmenite, while accessory phases are zircon and apatite with rarer allanite and fluorite (Houston and
Marlatt, 1997). The contact between the Sherman Granite and granodiorite appears gradational on the order of 5 to 20 ft (Klein, 1974),
and (rare) dikes of Sherman Granite within the host granodiorite are exposed in the field near the contact between the two.
6.1.3 Alteration
Several
alteration types are observed in the crystalline rocks within the Project area, both in the outcrop and the drill core. The most prevalent
type of alteration is potassium enrichment in host granodiorite with the replacement of primary plagioclase feldspar and hornblende by
alkali feldspar and secondary biotite. The extent of potassic alteration throughout the granodiorite is variable in terms of intensity
and nature of occurrence. In drill core, weak to moderate potassic alteration (Figure 6.9) is typically splotchy to highly localized
(i.e., halos around minor veins), while zones of pervasive, moderate to extreme potassic alteration (Figure 6.10) are encountered over
intervals of several to more than 100 ft. Potassic alteration occurs independent of deformation (or lack thereof) within the granodiorite,
and while it is certainly locally associated with aplitic and pegmatitic dikes, the origin of or driving force behind the more pervasive
and extensive zones of potassic alteration is unclear. Klein (1974) has suggested that these zones are a product of fluid transfer during
the emplacement of the Sherman Granite, which intrudes the granodiorite just north of the Project area. This seems a reasonable presumption,
and particularly so if the aplitic and pegmatitic dikes prove to be distal intrusive extensions of the Sherman Pluton, which should be
discernable via age determinations on the granodiorite and the felsic dikes in comparison to existing age data on the Sherman Granite.
Potassic
alteration also occurs in mafic dikes within the granodiorite and the metasedimentary rocks, though to a much lesser extent than within
the granodiorite proper. In general, intensely potassically altered granodiorite appears to be depleted of sulfide mineralization, with
only local, trace amounts of pyrite and extremely rare to no visible chalcopyrite mineralization. Potassic alteration is frequently accompanied
by epidote veining (Figure 6.11 and Figure 6.12), and less so by minor propylitic alteration. Propylitic alteration consists of the texturally
preserved replacement of plagioclase and hornblende with epidote and is visually much more prevalent in mafic dikes and metasedimentary
rocks, particularly in greenschist and discrete quartzite lenses in quartz-biotite schist and metagraywacke. Pyrite grains with epidote
halos are occasionally encountered in the granodiorite and, more frequently, in the mafic dikes and metasedimentary rocks.
CK Gold Project S-K 1300 Technical Report 43 May 2026
Figure
6.9: Moderate, Localized Potassic Alteration in Granodiorite
Source:
U.S. Gold, 2021.
Figure
6.10: Intense, Pervasive Potassic Alteration in Granodiorite
Source:
U.S. Gold, 2021.
CK Gold Project S-K 1300 Technical Report 44 May 2026
Figure
6.11: Intense Potassic Alteration with Associated Stockwork Epidote Veining
Source:
U.S. Gold, 2021.
Figure
6.12: Localized Weak Potassic Alteration with Associated Epidote Veining
Source:
U.S. Gold, 2021.
While
much less prevalent than potassic alteration, phyllic alteration and silicification are also observed in drill core. Again, the extent
and intensity of these alteration styles vary across and within the individual crystalline rock types. Phyllic alteration (Figure 6.13)
is most often observed in intensely mylonitized granodiorite but also occurs in metasedimentary rocks, particularly near intrusive contact
and in significant structural zones. Phyllic alteration is indicated by fine-grained white mica (sericite), chlorite, pyrite, and quartz,
and often occurs together with silicification, though the two are not necessarily codependent. In some instances, phyllic alteration
identified in the drill core may be a product of cataclasis rather than hydrothermal alteration, wherein the rock has undergone dynamic
recrystallization and alignment of sheet silicates during shearing to produce an extreme grade of cataclastic rock known as phyllonite.
Phyllonites are often associated with major (crustal) structural zones and typically retain a penetrative cleavage oriented parallel
to the fault plane.
CK Gold Project S-K 1300 Technical Report 45 May 2026
Figure
6.13: Phyllonite (Mylonite which has undergone Phyllic Alteration)
Source:
U.S. Gold, 2021.
Silicified
domains (Figure 6.14) exhibit blurred grain boundaries, moderate to extensive hairline quartz veining, and strong induration. Silicified
intervals are generally rich in relatively pure, microcrystalline quartz veins, with apparent associated silica flooding and replacement
within the local crystalline groundmass. So-called ‘stockwork’ quartz veining is rare and is generally limited to local zones
of brecciation re-healed by quartz or, more commonly, a combination of quartz and calcite.
CK Gold Project S-K 1300 Technical Report 46 May 2026
Figure
6.14: Silicified Mylonite
Source:
U.S. Gold, 2021.
6.2 MINERALIZATION
Copper
and gold mineralization is largely disseminated, and based on available information to date, occurs solely within the granodioritic plutonic
body. Secondary copper minerals, primarily chrysocolla, cuprite, and trace malachite and azurite, as well as secondary iron minerals
(hematite, limonite, and jarosite), chalcocite and native copper (flecks and veins) are observed on the surface and define an oxide or
supergene zone that extends to depths up to 100 ft below the topographic surface and deeper in fractured or faulted localities. This
surficial oxide zone is essentially devoid of magnetite. An intermediate oxide-sulfide or ‘mixed’ zone observed in drill
core is characterized by secondary copper and iron minerals as well as primary pyrite and trace chalcopyrite. The mixed zone transitions
to a sulfide-dominant zone at depths ranging from 100 ft to 300 ft, with a significant decrease in oxide mineral content, increase in
occurrence of disseminated pyrite and chalcopyrite, and the appearance of magnetite. Within the sulfide zone, sulfide minerals are typically
disseminated and very fine-grained, though occasional sizeable pyrite and/or chalcopyrite blebs and minor veins and veinlets are observed
in drill core.
Sulfide
content is modally highest in granodiorite and mylonitic granodiorite and generally ranges, based on visual analysis, from trace amounts
to less than 5% of whole-rock content. In addition to pyrite and chalcopyrite, bornite, covellite, molybdenite, and pyrrhotite are also
present, as well as trace amounts of very fine-grained native gold, 10 µm to 250 µm in size (Mountain Lake Resources Inc.,
1997). Assay data indicates a significant, if not direct, relationship between metal concentration and sulfide content, particularly
chalcopyrite. Copper-sulfides are virtually restricted to granodiorite, though trace amounts of chalcopyrite are observed both in mafic
dikes within the granodiorite and in the metasedimentary rocks immediately adjacent to the east. Trace to weight-percent amounts of pyrite
is also observed in drill core in metasedimentary rocks, aplitic dikes, pegmatites, and mafic dikes, all within the sulfide zone.
CK Gold Project S-K 1300 Technical Report 47 May 2026
Gold
mineralization at the Project occurs in the west central portion of the Project area and is distributed in plan-view in an elongate ovoid
pattern trending roughly N60°W (Figure 6.15). The orientation of the mineralized zone is generally coincident with the local trend
of shear as interpreted by Klein (1974) and McGraw (1954) based on field measurements of exposed structural fabrics (cataclastic foliation)
and fault planes. The primary known mineralized zone is essentially vertical and “keel-like” in shape, as represented by
the 0.032 oz/t (1 g/t Au) cut-off grade shell with a surface length of 400 ft along strike, width of approximately 200 ft, and depth
(thickness) of 600 ft (Figure 6.16). This higher-grade, central core is surrounded by a halo of lower grade mineralization with an overall
length of roughly 760 ft along strike, an average width of approximately 500 ft, and thickness of at least 1,100 ft. Low-grade (<0.5
g/t Au) gold mineralization is open and uniform along strike, both to the northwest and southeast, as well as at depth.
The
mineralized zone is crudely bound to the north and to the east by the Northwest fault and the Copper King Fault, respectively (Figure
6.17). The Northwest Fault is interpreted based on a combination of drill hole data, geophysical data, and downhole televiewer data from
2020 and 2021 drilling. The Northwest Fault strikes west-northwest and dips steeply to the northeast along the northern margin of the
mineralized zone. The fault represents an apparent structural control of the CK deposit, as copper-gold mineralization is essentially
restricted to south of the fault.
The
Copper King Fault trends roughly N30°E along the eastern extent of the CK deposit, truncating known mineralization in that direction.
Host granodiorite occurs to the west of the fault, and unmineralized metasedimentary and metavolcanic rocks occur to the east. Drill
hole intercepts indicate that the Copper King Fault dips somewhat steeply to the west, and that primary displacement along the fault
plane is reverse with the western hanging wall riding up to the east. This contradicts previous interpretations of the fault as normal
with a down-to-the-east, nearly vertical, dip slip offset (Hausel, 2012). Based on examination of exposures in prospect pits north and
east of the deposit, the Copper King Fault is thought to be Laramide or younger, though it may represent remobilization along a much
older, existing fault plane. Further investigation of the Copper King Fault, including orientation measurements on all available surface
exposures as well as additional drilling targeted to intercept the fault at depth, should be considered to verify the orientation of
the structure and to evaluate the direction and magnitude of offset. While the fault is presently considered a post-mineral structural
control, a better understanding of the direction and scale of offset may provide valuable insight for use during planning of future drilling
exploration.
CK Gold Project S-K 1300 Technical Report 48 May 2026
Figure
6.15: CK Gold Project - Oblique View of the Distribution of Gold Mineralization
Source:
Shutty, 2025.
CK Gold Project S-K 1300 Technical Report 49 May 2026
Figure
6.16: CK Gold Project - Cross-Sectional View Central to the Primary Zone of Mineralization
Source:
Shutty, 2025.
CK Gold Project S-K 1300 Technical Report 50 May 2026
Figure
6.17: CK Gold Project - Plan View of the Location and Trend of the Northwest and Copper King Faults
Source:
Shutty, 2025.
CK Gold Project S-K 1300 Technical Report 51 May 2026
A
variety of other faults have been interpreted within the Project area based largely on surface expression, indications in drill core,
and televiewer data. As noted by Klein (1974), many local structures are generally concordant with the trend of Precambrian shear and
may represent more recent (Laramide or younger), shallow depth rejuvenation along previously existing fault planes. Several local structures
are discordant with the Precambrian trend of shear, and these are also generally thought to be Laramide or younger based on a lack of
cohesion and recrystallization in the faulted material (Klein, 1974). The significance of these structures relative to the CK deposit
is likely limited to an associated increase in intensity and/or depth of oxidation and supergene copper mineralization, and potential,
small-scale physical displacement of copper-gold mineralization at depth.
6.3 DEPOSIT
TYPE
6.3.1 Discussion
Gold
mineralization at the Project occurs within a steeply dipping to near-vertical, brittle-ductile shear zone presumably generated during
Paleoproterozoic orogenesis of the Colorado Province. As previously stated by Klein (1964), the localization of metallic mineralization
at the Project is a product of both structural and lithological control. The dominant structure appears to be the nearly east-west trending
zone of Precambrian shear and cataclasis, and, lithologically, mineralization is virtually confined to the granodiorite plutonic body.
Visual examination of barren to high-grade drill core intervals shows that gold mineralization (or lack thereof) is not restricted to
any specific textural variation within the granodiorite, nor is it strictly associated with any type or intensity of alteration, except
for consistently low-grades in zones of moderate to intense potassic alteration.
Mylonitic
rocks return the highest gold and copper assay values on average. Mylonites form under specific circumstances at significant crustal
depths below brittle faults, in continental and oceanic crust (Figure 6.18). Mylonites are the result of extreme plastic deformation,
with original textures modified by dynamic recrystallization while the parent rock remains chemically unaltered.
CK Gold Project S-K 1300 Technical Report 52 May 2026
Figure
6.18: Schematic Illustration of the Transformation of Brittle to Ductile Deformation in Granitic Rocks at Depth
Source:
Fossen, (2016).
Gold
mineralization in the mylonitized granodiorite occurs in close association with sulfide minerals, which are largely disseminated, but
also frequently occur as veinlets or stringers aligned with mylonitic foliation (Figure 6.19). On a microscopic scale, pyrite in mineralized
intervals is often broken, indicating some deformation during or after mineralization. Sulfide minerals in the surrounding granodiorite
are widely disseminated, typically occur within igneous hornblende and plagioclase, and occasionally occur as clusters and stringers
which also tend to parallel weak to moderate foliation, where present.
CK Gold Project S-K 1300 Technical Report 53 May 2026
Figure
6.19: Pyrite +\- Chalcopyrite Aligned with Mylonitic Foliation
Source:
U.S. Gold, 2021.
The
mineralogical setting and physical character of the sulfide minerals in both the mylonitized and undeformed granodiorite suggests a primary
igneous origin, wherein mineralization occurred during magmatic crystallization, and syn-magmatic or post-magmatic mylonitization due
to brittle-ductile shearing served as physical means of concentrating metals simply via shortening of the host granodiorite. The metasedimentary
rocks intruded by the granodiorite may have served as a sulfur source to the crystallizing pluton, catalyzing base, and precious metal
mineralization through sulfur saturation of the magmatic fluid.
Emplacement
and crystallization of the host granodiorite was followed by a regionally extensive, felsic intrusive event represented by the Sherman
Granite and the Laramie anorthosite complex. Regional circulation of high temperature, potassium-rich magmatic-hydrothermal fluids exsolved
during emplacement of the Sherman Granite is indicated within the host granodiorite by alteration aureoles and halos along pegmatitic/aplitic
dike margins and alkali feldspar-quartz veins and by intense potassic alteration associated with significant brittle deformation features.
Hydrothermal alteration associated with post-mineral, brittle deformation attributed to emplacement of the Sherman Granite apparently
contributed to some degree of gold redistribution, as evidenced by the typically low gold grades within zones of moderate to intense
potassic alteration and occasional anomalous gold grades within silicified sample intervals.
Long
after formation of the CK deposit, during the Laramide orogeny (55 Ma to 80 Ma), the host granodiorite was uplifted and exposed to erosion.
Reactions between hypogene sulfide minerals and descending, acidic meteoric waters resulted in the supergene enrichment (oxidized) zone
exposed at the modern topographic surface. The enriched zone is characterized by the presence of iron oxides, secondary copper minerals,
and rare native copper. Pervasive oxidation is typically encountered to a depth of about 100 ft to 150 ft, though locally (near fault
structures) is known to extend to depths approaching 300 ft.
CK Gold Project S-K 1300 Technical Report 54 May 2026
6.3.2 Interpretations
and Conclusions
The
CK copper-gold deposit does not neatly fit into any specific category or class of conventional deposit models, in part because of the
wide array of variability and overlap of assigned deposit model parameters such as geochemical signatures, geological setting and time
frames, and the origin and mechanisms of emplacement of metal-bearing solutions.
Previous
authors (Hausel, 1997, 2012; Carson, 1998; Sillitoe, 2022; Dworian 2024) have postulated that the CK deposit represents some portion
of a copper (Au-Cu) porphyry system, largely based on observations of the nature and occurrence of hydrothermal alteration assemblages
exposed in outcrop. According to the U.S. Geological Survey’s Porphyry Copper Deposit Model (John et. Al, 2010) and Preliminary
Model of Porphyry Copper Deposits (Berger et. Al, 2008), porphyry deposits consist of disseminated copper minerals and copper minerals
in veins and breccias that are relatively evenly distributed in large volumes of rock forming high tonnage, low to moderate grade ores.
The USGS model descriptions further provide the following (select) characteristics common to known porphyry copper deposits:
● Host
rocks are altered and genetically related to granitoid porphyry intrusions and adjacent wall
rocks.
● Deposits
are centered in high-level intrusive complexes that commonly include stocks, dikes, and breccia
pipes, which generally form in the upper crust (less than 5 km to 10 km depth) in tectonically
unstable convergent plate margins.
● Wall-rock
alteration is intimately linked to narrow veins, commonly 0.1 cm to 10 cm in width, that
typically make up less than 1 to 5% volume of ore but also are present in other alteration
zones.
● Copper-bearing
sulfides are localized in a network of fracture-controlled stockwork veinlets and as disseminated
grains in the adjacent altered rock matrix.
● Hydrothermal
wall-rock alteration minerals and assemblages (namely potassic, sericitic, argillic, and
propylitic) are zoned spatially and temporally, with kilometer-scale vertical and lateral
dimensions.
● Zones
of phyllic-argillic and marginal propylitic alteration overlap or surround a potassic alteration
assemblage.
● Potassic
and sericitic alteration are invariably associated with sulfide mineralization and generally
are temporally, spatially, and thermally zoned with respect to one another.
● Potassic
alteration tends to be more centrally located, deeper, higher temperature, and earlier compared
to sericitic alteration.
● Owing
to the shallow depths of deposit formation (1 km to 4 km), preserved deposits are predominantly
Mesozoic and Cenozoic.
While
the alteration assemblages encountered within the CK deposit are indeed like those associated with porphyry copper deposits, hydrothermal
alteration zones at CK decidedly lack large-scale vertical and lateral dimensions, and potassic and sericitic alteration are clearly
not invariably associated with sulfide mineralization, nor are they necessarily temporally, spatially, and thermally zoned with respect
to one another. The Proterozoic age of the CK deposit’s host granodiorite and apparent pre- or syn-deformational mineralization
further preclude it from classification as a sensu-strictu porphyry deposit.
CK Gold Project S-K 1300 Technical Report 55 May 2026
The
CK deposit also exhibits a variety of characteristics that are, individually or in combination, like those of known intrusion related,
iron oxide copper-gold (IOCG), and even orogenic deposits. In each instance, however, the similarities (i.e., age, structural setting,
geochemical signature, alterations styles, etc.) are either outweighed by significant differences or are too limited, at present, to
support a decisive association with the deposit model.
The
regional geological setting of the CK deposit within the Cheyenne Suture belt is significant, as is the nature of occurrence of sulfide
mineralization as disseminations in undeformed granodiorite and in alignment with foliation in foliated to mylonitized granodiorite.
Based on the available data and information to date, we suggest that Klein’s (1974) description of the CK deposit as a “structurally
controlled base and precious metal deposit hosted in a Precambrian shear zone” is essentially correct if you want further refinement.
While Klein’s description does not present a conventional deposit model, it does provide a reasonable interpretation on which to
base plans for future exploration. Future drilling exploration (and petrographic and/or mineralogical analysis) should be carefully planned
to test Klein’s interpretation and target data useful in further developing an appropriate deposit model for the Project, whether
conventional or not.
CK Gold Project S-K 1300 Technical Report 56 May 2026
7 EXPLORATION
7.1 SUMMARY
OF EXPLORATION ACTIVITIES
The
Project was reportedly discovered in 1881, high-graded, and saw limited mining. The first reported exploration work was drilling completed
by ASARCO in 1938. Several additional rounds of drilling have been conducted since that time. In 1972, Henrietta acquired the property
and completed a comprehensive exploration and development program. In addition to drilling, an induced polarization (IP) survey, geological
mapping, geochemical sampling, and metallurgical testing were conducted (Nevin, 1973). Drilling campaigns were conducted by Saratoga
since 2006 and Strathmore since 2012, with a hiatus in drill exploration until the acquisition by U.S. Gold from Energy Fuels in 2016.
U.S. Gold conducted drilling programs in 2017, 2018, 2020, and 2021. Drilling in 2021 focused on data collection to support post-PFS
and PFS updates in 2022.
7.2 DRILLING
The
drilling record prior to 1997 is incomplete and much of the historical core has been lost. Contemporary drilling reports as well as comparisons
to recent drilling have been used to support the use of pre-1997 drilling. In 2020, historical drill hole collars were located, surveyed
and the results compared closely to their location in the historical drilling database.
Figure
7.1 indicates that a total of 173 holes with a total drill length of 98,415 ft (29,997 m) have been drilled on the CK Gold property.
Figure 7.1 shows the location of all holes within the CK Gold mineral resource area. An additional six historical holes totaling 3,560
ft (1,085 m) are in the database but outside of the current resource area.
7.2.1 Historical
Drilling
There
is limited information on drilling and sampling procedures for the ASARCO, Copper King Mining, and the U.S. Bureau of Mines (USBM) drill
programs. The original geology logs are not available, although Nevin (1973) provides summary geology logs for all but the ASARCO 1938
drilling and assay sheets for these drill programs. The assay sheets include collar coordinate information, bearing and dip of hole,
sample intervals, and Au, Ag, and Cu assay data. Defense Minerals Exploration Administration documents (0647_DMA) include identical logs
for the ASARCO which only contain assays and recoveries for ASARCO diamond drill holes A-1 through A-5 and state they were assayed by
Federal Mining and Smelting Co Wallace Testing Plant in Wallace, Idaho.
Previous
attempts to locate the drill core from ASARCO’s and the USBM drill programs that had been housed at USBM in Denver were unsuccessful.
According to Mountain Lake Resources Inc. (1997), the core collected from Henrietta’s holes was destroyed.
Soule
(1955) reported that the USBM's drilling was done by contract and that all three holes were core holes, but his report provided no further
information.
Henrietta
drilled seven rotary holes totaling 482 m and six core holes totaling 666 m. Several of the holes were started as rotary and finished
as core. Boyles Brothers Drilling Company of Golden, Colorado, was the drilling contractor.
Compass
Minerals drilled 21 rotary holes and five diamond core holes. Hole CCK-16 was drilled rotary to a depth of 152 m and then cored with
NX core to a total depth of 341 m. Notes on the geological log indicate the core was split before logging. Hole CCK-19 was cored for
its entire length with HQ core. Holes CCK-24 and CCK-25 were both started with RVC drilling, changing to NX core at 136 m and 136 m,
respectively. Hole CCK-26 was cored completely with NX core. There are no further details about Compass’s drilling program.
CK Gold Project S-K 1300 Technical Report 57 May 2026
Figure
7.1: Drill Hole Map
Source:
U.S. Gold, 2025.
CK Gold Project S-K 1300 Technical Report 58 May 2026
There
are few details on the Caledonia or Mountain Lake drill programs. No drill logs are available for the Caledonia holes; the collar locations
were taken from a map. The Caledonia holes ranged from 220 ft (65 m) to 550 ft (170 m) in depth and were intended to confirm the results
of prior drilling. A report by Gemcom (1987) describes the Caledonia drilling as spaced 50 ft (15 m) apart through the mineralization,
sampled every 10 ft (3 m), and assayed for gold. Gemcom entered and verified the Caledonia drilling data. Drill logs of the Mountain
Lake holes are available which do contain collar and drill orientation data. Summary geology from the Mountain Lakes drill holes were
entered into the database.
As
previously, Henrietta’s core hole H-1 does not show evidence that any of the other holes drilled on the Copper King property were
downhole surveyed.
There
is inherent risk associated with these legacy drilling programs (pre-2007 drilling), and limited information is available. These risks
include errors in collar location, downhole orientation, assay grade precision and accuracy, and database transcription errors. Comparisons
to recent infill drilling continue to support the use of the legacy holes. To acknowledge the risk, no legacy holes are used in the classification
of measured resources.
7.2.2 Saratoga
2007 – 2008
Saratoga’s
drilling campaign focused on expanding the mineralized body outlined in previous campaigns and providing material for metallurgical testing
and future geotechnical studies. The diamond drill program began in 2007, paused over winter, and was completed in 2008. Thirty-five
(35) holes were completed for a total length of 25,462 ft (7,760 m). Logan Drilling, based in Nova Scotia, Canada, was the drilling contractor,
and a Longyear Fly 38 skid rig drilling NQ-size core (4.76 cm diameter) was used.
7.2.3 U.S.
Gold 2017 – 2020
U.S.
Gold completed two RC drilling programs in 2017 and 2018. RC drilling comprised four holes in 2017 and eight in 2018, totaling 12,040
ft. (3,670 m). Both programs were designed to investigate magnetic and IP anomalies generated by geophysical surveys. Drilling was completed
by AK Drilling of Butte, Montana, using a Foremost MPD 1500 RC drill. Samples were collected at 5 ft (1.5 m) intervals from the discharge
of a rotary splitter attached to the drill. A chip tray was also filled from cuttings for geological logging and archived. Samples were
delivered to Bureau Veritas of Sparks, Nevada, for analysis.
A
rotary, reverse circulation, and diamond core drill program was begun in September 2020, and 30 drill holes totaling 21,810 ft (6,647
m) were completed by early December 2020. Core drilling totaled 10,561 ft (3,219 m), and rotary drilling totaled 10,538 ft (3,312 m).
The focus of U.S. Gold’s work was to generate metallurgical composites, collect geotechnical data, and expand mineral resources.
Alford
Drilling completed core drilling using an LF90 drill rig. HQ core was recovered using a split tube core barrel system to minimize core
damage. Holes are monumented using braided steel cable and a tag embedded in a concrete pad at the drill hole collar.
7.2.4 U.S.
Gold 2020 Drilling Campaign
In
October 2020, U.S. Gold conducted a drill program at the Project. Part of that work included surveying new and historical drill hole
collars that U.S. Gold could locate in the field and flag.
All
historical collar coordinates (pre-2020) were loaded into a handheld GPS unit and visited in the field. Those identifiable (cement, tags,
drill pipe, etc.) were flagged with lath and flagging, with the hole name on the lath. These collars were then surveyed at the same time
as the 2020 holes, on October 21, 2020.
CK Gold Project S-K 1300 Technical Report 59 May 2026
Surveying
was completed by Topographic Land Surveyors of Casper, WY, and the results were certified by Professional Land Surveyor Aaron Money,
No. 14558. The survey method was Real-Time Kinematic GPS using a Trimble R10 GNSS GPS system.
Drill
hole collars from the historical programs dating back to 1938 were identified in the field and resurveyed, confirming the locations recorded
in the drilling database.
Comparison
of the new-collar surveys with the old coordinates showed small variability in X and Y coordinates, typically less than 5 ft and around
25 ft at most, and a bit more in elevation (around 25 ft at most).
Two
permanent survey control points were placed on the Project for future use.
7.2.5 U.S.
Gold 2021 Drilling Campaign
U.S.
Gold began a drilling campaign in July of 2021 consisting of 48 holes and 40,930 ft (12,475 m), comprised of reverse circulation, rotary,
and core drilling. The primary purposes of this campaign were to continue to refine hydrological and geotechnical subsurface conditions,
and minor exploration immediately southeast of the proposed project. Thirteen monitoring wells totaling 5,600 ft (1,707 m) were proposed
for subsurface groundwater studies. Results from this campaign were compared visually to the existing model, and a model was estimated
using the previous parameters and including the new holes. There is no material change in the mineral resource or mineral reserve estimate.
There have been no findings or observations following the 2021 exploration and data gathering program that materially affected the findings
of this study.
7.3 HYDROGEOLOGY
No
previous hydrogeological work was completed at the Project prior to 2020. During its 2020 drilling program, U.S. Gold and its consultants,
NEIRBO Hydrogeology (NEIRBO) and Dahlgren Consulting, completed a limited water characterization and hydrogeology program. Several designed-for-purpose
drill holes were completed, and data were collected from holes designed primarily for other uses.
Seven
water characterization wells (MW-xx series) were drilled and completed in 2020, five by DrillRite Drilling of Spring Creek, Nevada, and
two by McRady Drilling of Cheyenne, Wyoming. DrillRite drilling was completed using reverse-circulation methods and McRady work was completed
using conventional rotary methods. A total of 2,755 ft (840 m) was drilled and completed. Holes were completed as water wells, screened,
and cased at proper intervals with a locking cover and monuments placed at the surface. These wells are checked regularly for water levels
and water quality.
Eight
core and RC holes designed for metallurgical resource expansion and geotechnical purposes were also utilized for hydrogeological purposes.
These holes totaled 7,511 ft (2,289 m) and consisted of two metallurgical core holes, one RC resource expansion hole, and five geotechnical
core holes. The two metallurgical core holes (CK20-04cB and CK20-06c) were kept open, cased, and capped, similar to the water characterization
wells. These two holes are utilized for water quality sampling and obtaining water levels. Televiewer surveys were completed in these
two holes as well to aid in hydrological and geotechnical studies.
Three
geotechnical core holes (CK20-17c, 18c, 19c) and one RC hole (CK20-09rc) had Vibrating Wire Piezometers (VWPs) installed in them. Packer
testing and televiewer surveys were also completed on the core holes. The two remaining geotechnical core holes, CK20-16c and 20c, only
had packer testing and televiewer surveys completed.
CK Gold Project S-K 1300 Technical Report 60 May 2026
Packer
testing was completed by Alford Drilling under the supervision of a NEIRBO consultant. VWP installation was completed and supervised
by Call & Nicholas, Inc. of Tucson, Arizona. Televiewer surveys were completed by staff of either COLOG or DGI Geoscience at the
same time as downhole gyroscopic surveying at the end of drilling each hole. Additional details on the current program are available
in Section 13.3.
7.4 GEOTECHNICAL
DATA
Prior
to 2020, no previous geotechnical work was completed on the Project. U.S. Gold retained Piteau Associates of Reno, Nevada, to design,
complete, and analyze a geotechnical program that included field outcrop mapping, on-site geotechnical core logging, rock testing and
sampling, televiewer data validation, and interpretation. Four days were spent reviewing existing drill core and mapping surface outcrops
at the Project. Surface mapping focused on joint and fracture set characterization for integration with subsurface derived data.
Five
geotechnical core holes (CK20-16c to 20c) totaling 4,685 ft (1,428 m) were completed. Core from these holes was logged on-site, run by
run, in a designed-for-purpose logging trailer by Piteau staff or consultants. Geologists completing the geotechnical logging also completed
needed rock characterization testing and selected geomechanical samples for third-party testing. Logging parameters included core recovery,
hardness, RQD, RMR, fracture frequency, joint condition, and angle, degree of breakage, and degree of alteration.
Piteau
staff completed point load index (PLI) testing in the field on the five geotechnical core holes and two metallurgical holes (CK20-06c
and 07c). During geotechnical logging, 1,065 PLI tests were completed on the whole core.
Geomechanical
samples were collected at chosen intervals by Piteau staff during logging. These samples were utilized for the characterization of intact
rock strength. 13 samples were collected for uniaxial compressive strength, 15 for triaxial compressive strength, 11 for indirect tensile
strength, and 25 for discontinuity direct shear testing. Sample testing was completed at the Wood Group PLC Rock Mechanics Laboratory
in Hamilton, Ontario, Canada. In addition, one fault gouge sample from CK20-16c was taken and tested at Golder Associates Geotechnical
Laboratory in Denver, Colorado. Piteau Associates integrated the results of this testing into their mine design recommendations.
Piteau
Associates also validated, processed, and interpreted downhole televiewer data from 13 holes completed in 2020, including the five geotechnical
core holes and holes CK20-01c, 03c, 04cB, 05c to 07c, 09rc, and 21c. For major faults and contacts, Ken Coleman with U.S. Gold completed
initial processing and structure picking, followed by Piteau work for joint and fracture set characterization. Televiewer surveys were
completed by either COLOG or DGI Geoscience.
7.5 NON-DRILLING
EXPLORATION ACTIVITIES
7.5.1 Geophysics
Magnetic
and two IP surveys were completed in the early 1970s. The magnetic survey measured vertical intensity using a Jalander instrument on
200 ft (60 m) line spacing and stations. Two significant positive anomalies are present. One, about 800 ft (245 m) wide and 1,500 ft
(460 m) long in a northwest direction, has a magnitude of 500 gammas above the background and coincides with the principal mineralization
direction. The anomaly is believed to be caused by the presence of magnetite in the mineralized rock.
The
initial IP survey showed a resistivity high extending northeast through the CK deposit, following a trend of thin overburden and chargeability
high of 18 ms against a background of 6 ms. The second IP survey was by McPhar Geophysics Inc. using a Scintrex I.P. R-7 unit over the
principal mineralized area. Line spacing was 300 to 800 ft (90 m to 240 m). Five north-south lines and two east-west lines were run.
Dipole spacing was 200 ft (60 m). An anomaly, principally a moderate to shallow metal factor anomaly, was detected, trending east-northeast
to the principal mineralized area. Both IP surveys established that the ore does not respond well to IP chargeability, and frequency
effects for the two methods are low and do not duplicate each other as expected.
CK Gold Project S-K 1300 Technical Report 61 May 2026
In
1994, Pearson de Ridder & Johnson, Inc. conducted an aeromagnetic survey on the property for Compass Minerals. Flight lines were
flown at a nominal altitude of 300 ft (90 m) above ground level, with north-south lines spaced 660 ft (200 m) apart and east-west lines
spaced 1,320 ft (400 m) apart. Several major magnetic trends and features were observed. The primary mineralized area around the Copper
King Mine is identified as a magnetic high.
In
1997, Gilmer Geophysics, Inc. supervised and interpreted a ground magnetic survey and a VLF-EM survey. The ground survey was laid out
using GPS and total survey technologies with principal directions oriented N33E and N57W. This orientation was chosen to cross-mapped
features at right angles. Line spacing was 200 ft (60 m) between the N33E lines. Total field ground magnetometer data were obtained using
two GEM Systems GSM-19 units used in “walking mag” mode, obtaining data every two seconds, resulting in station spacings
of 2 ft to 10 ft (0.5 m to 3 m) along survey lines. The VLF-EM data was obtained using an IRIS T-VLF instrument.
In
June 2017, Magee Geophysical Services, supervised by Jim Wright of Wright Geophysics, completed a ground magnetic survey over the Project.
70-line miles (113 km) of magnetic data were surveyed using real-time corrected differential GPS and Geometrics Model G-858 magnetometers.
Lines were spaced 160 ft (50 m) apart and oriented N30E across the project. Magnetometers were mounted on a backpack with data collected
every two seconds. Data interpretation by Jim Wright essentially duplicated the 1997 Gilmer survey. A strong magnetic anomaly was demonstrated
over the CK Gold deposit along with several magnetic anomalies to the east and south of the deposit. A prominent anomaly at the southeast
corner of the project called the Fish Anomaly, was tested by RC drilling in 2017, along with a couple of others to the east of the CK
Gold deposit.
In
October 2017, an IP survey was completed over the Project area by Zonge International and interpreted by Wright Geophysics. A total of
eleven lines were completed using a standard 9-electrode dipole-dipole array with a dipole length (a-spacing) of 1,082 ft (330 m) as designed by Wright Geophysics. Data were acquired
in the time-domain mode using a 0.125 Hz, 50% duty cycle transmitted waveform. Data was acquired along eleven north-south oriented lines.
Stations were located using a Garmin hand-held GPS, model GPSMAP 64CSx. The GPS data were differentially corrected in real time using
WAAS corrections. Accuracy of the GPSMAP 60CSx typically ranges from 6 ft to 16 ft (2 m to 5 m) line control in the field utilized UTM
Zone 13N NAD27 datum. Measurements were made for continuous line coverage at n-spacing of 1 through 7. Data were acquired in the time-domain
mode using a 0.125 Hz, 50% duty cycle transmitted waveform. Chargeability values (IPm) represent the Newmont Window with integration
from 450 to 1100 milliseconds after transmitter turnoff. A discussion of the time-domain acquisition program is presented with the digital
data release. IP anomalies identified to the west of the CK Gold deposit were tested by RC drilling in 2018.
A
150 km2 hyperspectral study centered on the CK Gold deposit was conducted in May of 2022. WorldView-3 satellite data processing
by Exploration Mapping Group included a variety of spectral processing techniques to discriminate surface geology and map high concentrations
of iron, clay and silica minerals. The layers produced include natural color, panchromatic, natural color
pan-sharpened, vegetation, soils, iron rich soils, iron decorrelation, clays, clay decorrelation, infrastructure and roads, bare rocks
soils and gravel and digital elevation. Iron mineral mapping includes images for ferrous iron, hematite, goethite and jarosite. Clay
mineral mapping includes an argillic class, a phyllic class and a propylitic class. Silica mapping included spectral matches for minerals
including chalcedony, siliceous sinter and jasperoids.
CK Gold Project S-K 1300 Technical Report 62 May 2026
7.5.2 Geochemical
Nevin
(1973) reports the results of soil geochemistry. Forty-four soil geochemical samples were taken on 100 ft and 200 ft (30 m and 60 m)
centers in widely separated traverses as a pilot study. All were analyzed for copper and arsenic, and some were analyzed for gold, zinc,
silver, and mercury. Three copper populations were sampled. The absolute background has values of about 20 ppm; a high background population
in proximity to the mineralized rock has values of about 500 ppm; four samples taken in thin soil directly over the mineralized rock
returned values of more than 1,000 ppm. Gold values appear to be a useful indicator of mineralization. Zinc, silver, and arsenic had
little contrast between mineralized and unmineralized areas. Mercury was found to have good contrast and was recommended for further
investigation.
CK Gold Project S-K 1300 Technical Report 63 May 2026
8 SAMPLE
PREPARATION, ANALYSES AND SECURITY
8.1 INTRODUCTION
The
Project has experienced an extended period of exploration and development. Core samples from most of the prior drilling programs are
secured and available. Historical core drilling was relogged geologically providing consistency with U. S. Gold logging practices.
8.2 HISTORICAL
SAMPLING
According
to Soule (1955) and the photocopied data provided to MDA, the ASARCO 1938 core samples were sampled at 5 ft (1.52 m) intervals, while
the Copper King core holes were sampled at 10 ft (3.1 m) intervals. The 1970 ASARCO sampling was variable, though most sample lengths
were 10 ft (3.1 m).
Soule’s
(1955) report briefly described USBM’s sampling procedures. For their three holes, all core and necessary sludge samples were delivered
to the USBM’s engineer. All core samples were logged and split, with one split half sent to the USBM’s Salt Lake City laboratory
for analysis. Sludge samples were taken when core recovery was less than 85% to 90%. All sludge samples from holes B-1 and B-2 were saved
until the end of the project; most from hole B-1 were analyzed, but only a few from hole B-2 were analyzed. No sludge samples from B-3
were saved because core recovery was generally excellent. The USBM drill holes were sampled on variable length intervals ranging from
approximately 3 ft to 16 ft (1 m to 5 m) with most sample lengths between 6 ft and 10 ft (2 m and 3 m).
Henrietta’s
drill holes were sampled and assayed at about 10 ft (3.1 m) intervals for gold and copper and occasionally for silver and acid-soluble
copper (Nevin, 1973). The core was split, with one half sent for assay and the other half stored on site. For the dry intervals of the
rotary holes, a box and cyclone in series were used for sampling with splitting by a Jones riffle. Nevin (1973) estimated that about
1% to 2% of the sample was lost as very fine dust. For the wet drilling, cuttings were split in a long, metal sluice box equipped with
a longitudinal baffle set to retain about a 10% fraction for assay. Rejects were stored on site.
According
to Clarke (1987), Caledonia’s drill holes were sampled every 10 ft (3 m) and assayed for gold, but the historic data included only
composite intervals ranging from 3 m to >50 m.
The
Compass reverse circulation (RVC) holes were sampled at 5 ft (1.5 m) intervals, while the core holes were sampled at 10 ft (3.1 m) intervals.
The Mountain Lake drill holes were all sampled at 5 ft (1.5 m) intervals. MDA has no further information on the Compass or Mountain Lakes
drill sampling.
8.3 SAMPLE
PREPARATION
8.3.1 Saratoga
2007 – 2008
The
core from the 2008 drill program was logged in the spring/summer of 2008, contemporaneous with the drilling, though sampling was delayed
until the fall of 2009 due to budgetary constraints.
Saratoga
sampled the 2007 and 2008 drill core on approximate 5 ft (1.5 m) intervals, although sample intervals did range from 1 ft to 10 ft (0.3
m to 3 m) as warranted by the geology. Due to the pervasive alteration and potential for mineralization observed throughout all drill
holes, the core was continuously sampled with no gaps in the sample sequence. The samples were collected principally by sawing the core
in half, though some intervals, due to either the hardness of the rock or the unavailability of the saw, were split with a hydraulic
splitter. In those cases where the sample intervals were fractured, and many of the core pieces were too small to either saw or split,
the sampling technician sampled the core using a trowel, a small shovel, or by hand. One half of the core was bagged and sent for assay,
while the remaining half was placed back into the core box and put into storage.
CK Gold Project S-K 1300 Technical Report 64 May 2026
The
geological logging process for the first 15 core holes of the 2007 drill program included core photography and geotechnical RQD measurements,
along with structural and lithological determinations. However, core-recovery data recording was missing.
For
the remaining 2007 core holes and all the 2008 drill holes, core photography, RQD, and core recovery measurements, geological logging,
and sampling were conducted in an open-sided shed. Due to the limited covered space, some of the core was exposed to the weather.
The
proposed drill hole locations were in the field by Western Research and Development (Western), a professional survey company based out
of Cheyenne, Wyoming. Western used a LYCA XLS 1200 Global Positioning System (GPS) survey instrument, which has a <0.5 ft (0.15 m)
accuracy. Upon completion of the drill program, Western returned to the project site and re-surveyed the actual drill collars.
8.3.2 CK
Gold Project 2017 - 2021
Reverse
circulation (RC) samples were collected in five-foot intervals from the discharge of a rotary splitter attached to the drill and then
delivered to ALS in 2021 and to Bureau Veritas laboratory in Sparks, Nevada, in 2017 and 2018 for analysis. U.S. Gold staff labeled and
inserted commercial Quality Assurance/Quality Control (QA/QC) samples.
A
red cut line was drawn along the midline of the core by a geologist, and a blue line, which indicates the core direction, was drawn next
to it. During 2021, the core was sawn in half by U.S. Gold personnel. During 2017-2018, the core was sawn by Bureau Veritas in Reno,
NV, and the half core containing the blue line was sampled. Sample tags were affixed to the inside of each core box, and the sample number
was written on the core. Typically, samples were 5 ft (1.5 m) long, broken at lithological or important geological feature contacts.
Ordinarily,
the geologist collected the core four times per 24-hour shift and returned it to the core logging facility. The core was housed in the
garage of a residential home in Cheyenne, WY, or placed in the backyard prior to shipping. In 2021, all core was moved to a secured facility
in Cheyenne, WY. Shipping was by a commercial carrier using the chain of custody documents and delivered to the assay laboratory facilities
in Elko and Reno, Nevada.
8.3.3 U.S.
Gold 2021
Ordinarily,
core was collected by the geologist four times per 24-hour shift and returned to the core logging facility. The core processing steps
were as follows:
● Core
is washed and scrubbed.
● Core
is aligned in the box to represent the original condition of the core as accurately as possible
(i.e., all fractured/broken ends are matched and rotated to fit back together).
● Core
is washed and scrubbed again.
● Beginning
and ending depths are marked on the inside core boxes while the core dries.
● When
the core is dry, it is marked top to bottom with blue and red orientation lines, blue on
the left, and red on the right, depths are marked and labeled in black on one-foot increments.
CK Gold Project S-K 1300 Technical Report 65 May 2026
● Core
is logged for recovery, Rock Quality Designation (RQD), and fracture frequency per run, and
this information is recorded on the log sheet, along with any structural features significant
enough to be recorded at the resolution of the log sheet.
● Gross
lithology breaks are identified and recorded in the graphic lithology log column.
● Core
is inspected in greater detail as sample intervals are selected on a nominal 5-foot sample
interval within consistent lithologies, and sample breaks on lithological (or other appropriate,
i.e., significant variation in alteration type or intensity) contacts with a minimum sample
interval of 1 ft.
● Assay
sample intervals are marked in green, with a line perpendicular to the core axis indicating
the top and bottom of the interval, and the sample ID marked on the core (if possible) parallel
to the core axis.
● Sample
IDs are scribed on silver sample tags, which are stapled to the core box on the left-hand
side of the core.
● Detailed
information is recorded for each sample interval on the core log sheet (rock type, oxidation,
alteration, mineralization, sulfide content, mineral content, veins, fracture, etc.).
● Magnetic
susceptibility meter measurements.
● Assay
samples are recorded on the lab's assay sample inventory form. The log sheet indicates the
core boxes in which each assay interval is contained (sample intervals often cross box boundaries).
● Logged
core is transferred from the logging table to the photo station, re-wetted, and photographed.
● Photographed
core boxes are reunited with their lids and moved either to the back of a waiting truck for
transport to the pick-up area at the back of the lot or to a secondary staging area near
the garage entrance to be moved to the back of the lot later.
8.4 SAMPLE
ANALYSIS
8.4.1 Legacy
Campaigns
Very
little is known about the sample preparation, assaying, and analytical procedures of the sampling at the Project except as described
below. A table summarizing pre-1998 drilling on the property (Mountain Lake Resources Inc., 1997) gives detection limits for gold and
copper assays for six of the drill campaigns. For both the 1938 and 1970 assays by ASARCO, the detection limits were 0.001 oz/st Au (0.034
g/t Au) and 0.01% Cu (Mountain Lake Resources Inc., 1997). For Copper King Mining’s assays, the detection limit for gold was 0.01
oz/st Au (0.343 g/t Au), and the detection limit for copper was thought to be 0.10% (Mountain Lake Resources Inc., 1997).
For
the three holes drilled by the USBM, analysis was done by the USBM’s Salt Lake City laboratory (Soule, 1955). The detection limits
were 0.005 oz/st Au (0.171 g/t Au) and 0.05% Cu as indicated by Mountain Lake Resources Inc. (1997). The USBM also prepared composite
samples of the core from their three holes and analyzed them for molybdenum, tungsten, nickel, and for most of them, titanium. In addition,
USBM ran multi-element spectrographic analyses on five composite samples from hole B-1, and Copper King Mining ran the same on five composite
samples from hole C-7 and one sample from hole C-8; results of these spectrographic analyses are reported in Soule (1955).
Skyline
Laboratories Inc. and Hazen Research Inc., both of Denver, Colorado, assayed Henrietta samples (Nevin, 1973). The detection limits for
the gold and copper assays were 0.005 oz/st Au (0.171 g/t Au) and possibly 0.001% Cu (Mountain Lake Resources Inc., 1997).
CK Gold Project S-K 1300 Technical Report 66 May 2026
Little
information exists regarding Caledonia’s drill program other than their drill samples were only assayed for gold (Clarke, 1987).
MDA
(2010) found assay certificates for Compass holes CCK-19 and CCK-24 that showed the assays were performed by Barringer Laboratories Inc.,
in Reno, Nevada, using fire assay with an atomic absorption (“AA”) finish for gold and AA for copper. It was not evident
from the data reviewed by MDA whether Barringer assayed all of Compass’s holes. The detection limits for Compass’s assays
were 2 ppb gold and 5 ppm copper (Mountain Lake Resources Inc., 1997).
Assaying
of the samples for Mountain Lake was performed by Barringer Laboratories Inc. in Reno, Nevada. MDA has seen no assay certificates for
Mountain Lake’s drill holes but did find a spreadsheet with the assays, which were entered into the database for Mountain Lake’s
eight drill holes. The detection limits were 2 ppb gold and 5 ppm copper (Mountain Lake Resources Inc., 1997). Metallurgical testing
of bulk composite samples from holes MLRM-1 and MLRM-2 was conducted by the Colorado Minerals Research Institute of Golden, Colorado.
8.4.2 Saratoga
2007 – 2008 Campaign
The
Saratoga core samples from the 2007 drill program were shipped to ALS Chemex (Chemex) in Elko, Nevada for sample preparation and then
on to the Chemex facility in Sparks, Nevada, for gold analysis and a 33-element geochemical suite. Results were received in December
2009. The Chemex sample preparation and analysis methods requested by Saratoga were “AA23” for gold and “ME-ICP61” for the geochemical suite. Both methods employ the same sample preparation methods, which include crushing the
whole sample to 70% passing -2 mm and then pulverizing 250 g to 85% less than 75 µm (-200 mesh). The “AA23” gold analysis
consists of splitting out a 30 g pulp sample and then using fire assay techniques followed by an atomic absorption (AA) finish. The detection
level for this analysis is 5 ppb Au, while the upper precision level is 10 ppm Au. Samples assaying over 10 ppm Au are re-assayed using
a fire assay with a gravimetric finish technique (Chemex laboratory code “Au-GRA21”), which has an upper precision level
of 1,000 ppm Au. The “ME-ICP61” analytical procedure consists of a four-acid digestion and analysis by inductively coupled
plasma (ICP) followed by atomic emission spectroscopy (AES). The reported range for copper values using this technique is between 1 ppm
Cu and 10,000 ppm Cu. Samples with initial values over 10,000 ppm Cu are re-run using the same analytical techniques optimized for accuracy
and precision at high concentrations (Chemex laboratory code “CU-OG62” with an upper precision of 40% Cu).
The
core samples from the 2008 drill program were shipped in the fall of 2009 to American Assay Laboratories (American Assay) in Sparks,
Nevada for sample preparation and analysis for gold and copper only. The results were received in September 2009. The American Assay
sample preparation and analysis methods requested by Saratoga were “FA30” for gold and “D2A” for copper. Both
methods employ the same sample preparation methods, which include crushing the whole sample to 70% passing -2 mm and then pulverizing
300 g to 85% less than 105 µm (-150 mesh). The “FA30” gold analysis consists of splitting out a 30 g pulp sample and
then using fire assay techniques. The detection level for this analysis is 3 ppb Au, while the upper precision level is 10 ppm Au. Samples
assaying over 10 ppm are re-assayed using a fire assay with a gravimetric finish technique (American Assay laboratory code “Au-GRAV”),
which has an upper precision level of 1,000 ppm Au. The “D2A” analytical procedure for copper consists of an aqua regia digestion
and analysis by AA. The reported range for copper values using this technique is between 1 ppm Cu and 10,000 ppm Cu. Samples with initial
values over 10,000 ppm Cu are re-run using the same analytical techniques optimized for accuracy and precision at high concentrations
(laboratory code “Cu Ore Grade”) with an upper precision of 40% Cu.
CK Gold Project S-K 1300 Technical Report 67 May 2026
After
the analyses were completed and temporary storage at Chemex, Saratoga retrieved all of the pulps and selected coarse reject samples from
mineralized intervals and is currently in storage in Elko, Nevada.
The
drill crew, upon filling a core box, placed a wooden top over the core, and the box was secured using strapping tape. At the end of each
drill shift, the core was transported by the drill crew into Cheyenne, WY, about 20 miles (32 km), and placed in a locked commercial
storage unit. The storage unit is located within a secure, gated facility. About once per week, the core was transported on a trailer
to the logging and sampling facility in Casper, Wyoming, 200 miles (320 km).
Logging
and sampling of the first 13 core holes drilled in 2007 were completed in a large, converted garage located on leased private property
outside of Casper, Wyoming. The property was fenced off and kept securely locked when personnel were not on-site. After being logged
and sampled, the remaining half-core was placed in a locked storage unit within a secure, commercial storage facility in Casper.
Saratoga’s
lease on the Casper logging facility ended on August 31, 2007, and the remaining 2007 core holes were transported 200 miles (320 km)
to Dubois, Wyoming, for storage and further core processing. Sampling was conducted within an open-sided ranch shed on private property
owned by Norm Burmeister, an officer with Saratoga. The core facility was within a fenced area. After sampling was complete, the core
was transported to a commercial storage facility and stored on racks in a locked storage unit. These same procedures were used for the
2008 drilling.
The
half-core samples to be shipped to the laboratory were given non-referential sample ID numbers. The individual bagged samples were placed
into larger shipping bags, which were securely closed using heavy wire ties and kept inside the logging facility awaiting shipment via
a commercial trucking company to Chemex in 2007, and Chemex and American Assay in 2008.
8.4.3 U.S.
Gold 2017 – 2020 Campaign
2020
samples were logged, and sample intervals were selected and passed along with cut sheets to Bureau Veritas (BV). BV cut the core and
analyzed a sample from the half core, with the other half returned to the core boxes for storage and reference. The retained half core
and sample rejects were initially stored in the warehouse at BV while assaying was conducted they have been subsequently moved for storage
in a facility in Cheyenne near the Project. During the sample submission process, a contract geologist, M. C. Newton, was on hand at
the BV facility to receive core, discuss and inspect procedures, on an intermittent basis as part of the chain of custody and QA/QC check
procedures.
BV
inserted commercial blanks and standard reference materials from cut sheets determined by U.S. Gold. Throughout 2017 – 2020, BV
of Reno, NV, was the primary laboratory responsible for cutting the core, sampling, preparation, and assaying. Some compromises were
needed during the 2020 COVID-19 outbreak as access to the BV laboratory and personnel was restricted. Video and careful consultation
with laboratory staff satisfied the role of the consulting geologist in verifying that correct handling and procedures were followed.
8.4.4 U.S.
Gold 2021 Campaign
For
the 2021 drilling campaign, Hard Rock Consulting (HRC), sub-contracted through Gustavson, conducted field activities, logging, core sawing,
and initial sample selection. ALS were selected to conduct assaying, and selected samples, along with standards and blanks, were sent
off to the laboratory by HRC. The program was initiated to provide additional data to support a FS and included the tests necessary for
both the hydrological and geotechnical studies. There have been no material findings to date that would support a departure from the
findings in the PFS.
CK Gold Project S-K 1300 Technical Report 68 May 2026
8.5 RESULTS,
QC PROCEDURES AND QA ACTIONS
8.5.1 Saratoga
2007 – 2008
Details
on QA/QC programs for the 2007 and 2008 drill campaigns can be found in Tietz (2010), Saratoga’s QA/QC program implemented for
the 2007 and 2008 drilling included:
1. Analytical
standards and blanks inserted into the drill sample batches.
2. Duplicate
assaying of selected coarse reject samples by the primary assay laboratory.
3. Re-assaying
of selected original pulps by an umpire laboratory. American Assay was used as the umpire
laboratory for the 2007 drill program in which Chemex was the primary laboratory, while the
roles were reversed for the 2008 drilling.
A
total of 169 standard samples were submitted to Chemex and American Assay. One standard sample was inserted into the stream at an approximate
rate of one standard for every 40 drill samples. Standards were also used in the duplicate pulp and pulp re-assay check assay programs
at a higher rate, ranging from one standard per 10 to one standard per 25 samples. Five unique analytical standards were used. The standards
were inserted into the drill core sample stream with the same sample ID designation, though as pulps, they were not blind to the lab.
Tietz
found that the check assay analyses show good agreement between the Chemex duplicate pulp analyses on the original Chemex coarse rejects
and between the Chemex pulp re-assays of the original American Assay samples. No significant biases or assay variability issues were
found within these data. There are concerns, primarily within the copper analyses, with the December 2009 American Assay pulp duplicate
and pulp re-assay check analyses. Further examination and follow-up analytical work is warranted to determine the specific problem within
these data, though any resolution of these issues would not materially affect the resource model or stated resource.
8.5.2 U.S.
Gold 2017 – 2020
U.S.
Gold’s QA/QC program implemented for the 2017, 2018, and 2020 drilling campaigns included the analysis of Certified Reference Materials
(CRMs), blanks, coarse rejects, and pulp duplicates inserted regularly into the sample stream. A random selection of samples from mineralized
intervals was also submitted to an umpire laboratory.
U.S.
Gold geologists evaluated the control sample results. When the control samples returned values outside of acceptable limits, the assay
laboratory was contacted, and the batch of samples was re-assayed.
Gustavson
compiled and reviewed the 2020 control sample results and found assay accuracy and precision acceptable for resource estimation. No significant
bias was observed in the gold, copper, or silver CRM results. Check assays showed no significant bias between Bureau Veritas original
assays and ALS check assays. No significant carryover contamination was observed in the blank results.
Three
standards were used for the 2020 drilling program, CDN-CM-43 and CDN-CM-38 from CDN Resource Laboratories Ltd., and MEG-Au.17.01 and
MEG-Au.17.10 from MEG, Inc. The recommended values and standard deviations for Au, Cu, and Ag are found in Table 8.1.
CK Gold Project S-K 1300 Technical Report 69 May 2026
Table
8.1: U.S. Gold Drilling Program Sample Standards
Standards
g/t
Au
Au_2SD
%
Cu
Cu_2SD
g/t
Ag
Ag_2SD
CDN-CM-38
0.942
±0.072
0.686
±0.032
6.0
±0.4
CDN-CM-43
0.309
±0.040
0.233
±0.012
-
-
MEG-Au.17.1
0.382
±0.015
0.0723
±0.0019
6.525
±0.203
MEG-Blank.17.10
<0.003
-
0.00015
-
0.9
A
commercial 99% quartz sand standard MEG-Blank.17.10 was used during the 2020 drilling campaign. Results are reasonable, and blank assay
results exceed 90% less than two times the detection limit of 0.005 ppm gold. The blank has a reported average of less than 0.003 g/t
Au. The same blank has a reported average of 1.5 ppm copper and although not a blank, it showed carryover on 5 occasions but well below
any economic consideration. Silver was below detection 100% of the time. The blank samples demonstrate that the laboratory has reasonable
control over sample
cross-contamination.
The
duplicate pulp performance of 64 pairs was greater than five times the gold detection limit, exceeding 90% of the pairs within a grade
difference of 5%. These results are reasonable.
A
subset of 110 randomly selected samples collected during the 2020 drilling campaign were submitted to ALS for umpire assay analysis.
The paired Au and Cu data were analyzed and found to agree with the ALS checks. The correlation coefficient (r) of the raw data is 0.97
for Au (Figure 8.1) and 0.997 for Cu (Figure 8.2).
Figure
8.1: Umpire Analysis Gold Correlation
CK Gold Project S-K 1300 Technical Report 70 May 2026
Figure
8.2: Umpire Analysis Copper Correlation
8.5.3 U.S.
Gold 2021 Campaign
As
described previously, the data derived from the 2021 drilling program that commenced in August 2021 has not been included in support
of the PFS study which relies on 2020 and prior data. The purpose of the 2021 data collection was primarily to support additional geotechnical
and hydrological studies. There have been no material observations that would affect the PFS study as written. The 2021 drilling results
shown in Table 8.2 have been reviewed in the context of the existing resource and they are not material.
Table
8.2: U.S. Gold Drilling Program Results 2021
Standard
Au
(ppm)
Cu
(ppm)
Ag
(ppm)
Expected
SD
Expected
SD
Expected
SD
CDN-BL-10
0.0064
0.0069
29.3511
5.5799
0.0316
0.0124
CDN-CM-19
2.11
0.11
20200
350
2.6414
0.2038
CDN-CM-37
0.171
0.012
2120
60
1.17
0.135
CDN-CM-38
0.942
0.036
6860
160
6
0.2
CDN-CM-47
1.13
0.055
7240
140
69
3
MEG-Au.17.01
0.38
0.015
723
19
6.525
0.203
MEG-SiBlank.17.12
0.0059
0.0164
3.0223
3.234
0.0148
0.0136
8.6 QP
OPINION
The
QP believes that the sampling procedures are adequate for mineral estimation purposes and for reporting mineral resources and reserves.
CK Gold Project S-K 1300 Technical Report 71 May 2026
9 DATA VERIFICATION
9.1 PROCEDURES
Mark
Shutty, CPG, MAIG, Principal Geologist at Drift Geo LLC, is the QP responsible for the TRS Mineral Resource Estimate (MRE), visited the
CK Project site and U.S. Gold's logging and sample storage facilities in Cheyenne, Wyoming, from July 26, 2021 to July 27, 2021, and
again on July 11, 2024. No additional site visit was conducted by the QP in connection with this Feasibility Study. The QP's verification
work was conducted through a review of all available digital datasets, database documentation, drill logs, assay certificates, and QA/QC
records, supplemented by a three-dimensional (3D) visual review of the drill hole data within the modeling environment used in the development
of the geological models and MREs disclosed in this TRS.
During
the 2021 and 2024 site visits, the following observations and evaluations were made:
● Mineralization:
Oxide copper mineralization
was observed in outcropping granodiorite host rocks above the core of the modeled mineralization
(Figure 9.2).
● Drilling
Operations: Active
drilling operations were reviewed in 2021, and monumented drill collars from the 2021 and
earlier campaigns were inspected in 2024 (Figure 9.1).
● Geological
Facilities: Logging,
sampling, and storage facilities were evaluated to confirm compliance with industry standards.
Drill core sampling was conducted using sawn core methods, and storage facilities were found
to be secure, well-organized, and inclusive of legacy core from previous operators.
9.2 DATA
VALIDATION
9.2.1 Drilling
and Sampling
Validation
of the drilling and sampling data sources, capture and storage, as well as overall quality were reviewed by the QP and assessed for compliance
with industry practices, and meeting suitability standards required for use in modeling work supporting the MRE include :
● Drill
Collar Locations and Surveys.
● Downhole
Survey Data.
● Sampling
QA/QC.
● Logging
and Database Management.
9.2.1.1 Drill
Collar Locations and Surveys
All
of U.S. Gold’s drill collars, as well as monumented historical drill collars, were professionally surveyed using differential GPS
equipment and tied to the NAD83 Wyoming State Plane East coordinate reference system. The locations of historical holes that have no
remaining surface expression have locations derived from plan maps which have been georeferenced and digitized using surveyed drill collar
control points. All drill collar elevations have been cross-checked against a Digital Terrain Model (DTM). Historical collars with recorded
elevations not conforming to DTM were adjusted to match the digital surface, validated by observations of site disturbance, monuments,
and historical maps.
Figure
9.1 illustrates U.S. Gold’s drilling in-progress for the CK21-11c drill hole completed on July 11, 2021.
CK Gold Project S-K 1300 Technical Report 72 May 2026
Figure
9.1: U.S. Gold Hole CK21-11c Drilling in Progress
Source:
M. Shutty, U.S. Gold, Drift Geo LLC, 2021.
9.2.1.2 Downhole
Survey Data
During
the database review, two systematic errors were identified in the downhole survey data affecting a subset of U.S. Gold drill holes. Firstly,
a redundant true north correction factor (±7.0° E declination) was identified in the 2021 downhole survey data, consistent
with a double application of the magnetic declination correction during data processing. Secondly, an inclination reference error was
identified in a subset of U.S. Gold drill holes. Both errors were identified and documented by the QP; corrections have been applied
to the database but have not been incorporated into the FS resource model.
Survey
deviations of this type originate at zero at the collar and accumulate progressively with distance down the hole; positional displacement
is therefore greatest at depth and smallest within the near-surface portions of the deposit that contribute most to the Measured and
Indicated Resource classifications.
Both
errors were identified and documented by the QP. A sensitivity analysis confirmed that the effect of these survey errors on the reported
MRE is non-material, with differences in contained metal of less than 1.5% relative to the prior estimate. Corrections have been documented
in the database for future use; the FS resource model retains the survey data as used in the PFS for consistency and given the non-material
impact.
CK Gold Project S-K 1300 Technical Report 73 May 2026
9.2.1.3 Quality
Assurance/Quality Control (QA/QC)
QA/QC
procedures, described in Section 8.5, ensured the reliability of the analytical data. Control samples including blanks, duplicates, and
CRM standards were appropriately selected and used at suitable frequencies. Their performance was evaluated using statistical methods
to confirm the quality of the sample handling and the analytical data accuracy. The digital analytical record handling was utilized via
modern drilling campaign methods, minimizing errors during data transfer from laboratories to the drill hole database and modeling systems.
9.2.1.4 Logging
and Database Management
Comprehensive
logging captured attributes required for modeling such as geology, structures and oxidation features (Figure 9.2). These data were securely
stored in a detailed project database integrating historical and modern drilling information. U.S. Gold compiled a comprehensive Access
database to preserve data quality while facilitating digital verification and analysis. Drill traces, logged geology, and assay data
were independently reviewed in 3D.
Figure
9.2: Oxide Copper Mineralization in Outcropping Granodiorite Host Rocks
Source:
M. Shutty, U.S. Gold, Drift Geo LLC, 2021.
CK Gold Project S-K 1300 Technical Report 74 May 2026
9.2.2 Resource
Dataset Overview
The
Project drilling datasets, compiled over several decades, originate from multiple operators employing varied drilling, sampling, and
analytical methods detailed as follows:
● Modern
Era Drilling: Data
generated since 2007 from U.S. Gold and Saratoga represent the most robust datasets within
the database, supported by comprehensive QA/QC protocols, digital analytical records, and
thorough documentation. These datasets support the majority of the Project's Measured and
Indicated Mineral Resources.
● Historical
Drilling: Pre-2007
datasets, including drilling completed between 1938 and 1997 by ASARCO, Copper King, USBM,
Compass, Mountain Lake, Henrietta, and Caledonia, vary in documentation quality and analytical
methodology. The implications of historical data quality for the MRE are discussed in Section
9.4.
● Metal
Distribution Validation: The
deposit has a well-defined metal distribution, with gradational Au, Cu, and Ag zonation in
granodiorite host rocks, which enables compliance checking of results for both modern and
historical datasets.
9.2.3 QA/QC
Independent Verification
The
QP independently verified analytical data by the following methods:
1. Reviewing
and cross-checking unit conversions (e.g., oz/st to ppm for Au and Ag assays and ppm to percentage
for Cu).
2. Calculating
the AuEq variable for use in modeling and resource reporting.
3. Evaluating
global and local metal grades by drill type to assess potential bias:
● Diamond
Core: 63%
of resource drilling, well-dispersed across the deposit.
● RC
Drilling: 35%,
primarily defining lower-grade margins.
● Rotary
Drilling: <2%,
focused on the core of the deposit.
9.2.4 Observations
and Compliance
Observations
and compliance checks were made as follows:
● Surface
disturbances from historical drill pads and access trails are well-preserved and/or have
been reclaimed.
● Verification
samples were not collected during the site visits. Observed drilling, sampling, and data
handling procedures were consistent with industry standards.
● Drill
core recovery is excellent, as evident from core photographs, archived samples, and digital
logs. Hard Rock Consulting (HRC) re-logged core from the 2017 to 2018 campaigns, further
validating the geological observations.
In
summary, the QP confirms that the datasets used in the Project's TSR MRE meets industry standards for quality and reliability,
subject to the data quality qualifications documented in Sections 9.2 and 9.3 and provides a defensible basis for resource modeling and
reporting.
CK Gold Project S-K 1300 Technical Report 75 May 2026
9.3 PREVIOUS
AUDITS / OWNERS
9.3.1 Historical
Exploration, Sampling and QA/QC
9.3.1.1 Gustavson
Associates, LLC
Data
verification of exploration activities before 2007 are not well documented, and there is no independent verification of the exploration,
sampling, or laboratory procedures for pre-2007 work completed. Historical data verification for pre-Saratoga drilling programs (2007
to 2008) was previously conducted by Gustavson for the S-K 1300 Technical Report Summary, CK Gold Project, December 1, 2021. Gustavson’s
verification scope included:
● Cross-checking
drill hole locations and assay values for ASARCO holes A-1 through to A-5, Copper King holes
C-6 through to C-11, and USBM holes B-1 through to B-3 against published data in Soule (1955).
● Verification
of assay certificates for Compass holes CCK-19 and CCK-24 (cored portion).
● Validation
of selected Henrietta and Mountain Lake drill hole assay data against available source documents.
The
current QP has not independently re-verified this historical data due to limited availability of the original source documents for the
drilling programs conducted between 1938 and 1997.
9.3.1.2 Mountain
Lake Resources
Mountain
Lake conducted check analyses in 1996 on selected mineralized intervals from 12 Compass drill holes. The check analyses were performed
by Barringer Laboratories, Inc., (Barringer) with gold analyzed by the fire assay method incorporating an atomic absorption finish and
copper by the atomic absorption method. Preliminary evaluation by MDA (2006) indicated general agreement:
● Original
assays: 3.46 g/t Au, 0.465% Cu (mean of 185 intervals).
● Check
assays: 3.29 g/t Au, 0.570% Cu (mean of 185 intervals).
● Absolute
percentage difference: average 16% (Standard Deviation (SD) 29%).
● Non-absolute
mean difference: -1%.
Greater
variability was observed in lower-grade mineralization material (14 of 20 pairs with >30% differences occurred below 3.36 g/t Au).
9.3.1.3 Saratoga
2007 – 2008
Drilling
data from the 2007 to 2008 Saratoga drill programs were input directly from source files. Saratoga provided original collar survey data
files and downhole survey driller’s notebooks, while assay data were received as digital records direct from the laboratories.
Following compilation, the data were audited against source files by randomly checking values and specifically reviewing downhole survey
data that appeared anomalous. Six individual downhole surveys were removed from the database due to uncertain depths or atypical azimuth
values; in all cases, the atypical azimuth values coincided with anomalously high magnetic field readings.
9.4 HISTORICAL
ASSAY QUALITY
During
the FS database preparation, the QP completed a comprehensive assessment of the influence of pre-1997 historical drilling on the primary
metal estimates for gold and copper. Exploratory data analysis identified that historical composites within the mineralized domain represent
approximately 27% of the composite record but contribute approximately 42% of the contained metal in the drill hole database. This represents
a disproportionate contribution relative to sample count that warranted closer evaluation. During this analysis, a systematic positive
bias in the silver assay values from pre-1997 drill holes was identified as an incidental finding.
CK Gold Project S-K 1300 Technical Report 76 May 2026
The
bias is interpreted to reflect differences in analytical methodology between historical and modern laboratory practices, potentially
including differences in the sample preparation, digestion methods, or analytical finish for silver. Pre-1997 silver assay methods are
not fully documented in available records, limiting the ability to definitively characterize the source of the bias.
The
practical significance of this finding increased between the PFS and the FS for the Project as a result of higher silver prices assumed
in the FS resource and reserve economic parameters. At PFS-era silver pricing, the silver contribution to AuEq was sufficiently small
that assay bias in the historical silver dataset was not material to the MRE. At the FS-era silver pricing of US$35/oz, the silver contribution
to AuEq is more significant, elevating the materiality threshold for silver data quality.
In
response to this finding, two resource models were evaluated during FS preparation:
● All
Era Model (PFS and FS): Incorporates
the full drill hole database including pre-1997 historical data. The All Era model had been
in use as the basis for engineering, metallurgical, and geotechnical studies by multiple
FS consultants prior to the identification of the pre-1997 silver assay quality issue. Replacing
the source model at an advanced stage of FS preparation would have required revalidation
of consultant inputs across multiple technical disciplines, introducing schedule risk and
potential inconsistencies between study components. The All Era model was therefore retained
for the FS MRE. The QP is satisfied that this decision is supported by the non-materiality
of the silver assay bias on gold and copper as the primary economic metals, as documented
by the sensitivity analysis.
● Modern
Era Model: Restricted
to post-2006 drilling data, eliminating the pre-1997 silver assay population. Statistical
analysis demonstrated meaningful improvements in the variogram structure relative to the
All Era model, including reduced nugget effect and variance. The QP considers the Modern
Era Model to represent a potentially superior geological representation of the deposit and
notes that it provides a basis for future resource growth evaluation as additional drilling
data are collected.
The
QP’s comparative evaluation of the All Era and Modern Era models, including sensitivity analysis and statistical assessment of
historical data quality, is documented in a technical memorandum dated November 4, 2025, on file with U.S. Gold Corp. Using identical
model parameters evaluated within a common PFS pit shell constraint, differences in contained gold and copper between the two models
are less than 1.5% and less than 1%, respectively, with the All Era model producing marginally higher contained gold and copper.
This
minimal variance reflects the spatial distribution of drilling within the deposit rather than simple assay bias. Historical drilling
(pre-1997) is predominantly located in the near-surface, higher-grade core where metal zonation naturally concentrates mineralization,
while modern-era drilling (2006 to 2021) extensively defines deposit margins where grades decline due to zonation. The apparent grade
difference between eras is therefore largely attributable to sampling different spatial domains within a continuously zoned deposit,
making isolation of analytical bias from geological heterogeneity inherently difficult.
Contained
silver differs by approximately 25% to 30% between the two models, reflecting removal of the pre-1997 biased assay population in the
Modern Era model, consistent with the QP’s characterization of the silver data quality issue.
The
QP concludes that the All Era model provides a reasonable and defensible estimate of Mineral Resources for the FS, subject to the silver
data quality qualification disclosed herein. The density of modern-era drilling throughout the resource volume ensures that MREs are
robust to inclusion or exclusion of historical data, with differences in primary metal contents of less than 1.5%.
9.5 QP
OPINION
The
QP concludes that the drill data are adequate for resource estimation at the FS level, subject to the qualifications documented in Section
9.2.1.2 (database corrections), Section 9.3 (previous audits) and Section 9.4 (historical assay quality). Database corrections applied
since the PFS, including downhole survey corrections, have been assessed through sensitivity analysis and determined to be non-material,
with combined impacts on contained metal of less than 1.5%. The pre-1997 silver assay quality issue is addressed in Section 9.4. These
database improvements validate the robustness of the resource model.
There
are no known limitations to the exploration data, analysis, or database that would materially affect the use of this dataset for mineral
resource modeling and reporting of Mineral Resources and Mineral Reserves in accordance with S-K 1300 reporting standards.
CK Gold Project S-K 1300 Technical Report 77 May 2026
10 MINERAL PROCESSING
10.1 INTRODUCTION
Several
metallurgical testwork programs have been completed on multiple samples of mineralization from the Project. The work dates back to 2008,
when Saratoga Gold Company first contracted SGS Lakefield (SGS) to perform preliminary characterization work and scoping level separation
tests (flotation and cyanide leaching) on composites of sulfide and oxide mineralization.
No
further work was completed until 2020, when US Gold commenced a drilling program that included several holes designed to generate sufficient
sample material for a metallurgical testwork update. The metallurgical program that followed commenced in December 2020 at Kappes, Cassiday
and Associates (KCA) Laboratory in Reno, Nevada before transitioning over to Base Metals Laboratory (BML) in Kamloops, Canada. Six metallurgical
programs have since been completed at BML including further flotation characterization, grindability, mineralogy, and dewatering.
Although
not directly involved with historical work prior to 2022, the QP has reviewed relevant reports and generally concurs with the conclusions
listed therein.
A
chronological overview of the various testwork programs is given below. Process plant designs included in this Feasibility Study are
based on this body of work, with a focus on later programs completed at BML.
10.1.1 SGS
Program 11868-001 (2008–2009)
A
preliminary metallurgical program was initiated by Saratoga in 2008, and this covered grindability, mineralogy, flotation testing, and
environmental testwork on a master composite and four variability composites. Comp 1 represents the oxide material that overlies the
deposit, Comp 2 represents the relatively small but higher-grade core of the deposit, whilst Comp 3 and 4 represent east and west zones
of the unoxidized volume within the deposit.
10.1.2 SGS
Program 11868-002 (2010)
A
follow-up program was completed in the summer of 2010. The testwork focused on Comp 1 (Oxide) material from the 11868-001 program with
the objective of developing a flotation flowsheet for copper and gold recovery.
10.1.3 KCA
Program 8276C (2020-2021)
After
a change in ownership from Saratoga Gold Corp. to US Gold Corp., a new metallurgical program was commissioned at KCA in 2020 with the
following objectives:
● Confirm
the 2008/2010 SGS results using samples from a new drilling campaign.
● Develop
a flotation flowsheet that would improve upon the SGS results, (specifically gold and copper
recovery and concentrate grade) for the Oxide and Sulfide zones.
● Complete
sufficient work to support PFS-level process engineering and to increase overall confidence
in the results. The work within this program included:
○ Quantitative
mineralogy, to better characterize the deposit, especially the non-sulfide minerals and native
copper, as well providing gold deportment information.
○ Optimization
of the primary grind and re-grind.
○ A
more thorough investigation of flotation conditions and reagents.
● Perform
variability testwork, to ascertain the impact of depth, area, lithology, and grade.
● Conduct
a more detailed evaluation of gravity recovery. The SGS testwork was not successful in producing
a gravity concentrate although the report concluded that this required further investigation
work. Observation of the new core showed significant visually observable native copper in
the high- grade oxide and the recovery of this might justify the addition of a gravity circuit
to the flowsheet.
CK Gold Project S-K 1300 Technical Report 78 May 2026
10.1.4 BML
Program BL-0789 (2021)
The
BL-0789 program at BML commenced in April 2021, when a shipment of ½ core oxide material was received from the KCA program described
above. An additional four shipments of sulfide and oxide material were subsequently shipped as the metallurgical program developed.
This
short program was intended to provide an initial comparison to the KCA flotation results and therefore excludes mineralogy or comminution
programs.
10.1.5 BML
Program BL-0835 and 0882 (2021-2022)
The
program of metallurgical work continued at BML after the initial BL-0789 tests were completed successfully, to include a variability
program (BL-0835) that began in September 2021. This was later expanded into a locked cycle testing program (BL0882) that included product
characterization (minor elements and tailings dewatering). The results of work completed under both contracts is described in a single
BML report dated March 15, 2022.
An
additional 473 kg of drill core and crushed core sample was shipped to BML in three shipments prior to the commencement of BL-0835 in
September 2021.
10.1.6 BML
Program BL-0980 and 1066 (2022)
As
the PFS-level Geometallurgical studies continued at BML, it became more apparent that the average reserve grade for the Project was lower
than the grade of composites tested in earlier programs. BL-0980 and 1066 were therefore appended to the Feasibility program to address
head grade-related performance concerns. Lower grade drill core intervals were targeted as part of the sample selection algorithm and
composite grades reflect this. BL-980 and BL-1066 sample sets were shipped on separate dates.
10.1.7 BML
Program BL-1702 (2024)
Two
sulfide composites were prepared for this program. Testwork commenced in September 2024 and was completed at the end of November 2024,
with the final report issued later in 2025. The testwork comprised of five stages of work, which were:
● Conventional
rougher flotation tests.
● Conventional
three-stage cleaner tests.
● Jameson
dilution tests.
● Locked
Cycle tests.
● Finally,
rougher tests were performed with the Jameson L150 Pilot Unit.
10.1.8 BML
Program BL-1859 (2025)
This
program followed on from BL-1702 (above) and included further conventional flowsheet development and Jameson Cell evaluation on a new
sample. Approximately 100 kg of the LG sulfide composite made for this program were shipped to XPS for Jameson Piloting.
CK Gold Project S-K 1300 Technical Report 79 May 2026
10.1.9 XPS
Program 4025701.00 (2025)
XPS
was selected to work in conjunction with Glencore Technology (GT) to conduct pilot scale work to determine the metallurgical performance
of Glencore’s proprietary Jameson Cell technology, using sample material from the BL-1859 program noted above.
10.1.10 BML
Program BL-1990 (2025)
This
final 2025 metallurgical program was motivated by gap analyses conducted at the PFS stage earlier in 2025. In particular, certain areas
were felt to deserve additional focus:
● Assessment
of the metallurgical performance of blended (oxide/mixed/sulfide) composites. In this instance,
composites were created to simulate Year 1, Year 2 and Year 3 production plan blends.
● Additional
comminution testing, to allow final sizing of SAG and Ball mills at the Definitive Feasibility
Study stage.
● Vendor-specific
flotation testing. Earlier studies had demonstrated the opportunity to use Glencore’s
proprietary Jameson Cell technology for CK Gold flotation. Slightly different reagents and
other conditions were used for the BL-1990 program.
● Vendor-specific
tailings dewatering tests. The significant capital costs associated with this area of the
process facility warranted some additional focus, with several vendors providing filtration
testwork specific to their equipment.
● Generation
of additional LCT tailings for geotechnical analysis (for tailings pile design and for tailings
cake storage/discharge systems in the plant design).
● Generation
of additional LCT concentrates for further minor element analysis.
● Six
composites were prepared from samples of drill core to enable this evaluation.
10.2 METALLURGICAL
SAMPLING AND HEAD ANALYSIS
A
significant quantity of sample material has been collected since 2008, and this has been used to create metallurgical composites for
the various metallurgical programs described herein. Sample selection methodology and resultant composite details are summarized within
the following sections. In most cases, sample recipe details and chain of custody information is given within the laboratory metallurgical
reports (referenced in Section 24). These have been confirmed by the QP and found to be appropriate, in terms of deposit representation.
10.2.1 SGS
Program (2008-2010)
An
undocumented number of ½ core samples with a total mass of 540 kg were used to assemble four “ore type” composites
– namely Comp 1 (Oxide), Comp 2 (Mixed) and Comp 3 and 4 (East and West Sulfide respectively). A Master Composite was also prepared
for the purpose of flowsheet development by blending equal portions of the Comp 2, Comp 3, and Comp 4 composite material. Note that this
Master Composite did not include material from the Comp 1 (Oxide) composite.
The
grades measured for each composite are summarized in Table 10.1.
CK Gold Project S-K 1300 Technical Report 80 May 2026
Table
10.1: SGS 11868-001 Composite Head Assays
Description
%
CuT
%
CuCN
g/t
Au
g/t
Ag
S%
Master
Composite
0.28
<0.002
1.41
<10
0.25
Comp
1 (Oxide)
0.26
0.002
1
<10
0.02
Comp
2 (Mixed)
0.39
<0.002
1.96
<10
0.21
Comp
3 (Sulfide East)
0.22
<0.002
0.62
<10
0.21
Comp
4 (Sulfide West)
0.19
<0.002
0.56
<10
0.34
Note:
CuT = total copper; CuCN = cyanide soluble copper.
The
Comp 1 (Oxide) composite was used in the 2010 program, which focused on the optimization of a process for oxide mineralization.
10.2.2 KCA
Program 8276C (2020 – 2021)
During
2020, US Gold carried out a significant exploration drilling campaign that included seven metallurgical holes. These provided over 4,600
feet of mineralized core consisting of 1,100 sample intervals. The plan view location and orientation of the seven metallurgical holes
is illustrated in Figure 10.1.
The
objective of the KCA program was to develop the overall characterization of average grade oxide and sulfide mineralization and two of
the metallurgical composites created reflect this. In addition, a high-grade oxide composite (similar composition to SGS “Comp
1”) was included in the scope for comparison with previous studies. This composite was prepared using shallow samples (less than
80 ft depth) from twin holes CK20-04cA and CK20-04cB (“Hole 4”) where a centrally located oxide zone was intercepted with
average grades of 5.1 g/t Au, 0.98% Cu and less than 0.1% S, (assays of individual core sections). Below 80 ft, the gold and copper grades
remain high in this area, but the sulfur grade increases to an average of 0.5% S.
Figure
10.1: Location of Metallurgical Holes
Note:
highlighted area represents approximate mineralized area.
10.2.2.1 High-Grade
Oxide Composite (90104A)
The
high-grade Oxide (or “Hole 4”) Composite was prepared using 43.5 kg of crushed, blended split core from CK20-04cA and B,
plus 92.5 kg of assay rejects from hole CK20-04cA, and 67.7 kg of assay rejects from hole CK20-04cB.
CK Gold Project S-K 1300 Technical Report 81 May 2026
10.2.2.2 Overall
Oxide Composite (90150B)
Samples
were selected from the upper region of 6 holes to make up an overall oxide composite. All the samples had sulfur assays less than 0.1%
S. Gold grades ranged between 0.5 g/t Au and 1.5 g/t Au. Copper grades ranged between 0.2 and 0.5% Cu. The average grade of this composite
was 1.14 g/t Au and 0.28% Cu.
10.2.2.3 Sulfide
Composite (90151B)
Samples
were collected from all 7 metallurgical holes to make up an overall sulfide composite. These samples had sulfur assays at least 0.1%
S and generally over 0.2% S. Gold grades ranged from 0.5 g/t Au to 1.5 g/t Au. Copper grades ranged from 0.25% to 0.8%. The average grade
of the composite was 1.1 g/t Au and 0.3 % Cu.
The
three metallurgical composites are described in Table 10.2 with names, masses and head assays listed for reference.
Table
10.2: KCA 8276C Composite Head Assays
Ref.
Description
Mass
(kg)
%
Cu
g/t
Au
g/t
Ag
%Fe
%S
90104A
High-grade
oxide, Upper Zone (“Hole 4”)
203
0.99
4.88
4.83
6.42
0.02
90150B
Overall
Oxide Zone, holes 1-3 and 5-7
235
0.28
1.14
2.1
3.59
<0.01
90151B
Overall
Sulfide Zone, holes 1-7*
372
0.27
0.96
1.61
3.62
0.21
Note:
*This composite included the small amount of material identified as “mixed”, that exists between the oxide and sulfide zones.
It
was evident from visual inspection of the Hole 4 core that a significant proportion of the 1% copper was present as native copper, much
of which was coarse grained. Thus, the Hole 4 composite was flagged for gravity concentration testing in addition to flotation.
10.2.2.4 Variability
Composites
In
addition to the overall composites described above, 24 oxide and 50 sulfide variability samples were compiled to represent a range of
grades, depths and lithologies. Testing of the oxide variability samples commenced at KCA during the 3rd quarter 2021, whilst
the sulfide samples were subsequently transferred to BML for use in the BL-0789 program.
10.2.3 BML
Programs (2021-2025)
10.2.3.1 BL-0789
Five
sample shipments
were delivered to BML between April 10, 2021 and June 30, 2021, as summarized in Table 10.3.
Table
10.3: BL-0789 Shipment Details
Shipment
No.
Value
1
12
samples of ½ core weighing a total of 27.8 kilograms, combined to make the Oxide Composite (High-Grade)
2
16
samples in the form of ¼ core, weighing a total of 55.3 kilograms.
Combined
with 23.2 kg of KCA 90151A (Shipment 3) to make the Sulfide Composite.
3
KCA
Sample 90151A (Sulfide Composite) – 23.2 kilograms.
KCA
Sample 90150 (Oxide Composite) – 22.7 kilograms.
4
6
samples of ½ HQ Core, weighing a total of 20.9 kilograms.
Combined
with 22.6 kilograms of KCA 90150A (Shipment 3) to make Oxide Composite 2.
5
24
samples of ½ HQ Core, weighing a total of 75.9 kilograms combined to form Sulfide Composite 2.
CK Gold Project S-K 1300 Technical Report 82 May 2026
Upon
constructing the various composites for BL-0789, the contents of each were stage crushed to pass 3.35 mm (6 mesh) and then split into
replicate 2 kg test charges in preparation for testing. Only 48 kg of the material shipped for Sulfide Composite 2 was prepared into
test charges, with the remaining material kept and stored for future use.
It
is worth noting that the original Sulfide Comp included some minor “mixed zone” material. As a result, between 10 and 15%
of the copper minerals in this composite were non-sulfide (principally chrysocolla) and this had a detrimental impact on the copper recovery.
The second sulfide composite (Sulfide Comp 2) was prepared later in the program to rectify this issue and avoided core samples from or
near the mixed zone.
The
names and chemical composition of the four composites tested in the BL-0789 program are listed in Table 10.4.
Table
10.4: BL-0789 Composite Head Assays
No.
Description
%
CuT
%CuOx
%CuCN
g/t
Au
g/t
Ag
%
Fe
%S
1
Oxide
Comp
1.15
0.43
0.15
5.95
3
6.6
0.06
2
Oxide
Comp 2
0.31
0.17
0.02
1.36
1
3.7
0.04
3
Sulfide
Comp
0.27
0.04
0.06
1.13
1
3.1
0.33
4
Sulfide
Comp 2
0.35
0.004
0.02
0.92
1
3.3
0.47
Note:
CuT = total copper; CuOx: copper oxide; CuCN = cyanide soluble copper.
The
analysis of copper deportment provided by the sequential copper assays is instructive: the oxide and cyanide soluble copper assay as
a fraction of the total copper assay is high in all but the Sulfide Comp 2 composite. This is to be expected in the oxide composites
but has implications for the original Sulfide Comp (No.3), which has only 63% of the total copper assay in recoverable (primary sulfide)
form. On reflection, this composite might be more appropriately named “Mixed Comp” with between 10% and 15% of the copper
content in oxide form. With this in mind, performance expectations for the Sulfide Comp were moderated relative to the Sulfide Comp 2,
despite similar total copper grades.
Sulfur
values were relatively low for the Oxide Composites, particularly relative to copper, indicating the presence of only minor levels of
sulfide minerals (such as pyrite) in these composites.
10.2.3.2 BL-0835
58
variability composites were prepared for this program by combining the mass from 2 or 3 similar individual samples (detailed in Appendix
A of the BL-0835 Report). From this initial suite of composites, 10 were chosen for comminution and 29 were selected for metallurgical
assessment using the baseline flowsheet. Head assays for the 58 composites are summarized in Table 10.5. Copper speciation is indicated
by the Cu% Assay (Total Copper), the %CuOx assay (weak acid, or oxide copper), and the %CuCN assay (cyanide soluble,
or secondary/enriched sulfide copper). Both oxide and secondary copper species are not expected to recover well in a sulfide flotation
environment. Sample grades are detailed in Table 10.5.
CK Gold Project S-K 1300 Technical Report 83 May 2026
Table
10.5: BL-0835 Composite Head Assays
Sample
ID
Assay
Sample
ID
Assay
Cu
(%)
Fe
(%)
S
(%)
Au
(g/t)
Ag
(g/t)
CuOx
(%)
CuCN
(%)
Cu
(%)
Fe
(%)
S
(%)
Au
(g/t)
Ag
(g/t)
CuOx
(%)
CuCN
(%)
90153-A
0.11
2.5
0.12
0.28
0.4
0.027
0.023
90153-DD
1.06
4.9
2.75
1.56
8.4
0.010
0.077
90153-B
0.14
2.8
0.27
0.32
0.9
0.002
0.013
90153-EE
0.35
3.4
0.14
0.30
0.5
0.023
0.250
90153-C
0.20
2.2
0.80
0.56
2.1
0.004
0.016
90153-FF
0.28
2
0.14
0.41
0.8
0.019
0.124
90153-D
0.30
2.4
1.31
0.78
1.8
0.005
0.016
90153-GG
0.50
4
0.66
0.54
1.2
0.002
0.016
90153-E
0.26
2.9
0.27
2
7.3
0.009
0.052
90153-HH
0.49
4.4
0.94
0.75
1.2
0.006
0.022
90153-F
0.26
3
0.14
1.06
1
0.037
0.177
Oxide
1
0.39
4
0.12
1.19
0.9
0.206
0.101
90153-G
0.11
2.3
0.23
0.32
0.6
<0.001
0.007
Oxide
2
0.21
2.9
0.09
0.69
0.6
0.103
0.047
90153-H
0.37
3.6
0.32
1.2
2.1
0.022
0.141
Oxide
3
0.40
2.7
0.12
1.06
0.6
0.173
0.102
90153-I
0.79
3.2
1.08
3.01
3.7
0.003
0.050
Oxide
4
0.22
2.2
0.02
0.23
0.2
0.055
0.029
90153-J
0.22
3.2
0.27
0.78
1.3
0.009
0.045
Oxide
5
0.18
3.5
0.09
0.32
0.1
0.085
0.019
90153-K
0.14
2.3
1.04
0.51
1
<0.001
0.013
Oxide
6
0.21
2.9
0.07
0.50
0.3
0.113
0.015
90153-L
1.35
4.4
1.26
6.94
4.9
0.048
0.410
Oxide
7
0.27
3.5
0.03
0.85
0.7
0.128
0.038
90153-M
1.41
5.0
0.40
5.89
5
0.012
0.220
SUL
A
1.36
5.1
1.38
7.38
4.9
0.052
0.325
90153-N
0.76
4.9
0.47
3.51
2.7
0.062
0.390
SUL
B
0.21
2.9
0.39
1.15
1.3
0.003
0.022
90153-O
0.62
3.4
0.50
3.6
2.5
0.039
0.250
SUL
C2
0.38
4
0.61
0.44
0.7
0.005
0.027
90153-P
0.74
3.3
0.41
2.89
3.3
0.015
0.132
SUL
D
0.34
3.4
0.46
2.12
5.3
0.013
0.050
90153-Q
0.57
2.5
0.87
2.09
2
0.003
0.022
SUL
E
0.10
3.2
0.15
0.31
0.2
0.016
0.019
90153-R
0.18
2.8
0.34
0.56
0.8
0.003
0.014
SUL
F
0.08
3.2
0.09
0.36
0.1
0.006
0.028
90153-S
0.27
3.0
0.85
1.06
1.7
0.004
0.066
SUL
G
1.12
5.6
3.26
1.6
9.2
0.018
0.100
90153-T
0.58
2.6
0.73
2.25
2.9
0.004
0.097
SUL
H
0.35
3.9
0.28
0.99
1.4
0.027
0.102
90153-U
0.20
2.5
0.71
0.55
1
<0.001
0.012
SUL
I
0.17
3.4
0.81
0.35
0.9
0.004
0.006
90153-V
0.58
4.2
0.44
0.93
1.4
0.002
0.069
SUL
J
0.21
3.3
0.19
0.62
0.9
0.017
0.087
90153-W
0.28
2.9
0.13
0.52
1
0.003
0.028
SUL
K
0.29
3.3
0.34
0.34
0.6
0.007
0.021
90153-X
0.13
3.1
0.03
0.23
0.6
0.004
0.047
CK20-01C
0.10
2.4
0.44
0.34
0.2
0.002
0.013
90153-Y
0.02
3.3
0.51
0.28
0.4
0.001
0.007
CK20-03C
0.58
3.4
0.83
2.27
1.7
0.001
0.015
90153-Z
0.33
4.6
0.42
1.14
1.5
0.004
0.008
CK20-04CB
0.60
2.5
0.72
2.65
1.6
0.007
0.015
90153-AA
0.40
4.7
0.51
0.91
1.6
0.003
0.015
Mixed
1
0.15
3.5
0.10
0.41
1
0.026
0.027
90153-BB
0.30
3.5
1.14
0.88
1.6
0.003
0.021
Mixed
2
0.21
3.4
0.57
0.69
0.8
0.008
0.015
90153-CC
0.34
4.4
1.15
0.57
2.7
0.003
0.012
Mixed
3
0.36
3.7
0.09
1.9
1
0.196
0.074
This
sample set is sufficiently variable in grade with copper ranging between 0.02% and 1.41%, gold between 0.23 g/t Au and 7.38 g/t Au and
silver between 0.1 g/t Ag and 9.2 g/t Ag. Sulfur assays ranged between 0.02% and 2.75% indicating that in common with previous programs,
sulfide gangue mineral (pyrite) content is a relatively minor constituent. A good general indication of copper deportment is provided
by the oxide (CuOx)and cyanide soluble (CuCN) copper analyses. The deportment of copper between oxide, sulfide
and cyanide soluble minerals is also quite variable, with relatively high oxide content noted in certain samples. Examination of the
ratios of CuOx and CuCN to total copper content indicates that:
● 9
of the 58 samples had in excess of 20% oxide copper and are assumed to be influenced by the
high oxide copper content.
● 28
of the 58 samples had greater than 10% cyanide soluble copper and are assumed to be influenced
by the secondary enriched copper sulfide content.
● 21
of the 58 samples had less than 10% combined oxide + cyanide soluble copper and are therefore
assumed to be “primary sulfide” samples. These samples should perform well in
a sulfide flotation environment.
The
distribution of CuOx and CuCN content is illustrated for all 58 samples in Figure 10.2.
CK Gold Project S-K 1300 Technical Report 84 May 2026
Figure
10.2: Variability Program Copper Deportment
In
addition to the variability work, two sulfide composites were prepared for testing, based on sulfide type (primary or secondary/enriched).
The two composites are summarized in Table 10.6.
Table
10.6: BL-0835 Main Composite Head Assays
Composite
ID
Cu%
Fe
%
S
%
Au
g/t
Ag
g/t
CuOx
CuCN
Primary
Sulfide
0.36
3.4
0.65
0.96
1.3
0.006
0.024
Enriched
Sulfide
0.35
3.4
0.39
1.44
1.9
0.018
0.087
Note:
CuOx: copper oxide; CuCN = cyanide soluble copper.
10.2.3.3 BL-0882
The
BL-0882 program focused on the characterization of four oxidation level composites, namely Shallow Sulfide (C1), Deep Sulfide (C2), Oxide
(C3) and Mixed (C4). These master composites were prepared from a variety of BL-0835 variability composites as described below
● Shallow
Sulfide (C1-SS): 47.2 kg using material from SUL A-J samples.
● Deep
Sulfide (C2-DS): 77.8 kg using material from SUL D, G, I K samples, together with several
individual holes.
● Oxide
(C3-OX): 44.0 kg using material from the Mixed OX 1-7 samples.
● Mixed
(C4-MIX): 54.3 kg using material from the Mixed 1, 2, 3 samples.
CK Gold Project S-K 1300 Technical Report 85 May 2026
The
resultant master composite head assays are summarized in Table 10.7.
Table
10.7: Master Composite Head Assays
Composite
Cu
%
Fe
%
S
%
Au
g/t
Ag
g/t
CuOx
CuCN
C1-SS
0.35
3.4
0.35
1.08
1.1
0.014
0.090
C2-DS
0.2
3.5
0.59
0.78
1.5
0.005
0.010
C3-OX
0.31
3.5
0.05
0.71
0.4
0.107
0.067
C4-MIX
0.25
3.3
0.16
0.82
0.6
0.082
0.047
Note:
CuOx: copper oxide; CuCN = cyanide soluble copper.
10.2.3.4 BL-0980
and 1066
These
two programs were initiated to characterize lower-grade composites, more in line with the latest mine plan.
For
the BL-980 program, 21 samples of ½ core and 2 samples of reject material totaling 100-kg were selected from 6 holes within the
PFS pit outline.
For
BL-1066, 22 samples of ½ core and 4 samples of RC material (6 mesh) totaling 91-kg were selected from 8 holes within the PFS pit
outline.
Replicate
cuts were removed from each composite sample as part of the blending, crushing, and subsampling process. Average head assays for each
pair are summarized in Table 10.8.
Table
10.8: BL-0980 Head Assay
Ref
Description
%
CuT
%
CuOx
%CuCN
%
Fe
%
S
g/t
Ag
g/t
Au
LG
Comp
BL-980
Master Comp
0.18
0.002
0.012
3.8
0.45
0.9
0.45
LG
Comp 2
BL-1066
Master Comp
0.16
0.01
0.03
3.2
0.38
0.9
0.35
Note:
CuT = total copper; CuOx: copper oxide; CuCN = cyanide soluble copper.
Of
note for this report, the pay-metal grades are in good agreement with the life of mine FS reserve grades. Secondary sulfide and oxide
copper species were noted to be slightly higher in the second composite (LG Comp 2) but still represent minor fractions. As such these
composites are considered good reference points in terms of metallurgical performance predictions.
10.2.3.5 BL-1702
In
August 2024, samples of reject material totaling 130-kg were selected from several holes within the PFS pit outline. These samples were
used to prepare three composites as shown in Table 10.9. These composites were tested under a variety of flotation conditions, specific
to the Jameson Cell, including a first attempt at piloting using BML’s new L150 pilot Jameson Cell.
Table
10.9: BL-1702 Program Head Assays
Ref
Description
%
CuT
%
Fe
%
S
g/t
Ag
g/t
Au
Sulfide
Comp
Sulfide
Composite
0.32
3.48
0.47
1.3
0.86
Sulfide
2 Comp
Second
Sulfide Composite
0.36
3.32
0.54
1.2
0.80
Oxide
Comp
Oxide
Composite
0.33
3.56
0.02
1.0
0.97
10.2.3.6 BL-1859
In
February/March 2025, 32 samples of ½ core totaling 145 kg were selected from 6 holes within the PFS pit outline. These samples
were blended into one low-grade sulfide composite for further characterization using Jameson Cell technology. Approximately 100 kg was
used as feed for the XPS Program (Section 10.2.4), and the remaining 45 kg was used at BML for this BL-1859 Program.
CK Gold Project S-K 1300 Technical Report 86 May 2026
Table
10.10: BL-1859 Program Head Assays
Ref
Description
%
CuT
%CuOx
%CuCN
%
Fe
%
S
g/t
Ag
g/t
Au
LG-2025
Comp
Low-grade
sulfide composite
0.17
0.016
0.029
3.16
0.30
0.75
0.66
Note:
CuT = total copper; CuOx: copper oxide; CuCN = cyanide soluble copper.
10.2.3.7 BL-1990
In
June 2025, 18 samples of ½ core totaling 132 kg were selected from eight holes within the PFS pit outline. These samples were
used to make up three oxidation level composites, namely Oxide, Mixed and Sulfide Comps. These individual composites were then subdivided,
with fractions used to form 3 “Production Period Comps” - aimed at simulating each of the initial 3 years of production blending.
In Year 1 an average 37% oxide, 29% mixed and 33% sulfide blend is used, in Year 2 an average 9% mixed and 91% sulfide blend is forecast
and in Y3 an average 5% mixed, 95% sulfide blend is used. Head assays for all composites are summarized in Table 10.11.
Table
10.11: BL-1990 Program Head Assays
Ref
Description
%
CuT
%CuOx
%CuCN
%
Fe
%
S
g/t
Ag
g/t
Au
Sulfide
Comp
Sulfide
mineralization
0.27
0.016
0.029
3.39
0.88
1.4
0.73
Mixed
Comp
Mixed
mineralization
0.21
0.036
0.061
3.39
0.4
1.0
0.56
Oxide
Comp
Oxide
mineralization
0.27
0.143
0.010
4.01
0.07
0.7
0.89
Y1
Comp
37/29/34%
blend of O/M/S
0.24
0.071
0.045
3.54
0.43
0.7
0.61
Y2
Comp
9/91%
blend of M/S
0.26
0.019
0.052
3.30
0.81
1.3
0.62
Y3
Comp
5/95%
blend of M/S
0.25
0.018
0.046
3.24
0.80
1.3
0.66
Note:
CuOx: copper oxide; CuCN = cyanide soluble copper.
10.2.4 XPS
Program
100
kg of the BL-1850 Sulfide Composite (LG-2025 Comp) was shipped to XPS for Jameson Cell characterization. The composition of this material
was re-measured at XPS (Table 10.12) and was found to relate well to the BML analysis (Table 10.10).
Table
10.12: XPS Met Program Head Assays
Ref
Description
%
CuT
%CuOx
%CuCN
%
Fe
%
S
g/t
Ag
g/t
Au
LG-2025
Comp
LG
sulfide composite from BML
0.185
-
-
3.98
0.29
0.71
0.53
Note:
CuT = total copper; CuOx: copper oxide; CuCN = cyanide soluble copper.
10.3 MINERALOGY
Mineralogical
analysis of samples gives additional insight into the behavior of composites during testing. A significant mineralogical program was
completed as part of the KCA testing, and various smaller mineralogical programs have been completed by BML as their work progressed.
The results of this work are summarized in the following subsections.
10.3.1 SGS
Program 11868-001 (2008)
A
QEMScan mineralogical program provided bulk mineralogy for each composite and identified several different copper minerals across the
sample set. Chalcopyrite dominated, with a range of secondary copper minerals (mainly chalcocite) also noted. No native copper was identified,
and very low levels of pyrite were measured. Host minerals included feldspar (roughly 45%) quartz (roughly 25%) and micas (roughly 14%)
with other oxides and clays making up the balance. Chlorites made up roughly 4% to 5% of each composite.
CK Gold Project S-K 1300 Technical Report 87 May 2026
10.3.2 KCA
Program (2020-2021)
An
initial program of quantitative mineralogy (QEMScan) was carried out at FLSmidth in Salt Lake City on several samples of feed, flotation
tailings and flotation concentrate from the KCA flotation program. This work provided a clear identification of the copper deportment
for each of the three composites (Table 10.13) and confirmed the presence of significant native copper in certain samples. The mineralogy
indicates the probable limits for copper recovery and the need for fine primary and re-grinding.
Table
10.13: FLSmidth Mineralogical Analysis: Copper Deportment
Description
Recovery
Potential
Oxide
Head
90131
Tails (G+F)
Native
Copper
Y
0.346
0.001
Cuprite
Y
0.012
0.000
Chalcopyrite
Y
0.086
0.001
Bornite
Y
0.041
0.000
Chalcocite
Y
0.198
0.003
Covellite
Y
0.004
0.000
Cu/As/Sb
Sulfides
Y
0.002
0.000
Cu-bearing
clays
N
0.024
0.022
Cu/Chlorite
N
0.005
0.007
Cu/Biotite
N
0.004
0.003
Cu/Muscovite
N
0.009
0.007
Cu
Wad
N
0.001
0.001
Fe
Oxides
N
0.158
0.174
Fe
Oxide / Chrysocolla
N
0.018
0.025
Chrysocolla
N
0.179
0.192
Other
Cu
N
0.010
0.009
The
results provide excellent insight into the differences between sulfide and oxide copper mineralogy. The data also illustrates that for
oxide zones within the deposit, the best copper recovery by gravity and flotation combined is unlikely to exceed 60%. This is close to
actual test results.
In
contrast to the initial SGS mineralogical assessment, the FLSmidth work also helped develop an understanding of gold and to some extent
silver (electrum) mineralogy. Of note, gold appears to be very fine grained, most being less than 10 µm to 20 µm. In terms
of liberation, gold appears quite well liberated and is not primarily associated with copper minerals, but located on grain boundaries,
as gold or electrum. Association with pyrite appears minor.
With
a relatively low pyrite content and the presence of acid consumers such as calcite, biotite and chlorite noted in the samples, then the
tailings from this project are not expected to be acid generating – confirming the initial environmental work by SGS.
10.3.3 BML
Programs (2022)
10.3.3.1 BL-0882
BL-0882
master composite samples (DS, SS, MIX, OX) were subjected to a QEMScan PMA analysis, giving quantitative bulk modal mineralogy and liberation
data. The data, summarized in Table 10.14 includes information regarding copper deportment and silicate gangue distribution and helps
to explain some of the differences in flotation response (copper recovery and concentrate grade).
CK Gold Project S-K 1300 Technical Report 88 May 2026
Table
10.14: BL-0882 Modal Mineralogy
Mineral
Mineral
Assays (Wt. percent)
DS
SS
MIX
OX
Chalcopyrite
0.81
0.62
0.24
0.05
Bornite
0.00
0.08
0.00
0.00
Chalcocite/Covellite
0.02
0.07
0.08
0.11
Cuprite
0.00
0.00
0.01
0.01
Cu
Metal
0.00
0.01
0.00
0.00
Chrysocolla/Cu
Chlorite
0.00
0.02
0.36
0.54
Sphalerite
0.05
0.04
0.02
0.03
Pyrite
0.42
0.20
0.15
0.13
Iron
Oxides
1.27
1.70
2.47
3.33
Quartz
20.3
19.8
19.4
24.3
Plagioclase
Feldspar
39.1
38.8
36.9
36.9
Biotite/Phlogopite
4.85
3.83
1.17
1.85
K-Feldspars
15.7
14.1
13.5
14.9
Muscovite
4.62
3.84
6.10
6.56
Amphibole
(Actinolite)
2.11
3.64
4.62
1.05
Epidote
2.93
3.01
3.57
2.25
Chlorite
6.07
7.85
8.73
6.35
Kaolinite
0.26
0.31
0.37
0.40
Calcite
0.03
0.49
0.29
0.04
Rutile/Anatase
0.95
0.95
1.23
0.76
Apatite
0.41
0.38
0.43
0.29
Zircon
0.04
0.04
0.03
0.04
Fluorite
0.000
0.000
0.000
0.000
Others
0.14
0.22
0.25
0.13
Total
100.0
100.0
100.0
100.0
Mineral
liberation data from this program is also instructive: overall, the liberation at a nominal 80% -90 µm was not high. The two sulfide
composites (C1 and C2) with approximately 50% copper sulfide liberation would be expected to perform reasonably well in a sulfide flotation
system, albeit with a somewhat high proportion of middling particles that might require longer residence times and/or higher rougher
mass pull. The Mixed and Oxide composites (C3 and C4) both had lower liberation levels (40% and 38% respectively), which suggests a finer
copper distribution and more challenging metallurgy in general.
These
results highlight the requirement for a relatively fine concentrate regrind target – in the range of 10 µm to 15 µm.
Coarser grinds than this will tend to negatively impact the copper concentrate grade.
10.3.3.2 BL-0980
The
BL-0980 LG composite was subjected to a QEMScan PMA analysis similar to that described for BL-0882 above, giving quantitative bulk modal
mineralogy and liberation data. The modal data is detailed in the BML report for this program but is very similar to the BL-0882 results,
albeit with a lower sulfide content (1.1% in this sample). The copper deportment data shows Chalcopyrite to be the dominant copper mineral
(92.2%) with Bornite and Chalcocite/Covellite as minor species (3.5% and 4.2%, respectively). Only traces of oxide copper minerals were
noted, making this composite sample a deep sulfide equivalent with limited copper recovery downside.
CK Gold Project S-K 1300 Technical Report 89 May 2026
10.4 COMMINUTION
A
significant quantity of samples has been collected and used to create a range of metallurgical composites for the different metallurgical
programs. Sample selection and composite details are discussed in this Section.
10.4.1 SGS
Program 11868-001 (2008-2009)
An
initial grindability study included Bond rod (RWI) and ball mill (BWI) tests for the Master Composite, and Bond ball mill tests for the
four variability composites. A Bond rod mill work index of 16.0 kWh/t (metric) was reported, along with a range of Bond ball mill work
indices from 13.0 to 14.8 kWh/t (metric). The results point to a material that is slightly harder than average, compared to the population
of results in SGS’s database.
10.4.2 BML
Programs (2021-2025)
10.4.2.1 BL-0835
A
program of Hardness Index Testing (HIT) was completed on a subset of 10 samples from the BL-0835 variability program with the objective
of improving the overall comminution data set. The HIT tests were carried out on particles in the 19 mm to 22.4 mm size range and are
designed only to give a high-level estimate of the Axb parameter as defined by the JK Tech SMC test. These results, summarized in Table
10.15 have not been used to assist with sizing the SAG and Ball milling equipment.
Table
10.15: Variability Samples, Comminution Results
Sample
ID
ECs
(kWh/t)
t10
(%)
HIT-Axb
Full DWT
(est)
Oxide
1
0.17
6.1
45.6
Oxide
2
0.15
3.9
31.4
Oxide
3
0.17
4.7
35.2
Oxide
4
0.14
3.7
32.1
Oxide
5
0.17
4.8
34.4
Oxide
6
0.15
3.3
27.5
Oxide
7
0.14
2.8
24.6
CK20-04cb
Lot B
0.16
3.5
26.3
CK20-04cb
Lot A
0.16
3.4
26.4
CK20-03c
Lot B
0.18
3.9
27.7
CK20-03c
Lot A
0.19
5.0
32.6
CK20-01c
Lot B
0.19
4.9
31.8
CK20-01c
Lot A
0.18
3.9
27.6
Although
the HIT test is indicative only, the results do show the expected range of Axb parameter, from the least impact resistant sample (Oxide
1, measuring 45.6) to the most impact resistant sample (Oxide 7, measuring 24.6). Samples in this range of resistance generally indicate
mineralization that is amenable to SAG milling, albeit tending towards the more competent side.
10.4.2.2 BL-0882
Comminution
tests on the master composites were limited to Bond ball mill work index tests, and these are summarized in Table 10.16.
CK Gold Project S-K 1300 Technical Report 90 May 2026
Table
10.16: BL-0882 Composites, Bond BWi Results
Parameter
Shallow
Sulfide (C1)
Deep
Sulfide (C2)
Oxide
(C3)
Mixed
(C4)
Bond
Ball Wi, kWh/mt (CSS=106µm)
15.5
16.7
16.4
15.1
These
values are slightly higher than the earlier KCA work and the samples listed here are considered moderately hard with regard to ball milling.
10.4.2.3 BL-0980
Sub
samples of half core were selected from the LG Comp crushing/blending process and submitted for a wider range of tests in house at BML.
Results are summarized in Table 10.17.
Table
10.17: BL-0980 Comminution Results
Ref.
Description
SG
BWi
(kWh/mt)
Dwi
(kWh/m3)
Axb
ta
SCSE
(kWh/mt)
LG
Comp
BL-980
Master Comp
2.72
14.8
8.4
32.4
0.31
10.96
10.4.2.4 BL-1990
Sub
samples of BL-1990 composites were removed during sample preparation and submitted for Bond rod and ball mill work index tests. Rod mill
tests were completed with a 1.2 mm closing screen, while the ball mill tests used a 106 µm closing screen. Results are summarized
in Table 10.18.
Table
10.18: BL-1990 Comminution Results
Ref.
Description
RWi
(kWh/mt)
BWi
(kWh/mt)
Mixed
Comp
BL-1990
Mixed composite
16.3
16.5
Oxide
Comp
BL-1990
Oxide composite
15.3
16.1
Sulfide
Comp
BL-1990
Sulfide composite
16.5
18.6
10.4.3 Hazen
Research Programs
Two
programs of comminution work were completed at Hazen. One as part of the broader KCA testing program (2020 to 2021) and a second in parallel
with the most recent BML program (BL-1990, 2025). These are summarized in the following subsections.
10.4.3.1 Program
12827 (2020-2021)
Sub
samples of half core were selected from the metallurgical composite crushing/blending process at KCA and shipped to Hazen Research (Hazen)
for comminution testing in early 2021. The Hazen work included SAG mill comminution (SMC), Bond ball mill work index (BWi) testing and
Bond abrasion index (Ai) testing. Results are summarized in Table 10.19.
Table
10.19: Hazen 12827 Comminution Results
Ref.
Description
SG
BWi
(kWh/mt)
Ai
(g)
Axb
ta
SCSE
(kWh/mt)
55432-1
High-grade
oxide, Upper Zone, Hole 4
2.66
14.0
0.2008
37.5
0.36
10.1
55432-2
Overall
Oxide Zone, holes 1-3 and 5-7
2.67
14.6
0.3430
33.3
0.32
10.7
55432-3
Overall
Sulfide Zone, holes 1-7
2.71
15.1
0.4033
27.8
0.27
11.8
CK Gold Project S-K 1300 Technical Report 91 May 2026
The
Axb results give an indication of resistance to impact breakage and in this case show that the sulfide composite is slightly more resistant
that the oxide composites. The sulfide composite is slightly more dense, more abrasive and more competent at the finer grind sizes also.
10.4.3.2 Program
13295 (2025)
Twelve
samples of ½ core were selected to represent a wide range of material within the pit volume, with a focus on areas planned for
early (Y1, Y2, Y3) mine production. Testwork consisted of Bond rod and ball mill work index testing, and this was conducted at Hazen
Research in parallel with the BL-1990 metallurgical program at BML. Testwork results are summarized in Table 10.20.
Table
10.20: Hazen 13295 Comminution Results
Sample
Ref.
Production
Year
Bond
Rod Mill Wi (kwh/mt)
Bond
Ball Mill Wi (kwh/mt)
CK20-03C
(44.5-62)
1
14.3
14.0
CK20-20C
(171.2-189.2)
1
16.0
16.0
CK20-17C
(113.7-132)
1
15.3
16.1
CK20-02C
(116-134)
1
16.8
15.5
CK21-01C
(367.7-385)
2
16.7
15.4
CK20-05C
(220.5-238.5)
2
17.6
16.9
CK20-02C
(441-457)
2
14.8
14.7
CK20-17C
(160.8-179.1)
2
17.0
17.0
CK20-06C
(374-391.5)
3
15.9
15.3
CK20-17C
(188.2-207)
3
16.3
17.0
CK20-07C
(472-489)
3
14.0
16.1
CK20-17C
(289.3-307)
3
17.3
18.5
These
results are useful as they help to highlight the relative consistency in grindability with time during the first 3-years of production.
They also demonstrate reasonable consistency between the coarse (rod mill) test and the finer ball mill test – indicating that
grindability requirements do not increase excessively at the coarser particle size.
10.5 FLOTATION
The
objective of most metallurgical test programs was to improve the performance of different composites through the baseline flotation process.
The work tested various oxide, mixed and sulfide composites, and although performance between these varies, the key flowsheet parameter
requirements (primary grind, concentrate regrind, flotation circuit configuration and reagent recipes) remain reasonably consistent.
Testwork
completed most recently has examined the effect of blending different ore types in planned ratios during the first 3 years of mine production.
Vendor tests with alternative flotation technology (such as the Jameson Cell) have also been tested.
10.5.1 SGS
Programs
Flotation
testing focused on a Master Composite. The work highlighted a general improvement in metallurgical performance at finer grinds (142 µm,
112 µm, 87 µm, 65 µm were tested) although the test at 80% passing 65 µm did appear to suffer from the effects
of lower mass pull. SGS metallurgists concluded that a primary grind of 80 µm to 90 µm was preferred for the remaining work.
Raising
pulp pH with lime was seen to improve copper performance but had a very slight negative impact on gold recovery.
CK Gold Project S-K 1300 Technical Report 92 May 2026
Early
batch cleaner tests highlighted the need for a rougher concentrate regrind, and an initial study on the master composite suggested that
a regrind target of approximately 80% passing 20 µm would be close to optimum.
An
assessment of gangue depressant and/or dispersant reagents was completed, and it was concluded that these were unlikely to improve metallurgical
performance.
Locked
cycle testing (LCT) of the master composite used a conventional SGS flowsheet with rougher concentrate regrind, 3 stage counter current
cleaning with cleaner 1 scavenging and cleaner scavenger concentrate recycled back to the regrind mill. Two initial tests were completed
at relatively coarse grinds (80% passing 110 µm) and these gave relatively inferior results. A third LCT was completed at a finer
grind (80% passing 83 µm) and this showed a distinct improvement in copper and gold performance. The third LCT concentrate graded
26% Cu and 89.7g/t Au with overall recoveries of 77% Cu and 68% Au.
The
SGS metallurgists performed an initial study of final concentrate Cu grade vs overall Cu and Au recovery, with the conclusion that a
higher mass pull to concentrate could result in a Cu grade drop from 26% to 21% Cu, with an associated 1% increase in Cu and Au recovery.
A
variability flotation program tested the response of Comp 2, Comp 3, and Comp 4 material to the Master Composite flowsheet and gave a
range of results that was generally in line with the Master Composite performance.
10.5.2 KCA
Program
10.5.2.1 Rougher
Flotation
Over
50 rougher flotation tests were carried out to investigate key flotation parameters (grind, reagents, pH, sulfidization etc.) for each
of the three composites. All laboratory flotation tests were completed on 2-kg test charges. The testwork is summarized below, and detailed
in the KCA Report, “Copper King Testwork for US Gold”, dated July 2021.
32
tests were completed for the Hole 4 Composite (90104); 10 tests were completed for the Overall Oxide Composite (90150); 20 rougher flotation
tests were carried out on the Overall Sulfide Composite (90151). Tests investigated grind, pH, reagent selection and addition rate. The
best results, all at pH 9.0, are summarized for each composite in Table 10.21. In general, these conditions were carried into the cleaner
flotation test program.
Table
10.21: KCA Rougher Flotation Summary
Parameter
Hole
4
Overall
Oxide
Overall
Sulfide
Test
Number
90134
90170
90173
P80,
mm
106
86
86
CaO
Dosage, g/t
153
130
90
F507/PAX/Aero
407 Dosage, g/t
31/75/50
46/76/50
g/t
51/75/50
g/t
Mass
Pull, %
7.5
7.0
11.7
Au/Ag/Cu
Recovery, %
70/50/57
61/24/21
81/61/94
The
relatively low recovery of copper in the Overall Oxide composite is a direct reflection of the copper mineralogy, (i.e., a high content
of non-floating copper minerals such as chrysocolla). In contrast, the high recovery of copper in the Overall Sulfide composite reflects
the more favorable mineralogy (i.e., mainly chalcopyrite) as described in the FLSmidth report.
CK Gold Project S-K 1300 Technical Report 93 May 2026
10.5.2.2 Cleaner
Flotation
Batch
cleaner flotation tests on each of the composites used the optimized rougher flotation conditions achieved in the rougher flotation program
discussed above. A total of 13 cleaner tests were carried out on the Hole 4 composite, investigating the regrind P80 and a
variety of reagents and addition rates. The best result was obtained in Test 90160 which was repeated for confirmation.
A
further 18 cleaner tests were carried out on the Overall Oxide composite, first with no regrind, then with regrind P80 of
20 µm. These tests also investigated cleaner pH and various reagent suites, particularly gangue depressants. They were carried
out throughout April 2021, with the objective of producing a saleable concentrate grade, without unduly sacrificing recovery. These cleaner
tests were unsuccessful, and the best results are summarized in Table 10.22. It was subsequently established that the collector additions
to the rougher flotation were too high, leading to over-promotion. Once KCA decreased the collector addition, a performance improvement
was immediately realized. With this reduced collector in the rougher circuit, the need for depressants and/or dispersants was eliminated.
A
further 28 batch cleaner tests were carried out on the Overall Sulfide composite, to investigate the regrind P80, pH and reagents.
In the initial program, copper recovery to the cleaner concentrates was reasonable but a commercial concentrate grade was difficult to
achieve. KCA subsequently repeated this test using reduced collector addition, (PAX, AF208 and 3418A) and achieved a copper concentrate
grade of 23% Cu, with recoveries of 83%, 64% and 50% for copper, gold and silver, respectively.
The
conditions and best results for each composite are summarized in Table 10.22.
Table
10.22: KCA Cleaner Flotation Summary
Parameter
Hole
4 Result
Overall
Oxide Result
Overall
Sulfide Result
Test
Number
90160
91443
91442
P80,
primary grind & regrind
86/20
µm
86/20
µm
86/41
µm
pH
Rougher/Cleaner
9.0
9.4/11.5
11.0
Total
CaO, g/t
172
821
888
Total
PAX/F-507/A208/AF-70, g/t
76/51/-/-
14/-/16/33
14/-/16/33
Concentrate
Mass Pull, %
2.0
0.3
1.6
Concentrate
Grade, % Cu
25.3
8
13.5
Concentrate
Grade, g/t Au/Ag
186/90
188/87
34.6/55.0
Recovery
Cu/Au/Ag, %
53/68/35
7/48/12
81/62/74
10.5.2.3 Locked
Cycle Testing
Using
the results of Cleaner Test 90160 as a guide, a single locked cycle test (LCT) was carried out on the Hole 4 composite, with cleaner
tail products recirculated counter-currently throughout the test. The LCT was unable to produce a final copper concentrate of even 15%
Cu, and the deterioration of grade as the test progressed is a clear indication that the test had not reached a stable state. Further
analysis of results suggested that the most likely reason for the failure of this test was the excessive use of collector reagents, resulting
in over-promotion and a subsequent loss of selectivity in the cleaner circuit.
As
a result, replicate Hole 4 Composite samples were shipped to BML for comparative rougher, cleaner and locked cycle testing. The BML testing
achieved concentrate grades in excess of 30% copper, containing over 500 g/t Au and 300 g/t Ag – achieved using 20% to 25% of the
KCA flowsheet dosages.
CK Gold Project S-K 1300 Technical Report 94 May 2026
10.5.3 BML
Programs
A
great deal of flotation testwork has been completed at BML, starting with open circuit testing on samples from KCA, covering 2 kg and
4 kg test on variability samples and low-grade composites, through to the latest 2025 testing on production composites Y1, Y2, Y3. The
work is summarized in the following sections.
10.5.3.1 BL-0789
An
initial set of eight rougher flotation tests was completed on the Sulfide Comp as part of an investigation into the recent work at KCA.
The tests were designed to evaluate different primary grinds and reagent recipes, including alternate collectors, sulfidizing agents,
activators and promotors. All tests used 2 kg test charges.
These
preliminary tests gave results that were equal to the early SGS results and were significantly better than the results achieved at KCA.
Copper recovery to rougher concentrate varied between 76.3% and 80.0% whilst gold recovery into this concentrate ranged between 72.1%
and 75.9%. Rougher concentrate mass pull varied between 5.3% and 7.8%.
At
the same primary grind, many of the chemical additives had little impact on metallurgical performance. The copper and gold specific collectors
showed some promise at achieving higher overall recoveries, but generally at the cost of higher mass recovery.
A
limited number of batch cleaner flotation tests were carried out on the four main composites, primarily to provide comparative data to
the ongoing KCA flotation program. For these 2 kg tests, BML worked with a 90 µm primary grind and reduced the collector additions
to “starvation” levels as compared to the KCA tests. This increased the concentrate grade to over 60% copper for the Oxide
Composite and generated reasonable (>20%) copper grades for the other three. Results for the BL-0789 cleaner flotation tests are summarized
in Table 10.23.
Table
10.23: BL-0789 Batch Cleaner Test Results
Composite
Cleaner
Concentrate Grade
Cleaner
Concentrate Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
Oxide
Comp
62.2
1416
Not
reported
12.9
49.9
Not
Reported
Oxide
Comp 2
25.3
13.2
1232
393
4.8
6.2
50.2
43.5
Sulfide
Comp
30.2
19.9
110
65.2
64.2
69.0
55.2
59.1
Sulfide
Comp 2
23.1
61.9
83.9
66.5
The
test conditions noted to give superior results in the batch cleaner tests were subsequently carried through to the locked cycle program.
Seven locked cycle tests examined the performance of each composite using batch test conditions, but with recycled slurry from the intermediate
streams. The 2 kg test charges were utilized for the work and the primary grind in all cases was 90 µm. Test results for each composite
are summarized in Table 10.24.
Table
10.24: BL-0789 Locked Cycle Test Results - Master Composites
Composite
Cleaner
Concentrate Grade
Final
Concentrate Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
Oxide
Comp
63.4
587
359
39
61
70
Oxide
Comp 2
7.9
347
194
6
59
46
Sulfide
Comp
25.0
76
82
75
66
47
Sulfide
Comp 2
21.3
42
60
88
75
60
In
general, good concentrate copper grades were achieved, with a range of recoveries primarily dependent upon the copper mineral mix (i.e.,
CuOx:CuT). The original sulfide and oxide composites (i.e., matching those tested at KCA) performed very differently
to the KCA work, with better results in most respects. The results also show that with “sulfide” material containing only
minor “non-sulfide” minerals, high recoveries of copper, gold and silver can still be achieved. These results also help to
confirm the 90 µm primary grind.
10.5.3.2 BL-0835/0882
These
two BML programs both included flotation tests. BL-0835 focused on testing of variability composites, whereas the BL-0882 program focused
on testing of larger composites.
In
BL-0882, rougher flotation testing of four master composites was limited to a short program of primary grind confirmation work. Grind
P80 sizes of 75 µm and 125 µm were tested against the baseline grind of 90 µm. Results are summarized in
Figure 10.3.
CK Gold Project S-K 1300 Technical Report 95 May 2026
Figure
10.3: Grind Analysis – Rougher Flotation Results, Copper and Gold
CK Gold Project S-K 1300 Technical Report 96 May 2026
For
copper, no appreciable performance improvement was seen at the fine grind increment, but a decrease in performance was noted for the
coarse setting. In almost every case, the finer grind setting gave a higher rougher concentrate mass recovery (and subsequently a lower
grade). The results are supported by mineralogical data which indicates a very fine distribution of copper sulfides – fine enough
to remain partially liberated at a P80 of 75 µm. The “optimum” fine primary grinds required to achieve excellent
liberation would be very costly (CAPEX and OPEX) and would also have significant negative impact on the tailing filtration process.
A
slight improvement in gold recovery was noted at 75 µm with almost 5% difference compared to the 125 µm result. This was
achieved at a higher mass pull and lower grade. The results tend to support the conclusion drawn by SGS in 2009 – that grinds finer
than 80 µm to 90 µm are likely not economically beneficial. BML concluded that the base case 90 µm primary grind was
suitable for subsequent cleaner tests and LCTs.
The
BL-0835 work program tested 8 of the 58 variability composites through the standard flotation flowsheet (90 µm primary grind, pH
of 9.5 using lime, a 26 µm to 54 µm regrind and previously tested collectors) and the BL-0882 program tested another 21 variability
composites. Results were variable, again demonstrating the impact of copper mineralogy on rougher concentrate grade and recovery. Copper
recovery of 0.7% to 92.9% and concentrate copper grades of between 9.4% and 42.5% clearly represent a wide range of feed mineralogy,
although the metallurgical response can be loosely linked to the ratio of %CuOx to %CuT. The results of this work
are summarized in Table Table 10.25 and Table 10.26.
Table
10.25: Variability Cleaner Test Results, BL0835
Composite
Test
Mass
%
Assay,
% or g/t
Distribution
%
Cu
Fe
S
Ag
Au
Cu
Fe
S
Ag
Au
90153D
1
2.5
9.4
33.8
41.3
42
20.5
82.1
34
75.8
63.4
68
90153F
2
0.7
27.1
10.1
14.4
76
84.3
71.4
2.2
68.2
57.3
54.4
90153H
3
0.9
31.2
20.1
25.9
128
120
76.3
4.9
73.5
63.1
60.8
90153J
4
1.1
15.7
16.2
19.2
60
55.5
78.1
5.1
77.8
56.6
62
90153N
5
1.3
42.5
18.5
26.4
102
142
73.5
5.2
82.4
52
56.8
90153Q
6
2
26.1
29.9
34.9
64
71.6
90.9
24
81.1
68.6
67.8
90153R
7
0.7
19.6
26.9
31.1
54
55.5
71
6.6
63.5
47.3
51.9
90153Z
8
1
27.7
25.5
29.9
60
55.2
78
5.6
76.4
45.7
44.2
CK Gold Project S-K 1300 Technical Report 97 May 2026
Table
10.26: Variability Cleaner Test Results, BL0882
Composite
Test
Mass
%
Assay,
% or g/t
Distribution
%
Cu
Fe
S
Ag
Au
Cu
Fe
S
Ag
Au
Oxide
1
1
0.3
32.4
9.7
18.5
138
224
29
0.8
48.2
62.3
57.5
Oxide
2
2
0.3
17.7
8.3
10.9
112
136
19.7
0.7
41.2
39.8
51.5
Oxide
3
3
0.3
35
10.9
18.9
124
175
26.5
1.1
60
59.5
54.5
Oxide
4
4
0.1
22.2
7.6
20
4
169
10.1
0.3
41.6
2.7
54
Oxide
5
5
0.1
3.74
10
8.82
1
220
1.7
0.2
13.8
0.7
48.5
Oxide
6
6
0.1
1.38
6.2
2.41
2
282
0.7
0.2
5.6
1.1
59.2
Oxide
7
7
0.3
33.5
4.8
6.38
162
244
33
0.4
44.1
68.1
62.9
SUL
A
8
3.7
30.1
24.4
30.2
79
113
81.5
17.7
84.2
66
67.3
SUL
B
9
1.2
14.6
20.1
24.9
51
45.3
82.2
7.9
77.1
65.4
68.3
SUL
C
10
1.4
21.7
25
30.4
44
39.5
88.6
9.1
82.1
78.8
75.7
SUL
D
11
1.4
18.9
23
27.6
202
58.5
85
8.9
80.9
66
57.9
SUL
E
12
0.4
16.4
24.7
30.1
64
95.7
62.9
3.7
69.1
63.7
75.2
SUL
F
13
0.3
23.2
19.4
23.5
68
56.9
80.8
1.6
68.8
67.3
54.4
SUL
G
14
7.3
13.4
29.6
37.5
84
14.4
92.9
40.8
88.6
77.1
79
Mixed
1
15
0.3
13.9
14.1
16.3
63
66.5
29.3
1.2
50.8
20.3
53.8
Mixed
2
16
1.3
13
27.7
32.1
36
37
84.8
10.2
77.9
48.6
71.5
Mixed
3
17
0.3
10.5
14.3
8
57
102
10.9
1.2
33.6
18.6
32.7
SUL
H
18
0.9
26.2
17.7
22.1
100
53.2
77
4.2
64.9
61
50.9
SUL
I
19
1.2
9.3
31.5
41
39
16.3
72.4
11.9
68.1
48.3
55.5
SUL
J
20
3.4
3.9
8
3.4
15
6.67
60.5
8.1
51.7
54.3
45.5
SUL
K
21
0.9
21.2
19.4
22.7
26
16.5
74.7
5.4
67.1
28.9
37.5
Average
1.2
20.1
18.5
22.7
71
95.7
59.5
7.7
62.7
50.1
57.9
Plotting
copper and gold recovery as a function of “Oxidation Ratio” (i.e., CuOx/CuT), a tentative trend is
apparent for copper (Figure 10.5), but not for gold (Figure 10.4). The copper response seems intuitive, based on the mineralogical results
obtained so far, and a knowledge of flotation rates for the different copper minerals. It should be noted however, that the copper and
gold recoveries plotted in these charts are obtained at quite different final concentrate grades, meaning that results are not strictly
like for like. For example, test 17 and test 18 achieved 10.5% Cu grade and 26.2% Cu grade, respectively. As metal recovery is also generally
related to concentrate mass pull, then the true recovery vs oxidation state relationship is not represented correctly in these charts.
Adjustments to these and similar charts are discussed further in Section 22.
CK Gold Project S-K 1300 Technical Report 98 May 2026
Figure
10.4: Variability Samples, Au Recovery v CuOx/CuT Ratio
Figure
10.5: Variability Samples, Copper Recovery v CuOx/CuT
CK Gold Project S-K 1300 Technical Report 99 May 2026
Batch
cleaner tests were also completed on the BL-0882 master composites in preparation for locked cycle testing. Extra testing of the SS and
DS composites allowed for optimization of concentrate copper grade whilst simultaneously maximizing gold recovery. The results are summarized
in Table 10.27.
Table
10.27: BL-0882 Batch Cleaner Test Results
Composite
Cleaner
Conc Grade
Cleaner
Conc Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
C1-SS
18.0
59
60
76.2
63.6
61.0
15.5
46
44
73.7
55.6
51.6
19.7
48
57
37.2
25.8
31.9
23.2
59
63
73.0
54.8
56.3
C2-DS
19.7
39
97
82.9
60.2
72.6
18.9
38
77
87.3
65.7
71.9
22.2
43
87
83.2
62.0
46.3
C3-OX
32.0
315
207
13.8
46.0
62.6
C4-MIX
19.9
129
88
33.3
54.1
61.2
A
total of 11 locked cycle tests were completed on the main BL-0835 and BL-0882 composites. Single tests were completed on the BL-0835
composites (Primary Sul and Enriched Sul) whilst the BL-0882 composites each had either two or three tests completed. A summary of the
various LCT conditions is given in Table 10.28. All tests were completed using a primary grind of 80% -90 µm. 2 kg test charges
were used for most of these tests, with the last two using 4 kg charges in an attempt to boost metal units in the cleaner circuit for
improved grade control. Results are summarized in Table 10.29.
Table
10.28: BL-0835/0882 LCT Conditions
Composite
Regrind
(P80)
Lime
(g/t)
CMC
PFSDB
7150
MIBC
H57
Primary
Sul
32µm
275
-
3.5
3.5
21
50
Enriched
Sul
25µm
315
-
3.5
3.5
63
80
C1-SS
24µm
200
60
10
10
49
-
31µm
200
80
10
10
21
-
C2-DS
35µm
380
30
10.5
10.5
175
-
26µm
410
35
10.5
10.5
147
40
26µm
230
-
10.5
10.5
40
75
C3-OX
19µm
200
-
10.5
10.5
63
-
26µm
200
-
10.5
10.5
14
80
C4-MIX
26µm
200
-
10.5
10.5
77
-
18µm
200
50
10.5
10.5
56
-
CK Gold Project S-K 1300 Technical Report 100 May 2026
Table
10.29: BL-0835/0882 LCT Results
Composite
Final
Conc Grade
Final
Conc Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
Primary
Sul
15.9
31
65
88.4
67.2
86.9
Enriched
Sul
25.8
93
145
85.7
69.6
69.2
C1-SS
18.3
51
52
81.9
66.1
76.1
18.9
56
58
81.9
65.7
52.8
C2-DS
22.3
49
84
84.2
67.6
54.6
17.4
44
76
87.5
74.4
60.7
19.9
50
76
88.5
73.8
83.6
C3-OX
28.0
292
144
19.1
62.2
54.8
28.7
203
138
21.6
54.2
55.1
C4-MIX
16.8
121
82
33.4
59.2
53.9
22.7
156
103
34.8
59.8
48.7
The
results of this LCT work showed good consistency within the different composite types and above average performance considering the head
grades. Copper recoveries were once more heavily dependent upon the ratio of copper oxide to total copper content.
10.5.3.3 BL-0980
and 1066
Cleaner
tests of 10 kg samples were conducted on the LG composite in order to calibrate equipment and to fine tune conditions for the locked
cycle tests. A 10 kg charge size was used in this work, as the larger rougher concentrate mass tends to help with cleaner circuit grade
control. A primary grind of 90 µm was used in all tests. Results are summarized in Table 10.30.
Table
10.30: Batch Cleaner Tests on LG Composites
Composite
Final
Conc Grade
Final
Conc Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
LG
COMP
18.3
42.8
97
87.2
63.4
89.7
25.1
59.7
114
74.4
53.4
60.2
LG
COMP 2
16.8
34.7
81
85.6
67.8
59.6
24.4
45.0
118
82.0
58.4
51.3
Copper
concentrate grades were reasonable in most tests, with the first LG COMP 2 test being slightly low. Copper and gold recoveries tended
to be slightly lower than past performance as a result of the lower head grade in these samples.
The
cleaner work was followed up by 10 kg locked cycle tests on each of the LG composites. A summary of the various LCT conditions is given
in Table 10.31. All tests were completed using a primary grind of 80% -90 µm and pH was controlled to 9.5 using lime. 10 kg test
charges were used for these tests, allowing far greater control over mass pull in the cleaner circuit. These larger LCTs utilized a 40
liter rougher flotation cell and the normal 4 liter D12 used for cleaner flotation. Results are summarized in Table 10.32.
CK Gold Project S-K 1300 Technical Report 101 May 2026
Table
10.31: LG Composites, LCT Conditions
Composite
Regrind
(P80)
Lime
(g/t)
PFSDP
7150
MIBC
H57
LG
COMP
28
µm
245
10
10
80
-
LG
COMP 2
17
µm
265
8.5
7.5
90
8
Table
10.32: LG Composites, LCT Results
Composite
Mass
Pull (%)
Final
Conc Grade
Final
Conc Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
LG
COMP
0.9
17.6
40.4
91
86.5
65.1
75.8
LG
COMP 2
0.6
24.9
47.9
116
86.6
67.0
70.7
The
results of this work showed that as expected, the lower head grade samples tend to give rise to slightly lower recoveries compared to
previous work. The LG COMP test gave a slightly disappointing result, with similar recoveries despite the higher mass pull (and lower
copper concentrate grade). Throughout this test the 40-liter rougher flotation was challenged by inferior froth characteristics whereas
in the LG COMP 2 test, this issue was addressed through the addition of a stronger frother in addition to the MIBC. This helped froth
stability and improved performance. The LG COMP 2 LCT is judged to be a better representation of flotation circuit performance for the
bulk of the deposit (i.e., primary sulfide material) at life of mine average head grades.
10.5.3.4 BL-1702
This
program was initiated to help assess the impact of Glencore’s Jameson Cell technology on the metallurgical performance of CK Gold
samples. Two composites were prepared as noted in Section 10.2.3, namely “Sulfide Composite” and “Sulfide 2 Composite”.
Conventional
Rougher Tests were carried out to ensure that the samples responded similarly to previous sulfide composites. Results are summarized
in Table 10.33.
Table
10.33: BL-1702 Rougher Test Results
Composite
Mass
Pull (%)
Rougher
Conc Grade
Rougher
Conc Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
Sulfide
Comp
5.0
5.27
13.5
18.4
89.0
75.5
76.2
Sulfide
2 Comp
6.6
4.81
9.4
12.2
89.5
74.2
74.3
Oxide
Comp
4.1
1.26
12.9
8.5
16.8
57.1
55.1
These
recoveries are generally in line with results from previous test programs. Collectors were Polyfloat (PF) 4782 and PF7150, with H57 and
MIBC frothers at pH 9.1, and nominal grinds of 90 µm and 25 µm. These conditions were then applied to batch cleaner tests,
with results summarized in Table 10.34.
Table
10.34: BL-1702 Cleaner Test Results
Composite
Mass
Pull (%)
Cleaner
Conc Grade
Cleaner
Conc Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
Sulfide
Comp
0.8
27.9
109
97
79.5
72.3
64.7
Sulfide
2 Comp
1.0
26.8
59
70
82.4
65.6
69.8
CK Gold Project S-K 1300 Technical Report 102 May 2026
Again,
these results confirm previous work, albeit with particularly high copper grades in the concentrate. They suggest gold recovery of 70%
to 75% should be possible at the lower target concentrate grade of 18% Cu.
Glencore
Technology have developed a rougher test protocol (known as the “Dilution Test”) using conventional Denver laboratory flotation
equipment, but which helps to predict performance in Jameson cells. Results of the dilution tests are summarized in Table 10.35.
Table
10.35: BL-1702 Jameson Dilution Test Results
Composite
Mass
Pull %
Rougher
Conc Grade
Rougher
Conc Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
Sulfide
Comp
4.4
5.5
14.3
21.0
87.2
72.7
76.5
Sulfide
2 Comp
5.6
5.2
10.4
14.6
87.5
73.7
74.0
Oxide
Comp
2.7
1.46
15.1
10.0
12.9
46.9
47.8
These
results are noted to be reasonably similar to the results of the conventional rougher tests, although the oxide comp did not perform
terribly well. With this work completed, a locked cycle test was scheduled on each sulfide composite. Results of the LCTs are summarized
in Table 10.36.
Table
10.36: BL-1702 LCT Results
Composite
Mass
Pull %
Final
Conc Grade
Final
Conc Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
Sulfide
Comp
0.9
25.1
63.7
90.2
83.0
64.8
81.1
Sulfide
2 Comp
1.0
27.1
55.8
68.0
83.9
65.5
74.1
A
high copper concentrate grade (+25%) was achieved in both tests. As in general, a 1% increase in gold recovery is achievable with every
1% drop in copper grade, the LCT results suggest that a 68% to 70% gold recovery with an 18% Cu concentrate grade could be possible.
The regrind P80 was reported to be approximately 30 µm which is considered a little too coarse for optimum performance.
With
conventional flotation performance established, a limited Jameson Pilot program was proposed. Glencore were able to provide a new L150
pilot unit for use at BML. Sample mass restrictions prevented anything more than a very limited trial of the L150; at least 18 kg of
material is required for each L150 test.
After
two trials, L150 tests were completed on both samples, but results were disappointing. Several mitigating factors were judged to have
impacted the results, including the relative inexperience of operating staff on new equipment, limited material to optimize performance,
and some issues associated with commissioning new equipment. The Jameson work did however show promise overall and a more thorough program
of Jameson work was justified using new samples.
10.5.3.5 BL-1859
The
objective of this program was to provide baseline data for comparison with the Jameson Cell program, completed at XPS. Rougher tests
were run at primary grinds of 75 µm and 90 µm, to double check this important parameter for final flowsheet equipment selection.
These tests were run using Polyfloat 4782 and 7150 with H57 and MIBC as frothers. Results are summarized in Table 10.37.
CK Gold Project S-K 1300 Technical Report 103 May 2026
Table
10.37: BL-1859 Rougher Test Results
Test/Composite
Mass
Pull (%)
Rougher
Conc Grade
Rougher
Conc Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
90
mm Grind
4.88
2.73
7.90
10.1
87.5
74.3
72.2
75
mm Grind
4.80
3.28
8.68
12.1
88.3
73.2
75.4
BL-1066
Result (2022)
4.54
3.28
7.03
18.7
88.3
72.6
74.6
The
results compare well with those of BL-1066 (completed in 2022) and also highlight only marginal increases in performance at 75 µm
compared to 90 µm, thereby confirming the previously baselined primary grind of 90 µm.
A
series of batch cleaner tests was also run to calibrate parameters for locked cycle tests. A primary grind of 90 µm was used, with
regrinds in the 18 µm- 25 µm range. Once more, tests were run using Polyfloat 4782 and 7150 with H57 and MIBC as frothers.
Results are summarized in Table 10.38.
Table
10.38: BL-1859 Cleaner Test Results
Conditions
Mass
Pull
(%)
Cleaner
Conc Grade
Cleaner
Conc Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
90
µm / 27 µm grind
0.7
22.9
49.7
72
82.7
61.0
63.0
90
µm / 17 µm grind
0.6
27.3
57.5
96
83.4
60.7
66.7
75
µm / 25 µm grind
0.6
23.7
59.7
69
79.4
57.8
43.9
BL1066
(97 µm / 25 µm)
0.9
16.8
34.7
81
85.4
67.5
59.3
The
cleaner flotation results showed comparable performance across regrind sizes. While finer regrinding improved copper concentrate quality,
gold recovery remained consistent. Given the economic importance of gold to the project, finer regrinding was deemed unnecessary for
future tests.
A
single locked cycle test was then run using conditions and reagents established by the cleaner tests above. A primary grind of 90 µm
was used, together with a 28 µm regrind. Results are summarized in Table 10.39.
Table
10.39: BL-1859 LCT Results
Composite
Mass
Pull (%)
Cleaner
Conc Grade
Cleaner
Conc Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
LG-2025
Composite
0.8
20.7
45.0
71
85.3
64.8
69.5
This
LCT compares reasonably well to the BL-1066 LCT, although a slightly coarser regrind for this test (28 µm for LG-2025 vs 17 µm
for BL-1066) leads to slightly decreased cleaner grade/recovery performance.
10.5.3.6 BL-1990
BL-1990
was primarily intended to assess the metallurgical performance of ore type blends, relative to the performance of the individual components
(oxide, mixed, sulfide). These composites were first characterized using rougher and cleaner batch tests, before testing mixtures of
these, using PFS mine plans as an indication of early production blends. The ratios used in these Y1, Y2 and Y3 production blends are
described in Section 10.2.3, Table 10.11.
The
results of the Rougher and Cleaner batch tests are summarized in Table 10.40 and Table 10.41.
CK Gold Project S-K 1300 Technical Report 104 May 2026
Table
10.40: Batch Rougher Tests on BL-1990 Composites
Composite
Mass
%
Rougher
Concentrate Grade
Rougher
Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
Sulfide
9.3
2.37
6.3
10.4
91.6
74.3
84.2
16.1
1.58
4.0
6.9
93.2
74.9
86.9
Mixed
9.0
2.02
5.2
8.5
78.9
76.4
73.8
13.5
1.35
3.6
6.3
81.7
78.0
76.5
Oxide
5.1
0.76
12.2
4.8
16.3
62.1
55.2
11.1
0.53
5.0
2.5
23.8
63.3
61.2
Y1
Comp
9.6
1.49
5.2
7.4
61.0
69.3
72.4
6.0
2.52
8.1
9.3
57.0
69.1
74.7
Table
10.41: Batch Cleaner Tests on BL-1990 Composites
Composite
Mass
%
Cleaner
Concentrate Grade
Cleaner
Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
Sulfide
1.2
17.9
39.9
77.0
88.6
60.3
72.1
Mixed
0.5
25.5
65.3
104.0
66.1
69.4
64.9
Oxide
0.2
5.1
237.1
107.0
3.9
46.3
37.4
0.2
4.6
205.5
70.4
4.2
53.9
31.2
Y2
Comp
1.2
17.0
36.1
74.0
86.6
68.0
71.2
With
these results in hand, it appeared that:
● The
performance of sulfide, oxide and mixed composites were similar to previous work.
● That
Y1 and Y2 composites were behaving in line with expectations. Locked Cycle Tests on the blended
composites were therefore approved.
Results
of these tests are summarized in Table 10.42.
Table
10.42: LCTs on BL-1990 Blended Composites
Composite
Mass
%
Final
Concentrate Grade
Final
Concentrate Recovery
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
Y1
Comp
0.7
17.8
60.6
142.8
46.0
60.9
74.4
Y2
Comp
0.9
24.9
58.6
138.5
88.1
73.1
76.2
Y3
Comp
1.5
14.8
35.6
62.9
94.1
75.0
76.3
In
general, these LCTs were stable and performed as expected, with the Y1 Comp (37% Oxide Comp, 29% Mixed Comp and 33% Sulfide Comp) showing
the lowest recovery of metal due to the larger oxide component. The Y2 and Y3 Comp results provide useful data points for the metallurgical
model, as the higher mass pull, lower copper grade in the Y3 result helps to illustrate the copper and gold recovery improvements available
if a lower-grade product is acceptable to concentrate offtake partners.
With
the primary objectives of this program completed, attempts were made to optimize the oxide flotation process, using alternative reagents
and also by revisiting the option of gravity concentration in the mill to recover additional gold. These tests only served to confirm
that the base case conditions for flotation are probably close to optimum.
CK Gold Project S-K 1300 Technical Report 105 May 2026
10.5.4 XPS
Program 4025701.00.
After
the initial results achieved with new pilot equipment at BML, it was decided to ship more sample to XPS in Sudbury Ontario, for more
Jameson Piloting. This material was sourced from the BML BL-1859 program.
The
XPS Program consisted of two parallel sets of tests, with each test consisting of a standard rougher flotation test, a dilution rougher
flotation test and finally a pilot rougher test using the L150 rig. The two test sets used a primary grind of 90 µm, concentrate
regrind of Set 2 pH 9.0 using lime, and MIBC and/or H57 frothers. However, different collector combinations were used in each set
(PAX and A208 in Set 1, PF4782 and PF7150 in Set 2, as this was considered an important factor for Jameson cell performance.
Results
of the two sets are summarized in Table 10.43.
Table
10.43: XPS Jameson Rougher Test Results
Collector
Set
Test
Mass
(%)
Rougher
Concentrate Grade
Rougher
Recovery
ID
Type
%
Cu
g/t
Au
g/t
Ag
Cu
%
Au
%
Ag
%
PAX
+ A208
F1
Rougher
5.1
3.05
8.1
11.4
84.9
69.2
75.3
F2
Dil.
Rougher
5.0
2.53
6.9
9.4
80.0
64.9
71.1
F2
Dil.
Cleaner
1.4
8.73
23.1
30.4
75.7
59.8
62.9
F3
L150
5.3
3.13
8.8
11.8
86.7
74.7
72.7
PF
4782 +
PF7150
F5
Rougher
10.4
1.53
3.9
6.1
88.5
73.2
70.3
F6
Dil.
Rougher
8.1
1.82
4.8
7.5
86.1
71.5
68.9
F6
Dil.
Cleaner
1.9
7.40
18.6
28.9
82.5
66.0
62.6
F4
L150
8.8
1.83
5.1
7.3
88.7
74.7
75.8
The
results highlight a difference in performance between the two collector regimens. In general, the PAX+A208 gave higher grades and lower
recoveries, whilst the PF series collectors tended towards higher mass pull and recovery. The mass pull (and metal recovery) differences
were observed to be due at least in part to froth stability issues and overall control over froth recovery as well as collector strength
and/or efficiency. The PF collectors tended to collapse the more brittle MIBC froth bed, to the point that the stronger H57 frother was
required. This stronger, glycol-based reagent led to less control over mass pull, and resultant grade dilution. In contrast, the PAX+A208
combination resulted in more stable, controllable froths, but with lower overall metal recoveries. Rougher mass pulls to the rougher
concentrate varied from 5.0% to over 10%, with significant increases in recovery at the higher mass pull. The testwork highlights the
importance of froth stability on performance, and the selection of the optimum frother for the final design may still be pending. H57
is perhaps too strong, and MIBC perhaps a little too weak. Fortunately, the reagent dosing facilities included in the FS flowsheet offer
sufficient flexibility to allow this fine tuning in early operations.
The
significant increase in gold recovery seen at the higher rougher mass pull is notable and drives the FS process design criteria towards
the 10% mass pull level (per F5 above). Although this results in a lower grade feed to the cleaner circuit (and of course a larger regrind
mill), the high copper grades seen in the BL-1990 locked cycle test (summarized in Table 10.42) indicate good mineral liberation at the
selected regrind, and so the wash water system utilized in the Jameson Cell will still be able to achieve ~20% copper concentrate grade.
CK Gold Project S-K 1300 Technical Report 106 May 2026
10.6 GRAVITY
CONCENTRATION
One
of the opportunities identified in the early SGS work was the addition of a gravity circuit to the flowsheet, especially in the oxide
zones, where significant native copper was confirmed visually. With this in mind, limited testwork was conducted by KCA and BML, with
largely unremarkable results.
10.6.1 KCA
Program (2020-2021)
Gravity
tests using a bench scale Knelson concentrator were scheduled on 40 lb samples of each composite. The tests on the Overall Sulfide and
Overall Oxide composites were unremarkable, with low recoveries of gold and copper and no obvious opportunity for improvement. For the
Hole 4 Composite (high-grade oxide) however, a similar test produced a gravity concentrate with a weight recovery of 1.6%, containing
51.5 g/t Au and 14.6% Cu, with recoveries of 15.4% Au and 22.7% Cu.
In
general, the Hole 4 flotation testwork was carried out on the gravity tailings, to determine if the inclusion of a gravity circuit prior
to flotation would provide better recoveries than by flotation alone. The results of this work are summarized in Table 10.44.
Table
10.44: KCA Hole 4 Gravity + Flotation vs. Flotation Only
Description
Gravity
+ Flotation
Flotation
Only
Gravity
Concentrate Grade (g/t Au; Cu%)
15.5;
14.6
-
Gravity
Concentrate Recovery (Au%; Cu%)
15.4;
22.7
-
Overall
Flowsheet Recovery
Gold
(%)
70
70
Copper
(%)
60
57
The
gravity test yielded recoveries of 15.4% gold and 22.7% copper. It was expected that this would generate higher overall recoveries for
a gravity + flotation circuit. However, the gold recovery (at 70%) was the same. It is concluded that gold recovered by gravity would
be recovered in the flotation circuit. The increase in copper recovery was 3%.
10.6.2 BML
BL-0789 Program (2021)
Gravity
recovery tests using a laboratory scale Kelson Concentrator and shaking table (referred to as “Pan”) were carried out on
LCT tailing samples from the Oxide Comp, Oxide Comp 2 and the Sulfide Comp.
Results
for the Oxide Comp 2 and the Sulfide Comp were unremarkable, whilst the higher-grade Oxide Comp gave better results, as summarized in
Table 10.45. A significant amount of coarse native copper was observed in the high-grade Oxide Comp LCT, and this is apparent in the
gravity concentrate.
Table
10.45: Gravity Test on High-Grade Oxide LCT Tailings
%Weight
%Cu
g/t
Au
Recovery
%Cu
Recovery
%Au
%Weight
Pan
Conc.
1.0
5.74
23.4
10.4
9.1
Pan
Tails
2.8
0.54
4.2
2.6
4.3
Knelson
Tails
96.2
0.52
2.4
87.0
86.6
Note
that the recovery data presented here represents recovery from the LCT tailings, and not the original LCT mill feed. Calculating the
contribution to overall recovery gives a 6% copper and 3.5% gold recovery. It was noted that the majority of gangue material in the pan
concentrate is magnetite.
CK Gold Project S-K 1300 Technical Report 107 May 2026
10.6.3 BML
BL-1990 Program (2025)
A
small program of gravity concentration work was completed at the end of the BL-1990 program, and as with past programs, these gave mostly
unremarkable results. Four batch flotation tests were completed using standard flotation test conditions but using a gravity tailing
sample rather than a fresh head sample. As per previous work, the gravity circuit consisted of a laboratory Knelson concentrator, and
a Mozley Table for cleaning. The recovery of gold to the Mozley concentrate is summarized in Table 10.46.
Table
10.46: BL-1990 Oxide Comp, Gravity Results
Test
No.
Mozley
Mass
(%)
Mozley
%Au Recovery
Overall
Rougher %Au Recovery (incl. gravity)
Test-17
0.13
3.7
53.3
Test-18
0.07
3.3
65.8
Test-19
0.25
9.0
65.2
Test-20
0.09
17.2
72.8
These
latest tests confirm earlier decisions to not include gravity concentration in the CK Gold flowsheet.
10.7 CYANIDATION
10.7.1 KCA
Program (2020-21)
Two
24-hour cyanidation tests were carried out at different cyanide strengths, on replicate subsamples of test 90139 flotation tailings.
These tests resulted in between 64% and 73% extraction of gold, with reasonable cyanide consumptions of between 0.9 kg/t and 1.7 kg/t.
10.7.2 BML
BL-0835/0882 Program (2021-22)
BML
also carried out two cyanide leach tests on samples of flotation tailings from the Oxide Comp 2 LCT and the Sulfide Comp LCT. These 24-hour
bottle roll tests used 1,000 ppm NaCN and 250 g/t PbNO3 dosage and resulted in gold dissolution of 81% and 74% for oxide and
sulfide respectively with cyanide consumption of 0.5 kg/t in both cases. Cyanidation of LCT tailings effectively increased total gold
recovery to over 90% for both samples.
10.8 FINAL
CONCENTRATE CHARACTERIZATION
10.8.1 Dewatering
The
settling and filtration of copper concentrates at the selected grind is well established. In addition, the mass of concentrate produced
in laboratory scale tests is far too small for dewatering testwork. For these reasons, no testwork has been completed to assess the performance
of CK gold concentrates. This is considered a low-risk item by the QP and allowances have been made in the flowsheet design to cater
for additional uncertainty.
10.8.2 Chemical
Analysis
10.8.2.1 BML
BL-0882 Program (2021)
Samples
of final concentrate from each of the BL-0882 LCTs were submitted for minor element analysis. Results are summarized in Table 10.47.
In general, these results indicate that a relatively clean copper concentrate will be produced, and commercial penalties from smelters
will be very rare.
CK Gold Project S-K 1300 Technical Report 108 May 2026
Table
10.47: BL-0882 LCT Minor Element Analysis
Analyte
LOD
Unit
Method
C1-SS
C2-DS
C3-OX
C4-MIX
Al
0.01
%
FUS-Na2O2
2.82
1.82
3.11
2.52
As
5
ppm
FUS-MS-Na2O2
68
151
318
191
Ba
3
ppm
FUS-MS-Na2O2
393
247
604
349
Bi
2
ppm
FUS-MS-Na2O2
28
40
29
30
Ca
0.01
%
FUS-Na2O2
6.66
0.69
0.72
1.64
Cd
2
ppm
FUS-MS-Na2O2
11
50
49
21
Ce
0.8
ppm
FUS-MS-Na2O2
57.3
17.6
38.4
35.5
Co
0.2
ppm
FUS-MS-Na2O2
104
168
259
280
Cr
30
ppm
FUS-MS-Na2O2
220
70
460
140
Cs
0.1
ppm
FUS-MS-Na2O2
0.6
0.3
1.8
0.6
Dy
0.3
ppm
FUS-MS-Na2O2
2.3
0.3
1
1.3
Eu
0.1
ppm
FUS-MS-Na2O2
1.4
0.1
0.7
0.7
Ga
0.2
ppm
FUS-MS-Na2O2
8.1
5.2
9.1
7.2
Gd
0.1
ppm
FUS-MS-Na2O2
3.8
1
1.7
1.8
Ge
0.7
ppm
FUS-MS-Na2O2
1.6
0.9
1
1.4
Hg
1
ppm
AR-ICP
7
6
12
10
In
0.2
ppm
FUS-MS-Na2O2
0.9
1.5
2
1
K
0.1
%
FUS-Na2O2
0.6
0.5
0.8
0.6
La
0.4
ppm
FUS-MS-Na2O2
25.8
8.2
18.7
16.6
Mg
0.01
%
FUS-Na2O2
0.34
0.11
0.21
0.25
Mn
3
ppm
FUS-MS-Na2O2
489
97
264
257
Mo
1
ppm
FUS-MS-Na2O2
73
191
270
109
Na
0.001
%
AR-ICP
0.023
0.008
0.013
0.019
Nb
2.4
ppm
FUS-MS-Na2O2
11.5
<
2.4
4.6
3.4
Nd
0.4
ppm
FUS-MS-Na2O2
34.4
7.8
16.3
14.8
Ni
10
ppm
FUS-MS-Na2O2
150
170
330
240
P
0.001
%
AR-ICP
0.103
0.05
0.085
0.065
Pb
0.8
ppm
FUS-MS-Na2O2
739
845
1,520
4,160
Pr
0.1
ppm
FUS-MS-Na2O2
7.4
1.8
5.4
4
Rb
0.4
ppm
FUS-MS-Na2O2
10.3
17.5
15.7
15
Sb
2
ppm
AR-ICP
17
15
26
33
Se
8
ppm
FUS-MS-Na2O2
106
158
285
81
Si
0.01
%
FUS-Na2O2
9.09
5.56
13.1
8.21
Sm
0.1
ppm
FUS-MS-Na2O2
7.8
1.5
1.8
4.6
Sn
0.5
ppm
FUS-MS-Na2O2
3.7
5.2
18.2
2.1
Sr
3
ppm
FUS-MS-Na2O2
402
196
272
279
Tb
0.1
ppm
FUS-MS-Na2O2
0.7
<
0.1
0.3
0.3
Te
6
ppm
FUS-MS-Na2O2
14
21
<
6
7
Th
0.1
ppm
FUS-MS-Na2O2
6.3
4.1
10.6
6.3
Ti
0.01
%
FUS-Na2O2
0.33
0.04
0.1
0.08
Tl
0.1
ppm
FUS-MS-Na2O2
1.9
1.8
1.9
2.3
U
0.1
ppm
FUS-MS-Na2O2
5.3
2.4
2.8
4.5
V
5
ppm
FUS-MS-Na2O2
43
15
37
25
W
0.7
ppm
FUS-MS-Na2O2
3.1
1.2
12.5
2.6
Y
0.1
ppm
FUS-MS-Na2O2
14.3
2
4.7
4.8
Yb
0.1
ppm
FUS-MS-Na2O2
1.1
0.2
0.8
0.7
Zn
30
ppm
FUS-MS-Na2O2
2,210
>
10,000
2,320
3,380
Zr
1
ppm
AR-ICP
16
7
10
9
10.8.2.2 BML
BL-0980/1066 Program (2021/22)
Samples
of final concentrate from the two LG LCTs run as part of BL-0980 and BL-1066 were submitted for minor element analysis. Results are summarized
in Table 10.48. In general, these results confirm that a relatively clean copper concentrate will be produced, and commercial penalties
from smelters will be very rare.
CK Gold Project S-K 1300 Technical Report 109 May 2026
Table
10.48: BL-0980 and BL-1066 LCT Minor Element Analysis
Analyte
LOD
Unit
Method
BL980-4
Cu Con D+E
BL1066-3
Cu Con D+E
Al
0.01
%
FUS-Na2O2
0.85
0.74
As
5
ppm
FUS-MS-Na2O2
174
77
B
10
ppm
FUS-MS-Na2O2
160
<
10
Ba
3
ppm
FUS-MS-Na2O2
243
71
Be
3
ppm
FUS-MS-Na2O2
<
3
<
3
Bi
2
ppm
FUS-MS-Na2O2
52
36
Ca
0.01
%
FUS-Na2O2
0.22
0.27
Cd
2
ppm
FUS-MS-Na2O2
77
40
Ce
0.8
ppm
FUS-MS-Na2O2
8.3
12.4
Cl
0.01
%
INAA
<
0.01
0.02
Co
0.2
ppm
FUS-MS-Na2O2
428
228
Cr
30
ppm
FUS-MS-Na2O2
90
200
Cs
0.1
ppm
FUS-MS-Na2O2
0.4
<
0.1
Dy
0.3
ppm
FUS-MS-Na2O2
<
0.3
<
0.3
Er
0.1
ppm
FUS-MS-Na2O2
<
0.1
<
0.1
Eu
0.1
ppm
FUS-MS-Na2O2
0.2
0.2
F
0.01
%
FUS-ISE
<
0.01
<
0.01
Ga
0.2
ppm
FUS-MS-Na2O2
2.4
1.6
Gd
0.1
ppm
FUS-MS-Na2O2
0.5
0.5
Ge
0.7
ppm
FUS-MS-Na2O2
0.8
<
0.7
Hf
10
ppm
FUS-MS-Na2O2
<
10
<
10
Hg
1
ppm
AR-ICP
18
-
Ho
0.2
ppm
FUS-MS-Na2O2
<
0.2
<
0.2
In
0.2
ppm
FUS-MS-Na2O2
2.8
1.6
K
0.1
%
FUS-Na2O2
0.1
0.1
La
0.4
ppm
FUS-MS-Na2O2
4.9
7.2
Li
15
ppm
FUS-Na2O2
<
15
<
15
Mg
0.01
%
FUS-Na2O2
0.05
0.09
Mn
3
ppm
FUS-MS-Na2O2
133
71
Mo
1
ppm
FUS-MS-Na2O2
142
286
Na
0.001
%
AR-ICP
0.01
-
Nb
2.4
ppm
FUS-MS-Na2O2
<
2.4
<
2.4
Nd
0.4
ppm
FUS-MS-Na2O2
3.9
6
Ni
10
ppm
FUS-MS-Na2O2
240
230
P
0.001
%
AR-ICP
0.048
-
Pb
0.8
ppm
FUS-MS-Na2O2
2,100
598
Pr
0.1
ppm
FUS-MS-Na2O2
1
1.5
Rb
0.4
ppm
FUS-MS-Na2O2
3.6
3.5
Sb
2
ppm
FUS-MS-Na2O2
15
6
Sc
1
ppm
AR-ICP
<
1
-
Se
8
ppm
FUS-MS-Na2O2
89
117
Si
0.01
%
FUS-Na2O2
2.48
2.29
Sm
0.1
ppm
FUS-MS-Na2O2
0.5
0.8
Sn
0.5
ppm
FUS-MS-Na2O2
2.4
2.4
Sr
3
ppm
FUS-MS-Na2O2
110
94
Ta
0.2
ppm
FUS-MS-Na2O2
<
0.2
0.5
Tb
0.1
ppm
FUS-MS-Na2O2
<
0.1
<
0.1
Te
6
ppm
FUS-MS-Na2O2
15
12
Th
0.1
ppm
FUS-MS-Na2O2
2.3
3
Ti
0.01
%
FUS-Na2O2
0.03
0.03
Tl
0.1
ppm
FUS-MS-Na2O2
4.5
0.9
Tm
0.1
ppm
FUS-MS-Na2O2
<
0.1
<
0.1
U
0.1
ppm
FUS-MS-Na2O2
2.5
3.5
V
5
ppm
FUS-MS-Na2O2
6
12
W
0.7
ppm
FUS-MS-Na2O2
1.4
2.4
Y
0.1
ppm
FUS-MS-Na2O2
1.2
1.2
Yb
0.1
ppm
FUS-MS-Na2O2
<
0.1
0.2
Zn
30
ppm
FUS-MS-Na2O2
>
10,000
7,160
Zr
1
ppm
AR-ICP
8
-
CK Gold Project S-K 1300 Technical Report 110 May 2026
10.8.2.3 BML
BL-1990 Program (2025)
Samples
of final concentrate from each of the production period (Y1, Y2, Y3) composite LCTs run as part of BL-1900 were submitted for minor element
analysis. Results are summarized in Table 10.49. In general, these results further confirm that a clean copper concentrate will be produced,
and commercial penalties from smelters will be very rare.
Table
10.49: BL-1990 LCT Minor Element Analysis
Analyte
LOD
Unit
Method
Y1
Comp LCT
Y2
Comp LCT
Y3
Comp LCT
Al
0.01
%
FUS-Na2O2
1.58
0.75
0.7
As
5
ppm
FUS-MS-Na2O2
60
271
528
B
10
ppm
FUS-MS-Na2O2
<10
<10
<10
Ba
3
ppm
FUS-MS-Na2O2
178
110
142
Be
3
ppm
FUS-MS-Na2O2
<
3
<
3
<
3
Bi
2
ppm
FUS-MS-Na2O2
27
40
26
Ca
0.01
%
FUS-Na2O2
0.16
0.32
0.10
Cd
2
ppm
FUS-MS-Na2O2
54
125
90
Ce
0.8
ppm
FUS-MS-Na2O2
27
16.5
18.9
Cl
0.01
%
INAA
<0.01
<0.01
<0.01
Co
0.2
ppm
FUS-MS-Na2O2
255
122
353
Cr
30
ppm
FUS-MS-Na2O2
290
80
470
Cs
0.1
ppm
FUS-MS-Na2O2
0.5
0.4
0.5
Dy
0.3
ppm
FUS-MS-Na2O2
0.8
0.4
0.5
Er
0.1
ppm
FUS-MS-Na2O2
0.4
0.2
0.2
Eu
0.1
ppm
FUS-MS-Na2O2
0.4
0.2
0.3
F
0.01
%
FUS-ISE
0.01
0.01
<0.01
Ga
0.2
ppm
FUS-MS-Na2O2
11
10
11
Gd
0.1
ppm
FUS-MS-Na2O2
1.1
0.8
0.9
Ge
0.7
ppm
FUS-MS-Na2O2
<
0.7
<
0.7
<
0.7
Hf
10
ppm
FUS-MS-Na2O2
<
10
<
10
<
10
Hg
1
ppm
AR-ICP
43
73
35
Ho
0.2
ppm
FUS-MS-Na2O2
<
0.2
<
0.2
<
0.2
In
0.2
ppm
FUS-MS-Na2O2
2.8
4.8
2.6
K
0.1
%
FUS-Na2O2
0.3
0.1
<
0.1
La
0.4
ppm
FUS-MS-Na2O2
13.2
8
9.4
Li
15
ppm
FUS-Na2O2
<
15
<
15
<
15
Mg
0.01
%
FUS-Na2O2
0.13
0.08
0.06
Mn
3
ppm
FUS-MS-Na2O2
168
99
130
Mo
1
ppm
FUS-MS-Na2O2
178
258
175
Na
0.001
%
AR-ICP
0.01
0.01
0.01
Nb
2.4
ppm
FUS-MS-Na2O2
<
2.4
<
2.4
<
2.4
Nd
0.4
ppm
FUS-MS-Na2O2
12
7.3
8.7
Ni
10
ppm
FUS-MS-Na2O2
300
110
440
P
0.001
%
AR-ICP
0.018
0.016
0.016
Pb
0.8
ppm
FUS-MS-Na2O2
380
1,670
3,030
Pr
0.1
ppm
FUS-MS-Na2O2
3.4
2
2.4
Rb
0.4
ppm
FUS-MS-Na2O2
9
4.7
3.8
Sb
2
ppm
FUS-MS-Na2O2
7
110
168
Sc
1
ppm
AR-ICP
2
3
2
Se
8
ppm
FUS-MS-Na2O2
72
91
85
Si
0.01
%
FUS-Na2O2
4.59
2.25
2.1
Sm
0.1
ppm
FUS-MS-Na2O2
1.9
1.2
1.3
Sn
0.5
ppm
FUS-MS-Na2O2
5.3
6
6.6
Sr
3
ppm
FUS-MS-Na2O2
134
67
74
Ta
0.2
ppm
FUS-MS-Na2O2
0.5
0.4
0.3
Tb
0.1
ppm
FUS-MS-Na2O2
0.1
<
0.1
<
0.1
Te
6
ppm
FUS-MS-Na2O2
19
20
12
Th
0.1
ppm
FUS-MS-Na2O2
6.6
4
3.5
Ti
0.01
%
FUS-Na2O2
0.05
0.03
0.03
Tl
0.1
ppm
FUS-MS-Na2O2
1.2
1.7
1.9
Tm
0.1
ppm
FUS-MS-Na2O2
<
0.1
<
0.1
<
0.1
U
0.1
ppm
FUS-MS-Na2O2
4.2
2.6
2.6
V
5
ppm
FUS-MS-Na2O2
13
7
10
W
0.7
ppm
FUS-MS-Na2O2
1.5
1.2
2.9
Y
0.1
ppm
FUS-MS-Na2O2
3.8
2.4
2.4
Yb
0.1
ppm
FUS-MS-Na2O2
0.4
0.3
0.2
Zn
30
ppm
FUS-MS-Na2O2
>
10,000
>
10,000
>
10,000
Zr
1
ppm
AR-ICP
26
28
26
CK Gold Project S-K 1300 Technical Report 111 May 2026
10.9 TAILINGS
CHARACTERIZATION
For
CK Gold, the final tailing stream consists of the rougher flotation tailing slurry – expected to be slightly coarser than primary
grind (80% -90 µm), and the cleaner scavenger tailing slurry – expected to be slightly coarser than the reground cleaner
feed product (80% -25 µm). The cleaner scavenger slurry will normally account for less than 10% of the mass of rougher tailing
slurry.
The
relative scarcity of water in the area dictates that thorough dewatering of tailings slurry is an element of the flowsheet, and to this
end the FS process design includes tailings filtration in addition to the more common slurry thickening process. Filtration of slurry
at the throughput rates required for this project is a substantial undertaking and therefore a significant program of work has been dedicated
to understanding the physical properties of this stream. The metallurgical program has not, however, included detailed chemical analysis
of the tailing stream as this is understood to have been included within the tailing storage system designs and supporting work.
10.9.1 Dewatering
10.9.1.1 KCA
Program (2020-21)
Samples
of flotation tailing solids and solution from the Hole 4 locked cycle flotation test program were shipped to Pocock Industrial Inc, in
Salt Lake City. Pocock’s scope of work was to investigate flocculants, gravity sedimentation, pulp rheology, vacuum filtration,
and pressure filtration. The objective of the testwork was to provide data that could be used to assist in the selection and sizing of
the tailing thickener and filters. However, it should be noted that the material used for this work represents only the upper portion
of one hole within the deposit – i.e., not very representative of the bulk of material.
Pocock
carried out a size fraction analysis of the Hole 4 flotation tailings and established the P80 to be 65 µm. This is significantly
finer than the primary grind used at KCA (86 µm) but may be explained to some extent by the inclusion of the reground cleaner tailings.
Initial
work focused on screening of potential flocculant types. A medium/high molecular weight anionic polyacrylamide was selected, based on
overall performance, including overflow clarity, decantation rate and underflow slurry viscosity characteristics. Two test methods were
subsequently used to characterize the settling/thickening performance, namely static tests in 2 liter cylinders and dynamic tests in
a bench-scale continuous test unit. Pocock concluded that a conservatively sized hi-rate thickener, using 55 g/t to 60 g/t flocculant,
with a heavy-duty rake mechanism and adequate feed well dilution would be appropriate for Copper King, producing an underflow slurry
density of up to 62% solids.
CK Gold Project S-K 1300 Technical Report 112 May 2026
The
apparent viscosity of underflow slurry collected from dynamic settling tests was measured across a range of solids concentrations and
shear rates, confirming the maximum underflow density limitation of 62%.
Pocock
also investigated both vacuum and pressure filtration. The vacuum tests produced filter cakes with over 20% moisture at rates of 400
kg/m2.hr to 500 kg/m2.hr. The pressure filtration tests achieved cakes with 12.8% moisture at rates of over 2,000
kg/m2.hr.
10.9.1.2 BML
BL-0835/0882 Program (2021-2022)
Final
tailing slurry from a selection of the main composite LCTs was used as feed for a settling and filtration testwork program at BML. The
work included flocculant scoping tests and static settling tests, with subsequent pressure filtration testing of thickened slurries.
The scoping tests considered several well-known flocculant products and tested different addition rates and pH adjustments. The work
demonstrated that a very high molecular weight, slightly anionic polyacrylamide flocculant (Magnafloc 10) was effective and also that
the addition of lime helped to improve the supernatant clarity.
The
static settling test series was therefore completed using the MF10 flocculant, and a pH adjustment to 11.0 with lime. Different flocculant
dosages give a variety of settling rates and final underflow densities. Underflow density of between 55% and 63% solids was achievable,
although rheology tests were not conducted to determine pumping characteristics at these densities. In general, a 20 g/t to 40 g/t flocculant
addition was deemed sufficient to obtain good settling rates and the addition of lime to thickener feed helped to give superior overflow
clarities. Results are summarized in Table 10.50.
Table
10.50: Static Settling Test Results
Sample
Test
MF10
Dosage (g/t)
%
Solids
Settling
Rate
Initial
Final
mm/s
T43
F.Tail (C,D,E)
S1
20
14
63
2.8
S2
40
14
61.9
2.8
S3
60
14
60.6
3.5
T44
F.Tail (C,D,E)
S4
20
14
61.6
3.4
S5
40
14
60.2
2.2
S6
60
14
61.4
4.1
T44
F.Tail (C,D,E)
S7
20
12.4
59.4
2.3
S8
40
12.4
59.5
8
S9
60
12.5
57.1
4.6
T44
F.Tail (C,D,E)
S10
20
13.6
59.5
1.5
S11
40
13.6
58.5
1.9
S12
60
13.5
58
3
Batches
of tailing slurry from three of the BL-0882 LCTs were thickened to 60% solids then presented to a laboratory scale pressure filtration
unit equipped with membrane squeeze and air-blow. The results of this work are plotted on a single chart Figure 10.6 showing the filtration
rate vs cake moisture trends for each composite.
CK Gold Project S-K 1300 Technical Report 113 May 2026
Figure
10.6: Pressure Filtration Testwork Results
Each
sample gives a slightly different response, with the DS (Deep Sulfide) sample providing the highest filtration rates at the target moisture
of 14% (w/w). As this composite represents mineralization that will dominate the reserve tonnage, then the DS data is suitable for design
purposes, but with the understanding that occasional periods of additional mixed or oxide mineralization might de-rate the filtration
process.
10.9.1.3 BML
BL-1859 Program (2025)
Samples
of final tailing from Tests 01, 02 and 04 of the BL-1859 metallurgical program were used as feedstock for a program of vacuum filtration
testwork by JORD International.
The
sample used for testing was sized, using wet screening for the +38 µm fraction and an LA-950 V2 Horiba laser sizer for the -38
µm fraction. The resultant particle size distribution is shown in Figure 10.7.
CK Gold Project S-K 1300 Technical Report 114 May 2026
Figure
10.7: Vacuum Filtration – Feed Sample PSD
All
tests were conducted at 65% solids (w/w) and used the F133-3 filter cloth. M5250 flocculant was added where indicated, and no pH adjustment
was made. Results are summarized in Table 10.51.
Table
10.51: Vacuum Filtration Test Results
Test
No.
1
2
4
5
A
B
C
D
E
G
H
I
J
Cake
Thickness (mm)
11
11
8
6
8
11
12
14
13
12
12
16
8
Floc
Addition (g/t)
0
0
0
30
10
20
20
20
20
20
16
30
Form
Time (s)
45
45
25
25
5
15
5
5
5
5
5
10
5
Vibration
Stages
-
-
-
2
2
2
1
-
2
2
2
2
2
Stage
1 kPa
-
-
-
350
350
350
450
-
450
450
450
450
450
Stage
2 kPa
-
-
-
350
350
350
-
-
450
600
600
450
450
Drying,
including vibration (s)
45
60
60
95
60
45
55
55
55
55
85
75
65
Total
Time (s)
90
105
85
120
65
60
60
60
60
60
90
85
70
Total
Time (min)
1.50
1.75
1.42
2.00
1.08
1.00
1.00
1.00
1.00
1.00
1.50
1.42
1.17
Cake
Moisture
(%
w/w metallurgical)
20.6
20.5
19.7
14.2
13.2
14.3
15.4
19.8
14.5
14.4
14.5
15.4
13.8
Cake
S.G.
1.73
1.73
1.75
2.17
2.21
2.17
2.14
1.75
2.17
2.17
2.16
2.14
2.19
Filtration
Rate (kg/m2.h)
604
519
476
336
848
1228
1302
1176
1445
1337
888
1225
775
Source:
Jord International, 2025.
Comparing
Test D with Test C, one sees that the introduction of Jord’s proprietary ViperTM vibration unit lowers cake moisture from 19.8%
to 15.4% - a significant improvement. Introduction of a second ViperTM unit (Test E, Test G) has less of an effect but reduces moisture
further to the desired 14.5% (w/w). The calculated filtration rate under these conditions is over 1,400 kg/m2.h
Of
note, the tailing samples were passed to this program in filter cake form, suggesting that:
a. Very
minor quantity of ultra fine material, entrained in the original vacuum filter paper, may
have been absent from the sample, and,
b. The
flotation test water (including reagents, and at elevated pH) was not used.
Given
the significance of the filtration process, and the impact of a mis-calculated filtration rate, the QP recommends that an additional
test be conducted using the optimum conditions noted above, but using sample material in slurry form, complete with flotation tailings
water.
CK Gold Project S-K 1300 Technical Report 115 May 2026
10.9.2 Geotechnical
10.9.2.1 BML
BL-1990 Program (2025)
Although
no settling or filtration work was completed on tailings from this program, tailing material was used as feed into two important characterization
programs:
● Filter
Cake geotechnical and handling properties, by Jenike and Johanson (J&J).
● Filter
cake geotechnical properties by WSP, Vancouver (results reported elsewhere).
The
J&J testwork is important for the process plant, as the information provided by this is necessary for tailings cake storage bin and
discharge chute design – a critical stage in the process flowsheet.
Roughly
36 kg of tailings filter cake received from BML had a particle size distribution (PSD) summarized in Table 10.52.
Table
10.52: J&J Tailing Samples Percentile Particle Diameter
Description
D10
D50
D80
D95
D100
Gold
Copper Filter cake, mm
6.6
53.6
107
170
560
Bulk
density testing, designed to understand the compaction behavior of filtered cake within a mass-flow bin (lined with Tivar 80, a low friction
liner), gave the results summarized in Table 10.53.
Table
10.53: Tailings Compressibility, Particle Density and Bulk Density Results
Parameter
Sample
Size
(L)
Moisture
Content
(
%)
Bulk
Density, kg/m3
Particle
Density (kg/m3)
Loose
Compacted
Range
for EH =0.5 – 5 m
Copper
Gold Filter cake
0.06
19
960
-
1170-1540
-
0.06
14
758
-
1100-1420
-
9
19
1060
1705
-
-
6
14
935
1475
-
-
<0.03
0
-
-
-
2531
Cohesive
Strength Tests were also conducted to examine arching and ratholing behavior within a storage bin. The cake is considered cohesive and
so tends to form a rathole if stored in funnel flow. Table 10.54 shows the effect of moisture and time at rest on the cohesive strength
of the material.
Table
10.54: Summary of Minimum Outlet Size Required for a Hopper (P-FACTOR = 1.00)
Parameter
%
Moisture Content (w/w)
Storage
Time at Rest
Mass
Flow
Funnel
Flow
Bc
(m)
BP
(m)
BF
(m)
DF
(m)
Copper
Gold Filter Cake
19
0
2.4
1.1
1.5
6.0
24
2.7
1.3
1.8
6.5
14
0
2.4
1.1
1.7
5.3
24
2.8
1.3
2.0
5.5
Where
BC is the minimum recommended outlet diameter for a conical hopper in mass flow, BP is the minimum recommended outlet width for a slotted
or oval outlet with length = 3 x width, in mass flow. BF is the minimum recommended width of the same rectangular outlet, but in funnel
flow and DF is the critical rathole diameter, shown for 3 m of Effective Head. P-Factors >1.0 are overpressures, for example due to
vibration or impact upon filling.
Results
show how the cohesive strength of the filter cake changes with moisture content and is sensitive to over-pressure at all tested moisture
contents. Also, it was noted that if the filter cake is subjected to vibration or compaction while in storage, the minimum outlet size
required to prevent a stable arch from forming increases dramatically. For example, if filter cake at 14% moisture is subjected to a
P-Factor of 1.5, as could occur due to impact or vibration, the minimum required opening width for a slotted opening mass-flow bin increases
from 1.1 m to 1.7 m under continuous flow conditions and from 1.3 m to 2.0 m after 24 hours at rest. Thus, consideration should be given
to handling this material gently to avoid over-pressure.
CK Gold Project S-K 1300 Technical Report 116 May 2026
11
MINERAL RESOURCE ESTIMATES
11.1 INTRODUCTION
This
Section has been updated from the “S-K 1300 Technical Report Summary CK Gold Project,” dated February 10, 2025, to include
new economic parameters for reporting of Minerals Resources. Database corrections applied since the prior estimate are documented in
Section 9.2.1.2 and were confirmed as non-material through sensitivity analysis. Historical assay data quality assessment, including
comparative modeling of pre-1997 drilling data, is documented in Section 9.4.
11.2 MINERAL
RESOURCE ESTIMATE
The
current mineral resource estimate for gold, copper, and silver at the Project was previously disclosed in the S-K 1300 Technical Report
Summary for the Project, dated February 10, 2025. The supporting drill hole database incorporates data from all U.S. Gold drilling programs,
comprising 59 drill holes totaling 60,132 ft (18,328 m), as well as drilling completed by previous operators. U.S. Gold drilling spans
four programs: two holes totaling 2,030 ft (619 m) in 2017; eight holes totaling 8,090 ft (2,466 m) in 2018; 25 holes totaling 20,449
ft (6,233 m) in 2020; and 24 holes totaling 29,562 ft (9,010 m) in 2021.
For
the current FS, Mark Shutty, CPG, MAIG, Principal Geologist at Drift Geo LLC, utilized Leapfrog Geo/Edge software (version 2024.1) to
construct and update the geological models of the CK Gold deposit using all available drilling data. The constraining pit shell and in-pit
resource reporting were completed using MinePlan (version 16.5), incorporating updated metal prices, operating cost parameters, and metallurgical
recovery assumptions, with the underlying geological and grade model otherwise unchanged from the prior estimate.
The
mineral resource estimate was developed using the following standard procedures:
● Import
of topographic data to establish a digital terrain model of current surface conditions.
● Import
and validation of drill hole interval datasets using Leapfrog Geo tools, including review
of assay, survey, and density data.
● Construction
of implicit three-dimensional geological and mineralized domain models using Leapfrog Geo,
interpretation of oxidation state based on visual and geochemical logging, and assignment
of bulk density values by domain.
● Evaluation
and modeling of experimental variograms aligned with observed mineralization trends, establishing
anisotropic ranges of sample influence for grade estimation.
● Estimation
and validation of gold, copper, and silver grades within the three-dimensional block model
using Ordinary Kriging.
● Classification
of mineral resources into confidence categories (Measured, Indicated, and Inferred) based
on drill spacing, geological continuity, and estimation quality metrics.
● Application
of economic and geometric constraints for resource reporting within an optimized pit shell,
as described in the accompanying footnotes.
11.3 GEOLOGICAL
MODEL
Beginning
in 2020, U.S. Gold facilitated the relogging of all available legacy drill core to ensure consistent interpretation of rock types across
the 2020 and 2021 drilling programs. U.S. Gold’s geological datasets were used to evaluate samples and construct three-dimensional
geological models in Leapfrog. The primary lithological model includes Proterozoic granodiorite (GD) with varying intensities of potassic
alteration (GDK) and mylonitic fabrics (MYL). Mafic dikes (MD), younger pegmatites (PEG), and undifferentiated veins (VN) represent smaller
volumes within the mineralized granodiorite domain. Mafic dyke bodies were constructed in Leapfrog as discrete volumes; pegmatites and
veins were not modeled separately and were assigned the host rock type, as drilling density is insufficient to model either as throughgoing
features. Unmineralized domains were also modeled, including a metasediment unit (MSED) east of the Copper King Fault and overlying Quaternary
cover (QC).
CK Gold Project S-K 1300 Technical Report 117 May 2026
Leapfrog
software was used to aggregate and model the GDK, MYL, and MD intrusive sub-units within the GD domain. The CK deposit trends northwest-southeast
(290° to 110°), with a general orientation for all modeled intrusive domains of -70° dip at 020° dip direction. An anisotropy
ratio of 3:3:1 (maximum:intermediate:minimum) was applied for the GD domain, while a ratio of 5:5:1 was used for the internal GDK and
MYL lithologies. The geological model was used to assign domain-specific bulk density values throughout the block model and to establish
the eligible volume for grade estimation. Longitudinal and cross-sectional reviews confirm that mineralization generally follows the
anisotropy of the host lithologies, with the highest-grade mineralization concentrated within the central portion of the deposit (Figure
11.1).
An
oxidation model was created using drill hole data in Leapfrog. Surfaces were generated to produce oxide, mixed, and sulfide solids based
on visual logging in the database (Figure 11.2). A global isometric trend was applied to all surfaces. The oxidation methodology is discussed
in Section 11.4.
U.S.
Gold geologists modeled fault surfaces in Leapfrog using surface exposure, geophysical survey data, and downhole televiewer data. Structure
orientation data from the televiewer reconciliation work, interpreted by Piteau Associates, facilitated U.S. Gold’s interpretation
of additional faults for evaluation within the model space (Figure 11.3). Mineralized drill samples within the fault-bound blocks were
reviewed visually and statistically.
CK
mineralization is bounded to the east by a hard structural and lithological boundary at the Copper King Fault, and constrained to the
north, northwest, and west by the more ambiguous NW Fault, NE 1 Fault, and West Block Faults, respectively. While the NE 2 Fault is projected
to intersect the CK deposit, it remains a poorly defined feature, characterized in drill hole data as a broad zone of deeper oxidation
and lower-grade mineralization (Figure 11.4 and Figure 11.5). Bounding structures were used to constrain a single mineralized domain
that accommodates the influence of the internal NE 2 Fault on mineralization and oxidation for use in the resource model.
The
mineralization domain was defined using a hybrid numerical indicator model developed in Leapfrog Geo, incorporating a calculated gold-equivalent
variable at a nominal grade threshold, with a varying structural trend aligned to bounding fault orientations, observed mineralization
trends, and modeled intrusive anisotropies. This model constrains the estimation of individual metal grades within a single mineralized
domain encompassing the modeled intrusive rock complex.
CK Gold Project S-K 1300 Technical Report 118 May 2026
Figure
11.1: Vertical Section Showing Lithological Boundaries and Drill Hole Grades
Note:
Looking 030° AUEQ g/t
Source:
M. Shutty, Drift Geo LLC, 2026.
CK Gold Project S-K 1300 Technical Report 119 May 2026
Figure
11.2: Vertical Section Showing Oxidation Boundaries and Drill Hole Weathering
Note:
Looking 030°.
Source:
M. Shutty, Drift Geo LLC, 2026
Figure
11.3: Fault Map with Drill Hole Grades
Note:
(≥ 1.5 g/t AUEQ)
Source:
M. Shutty, Drift Geo LLC, 2025.
CK Gold Project S-K 1300 Technical Report 120 May 2026
Figure
11.4: Vertical Section A-A’ Showing Location of Interpreted NE 2 Fault Zone, Oxidation Boundaries and Drill Hole Grades (AUEQ g/t)
Note:
Looking 030°.
Source:
M. Shutty, Drift Geo LLC, 2025.
Figure
11.5: Vertical Section A-A’ Showing Mineralized Domain, Modeled Oxidation, Structures and Drill Hole Grades (AUEQ g/t)
Note:
Looking 030°.
Source:
M. Shutty, Drift Geo LLC, 2025.
CK Gold Project S-K 1300 Technical Report 121 May 2026
11.4 OXIDATION
ASSIGNMENT
Metallurgical
testing of mineralized rock indicates that sulfide recovery is a function of oxidation state. During core logging, geologists visually
estimated the oxidation state and categorized it as either oxide, mixed, or sulfide. The oxidation boundary contacts were modeled in
Leapfrog to encompass logged oxidation intervals and modeled structures, resulting in a series of surfaces used to code the block model.
11.5 BLOCK
MODEL ORIENTATION AND DIMENSIONS
A
3D model with 20 ft x 20 ft x 30 ft block dimensions was defined to accommodate the CK deposit and optimization pit shell while facilitating
the use of a 30’ bench height mining unit. All work was conducted using the NAD83 Wyoming State Plane East coordinate reference
system, using imperial units of feet. The block model maintains a north-south and east-west orientation with no rotation and is not sub-blocked.
The block model dimensions, and model limits are shown in Table 11.1.
Table
11.1: Block Model Dimensions
Parameter
Minimum
Maximum
Unit
Block Size
Number
of Blocks
Northing
233,200
237,000
20
250
Easting
648,810
653,810
20
200
Elevation
5,090
7,400
30
977
11.6 COMPOSITING
Nominal
sample lengths vary by drill program, but drill holes used in the resource model have a global mean sample length of 5.1 ft. Capped assay
intervals were composited to 10 ft fixed-length intervals within the mineralized domain for use through Ordinary Kriging estimation,
described in Section 11.11, with the model’s block size (20’ x 20’ x 30’). This method computes 10 ft composite
intervals down each drill hole, and length-weight averages the portions of assay intervals that fall within the 10-foot interval. Composites
were broken at the mineralized domain boundary using a 50% threshold, with specified handling of residual lengths of less than 5 ft to
be added to the previous interval. Descriptive statistics of lengths and metal grades for the raw (original) and composited samples were
compared in Table 11.2 and reviewed in 3D as a means of validation.
Table
11.2: Drill Hole Original Sample and Composite Statistics
Parameter
Gold
Copper
Silver
Composited
Original
Composited
Original
Composited
Original
Count
8,099
15,819
8,099
15,819
6,015
12,393
Length
80,926
80,910
80,926
80,910
60,141
59,948
Mean
0.58
0.58
0.19
0.19
1.48
1.48
SD
0.79
0.85
0.15
0.17
1.59
1.75
CV
1.37
1.46
0.83
0.92
1.07
1.18
Variance
0.63
0.71
0.02
0.03
2.53
3.08
Minimum
0
0
0
0
0.05
0.05
Maximum
9.94
11
3
3
20
20
CK Gold Project S-K 1300 Technical Report 122 May 2026
11.7 EXPLORATORY
DATA ANALYSIS
Raw
drill hole sample data and logged lithology data were reviewed visually within Leapfrog’s three-dimensional environment and statistically
using a merged assay-lithology dataset. Drill hole attributes including program, type, operator, and location were evaluated against
the primary gold and copper variables and an AuEq variable to identify drill holes suitable for resource estimation.
Within
the mineralized resource area, 25 vertical percussion rotary drill holes totaling 9,980 ft completed by Caledonia in 1987 were excluded
from the resource model. Exclusion was based on four factors: potential sample contamination associated with the rotary percussion drilling
method; the vertical orientation of the holes, which is suboptimal for intersecting the deposit’s mineralized structures; missing
copper assays; and the use of composited rather than interval sample data. Drill holes located well outside the mineralized resource
area were also excluded from the database.
A
review of pre-1997 drill hole assay data identified quality considerations relevant to silver assay reliability in historical datasets.
These findings, and their implications for the resource estimate, are documented in detail in Section 9. Sensitivity analyses confirmed
that the effect of the database corrections, including downhole survey corrections, produced less than 1.5% change in contained metal,
and the silver assay quality review is addressed separately in Section 9.3. The resource drill hole database as used for estimation reflects
the QP’s assessment of data suitability following this review (Table 11.3).
Table
11.3: Drill Hole Database Summary
Operator
and Program
Drill
Hole Count
Sum
of Drilling
(ft)
U.S.
Gold
2021
24
29,562
2020
25
20,449
2018
8
8,090
2017
2
2030
Total
59
60,132
Saratoga
Gold
2008
8
7,167
2007
27
18,295
Total
35
25,462
Mountain
Lake 1997
4
1,880
Compass
1994
25
9,202
Henrietta
1973
9
3,073
ASARCO/Henrietta
1973
1
700
ASARCO
1970
7
2,563
1938
5
1,400
Total
12
3,963
USBM
3
2,630
Copper
King
6
2,630
Grand
Total
154
109,673
Note:
Table of drill holes used in the resource model.
CK Gold Project S-K 1300 Technical Report 123 May 2026
Metal
grades were evaluated against logged and modeled lithologic, structural, and oxidation domains, in combination with surface geology and
interpretive geophysical overlays, to delineate mineralization trends and define domains for geostatistical analysis. Contact plots and
box plots for the principal metals were generated to assess grade distributions within the CK Gold deposit’s major mineralized
host rock types: granodiorite (GD), potassic-altered granodiorite (GDK), and mylonite (MYL). Statistical box plots presented in Figure
11.6 and Figure 11.7 reveal similarly elevated metal grades across the intrusive host rocks, supporting their treatment as related lithological
domains.
Figure
11.6: Log Box Plot for AUCAP (g/t) Variable by Host Rock
Source:
M. Shutty, Drift Geo LLC, 2025.
CK Gold Project S-K 1300 Technical Report 124 May 2026
Figure
11.7: Log Box Plot for CUCAP (%) Variable by Host Rock
Source:
M. Shutty, Drift Geo LLC, 2025.
Figure
11.8 demonstrates gradational Au and Cu grade changes between the logged lithologies. The GD and MYL hosts generally have nearly identical
Au and Cu sample populations, while metal grades in the altered GDK host are lower.
For
the resource model, the major mineralized rock types were grouped based on shared lithological genesis and statistical population similarities
(Figure 11.9). Granodiorite (GD), potassic-altered granodiorite (GDK), and mylonite (MYL) are interpreted to derive from the same granodiorite
protolith, with MYL exhibiting superimposed mylonitic textures and GDK displaying gradational potassic alteration. Approximately 94%
of the total contained gold and copper is hosted within samples logged as GD or MYL, with the remaining approximately 6% associated with
GDK. Potassic-altered granodiorite occurs primarily at the periphery of the deposit’s higher-grade GD-MYL core. Modeled sediments
to the east of the Copper King Fault are unmineralized and sparsely drilled.
CK Gold Project S-K 1300 Technical Report 125 May 2026
Figure
11.8: Contact Plot Showing Binned Mean Sample Grades for the Au and Cu Variables
GD
(l) GDK (r) Contact Plots
GD
(l) MYL (r) Contact Plots
MYL
(l) GDK (r) Contact Plots
Au
(g/t) Contact Plots – 60’ range
Cu
(%) Contact Plots – 60’ range
Notes:
Au blue, Cu orange. Within a 60 ft Distance.
Source:
M. Shutty, Drift Geo LLC, 2025.
CK Gold Project S-K 1300 Technical Report 126 May 2026
Figure
11.9: Geology and Mineralization with Drill Hole Grades (g/t AUEQ)
Notes:
Mineralization is transparent grey wireframe.
U.S.
Gold 2021 drill holes are displayed with black collar points and downhole traces.
Source:
M. Shutty, Drift Geo LLC, 2025.
11.8 BULK
DENSITY DETERMINATION
There
are no records of bulk density measurements before 2007 to 2008, during which Saratoga performed 1,336 drill core sample density tests.
U.S. Gold later added 80 density measurements through their drilling programs, bringing the current bulk density database to 1,416 determinations.
Approximately
47% of the samples are from the primary mineralization host, granodiorite. The results reveal minimal variation in specific gravity with
depth and a small standard deviation for each rock type, indicating consistent bulk density characteristics across the deposit.
A
comparison of bulk density relative to depth for granodiorite is presented in Figure 11.10, with other rock types exhibiting a similar
uniformity with depth.
The
bulk density values were converted to tonnage factor (st/ft3) and assigned to the block model by rock type, Table 11.4. The
core is generally whole “stick rock” with infrequent broken zones. Therefore, no deduction from density measurements to account
for fracture zones is warranted at this time and should continue to be monitored.
Table
11.4: Bulk Density Values by Rock Type
Rock
Type
No.
Determinations
Density
Average
(g/cm3)
SD
of Density
Tonnage
Factor
(st/ft3)
Granodiorite
665
2.7
0.08
0.0843
Potassic-Altered
Granodiorite
273
2.68
0.06
0.0837
Mafic
Dike
55
2.81
0.1
0.088
Mylonite
372
2.7
0.07
0.0843
Not
Logged
13
2.69
0.1
0.0843
Pegmatite
33
2.94
0.06
0.0821
Unknown
5
2.7
0.1
0.0843
Total
1,416
2.7
0.08
0.0843
CK Gold Project S-K 1300 Technical Report 127 May 2026
Figure
11.10: Density of Granodiorite vs Depth
Source:
M. Shutty, Drift Geo LLC, 2025.
There
is no density data available for overburden. An SG value of 1.8 g/cm3 (0.0562 st/ft3 was assigned to blocks coded
as quaternary cover.
11.9 GRADE
CAPPING/OUTLIER RESTRICTIONS
Raw
gold, copper, and silver assays were evaluated within the resource drill hole database with histogram and probability plots to identify
statistical outliers. These data are generally reflective of a single sample population with few outliers. Outliers were examined to
ensure they were not the result of a database transcription error and were geologically reasonable; the location of high-grade samples
with respect to nearby samples, lithology, and oxidation was reviewed ahead of establishing capping thresholds, which generally occur
at distribution changes noted in the individual metal probability plots Figure 11.11.
Figure
11.11: Sample Distribution
Source:
M. Shutty, Drift Geo LLC, 2025.
CK Gold Project S-K 1300 Technical Report 128 May 2026
Capping
was applied using a calculation within the database, with capped results stored in newly defined fields (AUCAP, CUCAP, and AGCAP), which
were used for sample compositing and resource estimation.
Gold
(Au) is capped at 11.0 g/t Au, Cu is capped at 3.0% and Ag is capped at 20.0 g/t Au. The impact of capping is presented in Table 11.5,
which summarizes the number of samples affected by capping and the total metal reduction.
Table
11.5: Capping Thresholds and Metal Loss Table
Parameter
Capping
Threshold
Capped
Samples
Metal
Loss
(%)
Gold
11.0
g/t Au
4
0.28%
Copper
3.00%
Cu
5
0.36%
Silver
20.0
g/t Ag
8
1.54%
11.10 VARIOGRAPHY
Experimental
pairwise relative variograms for the AUCAP, CUCAP, and AGCAP variables were generated to evaluate sample variance, establish search ellipse
parameters, and model variograms for grade estimation via ordinary kriging within Leapfrog’s Edge module. All variography was completed
using 10.0 ft fixed-length composite samples from resource drill holes falling within the mineralized wireframe domain, with a -74.0°
(dip), 26.0° (dip dir.), 100.0° (pitch) orientation, Figure 11.12 and Figure 11.13. This geometry accommodates the apparent steep,
NNE-dipping Au-Cu core and shallow SSW-dipping mineralization observed outside of the mineralized core.
Figure
11.12: Gold Composite Points for Resource Drill Holes used for Spatial Modeling – Variography
Notes:
Looking 026° at Plane of Best-Fit Mineralization; green arrow indicating 100° pitch.
Source:
M. Shutty, Drift Geo LLC, 2025.
CK Gold Project S-K 1300 Technical Report 129 May 2026
Figure
11.13: Copper Composite Points for Resource Drill Holes used for Spatial Modeling -Variography
Notes:
Looking 026° at Plane of Best-Fit Mineralization; green arrow indicating 100° pitch.
Source:
M. Shutty, Drift Geo LLC, 2025.
Variograms
were modeled for the AUCAP, CUCAP, and AGCAP variables using a nugget component and two additional structures (Figure 11.14). The best-fit
orientation of the major, intermediate, and minor axis (-74°, 026°, 100°) for the primary AUCAP and CUCAP variables was applied
to AGCAP variable (Table 11.6).
Figure
11.14: Pairwise Relative Variograms and Modeled Structures
Notes:
Major (top), Intermediate (middle) and Minor Axis (bottom) for AUCAP (left), CUCAP (center), and AGCAP (right).
Source:
M. Shutty, Drift Geo LLC, 2025.
CK Gold Project S-K 1300 Technical Report 130 May 2026
11.11 ESTIMATION/INTERPOLATION
METHODS
The
behavior of metal-grade populations within the modeled mineralization domain was analyzed to establish appropriate estimation procedures
for the Au, Cu, and Ag variables. Hard boundaries were applied to restrict the influence of composites within the mineralized domain,
ensuring that only composites inside the domain contributed to grade estimation for blocks within the same domain. For estimation, original
sample grades, capped as necessary, were composited to fixed 10-foot lengths within the mineralized domain. A two-pass Ordinary Kriging
(OK) strategy was employed to estimate metal grades throughout the mineralized domain within the 3D block model. This approach utilized
metal-specific variogram models for the primary AUCAP (gold) and CUCAP (copper) variables, while AGCAP (silver) was estimated using a
single OK pass. Estimation search parameters and sample criteria for each OK pass for Au, Cu, and Ag are summarized in Table 11.7.
A
hierarchical approach was applied for the Au and Cu estimators, with high-confidence estimates requiring composites from multiple drill
holes over shorter ranges superseding lower-confidence estimates based on composites sourced from greater distances. Nearest Neighbor
(NN) estimators were also defined and used to validate the estimated resource models.
CK Gold Project S-K 1300 Technical Report 131 May 2026
Table
11.6: Variogram Parameter Table
Variogram
Direction
Nugget
Structure
1
Structure
2
Dip
(°)
Dir.
(°)
Pitch
(°)
Sill
Structure
Major
(ft)
Semi-Major
(ft)
Minor
(ft)
Sill
Structure
Major
(ft)
Semi-Major
(ft)
Minor
(ft)
AUCAP
74
26
100
0.12
0.07
Spherical
100
110
99
0.38
Spherical
1,200
700
431
CUCAP
74
26
100
0.14
0.48
Spherical
200
40
25
0.17
Spherical
850
380
325
AGCAP
74
26
100
0.08
0
Spherical
50
20
20
0.2
Spherical
900
500
300
Table
11.7: Estimation Search and Sample Parameters
Interpolant
Ellipsoid
Ranges (ft)
Ellipsoid
Directions
Number
of Samples
Maximum
Intermediate
Minimum
Dip
(°)
Dip
Azimuth
(°)
Pitch
(°)
Min
Max
Max
per
Hole
AUCAP_OK1
400
220
140
74
26
100
4
30
2
AUCAP_OK2
200
110
70
74
26
100
4
30
2
CUCAP_OK1
400
220
160
74
26
100
4
30
2
CUCAP_OK2
200
110
80
74
26
100
4
30
2
AGCAP_OK1
400
200
160
74
26
100
4
12
2
CK Gold Project S-K 1300 Technical Report 132 May 2026
11.12 CLASSIFICATION
OF MINERAL RESOURCES
The
estimated block grades were classified into Measured, Indicated, and Inferred resource categories based on a combination of estimator
attributes and composite sample parameters to ensure cohesive resource block assignment.
● Measured
Classification: Blocks were assigned a Measured classification if their metal grades were
estimated during the high confidence pass for the primary metal (AUCAP_OK2), using composites
from two or more drill holes and an Ordinary Kriging (OK) variance ≤ 0.20.
● Indicated
Classification: Blocks were assigned an Indicated classification if they were estimated with
the same interpolant (AUCAP_OK2) using composites from two or more drill holes and an OK
variance ≤ 0.225.
● Inferred
Classification: All remaining estimated blocks within the constraining mineralized domain
were classified as Inferred.
The
Kriging variance parameter is an additional distance-correlation metric derived from the more restrictive Au spatial model. This approach
ensures that resource classification reflects the confidence in grade estimation and spatial continuity of sample locations.
Figure
11.15 and Figure 11.16, display a longitudinal section and a cross-section, respectively, of the classified estimated blocks.
Figure
11.15: Longitudinal Through the 3D Block Model
Notes:
Measured (red), Indicated (green) and Inferred (blue) Mineral Resources; 100 ft field of view, Looking 030°
Source:
M. Shutty, Drift Geo LLC, 2026.
CK Gold Project S-K 1300 Technical Report 133 May 2026
Figure
11.16: Cross-Section Slice (2021 Drill Holes Displayed with Black Collar Points)
Notes:
Measured (red), Indicated (green) and Inferred (blue) Mineral Resources; 100
ft field of view, looking 300° through the 3D block model.
Source:
M. Shutty, Drift Geo LLC, 2026.
11.13 GRADE
MODEL VALIDATION
The
estimated Ordinary Kriging (OK) grades and the extent of interpolated mineralization were reviewed visually against drill hole composites
using bench-level and section slices in Leapfrog’s 3D environment and validated through statistical methods Figure 11.17. A strong
correlation between drill hole composite grades and estimated block grades was observed.
CK Gold Project S-K 1300 Technical Report 134 May 2026
Figure
11.17: Model Validation Slices (Longitudinal and Cross-Section
Notes:
100 ft Field of View Looking 030° and 300°, respectively, through the Au (top), Cu (center) and Ag (bottom); 2021 drill holes
are displayed with black collar points.
Source:
M. Shutty, Drift Geo LLC, 2025.
CK Gold Project S-K 1300 Technical Report 135 May 2026
These
model validation slices (longitudinal and cross-section), have a 100 ft field of view looking 030° and 300° respectively, through
the Au (top), Cu (center), and Ag (bottom) showing estimated resource block models with 10 ft composites displayed along drill hole traces.
Analytical results for the 2021 drill holes display black collar points and downhole traces showing the grade and distribution of Au,
Cu, and Ag sample intervals against estimated block grades within the constraining mineralized domain.
Global
estimated OK metal grades were compared to global estimated Nearest Neighbor (NN) grades at a 0.0 AuEq cut-off for all classified resources
within the modeled mineralized domain as a means of identifying global bias (Table 11.8). The estimated metal grades between the OK and
NN models for Au, Cu, and Ag were found to be within acceptable tolerances (±1.5%):
● Au
(OK vs. NN): OK
grades are 0.39% lower than NN grades.
● Cu
(OK vs. NN): OK
grades are 1.06% higher than NN grades.
● Ag
(OK vs. NN): OK
grades are 0.31% higher than NN grades.
Table
11.8: Global Estimation Comparison
Domain
Cut-Off
(AUEQ)
(g/t
Au)
Density
(ft³/st)
Mass
(kt)
AUOK
(g/t
Au)
AUNN
(g/t
Au)
AGOK
(g/t
Ag)
AGNN
(g/t
Ag)
CUOK
(%)
CUNN
(%)
MDMN
0
11.81
162,854
0.333
0.334
1.25
1.24
0.147
0.145
Local
bias was evaluated using directional swath plots (Figure 11.18) to compare mean grades and volumes of OK and NN estimations for Au, Cu,
and Ag within Measured and Indicated classified blocks. Swath plots demonstrate tight correlation between estimators across all three
axes, consistent with the global validation statistics presented in Table 11.8.
An
additional validation step was completed to evaluate the introduction of any litho-metal bias, particularly within the lower-grade GDK
lithological domain. Estimated OK resources within the modeled GDK domain contained 6% (±2%) of the deposit’s combined Au
and Cu, while the more similar GD and MYL lithological domains contained the remaining 94% (±2%). While no matching lithologic/block
coding between blocks and composites was used during estimation, drill density was sufficient to yield resources that retain identical
original logged coding to raw assay litho-metal ratios.
CK Gold Project S-K 1300 Technical Report 136 May 2026
Figure
11.18: Swath Plots Showing Mean Grades and Volume Histograms for the AUOK/AUNN, CUOK/CUNN and AGOK/AGNN Models
Note:
X (left), Y (center) and Z (right); AUOK/AUNN models (blue/gray, top); CUOK/CUNN models (red/gray, middle); AGOK/AGNN models (green/gray,
bottom).
Source:
M. Shutty, Drift Geo LLC, 2026.
11.14 REASONABLE
PROSPECTS OF EVENTUAL ECONOMIC EXTRACTION
Mineral
Resources are reported within a Lerchs-Grossmann (LG) optimized pit shell defined using metal prices of US$3,000/oz Au, US$4.40/lb Cu,
and US$35/oz Ag, domain-specific metallurgical recoveries, total operating costs of US$12.65/st, a 48° overall pit slope, and a 150
ft (45.7 m) drainage buffer applied as a project-specific geometric constraint on the pit shell boundary. A breakeven AuEq cut-off of
0.205 g/t was derived by dividing operating costs by the net smelter return per gram of AuEq at the resource metal prices and average
recoveries, after application of the 2.1% NSR royalty. Reported domain cut-offs of 0.22 g/t (oxide), 0.21 g/t (transitional), and 0.20
g/t (sulfide) are applied at or above the theoretical breakeven, with minor variation reflecting domain-specific metallurgical recoveries.
AuEq
grades are calculated using recovery-weighted conversion factors for each metallurgical domain, incorporating realized metal prices after
applicable deductions. The conversion factors are disclosed in Footnote 3 of Table 11.13 and Table 11.14). Reported AuEq cut-offs were
validated against a net block value flag calculated using grade-bin and RedOx domain recovery schedules; Measured and Indicated AuEq
divergence between the two methods is less than 0.2%, confirming that the grade-based cut-offs are a non-material proxy for underlying
block economics.
The
AuEq definitions are detailed in Table 11.9.
CK Gold Project S-K 1300 Technical Report 137 May 2026
Table
11.9: AuEq Definitions
Value
Equation
Realized
Gold Price
Au
Market Price * (1-Royalty %)
Realized
Copper Price
Cu
Market Price * (1-Royalty %)
Realized
Silver Price
Ag
Market Price * (1-Royalty %)
Gold
Recovery
Varying
Average (67% Oxide, 70% Mixed, 73% Sulfide)
Copper
Recovery
Varying
Average (22% Oxide, 75% Mixed, 90% Sulfide)
Silver
Recovery
Varying
Average (55% Oxide, 65% Mixed, 72% Sulfide)
The
resulting AuEq conversion factors are 0.011505 g AuEq per g of Ag and 1.243175 g AuEq per %Cu for sulfide material; domain-specific factors
for oxide and mixed material are provided in Table 11.14.
Table
11.10 contains the AuEq cut-off grades used in the Mineral Resource statement. Table 11.11 shows the metals pricing used in the LG cut-off
grade calculation, and Table 11.12 indicates the LG recovery parameters for metals assigned oxide, mixed and sulfide material types.
Table
11.10: AuEq Cut-Off Grades
Material
Type
Imperial
Metric
Oxide
0.0065
oz/ton
0.22
g/tonne
Mixed
0.0062
oz/ton
0.21
g/tonne
Sulfide
0.0059
oz/ton
0.2
g/tonne
Table
11.11: Metal Prices (LG and AuEq Cut-off)
Parameter
Value
NSR
Royalty* (%)
2.1
Gold
Market Price (US$/oz)
3000
Gold
Realized Price (US$/oz)
2937
Copper
Market Price (US$/lb)
4.4
Copper
Realized Price (US$/lb)
4.31
Silver
Market Price (US$/oz)
35
Silver
Realized Price (US$/oz(
34.27
*NSR
Royalty value is sourced from Table 12.2.
Table
11.12: Varying Metal Recoveries by Material Type (LG)
Metal
Oxide
(%)
Mixed
(%)
Sulfide
(%)
Gold
67
70
73
Copper
22
75
90
Silver
55
65
72
CK Gold Project S-K 1300 Technical Report 138 May 2026
11.15 MINERAL
RESOURCE STATEMENT
Mark
Shutty, CPG, MAIG, Principal Geologist at Drift Geo LLC (QP) is responsible for the MRE presented in Table 11.13 and Table 11.14. The
QP has reviewed all available data as of the effective date and is satisfied that the reported resources reasonably represent the in-situ
mineral inventory of the Project. Resources are reported at an AuEq cut-off grade and constrained within an optimized pit shell, establishing
a reasonable prospect for eventual economic extraction in accordance with SEC Regulation S-K, Subpart 1300.
Figure
11.19 illustrates a cross-section showing AuEq resources (>0.2 g/t cut-off) and the constraining the LG pit shell.
Figure
11.19: Cross-Section Showing AuEq Resources and Constraining LG Pit Shell
Notes:
AuEq >0.2 g/t Cut-Off.
Source:
M. Shutty, Drift Geo LLC, 2026.
CK Gold Project S-K 1300 Technical Report 139 May 2026
Table
11.13: Mineral Resource Statement Effective Date March 30, 2026
(in
accordance with the definitions set forth in SEC Regulation S-K, Subpart 1300)
Resource
Category
Mass
Tons
(000’st)
Gold
Copper
Silver
(Ag)
Au
Equivalent
Au
(koz)
Au
(oz/st)
Cu
(million
lbs)
Cu
(%)
Ag
(koz)
Ag
(oz/st)
AuEq
(koz)
AuEq
(oz/st)
Measured
39,914
627
0.0157
144
0.18
1,862
0.0467
879
0.022
Indicated
58,585
582
0.0099
177
0.15
2,178
0.0372
911
0.0156
Measured
+ Indicated
98,499
1,209
0.0123
322
0.16
4,040
0.041
1,790
0.0182
Inferred
47,088
407
0.009
142
0.15
1,436
0.03
677
0.014
1. Mineral
Resources are estimated using OK, constrained by geological domains based on lithology and
mineralization controls. The underlying datasets supporting the MRE, including drill hole
surveys, assay data, and density measurements, have been reviewed, validated, and verified
by the QP. Database corrections made since the PFS, including downhole survey corrections,
were confirmed as non-material through sensitivity analysis; the pre-1997 assay quality assessment
is addressed in Section 9.
2. Mineral
Resources are reported in short tons within an optimized pit shell, using gold equivalent
(AuEq) cut-off grades of 0.22 g/t (0.00642 oz/st) for Oxide material, 0.21 g/t (0.00613 oz/st)
for Mixed material, and 0.20 g/t (0.00583 oz/st) for Sulfide material. No dilution or mining
recovery factors have been applied. Mineral Resources are reported inclusive of Mineral Reserves;
Mineral Resources exclusive of reserves are summarized in Table 11.15 and Table 11.16.
3. AuEq
grades were calculated using metal prices of US$3,000/oz Au, US$4.40/lb Cu, and US$35/oz
Ag, after application of a 2.1% NSR royalty, yielding realized prices of US$2,937/oz Au,
US$4.31/lb Cu, and US$34.27/oz Ag. Metallurgical recoveries represent mill recovery to concentrate
and vary by oxidation domain as follows:
Metal
Oxide
Mixed
Sulfide
Gold
67%
70%
73%
Copper
22%
75%
90%
Silver
55%
65%
72%
Smelter
payability factors of 98% Au, 97% Cu, and 95% Ag, as detailed in Table 12.2, are applied as separate deductions in the reserve economic
analysis and are not embedded in the above recovery figures. Domain-specific AuEq conversion factors, derived from the ratio of each
metal’s NSR contribution to gold’s NSR contribution, are: Oxide - Ag 0.009577 g/g, Cu 0.330 g/%; Mixed - Ag 0.010833 g/g,
Cu 1.078 g/%; Sulfide - Ag 0.011507 g/g, Cu 1.240 g/%. LoM average recoveries of 72.5% Au, 85% Cu, and 72% Ag, as reported in Table 14.1,
reflect the scheduled ore feed mix, which is weighted toward sulfide material, and differ from simple domain averages due to mine sequence.
4. The
optimized pit shell was generated using the LG method incorporating metal prices of US$3,000/oz
Au, US$4.40/lb Cu, and US$35/oz Ag, operating costs of US$2.50/st mining (strip-adjusted),
US$7.00/st processing, US$1.65/st tailings, and US$1.50/st G&A (total US$12.65/st), domain-specific
metallurgical recoveries as detailed in Footnote 3, a 2.1% NSR royalty, and a 48° slope
angle. A theoretical breakeven AuEq cut-off of 0.205 g/t was calculated by dividing total
operating costs (US$12.65/st, equivalent to US$13.94/mt) by the NSR per gram of AuEq at average
domain recoveries. Reported AuEq cut-offs of 0.20 g/t to 0.22 g/t were validated against
a net block value flag incorporating grade-bin and domain-specific recovery schedules; application
of the AuEq cut-offs produces M+I resources within 0.2% of contained AuEq ounces compared
to the value-flag defined resource, confirming the grade-based cut-offs are a non-material
proxy for underlying block economics. A rehandling cost of US$1.00/st applicable to stockpiled
ore is excluded from the resource cut-off cost basis as it represents a mine sequencing cost
rather than a fundamental extraction cost; this cost is incorporated in the reserve economic
analysis.
5. Metal
prices of US$3,000/oz Au, US$4.40/lb Cu, and US$35/oz Ag were selected for resource reporting
based on 2-year trailing average prices as of February 2026 and comparison to peer company
assumptions. These prices were used to evaluate potential resource upside beyond the mineral
reserve base (US$2,100/oz Au, US$4.10/lb Cu, and US$27/oz Ag as detailed in Section 12).
Resource prices are above the 36-month historical average of US$2,593/oz Au, US$4.28/lb Cu,
and US$30.63/oz Ag (calendar years 2023-2025, sources: World Gold Council, London Metal Exchange,
London Bullion Market Association).There are no known legal, political, environmental, social,
or permitting factors that would materially affect the reported MRE. There are no known legal,
political, environmental, social, or permitting factors that would materially affect the
reported MRE.
6. There
are no known legal, political, environmental, social, or permitting factors that would materially
affect the reported MRE.
7. Mineral
Resources are classified in accordance with the definitions set forth in SEC Regulation S-K,
Subpart 1300. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources
that are not Mineral Reserves have not demonstrated economic viability.
8. Mineral
Resources are reported within U.S. Gold’s mineral tenure holdings, which include Lease
No. 0-40828 and Lease No. 0-40858, as described in Section 3.2.1. There are no known encumbrances,
liens, or third-party interests that would materially affect U.S. Gold’s ability to
develop the Mineral Resources reported herein.
9. Rounding
of reported figures may result in minor apparent discrepancies in totals of tonnage, grade,
and contained metal.
10. There
is no certainty that all or any part of the Mineral Resources will be converted into Mineral
Reserves. The MRE may be materially affected by environmental, permitting, legal, marketing,
or other relevant issues.
11. Mineral
Resources are reported on a 100% Project basis. U.S. Gold holds 100% interest in the CK Gold
Project.
12. The
effective date of this Mineral Resource Estimate is March 30, 2026.
CK Gold Project S-K 1300 Technical Report 140 May 2026
Table
11.14: Mineral Resource Statement (Metric) Effective Date March 30, 2026
(in
accordance with the definitions set forth in SEC Regulation S-K, Subpart 1300)
Resource
Category
Mass
Tonnes
(kt)
Gold
Copper
Silver
(Ag)
Au
Equivalent
Au
(koz)
Au
(g/t)
Cu
(kt)
Cu
(%)
Ag
(koz)
Ag
(g/t)
AuEq
(koz)
AuEq
(g/t)
Measured
36,210
627
0.54
66
0.18
1,862
1.60
879
0.76
Indicated
53,147
582
0.34
81
0.15
2,178
1.27
911
0.53
Measured
+ Indicated
89,357
1,209
0.42
146
0.16
4,040
1.41
1,790
0.62
Inferred
42,717
407
0.30
64
0.15
1,436
1.05
677
0.49
1. Mineral
Resources are estimated using OK, constrained by geological domains based on lithology and
mineralization controls. The underlying datasets supporting the MRE, including drill hole
surveys, assay data, and density measurements, have been reviewed, validated, and verified
by the QP. Database corrections made since the PFS, including downhole survey corrections,
were confirmed as non-material through sensitivity analysis; the pre-1997 assay quality assessment
is addressed in Section 9.
2. Mineral
Resources are reported in metric tonnes within an optimized pit shell, using gold equivalent
(AuEq) cut-off grades of 0.22 g/t (0.00642 oz/st) for Oxide material, 0.21 g/t (0.00613 oz/st)
for Mixed material, and 0.20 g/t (0.00583 oz/st) for Sulfide material. No dilution or mining
recovery factors have been applied. Mineral Resources are reported inclusive of Mineral Reserves;
Mineral Resources exclusive of reserves are summarized in Table 11.15 and Table 11.16.
3. AuEq
grades were calculated using long-term consensus metal prices of US$3,000/oz Au, US$4.40/lb
Cu, and US$35/oz Ag, after application of a 2.1% NSR royalty, yielding realized prices of
US$2,937/oz Au, US$4.31/lb Cu, and US$34.27/oz Ag. Metallurgical recoveries represent mill
recovery to concentrate and vary by oxidation domain as follows:
Metal
Oxide
Mixed
Sulfide
Gold
67%
70%
73%
Copper
22%
75%
90%
Silver
55%
65%
72%
Smelter
payability factors of 98% Au, 97% Cu, and 95% Ag, as detailed in Table 12.2, are applied as separate deductions in the reserve economic
analysis and are not embedded in the above recovery figures. Domain-specific AuEq conversion factors, derived from the ratio of each
metal’s NSR contribution to gold’s NSR contribution, are: Oxide - Ag 0.009577 g/g, Cu 0.330 g/%; Mixed - Ag 0.010833 g/g,
Cu 1.078 g/%; Sulfide - Ag 0.011507 g/g, Cu 1.240 g/%. LoM average recoveries of 72.5% Au, 85% Cu, and 72% Ag, as reported in Table 14.1,
reflect the scheduled ore feed mix, which is weighted toward sulfide material, and differ from simple domain averages due to mine sequence.
4. The
optimized pit shell was generated using the LG method incorporating metal prices of US$3,000/oz
Au, US$4.40/lb Cu, and US$35/oz Ag, operating costs of US$2.50/st mining (strip-adjusted),
US$7.00/st processing, US$1.65/st tailings, and US$1.50/st G&A (total US$12.65/st), domain-specific
metallurgical recoveries as detailed in Footnote 3, a 2.1% NSR royalty, and a 48° slope
angle. A theoretical breakeven AuEq cut-off of 0.205 g/t was calculated by dividing total
operating costs (US$12.65/st, equivalent to US$13.94/mt) by the NSR per gram of AuEq at average
domain recoveries. Reported AuEq cut-offs of 0.20 g/t to 0.22 g/t were validated against
a net block value flag incorporating grade-bin and domain-specific recovery schedules; application
of the AuEq cut-offs produces M+I resources within 0.2% of contained AuEq ounces compared
to the value-flag defined resource, confirming the grade-based cut-offs are a non-material
proxy for underlying block economics. A rehandling cost of US$1.00/st applicable to stockpiled
ore is excluded from the resource cut-off cost basis as it represents a mine sequencing cost
rather than a fundamental extraction cost; this cost is incorporated in the reserve economic
analysis.
5. Metal
prices of US$3,000/oz Au, US$4.40/lb Cu, and US$35/oz Ag were selected for resource reporting
based on 2-year trailing average prices as of February 2026 and comparison to peer company
assumptions. These prices were used to evaluate potential resource upside beyond the mineral
reserve base (US$2,100/oz Au, US$4.10/lb Cu, and US$27/oz Ag as detailed in Section 12).
Resource prices are above the 36-month historical average of US$2,593/oz Au, US$4.28/lb Cu,
and US$30.63/oz Ag (calendar years 2023-2025, sources: World Gold Council, London Metal Exchange,
London Bullion Market Association).There are no known legal, political, environmental, social,
or permitting factors that would materially affect the reported MRE. There are no known legal,
political, environmental, social, or permitting factors that would materially affect the
reported MRE.
6. There
are no known legal, political, environmental, social, or permitting factors that would materially
affect the reported MRE.
7. Mineral
Resources are classified in accordance with the definitions set forth in SEC Regulation S-K,
Subpart 1300. Mineral Resources are reported inclusive of Mineral Reserves. Mineral Resources
that are not Mineral Reserves have not demonstrated economic viability.
8. Mineral
Resources are reported within U.S. Gold’s mineral tenure holdings, which include Lease
No. 0-40828 and Lease No. 0-40858, as described in Section 3.2.1. There are no known encumbrances,
liens, or third-party interests that would materially affect U.S. Gold’s ability to
develop the Mineral Resources reported herein.
9. Rounding
of reported figures may result in minor apparent discrepancies in totals of tonnage, grade,
and contained metal.
10. There
is no certainty that all or any part of the Mineral Resources will be converted into Mineral
Reserves. The MRE may be materially affected by environmental, permitting, legal, marketing,
or other relevant issues.
11. Mineral
Resources are reported on a 100% Project basis. U.S. Gold holds 100% interest in the CK Gold
Project.
12. The
effective date of this Mineral Resource Estimate is March 30, 2026.
CK Gold Project S-K 1300 Technical Report 141 May 2026
Mineral
Resources exclusive of Mineral Reserves, including all Inferred Resources, are presented in Table 11.15 and Table 11.16. Measured and
Indicated Mineral Resources exclusive of reserves comprise material within the resource pit shell that falls below the reserve economic
cut-off, as well as material located between the reserve pit shell and the resource pit shell. The spatial distribution and sub-classification
of these resources are described in the accompanying footnotes.
The
relatively modest volume of Measured and Indicated Mineral Resources exclusive of reserves reflects the high conversion efficiency of
the deposit: approximately 84% of Measured and Indicated contained gold converts to Mineral Reserves at FS economic parameters. The balance
consists of material that either falls below the reserve cut-off grade within the reserve pit footprint or occupies portions of the deposit
at depth and to the southeast that are defined by limited and wide-spaced drilling.
The
primary constraint on additional resource definition in peripheral areas is drill data density. Modeled mineralization extends beyond
the current resource pit shell to the southeast and at depth (Figure 11.20), and the QP considers these areas to represent genuine exploration
upside. Resource growth potential exists through two complementary pathways: infill and extension drilling to support classification
of mineralization in data-limited areas, and refinement of the geological and geostatistical model as the drill hole database matures.
The current resource pit shell is considered appropriate given the dataset supporting the Feasibility Study estimate.
Figure
11.20: Section Showing Blocks >0.2 g/t AuEq with Nested Resource and Reserves Pit Shells
Source:
M. Shutty, Drift Geo LLC, 2026.
CK Gold Project S-K 1300 Technical Report 142 May 2026
Table
11.15: Mineral Resource Statement (Exclusive of Mineral Reserves) Effective
Date March 30, 2026
(in
accordance with the definitions set forth in SEC Regulation S-K, Subpart 1300)
Parameter
Mass
(000’
st)
Gold
Copper
Silver
Au
Equivalent (AuEq)
Au
(koz)
Au
(oz/st)
Cu
(million
lbs)
Cu
(%)
Ag
(koz)
Ag
(oz/st)
AuEq
(koz)
AuEq
(oz/st)
Measured
(within Resource Pit Shell, external to Reserve Pit Shell)
5,124
38
0.0070
13
0.12
278
0.0540
64
0.0130
Measured
(within Reserve Pit Shell, below Reserve Cut-Off Grade)
6,128
43
0.0070
15
0.12
314
0.0510
71
0.0120
Measured
(within Resource Pit Shell)
11,252
81
0.0070
27
0.12
592
0.0530
135
0.0120
Indicated
(within Resource Pit Shell, external to Reserve Pit Shell)
15,602
137
0.0090
42
0.13
610
0.0390
220
0.0140
Indicated
(within Reserve Pit Shell, below Reserve Cut-Off Grade)
17,786
146
0.0080
46
0.13
681
0.0380
235
0.0130
Indicated
(within Resource Pit Shell)
33,388
283
0.0080
88
0.13
1,292
0.0390
455
0.0140
Measured
+ Indicated (within Resource Pit Shell)
44,640
364
0.0080
115
0.13
1,884
0.0420
590
0.0130
Inferred
(within Resource Pit Shell)
47,088
407
0.0090
142
0.15
1,436
0.0300
677
0.0140
1. Mineral
Resources exclusive of Mineral Reserves are reported within an optimized resource pit shell
constrained by AuEq cut-off grades of 0.22 g/t (oxide), 0.21 g/t (transitional), and 0.20
g/t (sulfide). Mineral Resources are classified in accordance with SEC Regulation S-K, Subpart
1300. Mineral Resources that are not Mineral Reserves have not demonstrated economic viability.
The Measured + Indicated Resources total of 44,640 kt containing 364 koz Au and 590 koz AuEq
represents the S-K 1300 reportable exclusive-of-reserves figure; the sub-classifications
presented in this table are provided for additional transparency. Mineral Resources are reported
on a 100% Project basis. The estimation methodology, database verification, and classification
criteria are described in the Mineral Resource Statement footnotes Table 11.13.
2. The
MRE underlying this table was prepared using the methodology described in the Mineral Resource
Statement footnotes (Table 11.13).
3. To
delineate Mineral Resources residing within the reserve pit shell that do not qualify as
Mineral Reserves, Measured + Indicated Mineral Resources within the reserve pit shell were
identified using proxy AuEq cut-off grades of 0.275 g/t (Oxide), 0.265 g/t (Transitional),
and 0.255 g/t (Sulfide). These proxy cut-offs were derived from the reserve economic parameters
detailed in Section 12.1.2, including metal prices of US$2,100/oz Au, US$4.10/lb Cu, and
US$27/oz Ag, smelter payability factors, operating costs, and domain-specific metallurgical
recoveries, and were calibrated to closely replicate the reserve tonnage and contained metal
reported in Section 12.2, with residual differences attributable to the discrete nature of
the block model. Application of these proxy cut-offs within the reserve pit shell produces
results within rounding of the reported reserve figures. Material within the reserve pit
shell that falls below these proxy cut-offs is classified as Measured + Indicated Mineral
Resources exclusive of reserves and is reported in the second sub-row for each classification.
4. Mineral
Resources reported as “within Resource Pit Shell, external to Reserve Pit Shell”
represent Measured + Indicated and Inferred Mineral Resources that fall outside the reserve
pit shell footprint but within the resource pit shell. These resources are constrained by
the resource pit shell optimization described in Section 11.14 and are not captured within
the reserve mine plan. All Inferred Mineral Resources are reported within the resource pit
shell and entirely external to the reserve pit shell.
5. AuEq
grades and contained AuEq oz are calculated using the resource metal prices, NSR royalty,
and domain-specific metallurgical recoveries described in the Mineral Resource Statement
footnotes (Table 11.14). AuEq conversion factors reflect mill recovery to concentrate and
differ from the reserve AuEq basis, which additionally incorporates smelter payability factors.
Grades are reported as tonnage-weighted averages derived from contained metal and reported
tonnage.
6. Copper
is reported in millions of pounds of contained metal. Copper grade is reported as percent
(Cu%) of the in-situ material.
7. Rounding
of reported figures may result in minor apparent discrepancies in stated totals of tonnage,
grade, and contained metal.
8. There
is no certainty that all or any part of the Mineral Resources reported herein will be converted
into Mineral Reserves. The MRE may be materially affected by environmental, permitting, legal,
marketing, or other relevant issues. Inferred Mineral Resources have a lower level of confidence
than Measured or Indicated Mineral resources and must not be converted directly to Mineral
Reserves.
CK Gold Project S-K 1300 Technical Report 143 May 2026
Table
11.16: Mineral Resource Statement (Metric) (Exclusive of Mineral Reserves) Effective Date March 30, 2026
(in
accordance with the definitions set forth in SEC Regulation S-K, Subpart 1300)
Parameter
Mass
(kt)
Gold
Copper
Silver
Au
Equivalent (AuEq)
Au
(koz)
Au
(g/t)
Cu
(kt)
Cu
(%)
Ag
(koz)
Ag
(g/t)
AuEq
(koz)
AuEq
(g/t)
Measured
(within Resource Pit Shell, external to Reserve Pit Shell)
4,649
38
0.25
6
0.12
278
1.86
64
0.43
Measured
(within Reserve Pit Shell, below Reserve Cut-Off Grade)
5,559
43
0.24
7
0.12
314
1.76
71
0.40
Measured
(within Resource Pit Shell)
10,208
81
0.25
12
0.12
592
1.80
135
0.41
Indicated
(within Resource Pit Shell, external to Reserve Pit Shell)
14,154
137
0.30
19
0.13
610
1.34
220
0.48
Indicated
(within Reserve Pit Shell, below Reserve Cut-Off Grade)
16,135
146
0.28
21
0.13
681
1.31
235
0.45
Indicated
(within Resource Pit Shell)
30,289
283
0.29
40
0.13
1,292
1.33
455
0.47
Measured
+ Indicated (within Resource Pit Shell)
40,497
364
0.28
52
0.13
1,884
1.45
590
0.45
Inferred
(within Resource Pit Shell)
42,717
407
0.30
64
0.15
1,436
1.05
677
0.49
1. Mineral
Resources exclusive of Mineral Reserves are reported within an optimized resource pit shell
constrained by AuEq cut-off grades of 0.22 g/t (oxide), 0.21 g/t (transitional), and 0.20
g/t (sulfide). Mineral Resources are classified in accordance with SEC Regulation S-K, Subpart
1300. Mineral Resources that are not Mineral Reserves have not demonstrated economic viability.
The Measured + Indicated Resources total of 40,497 kt containing 364 koz Au and 590 koz AuEq
represents the S-K 1300 reportable exclusive-of-reserves figure; the sub-classifications
presented in this table are provided for additional transparency. Mineral Resources are reported
on a 100% Project basis. The estimation methodology, database verification, and classification
criteria are described in the Mineral Resource Statement footnotes Table 11.14.
2. The
MRE underlying this table was prepared using the methodology described in the Mineral Resource
Statement footnotes (Table 11.14).
3. To
delineate Mineral Resources residing within the reserve pit shell that do not qualify as
Mineral Reserves, Measured + Indicated Mineral Resources within the reserve pit shell were
identified using proxy AuEq cut-off grades of 0.275 g/t (Oxide), 0.265 g/t (Transitional),
and 0.255 g/t (Sulfide). These proxy cut-offs were derived from the reserve economic parameters
detailed in Section 12.1.2, including metal prices of US$2,100/oz Au, US$4.27/lb Cu, and
US$27/oz Ag, smelter payability factors, operating costs, and domain-specific metallurgical
recoveries, and were calibrated to closely replicate the reserve tonnage and contained metal
reported in Section 12.2, with residual differences attributable to the discrete nature of
the block model. Application of these proxy cut-offs within the reserve pit shell produces
results within rounding of the reported reserve figures. Material within the reserve pit
shell that falls below these proxy cut-offs is classified as Measured + Indicated Mineral
Resources exclusive of reserves and is reported in the second sub-row for each classification.
4. Mineral
Resources reported as “within Resource Pit Shell, external to Reserve Pit Shell”
represent Measured + Indicated and Inferred Mineral Resources that fall outside the reserve
pit shell footprint but within the resource pit shell. These resources are constrained by
the resource pit shell optimization described in Section 11.14 and are not captured within
the reserve mine plan. All Inferred Mineral Resources are reported within the resource pit
shell and entirely external to the reserve pit shell.
5. AuEq
grades and contained AuEq oz are calculated using the resource metal prices, NSR royalty,
and domain-specific metallurgical recoveries described in the Mineral Resource Statement
footnotes (Table 11.14). AuEq conversion factors reflect mill recovery to concentrate and
differ from the reserve AuEq basis, which additionally incorporates smelter payability factors.
Grades are reported as tonnage-weighted averages derived from contained metal and reported
tonnage.
6. Copper
is reported in kt of contained metal. Copper grade is reported as percent (Cu%) of the in-situ
material.
7. Rounding
of reported figures may result in minor apparent discrepancies in stated totals of tonnage,
grade, and contained metal.
8. There
is no certainty that all or any part of the Mineral Resources reported herein will be converted
into Mineral Reserves. The MRE may be materially affected by environmental, permitting, legal,
marketing, or other relevant issues. Inferred Mineral Resources have a lower level of confidence
than Measured or Indicated Mineral resources and must not be converted directly to Mineral
Reserves.
CK Gold Project S-K 1300 Technical Report 144 May 2026
11.16 RELEVANT
FACTORS THAT MAY AFFECT THE MRE
The
MRE for the Project is subject to the following factors that may materially affect the reported estimate:
Metal
Prices: Fluctuations in metal prices directly influence
the AuEq cut-off grade and the optimized pit shell used to constrain reported resources. A significant decline in gold, copper, or silver
prices could reduce the quantity of material meeting the reasonable prospect for economic extraction threshold.
Operating
Costs: Variations in mining, processing, tailings
management, or general and administrative costs may alter the breakeven cut-off grade and the quantity of estimated resources. Cost escalation
driven by labor, energy, consumables, or infrastructure requirements could adversely affect the resource estimate in future reporting
periods.
Metallurgical
Recovery Assumptions: Modifications to domain-specific
metallurgical recovery rates, or changes in the process route applicable to oxide, mixed, or sulfide material, can affect both the AuEq
conversion factors and the quantity of material meeting economic thresholds. Recovery assumptions are based on testwork completed to
feasibility study level and are described in Section 10.
Geological
Model and Estimation Parameters: Additional drilling,
new assay data, updated geological interpretations, or revised domain boundary definitions may change tonnage and grade estimates. Variogram
parameters, search ellipse orientations, and compositing assumptions are subject to refinement as additional data becomes available.
Database
Quality: The resource estimate is based on drill
hole data subject to ongoing quality assurance and quality control procedures. Future identification of systematic errors in assay, survey,
or density data could necessitate revision of the estimate. Database corrections made since the Preliminary Feasibility Study have been
assessed as non-material, as described in Sections 9.2.1.2, 9.4and 11.7. Evaluation of pre-1997 assay data quality, including comparative
modeling to assess historical data influence on the resource estimate, is documented in Section 9.4. The spatial distribution of historical
and modern drilling, combined with the deposit’s continuous zonation, ensures resource estimates are robust to the inclusion or
exclusion of historical data, with differences in primary metal content of less than 1.5%.
Density
Estimation: Bulk density values are assigned by
lithological domain and applied to block tonnage calculations. Variability in actual bulk density, particularly in transitional and oxide
zones, represents a source of uncertainty in reported tonnages.
Pit
Slope Geotechnical Parameters: The optimized pit
shell used to constrain resources is based on an inter-ramp slope angle of 48°. Revised geotechnical assessments, groundwater conditions,
or changes to slope design criteria could alter the pit shell geometry and the quantity of constrained resources.
Regulatory
and Permitting: The ability to maintain mineral tenure,
secure surface access rights, obtain environmental and other regulatory approvals, and achieve and sustain a social operating license
may influence the resource estimate and its conversion to mineral reserves. The Project mineral tenure is described in Section 3.2.
Conversion
to Mineral Reserves: There is no certainty that all
or any part of the mineral resources will be converted into mineral reserves. Mineral resources that are not mineral reserves have not
demonstrated economic viability.
CK Gold Project S-K 1300 Technical Report 145 May 2026
11.17 QP
OPINION
The
MRE is well-constrained by three-dimensional wireframes representing geologically realistic volumes of mineralization within the granodiorite
intrusive host rocks. Exploratory data analysis conducted on assays and composites shows that the wireframes define appropriate domains
for mineral resource estimation. Grade estimation was performed using an interpolation strategy designed to minimize bias in the resulting
grade models.
Mineral
Resources are constrained and reported using economic and technical criteria to ensure a Reasonable Prospect for Eventual Economic Extraction
(RPEEE). The Mineral Resources are presented at a cut-off grade and further constrained within an optimized pit shell. The application
of a pit shell constraint prevents the projection of discontinuous resources to uneconomic depths, even at elevated concentrate prices.
Together, these constraints form the basis for establishing RPEEE.
In
advancing the resource estimate from the PFS to the FS, the underlying drill hole database was subject to systematic review and verification.
Corrections were applied to downhole survey data, including resolution of declination and inclination reference errors introduced during
prior data processing. In addition, a review of pre-1997 assay data identified quality considerations that are fully documented in Section
9.4. Sensitivity analyses performed on all database corrections confirm that their combined effect on the reported mineral resource is
non-material, with differences in contained metal of less than 1.5%, as documented in Section 9; the pre-1997 assay quality review is
addressed separately in Section 9.4. These findings validate the integrity of the current resource model and support the QP’s confidence
in the reported estimate. Model validation confirms that mean Au and Cu sample grades from the 2021 drilling program (the most recent
addition to the drill hole database) are consistent with modeled resource grades; mean Ag grades from the 2021 program are below modeled
values, consistent with the historical silver assay quality findings documented in Section 9.4.Mark Shutty, CPG, MAIG, Principal Geologist
at Drift Geo LLC (QP) is responsible for resource estimation and resource tabulation. The QP believes that this MRE for the Project is
an accurate estimation of the in-situ resources based on the available data and that the available data and the mineral resource model
are sufficient for mine design and planning.
CK Gold Project S-K 1300 Technical Report 146 May 2026
12 MINERAL RESERVE ESTIMATES
The
Mineral Resources described in Section 11 are the primary basis for the Mineral Reserve estimate described in this section. The parameters
discussed in Section 12.1 are part of the qualifiers that allow the conversion of Mineral Resources to Mineral Reserves. The Mineral
Resource refers to the inventory of mineralization that can reasonably be expected to become economic under stated parameters, while
the Mineral Reserves identified report a subset of the Mineral Resource that is economic under more rigorous parameters that conform
to industry standards and practice, principally metal prices.
The
Project Mineral Reserve estimate lies within an open pit design. The pit sits inside a larger, potentially economic resource shell for
the Property. The pit design is guided by an economic pit limit analysis based on the economic parameters described in this Section.
The designed pit is then scheduled in a mine plan spanning the Project life, and a discounted cash-flow (DCF) model to assess the Project’s
economic viability.
12.1 BASIS,
ASSUMPTIONS, PARAMETERS, AND METHODS
12.1.1 Pit
Optimization 2021
As
part of the 2021 PFS study, an economic pit-limit analysis was performed using Vulcan’s Pit Optimizer software, which uses the
LG algorithm to determine an economic excavation limit based on input optimization parameters shown in Table 12.1.
Table
12.1: Pit Optimization Parameters
Item
Unit
Value
Gold
Price
US$/oz
1,755.00
Copper
Price
$US/lb
3.77
Silver
Price
US$/oz
23.00
NSR
Royalty*
%
2.1
Concentrate
Smelting & Transport — Oxide
US$/lb
Cu recovered
0.29
Concentrate
Smelting & Transport — Mixed
US$/lb
Cu recovered
0.32
Concentrate
Smelting & Transport — Sulfide
US$/lb
Cu recovered
0.37
Cu
Refining Charge
US$/lb
Cu
0.07
Au
Refining Charge
US$/oz
5.00
Ag
Refining Charge
US$/oz
0.45
Oxide—Cu
Recovery (>0.1% & <0.4%)
%
30
Oxide—Au
Recovery (>0.3gpt & <1.3 gpt)
%
60
Oxide—Ag
Recovery (>0.5 gpt)
%
61
Mixed—Cu
Recovery (>0.1% & <0.4%)
%
78
Mixed—Au
Recovery (>0.27 gpt & <1.0 gpt)
%
60
Mixed—Ag
Recovery (>0.5 gpt)
%
61
Sulfide—Cu
Recovery (>0.15% & <0.4%)
%
87
Sulfide—Au
Recovery (>0.3 5gpt & <0.65 gpt)
%
67
Sulfide—Ag
Recovery (>0.5 gpt)
%
70
Smelter
Payable — %Cu
%
97
Smelter
Payable —Au oz/st
%
98
Smelter
Payable — Ag oz/st
%
95
Concentrate
Grade %Cu — Oxide
%
23
Concentrate
Grade %Cu — Mixed
%
21
Concentrate
Grade %Cu — Sulfide
%
18
Mining
Cost
US$/st
2.50
Process
Cost
US$/st
processed
7.00
Tailings
Cost
US$/st
processed
1.65
Site-Wide
General & Administrative Cost
US$/st
processed
1.50
Pit
Slope
Degrees
48
*Note:
See definition of Royalty for Wyoming State Land Lease, Section 3.4.
CK Gold Project S-K 1300 Technical Report 147 May 2026
The
pit optimization process considered only Measured and Indicated Mineral Resources; Inferred Resources were excluded from the economic
evaluation in accordance with SEC Regulation S-K, Subpart 1300. Metal prices applied in the 2021 optimization were based on a weighted
long-term forecast incorporating a three-year trailing average.
The
economic excavation limit (pit shell) generated from the 2021 optimization was used to guide the development of the 2024 PFS final pit
design. The 2024 PFS design subsequently served as the foundation for the 2025 FS pit design.
The
2021 pit optimization was revalidated through an additional optimization run completed using updated 2025 cost parameters reflecting
current-year economic conditions. This supplementary analysis confirms continuity and provides a robust basis for the 2025 FS pit design.
The updated optimization demonstrates strong economic performance that exceeds the results of the 2021 pit shell used to guide the 2025
FS design. Ultimate pit limits remain primarily constrained by the available onsite waste storage capacity.
The
final pit design establishes the physical boundary for the conversion of Mineral Resources to Mineral Reserves. Measured and Indicated
Mineral Resources located within the final pit limits may be converted to Mineral Reserves, subject to applicable modifying factors,
including resource classification and cut-off grade criteria. Additional details regarding the mine design are provided in Section 13.
12.1.2 Value
Per Ton Cut-Off Grade Calculation
12.1.2.1 Methodology
The
value per ton (VPT) “milling cut-off value” calculation for all areas was completed as follows:
● VPT
= (Block Revenue – Process Cost – Tailings Costs -Rehandle Cost - G&A Cost)/Resource
Tons
● Where:
○ Block
Revenue = Resource tons x Grades x Recovery x Net Price for each metal.
○ Resource
tons and grades are adjusted for mine dilution and ore loss.
○ Process
Cost = Resource tons x Process Cost per ton.
○ Tailing
Cost = Resource tons x Tailings Cost per ton.
○ Rehandle
Cost = Resource tons x Rehandle Cost per ton.
○ General
& Administrative (G&A) Cost = Resource tons x G&A Cost per ton.
This
calculation is sometimes called the “milling cut-off value” because the mining cost is not considered. The mining cut-off
uses a similar calculation but includes the mining cost. The mining cut-off is used to determine the boundary of an economic pit shell,
and the milling cut-off has been used in this case to determine the reserves contained within that same shell. For the reserves, the
block was considered mill feed if the VPT was equal to or greater than a value of US$0.00/st. If the value was less than this, the block
was considered waste.
12.1.2.2 Inputs
The
value per ton calculation was carried out with more up-to-date input parameters that were updated as part of the 2025 Feasibility Study.
The parameters used for the value-per-ton (VPT) calculation are presented in Table 12.2.
CK Gold Project S-K 1300 Technical Report 148 May 2026
Table
12.2: VPT calculation input parameters
Item
Unit
Value
Gold
Price
US$/oz
2,100.00
Copper
Price
US$/lb
4.10
Silver
Price
US$/oz
27.00
NSR
Royalty*
%
2.1
Concentrate
Smelting & Transport — Oxide
US$/lb
Cu recovered
0.29
Concentrate
Smelting & Transport — Mixed
US$/lb
Cu recovered
0.32
Concentrate
Smelting & Transport — Sulfide
US$/lb
Cu recovered
0.37
Cu
Refining Charge
US$/lb
Cu
0.07
Au
Refining Charge
US$/oz
5.00
Ag
Refining Charge
US$/oz
0.45
Oxide—Cu
Recovery (>0.1% & <0.4%)
%
25
Oxide—Au
Recovery (>0.3gpt & <1.3 gpt)
%
67
Oxide—Ag
Recovery (<0.4 gpt)
%
50
Oxide—Ag
Recovery (>0.4 gpt)
%
60
Mixed—Cu
Recovery
%
72.5
Mixed—Au
Recovery ( <1.0 gpt)
%
67
Mixed—Au
Recovery (>1.0 gpt)
%
70
Mixed—Ag
Recovery
%
70
Sulfide—Cu
Recovery ( <0.4%)
%
85
Sulfide—Cu
Recovery (>0.4% & <0.65%)
%
91
Sulfide—Cu
Recovery (>0.65%)
%
92
Sulfide—Au
Recovery (>0.4gpt)
%
70
Sulfide—Au
Recovery (>0.4gpt & <0.65 gpt)
%
72
Sulfide—Au
Recovery (>0.65gpt)
%
75
Sulfide—Ag
Recovery
%
70
Smelter
Payable — %Cu
%
97
Smelter
Payable —Au oz/st
%
98
Smelter
Payable — Ag oz/st
%
95
Concentrate
Grade %Cu — Oxide
%
23
Concentrate
Grade %Cu — Mixed
%
21
Concentrate
Grade %Cu — Sulfide
%
18
Process
Cost
US$/st
processed
7
Tailings
Cost
US$/st
processed
1.65
Site-Wide
General & Administrative Cost
US$/st
processed
1.50
Rehandling
cost
US$/st
1.00
12.1.3 Differences
In Input Parameters from Final Financial Model
During
the 2025 FS, several key inputs including unit operating costs, metal price forecasts, and metallurgical recoveries were updated from
the values used in 2021. In addition, it was determined that appropriate mine dilution and ore loss factors should be incorporated into
the evaluation.
Similarly,
certain input parameters used to calculate the milling cut-off value differ from those applied in the financial model. To confirm that
the 2021 pit optimization remained a valid basis for the 2025 FS mine design and Mineral Reserve estimation, an additional pit optimization
was completed using the final input parameters adopted in the economic analysis.
The
milling cut-off value used to define ore was also reviewed by recalculating the value using the financial model parameters. This validation
exercise demonstrated that the ultimate pit limit generated using the updated 2025 parameters extends beyond the limits of the 2021 optimization
shell.
CK Gold Project S-K 1300 Technical Report 149 May 2026
Furthermore,
none of the blocks classified as ore under the original ore-definition criteria were reclassified as waste when the VPT-based milling
cut-off was recalculated using the updated economic parameters. This confirms that the ore-waste classification applied in the reserve
estimation is consistent with, and supported by, the final economic assumptions.
Therefore,
it is the QP’s opinion that the mine plan, including the chosen economic pit limit, the chosen cut-off grade and the mine production
schedule, is robust to within the scale of these input differences.
12.1.4 Dilution
and Ore Loss
12.1.4.1 Dilution
The
block model used for Mineral Reserve estimation employs a block size of 20 ft × 20 ft × 30 ft. This block dimension is comparable
to, or larger than, the selective mining unit (SMU) achievable with the planned loading equipment (CAT 992 or similar). As a result,
no dilution is expected to arise from discrepancies between block model dimensions and operational mining selectivity.
Mineralization
is disseminated, with grades transitioning gradually across the orebody. While some dilution will occur during mining, the majority of
adjacent material exhibits grades like the ore being extracted. In these cases, dilution is considered negligible.
Material
dilution of significance is expected only at contacts between ore blocks and adjacent blocks with materially lower grades. An example
of the ore distribution within a representative bench is provided in Figure 12.1. For the purposes of reserve estimation, blocks with
a value per ton more than US$3/st below the ore/waste cut off value are classified as diluting blocks
Figure
12.1: Cross-Section of all Blocks on Bench 6950 within the Final Pit Design
(colored
by block value)
Note:
High-grade ore is shown in yellow, low-grade ore in blue, material with block value <US$3/t (below the low-grade cut-off) in red,
and diluting waste blocks in purple, grey, and white. On this bench, the most significant dilution is anticipated in the northwest and
southeast portions of the section.
CK Gold Project S-K 1300 Technical Report 150 May 2026
A
bench-by-bench inventory indicates that approximately 3% of all ore blocks are in contact with diluting waste blocks. Of the ore blocks
adjacent to diluting material, roughly half are classified as low-grade (value < US$5.5/st). Applying a single dilution factor
to all ore blocks would therefore overstate the impact of dilution on the mill feed grade, as low-grade blocks are disproportionately
represented at ore–waste contacts. To address this, separate dilution factors were developed for low-grade (LG) ore and high-grade
(HG) ore.
For
this assessment, ore blocks adjacent to waste were assumed to incur 15% dilution from the neighboring waste block. All diluting blocks
were treated as having zero metal content. Dilution in the vertical (Z) direction was considered negligible due to the strong vertical
continuity of mineralization.
Applying
the 15% dilution factor to ore–waste contact blocks and subsequently back-calculating the resulting dilution across the full ore
inventory yielded the dilution factors summarized in Table 12.3 for both LG and HG ore.
Table
12.3: Mine Dilution Considered for Mineral Reserves Estimate
Parameter
Dilution
(%)
LG
Ore
1.25%
HG
Ore
0.25%
12.1.4.2 Ore
Loss
Ore
loss is expected to occur in areas with isolated ore blocks. In operations these areas are often reclassified as waste to guarantee productivity.
The CK Gold mineralization does not have many of these isolated ore blocks. A typical distribution of ore blocks within a bench is shown
in Figure 12.2.
Figure
12.2: Ore Distribution within Bench 7010 of the Final Pit Design, HG ore (yellow) and LG ore (blue). Some isolated LG blocks can be seen
CK Gold Project S-K 1300 Technical Report 151 May 2026
A
bench-by-bench inventory identified that only 0.15% of blocks can be classified as isolated. All isolated blocks were found to be low-grade
(LG) ore, and therefore separate ore loss factors were developed for low-grade and high-grade (HG) ore, consistent with the approach
used for dilution estimation.
In
addition to the ore loss associated with isolated blocks, an allowance was included to account for operational inefficiencies and human
error.
The
resulting ore loss factors applied in the Mineral Reserve estimation are summarized in Table 12.4.
Table
12.4: Ore Loss Considered for the Mineral Reserves Estimate
Parameter
Ore
Loss
(%)
LG
Ore
2.00%
HG
Ore
0.50%
12.2 MINERAL
RESERVES
The
Project Mineral Reserves are provided in Table 12.5. Mohsin Hashmi P.Eng, is the QP responsible for the Mineral Reserves statement. Mineral
Reserves are reported inside a detailed pit design using suitable parameters for the site, which was guided by the 2021 pit optimization.
Table
12.5: Mineral Reserve Statement
(in
accordance with the definitions set forth in SEC Regulation S-K, Subpart 1300)
Reserve
Category
Mass
Tons
(Mst)
Gold
Copper
Silver
Au
Equivalent
Au
(koz)
Au
(oz/st)
Cu
(lb
millions)
Cu
(%)
Ag
(koz)
Ag
(oz/st)
AuEq
(koz)
AuEq
(oz/st)
Proven
(P1)
33.8
582
0.017
129
0.191
1,542
0.046
872
0.026
Probable
(P2)
40.8
433
0.011
130
0.16
1,489
0.037
726
0.018
Proven
+ Probable
74.5
1,015
0.014
260
0.174
3,032
0.041
1,598
0.021
1.
Reserves
tabulated above a “milling cut-off value” per ton (see text).
2.
Dilution
of 1.5% and 0.25% applied for LG and HG ore material, respectively.
3.
Ore
loss of 2.0% and 0.5% applied for LG and HG ore material, respectively.
4.
AuEq
values calculated assuming gold price of US$2,100/oz, silver price of US$27/oz, copper price of US$4.10/lb and metallurgical recovery
ranges of 67% to 75% for Au, 50% to 70% Ag and 25% to 92% Cu as described in Table 12. 2
5.
Totals
may not sum due to rounding.
6.
The
effective date of this Mineral Reserve estimate is March 30, 2026.
12.3 CLASSIFICATION
AND CRITERIA
Section
11.11 discusses resource classification. Measured and Indicated Resources inside the designed pit are classified as Proven and Probable
Mineral Reserves, respectively. Mineral Reserves use the same cut-off grade definitions as Mineral Resources. This reserve classification
does not affect the Mineral Resource statement.
12.4 RELEVANT
FACTORS
The
Project is subject to factors that may impact the Mineral Reserve statement:
● Economic
factors such as changes in metals prices, operating costs, or capital expenditure.
● Changes
to the estimated Mineral Resources.
● Metallurgical
factors affecting recovery.
● Maintenance
of social and environmental license to operate.
CK Gold Project S-K 1300 Technical Report 152 May 2026
13
MINING METHODS
13.1 INTRODUCTION
Open
pit, surface mining is the selected mining method for the Project. This mining method is selected based on the size, shape, location,
and value of the mineralization on the property. The Project’s disseminated type mineralization has a large extent and is located
near to or outcropping at surface. Additionally, open pit optimizations attempting to maximize the recovery of the in-situ resource show
economic excavation results using current project parameters and base case metal prices.
Surface
mining is a cyclical process where the four main tasks including drilling, blasting, loading, and haulage are occurring concurrently
at different areas of the property. In areas to be excavated vertical blast holes are drilled in a regular pattern and charged with blasting
agents. The material will be blasted, loaded into 100 st class rigid frame haul trucks, and transported based on material type to one
of four different locations, Run of Mine (RoM) Crusher Stockpile, Co-Disposal Tailings Facility, Ore Stockpile or Waste Rock Facility.
Wherever possible Crusher Stockpile ore will be directly fed into the primary crusher at the process plant.
13.2 GEOTECHNICAL
PARAMETERS AND GENERAL RECOMMENDATIONS
Piteau
Associates (Piteau) conducted a geotechnical investigation for the project. Piteau issued a technical memorandum dated September 6, 2022,
titled “Recommended Feasibility-Level Geotechnical Slope Designs for the Copper King Open Pit.” This section contains a summary
of the report. Following the September 6 report, an updated May 1, 2024 report was completed due to the change in bench height from 20
ft to 30 ft.
The
following list summarizes the scope of work that Piteau performed as part of the geotechnical investigation:
●
Full
geotechnical logging of five core holes, detailed structure logging.
●
Rock
mass strength assessments, laboratory testing and analysis.
●
Structure
assessment, Kinematic analysis.
●
Recommended
end of life slope design.
●
An
assessment of the effects of ground water and pore pressure on slope stability.
Table
13.1 and Figure 13.1 outline the latest slope design recommendations and pit design sectors based on the 30 ft bench design. These sector
recommendations have been slightly refreshed for the 2026 feasibility study based on updated geological model for Metasedimentary-Metavolcanic
rock unit (MSED).
CK Gold Project S-K 1300 Technical Report 153 May 2026
Table
13.1: Recommended Slope Designs for Presplit Blasted Benches
Design
Sector
Max
Inter-Ramp
Slope
Angle
(°)
Max
Inter-Ramp
Slope
Height
(ft)
Catch
Bench
Width
(ft)
Face
Angle
(°)
I
52
410
38.8
75
II
54
380
36.7
75
III
54
370
34.6
75
IV
54
480
41.1
75
V
53
460
36.7
75
VI
54
480
41.1
75
VII
53
470
36.7
75
VIII
52
510
41.1
75
IX
53
500
38.8
75
X
54
490
36.7
75
XI
53
460
38.8
75
The
following sections contain a summary of the General Recommendations.
13.3 BLENDING
AND FINALIZING DESIGNS
Where
a range of inter-ramp angle (IRA) is indicated between adjacent design sectors, blending should occur within the design sector with the
steeper (greater) design IRA. Similarly, blending from weaker to stronger materials should occur in the stronger (better quality) rock
mass materials.
13.3.1 Benching
Trials
In
the early stages of mining below the overburden and weathered bedrock horizon, benching trials for 80 ft high benches should be considered
in areas where bench performance is expected to have the least impact on the stability of haul roads or other critical slope areas to
confirm that structural continuity of adversely oriented joint sets is limited and therefore has limited impacts on the bench designs.
Bench designs should be updated based on ongoing evaluation of bench performance.
13.3.2 Transitioning
from Single to Double Benches
At
the transition from single- to triple-benches, the triple-bench catch bench width should be implemented at the crest level of the first
triple-bench to avoid steepening the design IRA.
CK Gold Project S-K 1300 Technical Report 154 May 2026
Figure
13.1: Pit Sectors and Recommended Slopes
Source
Piteau Associates, 2022
CK Gold Project S-K 1300 Technical Report 155 May 2026
13.3.3 Controlled
Blasting
The
following recommendations are made with respect to the potential for benches to be excavated up to 90 ft high:
1.
Optimizing
slope designs to maximize IRA while maintaining safe working conditions requires controlled blasting on final walls to minimize the
damage to intact rock bridges and preserve cohesion on discontinuity surfaces.
a.
Pre-split
blasting (with trims) should be considered to improve (increase) effective bench face angles (BFAs) and catch bench widths.
b.
Pre-split
blasting could provide increased success for the proposed double benching below the overburden and weathered bedrock zone near the
slope crest.
c.
Blast
monitoring and pre/post blast inspection should be conducted to continually assess potential blast damage and improve blast performance.
2.
Once
a revised Project mine plan is developed with the enclosed feasibility-level slope design recommendations, ongoing evaluation of
potential hazards and risks should be carried out through the implementation of standard operating procedures (SOPs), a ground control
management plan (GCMP), and regular geotechnical inspection.
3.
An inspection
and sign-off system should be used to confirm that the bench crests throughout the pit are adequately scaled, significant breakback
is not occurring, and bench face conditions are acceptable. An evaluation of bench design achievement should be carried out to verify
that face and crest conditions are adequate for safe development of multiple-lift (double) benches. A qualitative bench design achievement
system presented by Read and Stacey (2009) can be modified for specific site conditions as shown in Figure 13.2, and includes evaluation
of:
a.
Design
face achievement (Df) for the bench configuration.
b.
Face
condition (Fc).
c.
The components
of the system are summarized in the following ratings tables and chart shown below. For consideration of double benching, bench design
achievement results should fall under the “Good Results” category.
4.
To
minimize rockfall potential in bedrock, careful bench scaling should be carried out with the shovel bucket during bench excavation.
Depending on bench performance, the following additional items may be required:
a.
Daylight-only
mining with a spotter; and regular geotechnical inspection.
b.
Construction
of rockfall impact berms or other rockfall control measures (e.g., wire mesh, rockfall attenuation fences, etc.) that are appropriately
sized to contain rockfall hazards using rockfall modeling.
c.
Local
step-outs to gain adequate bench catchment width.
d.
Scaling
of the bench crest and face using chain pulled behind a dozer (provided adequate bench width is available).
e.
Scaling
with a long-reach backhoe to remove potential rockfall hazards.
f.
Crest
trenching with a backhoe in advance of excavation in areas of weaker or highly fractured rock (e.g., weathered bedrock, exposed fault
zones or dykes).
g.
Implementing
angled pre-split blasting with small diameter blastholes; and/or h. Manual scaling using a scaling contractor with ropes.
CK Gold Project S-K 1300 Technical Report 156 May 2026
Figure
13.2: Design Face (Df) versus Face Condition (Fc) Chart
13.3.4 Changes
to the Slope Design
As
a general comment for future advancement of the Project, it is recommended that any new pit designs or significant revisions to the mine
plan (for example to the bench, inter-ramp or overall slope angles or heights) be forwarded to Piteau for review, conformance check,
and comment. Additional geotechnical evaluations and analyses may be necessary to check stability.
A
geotechnical review was undertaken by Piteau in alignment with prefeasibility recommendation of the updated Life of Mine (LoM) pit design(ultimate
pit) during the current feasibility study. The updated ultimate pit design incorporates the geotechnical design recommendations from
Piteau (2022). The recommended 65° bench face angle (BFA) has been correctly applied to all 30 ft single-bench configurations, and
the recommended 75° BFA (implemented through angled presplit blastholes) has been consistently applied to all 90 ft triple-bench
configurations across the design sectors.
Measured
inter-ramp slope heights (IRH) are generally consistent with those defined in the Piteau (2022) feasibility study. Exceptions occur in
Design Sectors IX, X, XI, I, and II, where IRH values in the south, west, and north walls exceed previous designs (AHF_PH4_pit) by approximately
30 ft to 70 ft. The maximum IRH observed is 560 ft in the upper inter-ramp slopes of Design Sector IX (south wall).
These
exceedances are considered geotechnically acceptable, as the kinematic assessment (Appendix D, Piteau 2022) identified no planar or wedge
failure mechanisms that would impose a limiting inter-ramp height in these areas.
There
were also localized deficiencies identified during this review in the various geotechnical sectors domains that are planned to be finetuned
in the next stage of engineering mine design. The localized deficiencies are not expected to have any significant material or economic
impact on the feasibility mine design or schedule.
CK Gold Project S-K 1300 Technical Report 157 May 2026
13.3.5 Bench
Scaling and Cleaning Catch Benches
Bench
scaling should be carried out with the shovel bucket during bench excavation. Depending on bench performance, additional scaling may
be required with scaling chain. Careful pull-back procedures should be carried out to minimize filling of subsequent benches with spilled
material.
13.3.6 Slope
Monitoring
All
slopes should be visually inspected at regular intervals for signs of distress and overall slope movement. Also, a slope displacement
monitoring system consisting of survey prisms should be established during early stages of mining and maintained throughout the mine
life and operation. Current practice is to measure prisms with automated systems such as robotic total stations (RTS) that include data
acquisition and management tools for processing, interpretation, and reporting so that results can be evaluated regularly to assess slope
behavior. This can also be supplemented with radar monitoring equipment (if needed) that can provide near real-time monitoring of slope
deformations should the need arise. Both prism and radar monitoring provide advanced warning of possible large-scale instability and
allow time for appropriate remedial measures to be implemented or mining plans to be modified, to accommodate the instability. Manual
or automated wireline extensometers could be used to augment prism or radar monitoring in areas of observed surface deformation and cracking.
If
slope movements are measured, monitoring (velocity) thresholds and trigger action response plans (TARPs) should be developed based on
the observed slope performance and adjusted as required, to account for the effects of error and noise and to verify and maintain their
effectiveness.
Other
monitoring slope monitoring techniques such as inclinometers and time domain reflectometers (TDR) (for monitoring subsurface ground movements),
or satellite-based surface surveying with global positioning systems (GPS) or InSAR (Interferometric Synthetic Aperture Radar) may need
to be incorporated into the slope monitoring system if the need arises.
13.3.7 Visual
Inspection Monitoring
Regular
inspection of the crest and exposed benches on the mine plan should be carried out to identify any signs of tension cracking, increased
raveling/rockfall, or other signs of instability. The locations of observed tension cracks should be surveyed and added to geotechnical
plans to allow assessment of slope deformation with respect to slope monitoring data and any potential mechanism(s) of instability. Any
unusual signs of slope raveling or distress should be communicated to the Mine Geotechnical Team and assessed accordingly.
13.3.8 Ongoing
Data Acquisition, Verification and Updating Design Criteria
Systematic
documentation of bench performance (achieved BFA) and structural mapping (by manual or photogrammetric methods) is recommended to be
carried out while mining the Copper King pit. If ongoing bench or slope performance is unfavorable and/or structural mapping indicates
adverse conditions as new geology is exposed, local revisions to the mine plan may be required.
Documentation
of the as-built bench performance of mined slopes is recommended using reliable methods such as photogrammetry models, high-resolution
laser scan digital terrain models (DTM), or manual bench documentation mapping. This information can be used to calibrate breakback angles
calculated from the kinematic CFA assessments and support potential optimization of the IRAs during mining.
CK Gold Project S-K 1300 Technical Report 158 May 2026
In
addition, rockfall field testing and modeling is recommended to calibrate rockfall model input parameters and develop a “site-specific”
design catch berm width for rockfall protection instead of the Modified Richie Criteria (Equation 3) which was adopted for this study.
Such rockfall calibration could also support potential optimization of the IRAs.
It
is recommended that future drilling in bedrock should include geotechnical logging of all parameters comprising RMR (according to Bieniawski,
1976) and consistent PLI testing as described in Section 2.5 in the final (Piteau) report. This geomechanical information should be incorporated
into the current geomechanical and rock strength databases developed for the feasibility study and would support future geotechnical
evaluations of the CK Gold Project.
13.3.9 Slope
Depressurization Measures
Deep-seated
stability analysis of the slopes indicated that the east and southeast walls (Design Sectors V and VI near Section E1 and Design Sectors
VI and VII near Section SE1) require slope depressurization to meet the design acceptance criteria of a minimum FOS of 1.20 for overall,
interramp, and compound slopes. Depressurization targets at these two sections are defined in terms of Hu and are based on the EOM groundwater
surface provided by NEIRBO. To achieve acceptable stability, it is required that pore pressures in the east wall slopes (Section E1,
west of the Copper King fault) be reduced to levels equivalent to a 1.0 Hu (hydrostatic conditions) (from a 1.4 Hu defined by NEIRBO).
In the southeast slope (Section SE1, north of N 234,025) it is required that pore pressures be reduced to levels equivalent to a 1.2
Hu (from a 1.4 Hu). Both Hu targets are for the lower slopes and assume that a 0.8 Hu will be present in the MS-MV unit in the upper
slope east of the Copper King fault (at Section E1) and that a 1.0 Hu will be present in the granodiorite rock mass in the upper slope
south of N 234,025 (at Section SE1).
Based
on these Hu targets, it is recommended that additional 3D hydrogeological modeling be performed that includes simulation of active depressurization
measures (such as pumping wells and/or horizontal or inclined drains) in the east and southeast slopes to determine what measures are
needed to achieve the depressurization targets. This hydrogeological modeling should also incorporate a mine plan that uses the feasibility
slope design recommendations and that has been checked by Piteau for conformance to the design. After hydrogeological modeling of active
depressurization is complete, it is recommended that the calculated pore pressures be provided to Piteau (for example, as a “grid”
defined by x, y, z coordinates and pore pressure, u) to perform new 2D anisotropic stability analyses of the east and southeast slopes
to check if the depressurization targets have been achieved and confirm that the FOS of the overall, interramp, and compound slopes meet
the 1.20 design acceptance criteria.
13.3.10 Hydrogeological
Monitoring
Stability
of the east and southeast slopes is dependent on achieving specific depressurization targets and these areas will likely require some
form of active depressurization (i.e., pumping wells and/or drains) which can be defined through additional hydrogeological modeling
as described in the Piteau report. As integral part of active depressurization, it is also recommended that hydrogeological monitoring
(such as multi-level vibrating-wire piezometers or VWPs) be installed to monitor pore pressures and verify that the required targets
in the critical areas of the slope are being achieved in advance of mining and during the LoM.
CK Gold Project S-K 1300 Technical Report 159 May 2026
13.3.11 Surface
Water Control
To
assist in achieving and maintaining depressurization targets as well as avoid development of erosional gullies and slope instabilities
within the mine plan, the following surface water controls are recommended:
1.
Use
perimeter ditches behind the pit crest to capture and divert surface water away from the pit.
2.
Grade
haul roads inwards to divert surface water away from the outside edge of the haul roads and create a ditch along the inside lane
to capture the water.
3.
Collect
surface water in appropriately placed sumps (for example, pit bottom or intermediate locations along haul roads) and pump to proper
discharge points outside the pit.
13.3.12 Contingency
Planning
The
mine plan has only one main haul road providing access to the pit. Single haul road access could pose potential risks to the mining sequence
and ore delivery if instabilities develop above or below the haul roads. Ongoing slope monitoring and visual stability inspections should
be carried out to prevent the loss of this single main access point into and out of the mine plan.
13.4 HYDROGEOLOGICAL
PARAMETERS
A
hydrogeology investigation for the Project was conducted by NEIRBO. NEIRBO issued a technical report in December 2023 titled “Hydrogeological
Characterization and Groundwater Flow Model.” This section contains a summary of the report.
The
Project is located in the Silver Crown mining district of southeast Wyoming, approximately 20 miles west of the city of Cheyenne. The
property comprises approximately 1,120 acres (2 square miles) on the southeastern margin of the Laramie Mountains. The Project is fully-owned
by U.S. Gold. The Project facilities include an open pit, tailings management facility, two waste rock facilities, plant site, and an
ore stockpile area.
The
highest elevation in the open-pit area is about 7,100 ft and the pit will be excavated to 6,120 ft. The mine plan has eight years of
mining and passive dewatering as the open pit is advanced. The post-mining phase includes pit backfilling with tailings and waste rock.
The first two years after mining ends will be dedicated to site reclamation.
The
orebody is hosted in granitic rocks that have limited permeability and limited water-storage capacity. Groundwater wells completed in
the granite rocks have typically yielded 0 gpm to 5 gpm. The Project has completed an extensive hydrogeological site characterization
to support development of a regional groundwater flow model (Flow Model). Aquifer testing has included pumping tests and discrete depth-interval
packer testing. Hydraulic conductivity and specific storage properties were estimated from these tests. Groundwater levels and pore pressures
were obtained from wells and Vibrating Wire Piezometers.
A
calibrated Flow Model was developed to represent the hydrogeological system. The Flow Model simulates pre-mining conditions and hydrological
changes during the mining and post-mining phases. The Flow Model predicts groundwater system changes due to passive pit dewatering, natural
recharge changes due to facility construction, and pit backfill during the post-mining phase.
CK Gold Project S-K 1300 Technical Report 160 May 2026
Predictions
during the mining and post-mining periods included groundwater-level, pit inflow, streamflow, and evapotranspiration changes. Predicted
mine-induced drawdown was greatest near the pit and it decreased rapidly away from the pit. Predicted drawdown was 10 ft or less outside
the Operating Permit Boundary at the end of mining. After 150-years, the discernable predicted drawdown extended 180 ft outside the Permit
operating boundary in a small area shown on Figure 13.3. The nearest domestic wells were 2,000 ft from the predicted 10-feet drawdown
area. At this distance, any mine induced drawdown would likely not be discernable from natural variation and groundwater-level changes
induced by the domestic wells themselves.
The
Middle Fork of Crow Creek is the nearest stream, and its flow was predicted to decrease 0.02 cubic feet per second ten years after mine-ending.
The other stream segments had zero to 0.01 cubic feet per second changes in flow.
Average
annual groundwater pit inflow was expected to be less than 15 gpm. This low pit inflow would be manageable using passive, in-pit sumps.
Dewatering wells are not expected to be necessary. Cumulative pit inflows during mining were predicted to be 130 acre-feet.
After
mining ends, the pit will be backfilled with tailings and waste rock. Groundwater and precipitation will flow into the backfill material
and water levels will slowly rise until they stabilize at 6,717 ft after about 130 years. A pit lake is not expected to form since evaporation
losses will keep the groundwater level below the top of backfill. This will result in the pit being a hydraulic sink with no groundwater
outflows.
Quarterly
background groundwater quality data have been obtained in seven project area wells from 2020 Quarter 4 to 2022 Quarter 1. The background
water samples indicate the water quality is generally below regulatory standard concentrations. However, a few constituents in select
wells have exceeded the standards for domestic, agriculture, and livestock uses. The domestic water-quality standard for fluoride and
pH was consistently exceeded in four of the seven wells. Each well has exceeded standards for iron, manganese, mercury, adjusted gross
alpha, or sodium adsorption ratio on at least one occasion. Well MW-7, in the middle of the proposed pit, has consistently exceeded the
standard for uranium and gross alpha. The adjusted gross alpha standard was exceeded in three of the six samples in MW-7.
Figure
13.3, Figure 13.4 and Figure 13.5 show the predicted drawdown at the end of mining and 150 years post mining, groundwater monitoring
locations and predicted open pit groundwater inflows, respectively.
CK Gold Project S-K 1300 Technical Report 161 May 2026
Figure
13.3: Predicted Drawdown at the End of Mining and Post-Mining Year 150
Source:
NEIRBO Hydro Geology, 2023.
CK Gold Project S-K 1300 Technical Report 162 May 2026
Figure
13.4: Groundwater Monitoring Locations
Source:
NEIRBO Hydro Geology, 2023.
CK Gold Project S-K 1300 Technical Report 163 May 2026
Figure
13.5: Predicted Open Pit Groundwater Inflows
Source:
NEIRBO Hydro Geology, 2023.
CK Gold Project S-K 1300 Technical Report 164 May 2026
13.5 MINE
DESIGN
U.S.
Gold contracted Micon to develop the mine design and production schedule for the Project. The final mine design was developed in accordance
with the pit optimization work described in Section 12.1.1. The resulting design consists of one starter pit and three subsequent phases,
which provide logical sequencing for ore extraction and waste removal.
In
addition, one small satellite pit was incorporated to ensure an appropriate lithological ore blend during the first quarter of mill ramp-up
(Y1Q1).
The
final pit floor elevation for the final design is 6,140 fasl. All design parameters are consistent with the selected mining fleet and
comply with the geotechnical criteria outlined in Section 13.2. The final pit design is shown in Figure 13.6.
Figure
13.6: 2025 FS Final Pit Design
Source
Micon, 2026.
CK Gold Project S-K 1300 Technical Report 165 May 2026
13.5.1 Mine
Design Parameters
A
summary of the mine design parameters is provided in Table 13.2.
Table
13.2: Mine Design Parameters
Parameter
Value
Road
Width (Dual/Single /Pit bottom)
90
ft / 70 ft / 45ft
Road
Gradient
10%
Bench
Height (Single/Triple)
30
ft / 90 ft
Catch
Bench
Every
bench above weathering horizon and in sedimentary rock
Every
3 benches below weathering horizon
Catch
Bench Width
Single
bench: 19 ft – 25 ft
Triple
bench: 41 ft – 46 ft
Face
Angle
Single
bench, trim blast: 65°
Multi
bench, presplit blast: 75°
Inter-Ramp
Angle
Weathered
zone: 32° – 42 °
Below
weathered zone 52° - 54°
13.5.2 Waste
Rock Facility and Ore Stockpile design
A
summary of the design parameters for waste rock facility (WRF) and ore stockpile design is shown in Table 13.3.
Table
13.3: Waste Rock Facility and Stockpile Design Parameters
Parameter
Value
Road
Width (ft)
90
Road
Gradient (%)
10%
Lift
Height (ft)
20
Overall
Slope Angle WRF (°)
18.4
Overall
Slope Angle Ore Stockpile (°)
26.6
Swell
Factor
1.35
13.6 STOCKPILE
STRATEGY
13.6.1 LG
Ore strategy
To
optimize the value profile of material delivered to the mill over the life-of-mine, ore was classified into low-grade (LG) and high-grade
(HG) categories.
The
cut-off value separating LG and HG ore was determined based on the distribution of in-situ value and the maximum capacity of the LG stockpile.
Approximately 17.3 Mt of material within the LoM schedule is classified as LG ore. During the first 3 years of production roughly
1.7 Mst of LG ore is fed directly to the mill due constraints in terms of LG ore stockpile capacity. After year 3 all LG ore coming from
the pit is stockpiled and processed after the pit is depleted.
The
planned location of the LG ore stockpile is shown in Figure 13.7. The location of the LG ore stockpile is directly adjacent to the Tailing
Management Facility (TMF) and build out as the TMF buildup progresses. This design and built out strategy was selected to minimize initial
capital costs associated with the placement of impermeable liner that is required for the ore stockpiling areas.
The
designed LG stockpile is planned to hold roughly 15.6 Mst once pit operations are completed. Processing of this material, after the pit
is depleted, will take approximately 2 years.
CK Gold Project S-K 1300 Technical Report 166 May 2026
13.6.2 HG
Ore Strategy
Limited
stockpiling of HG ore is planned during the first production year to optimize the mill feed grade and to reduce the proportion of oxide
material processed in Y1Q1.
This
HG ore will be temporarily stockpiled in the pre-production mined out area, which lies within the final pit limits. As the stockpile
will ultimately be mined through, it does not require installation of an impermeable liner prior to stockpiling.
Figure
13.7: Waste Rock Facility and Ore Stockpile Designs
Note:
LG ore stockpile (red), HG Stockpile (orange), Waste Rock Facilities (green). The red line represents the rim of the 2025 FS final pit
13.7 MINE
SCHEDULE
The
primary driver of the mine schedule is the production of sufficient ore, which drives the excavation of waste and other materials to
ensure sufficient ore is exposed for mining. The nominal ore production rate was set at 20,000 st/d or 7.3 Mst/y ore delivered to the
crusher. In the first year a ramp-up is considered to account for commissioning of the concentrator. Mine life is approximately eight
and a half years with almost another two years of ore stockpile processing. The schedule is shown in Table 13.4.
Pre-production
activities occur in Year -1, during which 2.53 Mst of material is mined to support construction of site infrastructure and to establish
initial access to ore. Between Year 7 and 11, approximately 6.7 Mst of previously placed waste will be rehandled from the Waste
Rock Facilities (WRFs) to the Tailings Management Facility (TMF). This material is required for construction of TMF berms as part of
the staged tailings storage development plan.
CK Gold Project S-K 1300 Technical Report 167 May 2026
Table
13.4: Mine Schedule
Year
Ore
Mined
(Mst)
Waste
Mined
(Mst)
Total
Mined
(Mst)
Ore
to
Stockpile
(Mst)
Stockpile
Rehandle
(Mst)
Waste
Rehandle
(Mst)
Mill
Total
(Mst)
Au
(oz/st)
Cu
(%)
Ag
(oz/st)
Au
(koz)
Cu
(Mlbs)
Ag
(koz)
Year-1
-
2.53
2.53
-
-
-
-
-
-
-
-
-
-
Year
1
7.61
9.59
17.2
3.14
0.4
0.28
4.87
0.023
0.22
0.06
114
21
294
Year
2
9.06
12.42
21.47
2.1
0.3
-
7.25
0.019
0.2
0.057
137
29
417
Year
3
8.53
12.23
20.76
1.23
-
-
7.3
0.015
0.18
0.047
109
27
343
Year
4
9.72
8.43
18.15
2.44
-
-
7.28
0.016
0.18
0.045
114
26
329
Year
5
9.69
8.93
18.62
2.41
-
-
7.28
0.016
0.18
0.039
115
26
287
Year
6
9.02
7.95
16.97
1.74
-
-
7.28
0.013
0.2
0.033
96
29
237
Year
7
9.53
2.01
11.54
2.25
-
2.98
7.28
0.014
0.19
0.032
99
27
235
Year
8
7.94
1.19
9.13
0.66
-
2.92
7.28
0.013
0.19
0.035
93
28
253
Year
9
3.42
0.52
3.95
0.33
4.17
0.76
7.27
0.009
0.14
0.033
62
20
239
Year10
-
-
-
-
7.26
-
7.26
0.007
0.12
0.035
48
17
252
Year
11
-
-
-
-
4.17
-
4.17
0.007
0.12
0.035
27
10
145
Total
74.53
65.79
140.32
16.3
16.3
6.93
74.53
0.014
0.17
0.041
1,015
260
3,030
CK Gold Project S-K 1300 Technical Report 168 May 2026
13.8 WASTE
ROCK MANAGEMENT
Over
the life of mine, a total of 65.8 Mst of waste rock is scheduled to be mined from the open pit. Of this total, 7.7 Mst is classified
as Potentially Acid Generating (PAG), with the remaining material classified as Non-Acid Generating (NAG).
All
PAG waste rock will be placed within the lined portion of the Tailings Management Facility (TMF). Within the TMF, PAG material will be
utilized primarily for the construction of temporary haul roads placed on top of each tailings lift to support the filling sequence for
subsequent lifts.
A
substantial portion of the Non-Acid Generating (NAG) waste rock will also be directed to the TMF for use in constructing containment
berms around the deposited tailings. In total, approximately 37.2 Mst of waste rock (PAG and NAG combined) is planned for placement within
the TMF.
NAG
waste rock that is not required for TMF construction will be placed in one of the three engineered Waste Rock Facilities (WRFs), shown
in Figure 13.7. The combined storage capacity of the three WSFs is roughly 40.0 Mst.
Between
Years 7 and 9, TMF construction requires more waste rock than is generated from ongoing pit operations. During this period, NAG waste
rock previously placed in the WRFs will be rehandled and transported to the TMF to meet construction demands. A total of 6.7 Mst of NAG
material is planned to be rehandled over this three-year period.
13.9 MINING
FLEET REQUIREMENTS
The
basis for the calculation of mining fleet is the mining schedule and the haulage model. The amount and type of material moved, and the
destination of that material determines the total number operational hours that is needed for each category of mining equipment. The
total operational hours required then determine the number of units needed and costs associated with operation.
13.9.1 Trade
Off Study Contractor vs Owner Operated
A
detailed trade off analysis study was done to evaluate Contractor and Owner Managed mining models. Contractor mining model was selected
based on comparable unit costs per ton that aligns well with the relatively short mine life with minimum upfront capital.
Table
13.5: Mining Model Trade Off Table
Cost
Description
Contractor
(US$)
Owner
Managed
(US$)
Variance
(%)
Ore
and Waste Mining Unit Cost* (US$/st)
3.27
3.24
-1
Unit
cost for Tailings to Storage Facility and pit backfill (US$/st)
1.41
1.53
8
13.9.2 Equipment
Productivity and Usage
For
major pieces of mining equipment, the productivity of each unit is estimated based on manufacturer specifications, job site parameters
and observed parameters from similar surface mines. Mining equipment has either a variable annual usage basis on the mining schedule
or a fixed annual usage. Variable usage equipment has a maximum number of annual hours available for work and a productivity associated
with it, shown in Table 13.6. The annual available hours for each piece of equipment are based on the benchmarked Availability and Usage
of Availability. 6,225 h/a equates to an 85% Availability, 85% Usage of Availability (UOA), and 95% Operational Efficiency (OE) with
exception of drills and support equipment at 80% Availability and UOA. Table 13.7 shows the annual fleet hours and unit requirements.
CK Gold Project S-K 1300 Technical Report 169 May 2026
Table
13.6: Variable Usage Equipment
Equipment
Annual
Hours Available
(st/EH)
Productivity
(st/EH)
Excavator
6,013
1,050
Loader
6,013
803
Haul
Truck
6,013
363
- 112
Dozer
5,326
1,000
Drill
5,326
1,410
Table
13.7: Annual Schedule of Variable Usage Equipment
Year
1
2
3
4
5
6
7
8
9
10
11
Total
Loader
Hours (000s)
16.1
20.1
19.7
16.8
16.9
15.1
12.1
12.3
13.2
7.6
4.8
155
Loader
Units
4
5
4
3
3
3
2
2
2
2
2
5
Truck
Productivity (st/EH)
363
293
262
288
272
248
233
214
113
112
68
257
Truck
Hours Req’d 000s)
61
98
107
88
95
98
81
77
99
65
61
929
Truck
Units
11
17
18
15
16
17
14
13
17
11
11
18
Dozer
Hours (000s)
24
37
37
37
37
37
37
37
32
32
21
371
Dozer
Units
5
7
7
7
7
7
7
7
6
6
4
7
Haul
truck productivity is variable and is based on a haulage model that calculates cycle times based on the location of the material mined
and the destination. Cycle times and the mine schedule are used to estimate the truck hours needed to meet the schedule. The annual available
hours are based on the distance and the average speed for the haulage segment, with allowances for loading, dumping, and waiting. For
excavators and wheel loaders the estimated productivity is based on the calculated loading times to position and fill the selected haul
trucks. Dozer productivity is based on manufacturer nomographs. Blasthole drill productivity is based on average penetration rates and
blast spacing to break the scheduled rock per the detailed fragmentation provided by a blasting manufacturer. Other minor and support
equipment does not have a calculated productivity, but a fixed annual usage is assigned based on similar surface mining operations. Table
13.8 shows the fleet size and scheduled hours for the fixed usage equipment.
Table
13.8: Fixed Usage Equipment
Equipment
Hours
Scheduled
per
Unit
Fleet
Size
Water
Truck
5,326
4
Motor
Grader
5,326
3
Service/Fuel
Truck
5,326
2
Crane
Truck
1,000
1
Excavator
6,013
1
13.10 MINE
PERSONNEL REQUIREMENTS
Hourly
mine personnel requirements for equipment operators and mechanical labor are based on the annual equipment hourly usage. Salaried based
employees are specified at typical staffing levels. All hourly mine employees and supervision of all mine employees are by the mine owner.
The owner also provides Site General and Administrative (Site G&A) labor, mine planning and engineering, and environmental compliance.
Table 13.9 shows the total project employment over the life of the Project and subsequent tables provide mine employment (Table 13.10),
tailings disposal employment (Table 13.11) and site G&A employment (Table 13.12).
CK Gold Project S-K 1300 Technical Report 170 May 2026
Table
13.9 Mine Employment
Year
-2
-1
1
2
3
4
5
6
7
8
9
10
11
Total
Mine
Employment
7
29
180
251
255
233
241
244
224
220
207
138
100
255
Tailings
Employment
0
0
30
48
48
44
44
44
40
40
58
57
43
57
Mine
G&A
2
7
23
27
27
27
27
27
27
27
25
19
12
27
Total
Mine Employment
9
36
233
326
330
304
312
315
291
287
290
224
155
330
Table
13.10 Mine Employment Detailed Breakdown
Year
-2
-1
1
2
3
4
5
6
7
8
9
10
11
Total
Loading
and Hauling
3
9
52
72
76
63
68
68
59
59
64
31
31
94
Loading
Operators
1
3
18
22
17
13
13
13
13
13
14
10
10
22
Hauling
Operators
2
6
34
50
59
50
55
55
46
46
50
21
21
59
Drill
and Blast
5
24
29
29
24
24
24
18
18
13
29
Mine
Support
2
3
43
60
60
60
60
60
60
60
50
44
32
60
Mine
Maintenance
-
5
38
63
63
59
62
65
60
56
55
34
22
63
Mine
G&A
2
7
23
27
27
27
27
27
27
27
25
29
12
27
Mine
Total
7
29
180
251
255
233
241
244
224
220
207
138
97
255
Table
13.11 Tailings Disposal Employment
Year
-2
-1
1
2
3
4
5
6
7
8
9
10
11
Total
Hauling
Operators
0
0
13
21
21
17
17
17
13
13
26
30
26
30
Tailing
Support
0
0
17
27
27
27
27
27
27
27
27
27
17
27
Tailings
Total
0
0
30
48
48
44
44
44
40
40
53
57
43
57
Table
13.12 Mine G&A Employment
Year
-2
-1
1
2
3
4
5
6
7
8
9
10
11
Total
Operations
Manager
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Mine
General Foreman
1
2
2
2
2
2
2
2
2
2
2
2
1
2
Dispatch
Builder
0
2
2
2
2
2
2
2
2
2
2
2
1
2
Dispatch
Operator
0
2
2
2
2
2
2
2
2
2
2
2
1
2
Drill
and Blast Supervisor
8
9
9
9
9
9
9
9
9
4
4
9
Mine
Supervisors
1
2
2
2
2
2
2
2
1
0
0
2
Fuel
Truck Operator
3
4
4
4
4
4
4
4
4
4
2
4
Mine
Laborer
4
5
5
5
5
5
5
5
4
4
2
5
Mine
G&A Total
2
7
23
27
27
27
27
27
27
27
25
19
12
27
CK Gold Project S-K 1300 Technical Report 171 May 2026
13.11 MINE
END OF PERIOD PROGRESSION MAPS
End
of year topographic maps showing the excavation progression are shown in Figure 13.8 to Figure 13.16.
Figure
13.8: Mine Progression – End of Year 1
Figure
13.9: Mine Progression – End of Year 2
CK Gold Project S-K 1300 Technical Report 172 May 2026
Figure
13.10: Mine Progression – End of Year 3
Figure
13.11: Mine Progression – End of Year 4
CK Gold Project S-K 1300 Technical Report 173 May 2026
Figure
13.12: Mine Progression – End of Year 5
Figure
13.13: Mine Progression – End of Year 6
CK Gold Project S-K 1300 Technical Report 174 May 2026
Figure
13.14: Mine Progression – End of Year 7
Figure
13.15: Mine Progression – End of Year 8
CK Gold Project S-K 1300 Technical Report 175 May 2026
Figure
13.16: Mine Progression – End of Year 9
CK Gold Project S-K 1300 Technical Report 176 May 2026
14
PROCESS AND RECOVERY METHODS
14.1 INTRODUCTION
The
CK Gold processing facility has been designed to process 20,000 st/d of gold/copper sulfide ore. The processing facility and the unit
operations therein are designed to produce a copper/gold flotation concentrate filter cake, containing between 12% Cu and 18% Cu, and
approximately 1 oz/st and 2.5 oz/st Au and Ag, respectively.
The
process facilities will consist of: RoM ore crushing circuit, crushed ore stockpile, semi-autogenous grinding (SAG) mill/ball mill
comminution circuit, rougher flotation, regrind circuit, and cleaner flotation to liberate, recover, and upgrade the copper and gold
from the RoM ores. Flotation concentrate will be thickened, filtered, and stored for subsequent shipping. Tailings from the process
plant will be filtered and conveyed to a tailings bin, where the dry-filtered cake will be loaded into haul trucks for
transportation to the dry-stack tailings facility.
In
summary, the process plant will consist of the following unit operations and facilities:
●
RoM
receiving area from the open pit mine.
●
Jaw
crushing system, crushed ore stockpile, and stockpile reclaim system to convey crushed ore to the milling area.
●
SAG/Ball
mill circuit incorporating cyclones for classification.
●
SAG
mill pebble crushing and recycling circuit.
●
Rougher
and Rougher-Scavenger flotation circuit, using Jameson Cell flotation technology.
●
Rougher
concentrate regrinding circuit.
●
Cleaner
flotation circuit incorporating three Jameson Cell flotation stages.
●
Flotation
concentrate thickening and filtration circuit, including a storage shed with several days’ production capacity.
●
Tailings
thickening and filtration circuits.
●
Tailings
disposal and storage on the Tailings Storage Facility (TSF).
●
Reagent
handling, utilities, process water, and raw-water systems.
The
block flow diagram for the processing facility is shown in Figure 14.1.
CK Gold Project S-K 1300 Technical Report 177 May 2026
Figure
14.1: Block Flow Diagram – Processing Facility
CK Gold Project S-K 1300 Technical Report 178 May 2026
14.2 PROCESS
PLANT DESIGN
14.2.1 Process
Design Criteria
The
process facilities have been designed for an average of 20,000 st/d throughput, equivalent to 7,300,000 st/a. The key process design
criteria used in the FS design are outlined in Table 14.1.
Table
14.1: Major Design Criteria
Criteria
Unit
Value
Operating
Days per Year
Days
365
Mine
Life
Years
11
Average
Daily Throughput
st
20,000
Plant
Availability – Crushing Circuit
%
75
Plant
Availability – Milling/Flotation Circuit
%
91.3
Plant
Availability – Concentrate Dewatering Circuit
%
85
Plant
Availability – Tailings Dewatering Circuit
%
92.7
LoM
Copper Feed Assay
%
0.17
LoM
Gold Feed Assay
oz/st
0.014
LoM
Silver Feed Assay
oz/st
0.041
LoM
Copper Recovery
%
80.6
LoM
Gold Recovery
%
71.5
LoM
Silver Recovery
%
68.7
14.2.2 Operating
Schedule and Availability
The
processing plant will be designed to operate in two 12-hour shifts per day, 365 days per year.
The
average crushing circuit availability is expected to be 75% throughout the LoM, and the comminution and flotation circuit availability
is expected to be 91.3% over the LoM. This allows sufficient downtime for scheduled and unscheduled maintenance of process plant equipment.
14.3 PROCESS
PLANT DESCRIPTION
14.3.1 Primary
Crushing
Ore
from the open pit will be delivered by haul trucks (or loader) to the dump hopper static grizzly. Oversize material is expected to be
less than 2% of the overall mass, but on the occasion that it occurs, the static grizzly is served by a hydraulic rock breaker.
The
dump hopper will be discharged in a controlled manner using an apron feeder, which will feed the ore on to a vibrating grizzly. Ore particles
smaller than 4” will pass through the grizzly to a discharge conveyor, whilst the oversize (approximately 50% of the feed) will
be directed to the jaw crusher. The discharge from the jaw crusher will re-join the grizzly undersize on the discharge conveyor and will
be conveyed to the crushed ore stockpile.
The
crushing circuit will be equipped with a dust suppression system to control the fugitive dust generated during ore dumping and crushing.
CK Gold Project S-K 1300 Technical Report 179 May 2026
14.3.2 Crushed
Ore Stockpile and Reclaim
The
crushed ore conical stockpile will receive ore from the crushing circuit and will have a live ore capacity of 10,000 st (12 hours), equivalent
to a total capacity of 28,500 st (34 hours). The stockpile will not be covered, which provides opportunity to manage the pile with a
bulldozer, should this be necessary.
Crushed
ore from the stockpile will be reclaimed in a controlled manner using six discharge chutes and four vibrating pan feeders. Of the six
chutes, two will be initially blocked off with blanking plates and may be reopened and utilized in the future if deemed necessary. Only
two of the four pan feeders are required to discharge the design tonnage to the SAG Mill via the SAG Mill Feed Conveyor. Feeder operation
is anticipated to be automatically cycled to promote uniform stockpile drawdown and consistent feed to the SAG Mill.
A
belt weigh scale will measure the feed to the SAG mill and will allow mill feedrate control by continuously adjusting the rate at which
the pan feeders operate.
14.3.3 Grinding
Circuit
The
grinding circuit employed for the project includes a SAG mill in series with a ball mill. It will be a two-stage grinding operation with
the SAG mill in a closed circuit with a pebble crusher and the ball mill in a closed circuit with classifying hydrocyclones. The SAG
mill internal discharge screen will be equipped with pebble ports to allow removal of the coarse pebbles that tend to accumulate within
the mill. Grinding will be conducted as a wet process at a nominal rate of 912.7 st/h of material (dry basis).
The
grinding circuit will include:
●
SAG
Mill Feed Conveyor.
●
Pebble
Crusher Feed and Discharge Belts.
●
Conveyor
Weigh Scales and Metal Detectors.
●
SAG Mill
- 34 ft diameter x 17 ft EGL, equipped with 2 x 8,100 hp motors.
●
Ball Mill
- 24 ft diameter x 34.5 ft EGL, equipped with 2 x 8,100 hp motors.
●
Pebble
Crusher (400 hp).
●
SAG Mill
Discharge Vibrating Screen (10’ wide x 20’ long).
●
Cyclone
feed slurry pumps.
●
Hydrocyclone
cluster with 11 (10 operating, 1 spare, 1 blank) hydrocyclones.
Crushed
ore reclaimed from the stockpiles will be fed to the SAG mill at a controlled rate. Water will be added to the SAG mill feed for wet
ore grinding. The SAG mill will generally operate at 75% of its theoretical critical speed.
The
SAG mill internal discharge screen will be equipped with pebble ports to enable removal of critical-size material. Oversize material
removed at the SAG mill discharge will be conveyed via transfer conveyors to the pebble crusher. A cone crusher will crush the pebbles
to a P80 of approximately 0.5 inch. The crushed pebbles will be returned to the conveyor belt feeding the SAG mill for further
grinding. The SAG mill external discharge screen underflow slurry will gravitate into the cyclone feed pump box, from where it will be
pumped to the hydrocyclone cluster.
CK Gold Project S-K 1300 Technical Report 180 May 2026
The
ball mill will operate in closed-circuit with a cluster of hydrocyclones. The product from the ball mill will be discharged into the
cyclone feed pump box, combining with the SAG mill discharge to become the hydrocyclone feed slurry. The target classification size for
the hydrocyclones will be 80% finer than 90 µm, and the circulating load to the ball mills will be targeted at 300% with the cyclone
underflow returning to the ball mill as feed slurry. Dilution water will be added to the grinding circuit as required.
The
fine hydrocyclone overflow stream from the classification circuit will be piped across to the flotation circuit via a sampling station.
The pulp density of the cyclone overflow slurry will be approximately 35% solids.
Grinding
media, consisting of 5” forged balls for the SAG and 2.5” hi-chrome balls for the ball mill, will regularly be added to the
grinding circuit to maintain charge level and grinding efficiency.
A
multi-axis relining machine will be available for occasional replacement of mill liners. The machine will be configured to work on both
mills and will be lifted into position using the mill overhead crane, which serves the entire mill area. Additional relining equipment
such as bolting machines, will be provided and overhead hoists are provided to allow safe and efficient operation of these machines.
14.3.4 Flotation
and Regrind Circuits
The
flotation of milled slurry will be carried out using a multi-stage circuit consisting of Rougher, Scavenger and Cleaner flotation stages.
The flotation technology employed for the project (Jameson Cells) is a modern approach, with this proprietary equipment giving high metallurgical
efficiency, low power consumption and a compact footprint. Rougher and Scavenger Jameson Cells are designed and configured to recover
greater than 90% of the valuable sulfide minerals into 10% of the feed mass. The Rougher/Scavenger Concentrate slurry is then collected
and pumped to a concentrate open regrinding circuit, consisting of a vertical mill and classifying hydrocyclones. The regrind circuit
is designed to reduce particle fineness in the concentrate from 80% passing 90µm to approximately 80% passing 25µm and in
doing so allows further rejection of silicate and sulfide gangue minerals in downstream processes.
After
regrinding, the combined rougher/scavenger concentrate is further upgraded (cleaned) using smaller Jameson cells. These smaller units
are arranged in a single cleaner- scalper stage and a cleaner-scavenger with re-cleaner stage configuration to reduce cleaner tail losses.
Concentrate from the cleaner-scalper and re-cleaner stages will be pumped to the concentrate thickener as a final product.
The
flotation circuit will include the following equipment:
●
Flotation
Reagent Addition Facilities.
●
Rougher/Scavenger
Flotation Cells, 2 off Jameson B6500/24 units.
●
Concentrate
Regrind Vertical/Tower Mill, 2,500 hp.
●
Regrind
Circuit Classification Cyclone Cluster.
CK Gold Project S-K 1300 Technical Report 181 May 2026
●
Cleaner
Scalper Flotation Cell – single Jameson E3432/8 unit.
●
Cleaner
Scavenger Flotation Cell – single Jameson E3432/8 unit.
●
Re-Cleaner
Flotation Cell – single Jameson Z1600/1 unit.
●
Pump Boxes
and Standpipes.
●
Slurry
and concentrate pumps.
●
Sampling
Systems.
Flotation
reagents will be added to the flotation circuit as defined through testing. The reagents include the collectors PAX and A-208, the Frother
MIBC, and Lime as the pH-modifying reagent. Provision will also be made for supplementary reagent addition to the cleaner stages of the
flotation circuit.
The
cyclone overflow from the grinding circuit will feed the flotation circuit by gravity flow from the ball mill cyclone cluster. The slurry
will be manually monitored for particle size, and flotation feed samples will be taken automatically to allow for proper metallurgical
accounting. Cyclone overflow slurry from the ball mill will discharge into the mechanically agitated flotation conditioner tank, where
frother, collector, and pH-modifying reagents will be added. A 10-minute conditioning time has been determined to be sufficient, based
on metallurgical testwork results. The slurry is then pumped from the conditioner tank to the rougher flotation Jameson Cell at a design
dry solids rate of 912.7 st/h. The Jameson Cell design employs a self-aspirating technique to aerate the pulp under high pressure before
allowing it to segregate in a quiescent zone, with froth-washing water included to reduce the misplacement of entrained gangue. In the
rougher flotation Jameson Cell, sulfide minerals will be selectively recovered into a rougher concentrate froth consisting of approximately
10% of the plant feed throughput. The rougher tailings slurry will be sampled automatically for process control and metallurgical accounting
purposes before gravitating into the tailings thickener feed pump box.
Rougher
concentrate slurry will gravitate from the rougher-scavenger cell to the regrind mill cyclone feed box, from where it will be pumped
to the regrind cyclones. Cyclone underflow will gravitate to the regrind mill feed box, where it is pumped to the regrind mill for
the second pass. Regrind media is charged via regrind media hopper to assist regrinding to the target size in an inert
(oxygen-depleted) environment. Cyclone overflow, with a target particle size of 80% passing 25 µm, will gravitate to the
cleaner-scalper cell feedbox. Reground slurry exiting the regrind mill will be screened. The screen oversize will report back to the
regrind mill feed box. The screen undersize will report to the underflow discharge box and then is pumped to the cleaner-scalper
cell feedbox for further treatment.
The
cleaner-scalper Jameson Cell will produce a concentrate froth that will be combined with the re-cleaner concentrate; the combined slurry
stream will gravitate to the concentrate thickener feedbox after being sampled for metallurgical accounting and process control. The
cleaner-scalper tailings gravitate to the cleaner-scavenger feedbox, where they are mixed with the pumped re-cleaner tailings and fed
to the cleaner-scavenger cell to float remaining gold/copper particles from the tails of both cleaners. Cleaner-scavenger tailings are
sampled automatically for metallurgical accounting and process control and will gravity flow to the tailings thickener feed box. Cleaner-scavenger
concentrate gravitates to the re-cleaner feedbox for final cleaning. The final concentrate (a combination of cleaner-scalper and re-cleaner
concentrate) will have a gold grade of between 1 and 3 oz/st and a copper grade of between 12% and 18% (the selected grade at any point
in time will depend on prevailing market conditions and metal prices).
CK Gold Project S-K 1300 Technical Report 182 May 2026
14.3.5 Concentrate
Dewatering and Storage
Cleaner
flotation concentrate slurry will be thickened, filtered, and stored as a cake before shipment to domestic or overseas markets. The concentrate
dewatering circuit will consist of the following equipment:
●
Concentrate
thickener (20-foot diameter).
●
Concentrate
thickener underflow pumps.
●
Concentrate
filter feed tank.
●
Concentrate
filter press feed pumps.
●
Concentrate
filter press, complete with various auxiliaries.
●
Filter cake
handling conveyors, and a storage shed.
Copper-gold
flotation concentrate will gravitate from the flotation circuit to the concentrate thickener feedbox. Flocculant will be added to the
feedbox to accelerate the settling process and improve overflow quality. Thickened concentrate slurry, with an underflow density between
55% and 60% solids, will be pumped from the base of the thickener to the concentrate filter feed tank using underflow slurry pumps.
The
concentrate thickener overflow will consist mainly of water with minimal solids (<0.5%). This stream will be pumped to the flotation
service water tank and used in the flotation circuit for slurry density adjustment and froth washing above the cells. The flotation service
water tank will be topped up with process water as required.
The
concentrate filter feed tank will be mechanically agitated and will act as a surge tank with approximately 14 hours of retention time.
The
concentrate filter will be a vertical filter press with the capacity to dewater the slurry to a final cake moisture content of less than
10% (w/w). Filtrate from the press will be returned to the concentrate thickener feedbox. Filter cake will be discharged via a chute
into a screw feeder and then onto a high-angle tubular conveyor. The cake will be transported to the concentrate storage shed, where
it will be sampled and loaded into bulk carriers.
14.3.6 Tailings
Dewatering and Storage
The
final flotation tailings gravitate from both the rougher and cleaner circuits separately to the tailings thickener, where the slurry
is thickened and filtered. The resulting cake is then hauled and stacked in the tailings storage area.
The
following process equipment will be required in the tailings handling area:
●
Tailings
thickener (138-foot diameter).
●
Tailings
thickener underflow pumps.
●
Tailings
filter feed tank (with agitator).
●
Tailings
filter feed pumps.
●
Tailings
vacuum belt filters complete with auxiliaries.
●
Tailings
filter conveyors (transfer and diverter).
●
Tailings
filter cake bin and discharge feeder.
CK Gold Project S-K 1300 Technical Report 183 May 2026
The
final tailings slurry will consist of rougher scavenger flotation tailings and cleaner scavenger tailings. Each stream will gravitate
from flotation to the tailings thickener feedbox, where it will be dewatered in a thickener and then stored ahead of vacuum filtration
in a mechanically agitated tank. The tailings thickener is a 138-foot diameter steel tank with auto-lifting rakes and a high-rate feedwell,
producing an underflow density of up to 58% solids by weight. Flocculant will be used to facilitate the settling of the solids and will
aid in supernatant clarity.
Slurry
will be pumped from the thickener to the filter feed tank using thickener underflow slurry pumps (one running, one standby). The tailings
filter feed tank will be mechanically agitated to avoid settling and blockages and will act as a surge tank with approximately three
hours of retention time.
Filtration
of the tailings slurry will be carried out using four vacuum belt filter units with vibrating technology to assist with final cake moisture
reduction. Each vacuum belt filter will dewater the tailings to produce a “dry” cake with a moisture content of roughly 14.5%.
Filtrate from each filter will be returned to the tailings thickener. Dewatered cake will be discharged at the end of the belt via a
chute directly onto a transfer conveyor, which will transport the cake to a storage bin with 30 minutes of surge capacity. Flocculant
will be added to the filter feed slurry to further assist with the dewatering process.
Thickening
and filtration of the tailings will facilitate the recovery of process water required for reuse in the plant before the final deposition
of the plant tailings. Reclaim process water will be recovered as overflow from the tailings thickener and as filtrate from the tailings
filters.
14.3.7 Reagent
Handling and Storage
Various
chemical reagents will be added to the grinding and flotation circuits to modify the mineral particle surface characteristics and enhance
the floatability of the valuable mineral particles into the concentrate product. These reagents will be used in the process slurry streams
to facilitate the recovery of the copper and gold minerals during flotation.
Additionally,
flocculant will be used to assist in dewatering operations. This reagent promotes the aggregation of fine particles into larger clusters
(flocs), which significantly increases the settling rate in thickeners and improves overall filtration efficiency.
Raw
water will be used to prepare these reagents, which will be supplied in powder/solid form or as solutions that require dilution prior
to addition to the slurry. These reagent solutions will then be added at various points in the flotation circuits and streams using metering
pumps.
Preparation
and handling of these chemicals will require:
●
A
flocculant preparation and dosing system.
●
A lime
storage, slaking, and distribution system
●
A frother
(MIBC) storage and distribution system.
●
A PAX mixing
and distribution system.
●
A208 dosing
pumps only.
●
Applicable
safety equipment.
CK Gold Project S-K 1300 Technical Report 184 May 2026
The
PAX collector reagents will arrive at the plant as dry flakes in super sacks. The flakes are dissolved in an agitated mixing tank with
water at 10% w/w. The solution will be transferred from the mixing tank to the PAX storage tank, and then pumped via a ring main system
to both the rougher conditioning tank and the cleaner-scalper Jameson cell at a 10% w/w concentration.
The
A-208 collector is delivered in drums and then meter pumped to the addition points.
The
frother (MIBC) will be delivered in bulk and transferred to an external storage tank before being pumped to a head tank inside the building.
From there, dosing pumps will deliver the MIBC to the various addition points within the flotation circuit.
Flocculant
will be hydrated in a flocculant mix tank to a 0.25% weight-strength solution. This solution will be further diluted to 0.05% w/w before
addition to the process using in-line mixers. A single flocculant makeup facility will supply the tailings and concentrate thickeners,
and all tailings vacuum belt filters.
Quick
lime will be delivered in bulk and will be off-loaded pneumatically into a silo. Quicklime will be fed to a detention-type slaking system
to produce a lime slurry with approximately 20% solids in suspension. This slurry will be pumped to a mechanically agitated lime day
tank and further diluted to 15% w/w solids. From the day tank, lime slurry will be pumped via a pressurized ring-main to the addition
points.
To
ensure spill containment, the reagent preparation facility will be located within a separate bunded area. Storage tanks will be equipped
with level indicators and instrumentation to ensure that potential spills are immediately apparent during normal operation. Appropriate
ventilation, fire and safety protection, emergency shower and eye wash stations, and Material Safety Data Sheet stations will be provided
at the facility. Each reagent line and addition point will be labelled following the Mine Safety and Health Administration (MSHA) standards.
All operational personnel will receive MSHA training and additional training for the safe handling and use of the reagents.
14.3.8 Water
Systems
14.3.8.1 Raw
Water System
Raw
water will be supplied to the process plant using new pumps and an overland pipeline from the Crystal Lake Reservoir, approximately 1.5
miles north of the mine.
Raw
water will be stored at the process plant in a 144,000-gallon raw water tank, from which it will be pumped through a distribution header
to the various areas of the plant. The tank will hold approximately 5 hours of water at normal consumption levels.
Raw
water will be used for slurry pump gland service, flocculant mixing, concentrate filter wash water, spray water top-ups, occasional supply
to the fire water tank, and as makeup for the process water tank.
14.3.8.2 Process
Water Supply System
Process
water is stored within two 275,000-gallon process water tanks and pumped via a pressurized ring main to the mills and various other areas
of the process plant. The process water tanks are designed to hold approximately one hour of water at normal consumption levels and will
normally be run at an intermediate level so as to contain additional water after a plant stoppage. The tanks will be primarily fed using
tailings thickener overflow water, with additional (top-up) supplies from the raw water system and from the general-purpose pond to the
south of the plant.
CK Gold Project S-K 1300 Technical Report 185 May 2026
14.3.8.3 Storm/Run-Off
Water
Additional
water will be available within the overall water balance on an occasional basis, sourced from the tailings area drainage system, the
in-pit dewatering system, and the site run-off control system. Water from these systems will be pumped from its source to the general-purpose
pond to the south of the process plant, from where it can be pumped as makeup to the process water tank. This helps to reduce the volume
of raw water required by the process plant.
Water
collected in the pond may contain hydrocarbons or other deleterious substances resulting from vehicle traffic within the disturbed watershed.
Consequently, an oil skimmer will be necessary to remove these contaminants before the water is fed into the process.
14.3.8.4 Flotation
Service Water
Water
recovered from the concentrate thickener overflow can contain traces of gold-enriched concentrate; therefore, it will be collected in
the service water tank and pumped to the flotation circuit for use as dilution and spray water. The service water tank adjacent to the
concentrate thickener will be gravity-fed and topped up with process water, as required.
14.3.8.5 Fire
Water System
Raw
water for the fire protection system will be stored in a 100,000-gallon tank located on a hillside near the plant. This tank will be
filled from the raw water ring main and will be routinely cycled to maintain freshness. The static pressure generated by the tank’s
elevated location will keep the firewater system energized; therefore, pumps will not be required to maintain adequate working pressure.
14.3.9 Air
Supply Systems
The
process plant compressed air systems are designed to supply air to the following areas:
●
A
dedicated compressor and receiver system will supply drying air to the concentrate filter press unit.
●
Two screw
compressors (configured for one operational unit and one stand-by unit), an air receiver, and an air dryer will supply instrument
air distributed to the entire facility.
The
instrument air compressors and the concentrate filter compressor are to be housed within a dedicated facility adjacent to the main process
plant. Compressed air will be distributed throughout the plant via a centralized piping system. A separate, dedicated air receiver for
the concentrate filter will be positioned within the designated filter area.
14.4 PROCESS
PLANT LABOR
Process
plant salaried personnel estimates were developed to provide adequate supervision and technical support for the daily operation of the
process facility. The required salaried personnel for the process facility is estimated at 12 people, as detailed in Table 14.2.
CK Gold Project S-K 1300 Technical Report 186 May 2026
Table
14.2: Salaried Personnel
Position
Count
Management
Mill
Superintendent/ Manager
1
Met
Accountant (Concentrates)
1
Executive
Assistant
1
Technical
Plant
Metallurgist
2
Operations
Mill
Trainer
1
Plant
Safety/Occ health Officer
1
Maintenance
Maintenance
Engineer
1
Electrical/Instrumentation
Supervisor
1
Mechanical
Supervisor
1
Maintenance
Planner
2
Total
Salaried
12
Salaried
personnel will supervise a total of 76 hourly employees, as detailed in Table 14.3 Process positions, both salaried and hourly, that
require 24-hour coverage per day will be staffed by rotating 12- hour shifts.
Table
14.3: Hourly Personnel
Position
Count
Operations
Shift
Supervisor
4
Control
Room Operator
4
Crusher/Conveying
Area Operator
4
Grinding
Operator
4
Flotation
& Concentrate Filter Operator
4
Tailings
Thickening/Filtration/Handling Operator
8
Reagent
Area Operators
4
FEL
Driver, Concentrates
2
Operator,
Concentrate Rail Head
2
Laborer
- Operations
16
Vacation
Cover - Laborers
4
Maintenance
Mechanical/Electrical
Senior Supervisor
2
Electrician
3
Instrumentation
3
Mechanical
4
Laborers
- Maintenance
8
Total
Hourly
76
CK Gold Project S-K 1300 Technical Report 187 May 2026
15
INFRASTRUCTURE
15.1 ROADS
15.1.1 Project
Access Road
The
Project access road is a gravel road that initiates at County Road 210 (also named Crystal Lake Road), heads south and then west to
the Project site boundary (Figure 15.1). The access road is approximately 4.2 miles long and 26 ft wide, generally centered along a
60-foot-wide RoW. The Project site boundary extends to County Road 210 following the access road RoW. A typical cross-section of the
access road is shown on Figure 15.2.
Fencing
will be installed along the RoW boundary. The access road does not cross any streams. The material for sub-base, base, and gravel surfacing
will be sourced from borrow areas within the Project site.
Access
road construction will be one of the first tasks performed in the construction phase, following stripping and stockpiling of topsoil.
The Project will obtain a permit for the access road connection to County Road 210 from Laramie County.
15.1.2 Ex-Pit
Haul Roads
Ex-pit
haul roads are designed with a width of 90 ft to accommodate 100 st haul trucks. Ex-pit haul roads will be constructed primarily in fill,
using a minimum of 3 feet of waste rock providing a suitable base for haul truck operations. A plan view of all ex-pit haul roads and
associated sections are shown in Figures 15.3 and 15.4, respectively.
Haul
road cut-and-fill volumes are included in the CAPEX cost estimate.
Haul
roads, including those required for pre-production, will be constructed in phases. Pre-production haul roads will connect the pit to
the ore stockpile, primary crusher, and TMF, and will also be used to haul tailings from the tailings loadout bin to the TMF. Figure
15.5 shows the ex-pit haul roads to be completed before the start of mining.
Due
to limited availability of mine waste during pre-production, the south haul road will not be constructed to its ultimate configuration.
The south haul road will be built to the ultimate configuration during Year 1 as mine waste is available. The north haul road will be
roughly graded with native materials during pre-production, as it will ultimately be covered by the Ore Stockpile. Portions of the north
haul road outside of the ore stockpile limits will be armored with waste rock as needed during operations.
CK Gold Project S-K 1300 Technical Report 188 May 2026
Figure
15.1: Project Access Road
Source:
Trihydro, 2023.
CK Gold Project S-K 1300 Technical Report 189 May 2026
Figure
15. 2: Site Infrastructure Plan
Source:
Tierra Group International, 2026.
CK Gold Project S-K 1300 Technical Report 190 May 2026
Figure
15.3: Haul Roads
Source:
Tierra Group International, 2026.
CK Gold Project S-K 1300 Technical Report 191 May 2026
Figure
15.4: Haul Road Sections
Source:
Tierra Group International, 2026.
CK Gold Project S-K 1300 Technical Report 192 May 2026
Figure
15.5: Pre-Production Site Plan
Source:
Tierra Group International, 2026.
CK Gold Project S-K 1300 Technical Report 193 May 2026
15.2 ORE
STOCKPILE
The
Ore Stockpile is located on the north side of the TMF and will store up to 15.6 Mst of low-grade ore for future processing. The Ore Stockpile
will operate as an independent structure from the TMF until Year 2, after which the ore will fill the valley between the Ore Stockpile
and the TMF. Ore will then be placed directly against tailings. The Ore Stockpile will be constructed in two phases: Phase 1 will accommodate
approximately 1.7 Mst (9 months of operations). Phase 2 will be built during Year 1, increasing the storage capacity to 2.4 Mst.
The
Ore Stockpile will have a composite liner system (CLS) consisting of 80-mil double-sided textured Liner Low-Density Polyethelene (LLDPE)
geomembrane overlying a prepared subgrade of compacted clays and silts. The 80-mil liner for the Ore Stockpile will connect to the TMF
60-mil liner; however, no ore will be placed directly on the 60-mil liner. The Ore Stockpile will have a maximum elevation of approximately
7,150 ft above mean sea level (amsl). Figure 15.6 shows the maximum extent of the ore stockpile during Year 8.
Foundation
preparation will include clearing, grubbing, and stripping of topsoil. Unsuitable overburden material will also be removed, including
soils that are unable to be compacted and used in the CLS subgrade, such as saturated soils or soils that are not clay or silt. Low-permeability
clays and silts within the Ore Stockpile footprint will be ripped, moisture conditioned, and compacted, forming the CLS subgrade. Areas
without suitable low-permeability materials will be covered with a minimum of 1 foot of low-permeability fill and compacted. Approximately
762,372 square feet of geomembrane is required for Phase 1, and an additional 1,021,817 square feet is required for Phase 2. The CLS
will have an effective permeability of 10 -7 cm/s or lower.
An
underdrain system consisting of only primary pipes surrounded by gravel and geotextile will be installed below the liner to convey incident
groundwater seeps beneath the Ore Stockpile to TMF-3 (Figure 15.7 and Figure 15.8). Secondary drains are not included in this design
because of the topography and geometry of the Ore Stockpile area.
The
Ore Stockpile CLS will be covered with a 16-oz non-woven geotextile or a 3-foot gravel layer (overliner) protecting the liner from damage
during ore placement. The gravel layer will be used on steep sections where slope stability of the outer slope is a concern. Drainage
pipes will be placed on top of the liner promoting drainage from the base of the ore. Like the underdrain, the overdrain system consists
of a primary drain that is constructed to convey drainage to the TMF-3 Pond (Figure 15.7).
The
primary under and overdrains will be constructed of perforated pipe surrounded by drainage gravel and wrapped in non-woven geotextile.
Figure 15.8 shows the typical primary drain cross-sections.
Tierra
Group/BBA conducted a geotechnical investigation in 2025. Soil properties determined during the investigation were used along with data
from previous investigations (by others) to develop material properties for the Ore Stockpile stability analysis.
CK Gold Project S-K 1300 Technical Report 194 May 2026
Figure
15.6: Ore Stockpile
Source:
Tierra Group International, 2026.
CK Gold Project S-K 1300 Technical Report 195 May 2026
Figure
15.7: Ore Stockpile Drains
Source:
Tierra Group International, 2026.
CK Gold Project S-K 1300 Technical Report 196 May 2026
Figure
15.8: Ore Stockpile Drain Sections
Source:
Tierra Group International, 2026.
CK Gold Project S-K 1300 Technical Report 197 May 2026
15.3 WASTE
ROCK FACILITIES
The
Project will utilize the West, Southwest, and East Waste Rock (storage) Facilities (WWRF, SWWRF, EWRF) for storing non-mineralized material
from the pit. Figure 15.2 shows the location of each storage area in proximity to the pit, mill, truck shop, and Tailings Management
Facility (TMF). Each storage facility will have the topsoil stripped and stockpiled in designated areas prior to placing rock material.
The
SWWRF is located primarily in Section 36, west of the pit (Figure 15.9). The WWRF and EWRF are located mainly in Section 36, with a portion
in Section 31, within the valley of the ephemeral Middle tributary to Middle Crow Creek (to the southeast of the pit) (Figure 15.10).
Details of the waste rock facilities are summarized below:
● SWWRF
– 12.1 Mst capacity; 7,250 ft amsl final elevation.
● WWRF
– 10.0 Mst capacity; 7,130 ft amsl final elevation.
● EWRF
– 12.1 Mst capacity; 7,130 ft amsl final elevation.
All
WRF slopes will be 3H:1V to facilitate closure. At the end of the LoM, topsoil replacement and revegetation are planned for closure.
An
access road to the SWWRF Pond and run-off collection channel will be constructed on the west side of the SWWRF. The collection
channel was sized to safely convey the peak flow generated by the 100-year 24-hour storm event to the SWWRF Pond. The channel will
have a trapezoidal geometry with a 3-foot bottom width, 2H:1V side slopes, and a minimum channel depth of 3 feet (including 1-foot
of freeboard). Test data and results from prior studies, along with the 2025 Geotechnical Investigation conducted by Tierra
Group/BBA, were used to develop material properties for the SWWRF, EWRF, and WWRF slope stability analyses. Stability analyses for
all WRFs meet or exceed minimum design criteria.
CK Gold Project S-K 1300 Technical Report 198 May 2026
Figure
15.9: SWWRF
Source:
Tierra Group International, 2026.
CK Gold Project S-K 1300 Technical Report 199 May 2026
Figure
15.10: WWRF and EWRF
Source:
Tierra Group International, 2026.
CK Gold Project S-K 1300 Technical Report 200 May 2026
15.4 TAILINGS
DISPOSAL
Tailings
generated in the flotation process will be filtered to an optimum low moisture content to produce “dry stack” tailings, thereby
maximizing water conservation and structural strength and avoiding the need for a tailings dam and the associated environmental and safety
risks. The tailings slurry produced by flotation initially containing about 65% water (by weight) will first be thickened for initial
water recovery. The water content of the thickened underflow slurry will be reduced to about 45%, while the thickener overflow water
will be returned to the process for reuse. The thickened slurry will be pumped to storage tanks ahead of a large pressure filtration
plant comprising multiple large pressure filters that further reduce the water content to less than 15% (typically 14% metallurgical1
). This leaves the solids as a compressed “cake” material that will be dropped from the press onto a conveyor for transportation
to the TMF.
Approximately
2,400 st/h of slurry will be sent to the tailings thickener, with approximately 1,057 st/h of tailings produced on average. Processed
tailings will be hauled to and placed in the TMF until Year 8.25. After that, the remaining tailings produced will be hauled to and placed
in the open pit (as described in Section 15.5.4).
15.4.1 Chemical
Characteristics
Geochemical
testing of mine rock and tailings using industry standard methods on representative samples (Geochemical Solutions 2023) indicates limited
probability to produce acid rock drainage (ARD) and/or metal release to water. Static geochemical testing on tailings samples produced
by locked cycle laboratory testing indicates that the tailings are not acid generating. Static geochemical testing of waste rock samples
indicates only a small percentage of waste rock is potentially acid generating (PAG). Confirmatory kinetic and leach test results show
no, or low, production of acidic water or metal release for the tested samples. Section 17.1.4 presents additional details on the geochemical
characterization of tailings and pit rock.
15.4.2 TMF
Design and Construction
The
TMF is located east of the process plant within a valley formed by the ephemeral south tributary to Middle Crow Creek (Figure 15.2).
The TMF will be constructed in three phases (Phases 1, 2, and 3) to defer capital costs and limit geomembrane liner exposure (Figure
15.10). The TMF will ultimately store 61.5 Mst of tailings over the facility’s life. During Phase 1, a starter berm will be built
in two phases (Phase 1A and 1B) on the east side to provide structural support during initial tailings placement. Each phase of the TMF
will consist of a prepared subgrade, underdrain collection system (underdrain), CLS, seepage collection system (overdrain), tailings,
and waste rock. The TMF CLS includes a 60-mil LLDPE geomembrane overlying a prepared subgrade of compacted clays and silts. Phases 1,
2, and 3 will have liner areas covering 4,147,910, 3,134,700, and 2,957,647 square feet, respectively. PAG will be stored in the TMF
and used to construct internal TMF haul roads over tailings.
1
Metallurgical water content is tailings moisture by total weight. Geotechnical water content is measured by dry weight. A 14% tailings
moisture metallurgical is equivalent to 16.3% geotechnical.
CK Gold Project S-K 1300 Technical Report 201 May 2026
Tailings
filtration produces tailings at near-optimal moisture content for compaction, maximizing geotechnical strength and stability. The risk
of tailings and/or process water discharge from the TMF and the magnitude of seepage to groundwater are thereby significantly reduced.
During tailings placement, the waste rock buttress will be constructed to maintain slope stability and provide tailings erosion protection.
The minimum width of the waste rock buttress is 90 ft to accommodate haul trucks. The waste rock will be placed in 20-foot-thick lifts,
spread with dozers, and compacted by haul truck traffic. The top of the TMF will be capped with 3 feet of waste rock during operational
conditions where tailings would be exposed for an extended period of time. A vegetated soil cover will be placed over the closed TMF
to promote stormwater conveyance, prevent surface water ponding, disperse run-off, limit erosion, and promote native vegetation growth.
Table 15.1 provides annual tailings and waste rock quantities planned for the TMF.
Table
15.1 summarizes TMF design criteria. The TMF is not considered a dam under the State of Wyoming 2023 Statutes (Wyoming, 2023) and there
are no design requirements for filtered tailings facilities in Wyoming. TMF design criteria were established based on criteria from various
sources shown in Table 15.2.
The
Phase 1A starter berm will be built during pre-production using mine waste placed in 2- to 3-foot lifts (depending on waste rock particle
size). The Phase 1B starter berm expansion will be built during Year 1 operations. Waste rock will be placed around the tailings perimeter
as the tailings level rises. Figure 15.11 shows a representative TMF cross-section.
TMF
foundation preparation will include clearing, grubbing, and stripping of topsoil. Unsuitable overburden material will also be removed.
Areas of the TMF with excess low-permeable material will serve as a borrow source for areas with unsuitable subgrade material. Areas
without suitable subgrade will be covered with a minimum of 1 foot of low-permeability fill and compacted. The CLS will have an effective
permeability of 10-7 cm/s or lower, as required by the DEQ – WQD. Saturated soils may be reworked and dried for later
use. Claystone and siltstone presenting structure or light cementation will be ripped and worked prior to use as subgrade.
In
Phase 2 of the TMF, the metasediment rock outcrop where the valley narrows will be drilled, blasted, and dozed to an approximate 2.5H:1V
slope. The slope will be dressed and covered with at least 12 inches of compacted soil prior to liner placement. The excess rock will
be used in the TMF buttress, for haul road maintenance, or similar uses. The remaining subgrade will be compacted to a minimum of 90%
Standard Proctor Maximum Dry Density (SPMDD) to provide a firm surface for underdrain and CLS construction.
An
underdrain system will be installed below the CLS to collect and convey groundwater seeps beneath the TMF to the TMF-3 pond. The underdrain
system consists of a primary drain that follows the TMF valley bottom and secondary drains that convey seepage to the primary drain (Figure
15.12). All underdrains will be surrounded by gravel and geotextile to prevent the migration of fine-grained material into the drains
(Figure 15.13). The primary underdrain will also serve as a conduit for TMF-2A and TMF-2B to drain into TMF-3.
CK Gold Project S-K 1300 Technical Report 202 May 2026
An
overdrain system will be installed on the CLS prior to tailings placement. The purpose of the overdrain is to maintain a low hydraulic
head in the bottom of the tailings mass, promote free drainage of the tailings, and minimize the possibility for the tailings to become
saturated. Like the underdrain, the overdrain consists of a primary drain that is constructed to follow the valley bottom and secondary
drains that are set in the minor valley bottom topography as shown on (Figure 15.14). Overdrains will be surrounded by gravel and geotextile
to protect pipes and prevent migration of tailings into the drains (Figure 15.15).
Tailings
will be placed and compacted adjacent to and above the seepage collection drains. The tailings will be hauled by trucks from the tailings
loadout bin at the mill along the south haul road to the TMF, where they will be end-dumped in 20-foot-thick lifts and spread with low-ground-pressure
dozers. Tailings consist primarily of silt-sized particles with lesser amounts of fine sand and clay. Tailings will be placed and spread
to prevent damage to the drains or CLS. PAG waste rock will be placed on the tailings surface forming access roads to support the haul
trucks. Supplemental NAG waste rock will be used if PAG is not available when roads are constructed. Internal haul roads will cover approximately
35% of each lift area and have a thickness of 6 feet (extra capacity required for internal haul roads was considered in facility design).
The tailings crest will be graded west to prevent standing water from pooling on top of the tailings. Surface water run-on will be controlled
by temporary ditches around the perimeter that will divert water away from the TMF. The top lift in areas where tailings are not being
actively placed will be rolled with a smooth drum compactor to 90% SPMDD to reduce infiltration and fugitive dust.
Tierra
Group/BBA (2025a) performed limit equilibrium slope stability analyses of the TMF under static, pseudo-static and post-peak loading conditions,
to verify that acceptable slope stability factors of safety (FOS) are obtained for all cases.
CK Gold Project S-K 1300 Technical Report 203 May 2026
Figure
15.11: TMF Phase Plan
Source:
Tierra Group International, 2026.
CK Gold Project S-K 1300 Technical Report 204 May 2026
Table
15.1: Annual Quantity of Tailings and Waste Rock to the TMF
Data
Units
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Total
Total
Mill Feed (Stored in TMF)
000
st
4,882
7,273
7,320
7,300
7,300
7,300
7,300
7,300
5,475
61,450
Total
Waste Rock (Shell)
000
st
5,130
5,622
5,547
0
1,779
1,671
3,997
3,116
539
27,401
Total
Waste Rock (Internal PAG and NAG for Roads)
000
st
864
1,548
993
990
1,506
1,413
990
990
743
10,037
Table
15.2: TMF Design Criteria
Category
North
Criteria
Basis
Source
Dam
Hazard Classification
Hazard
Classification
Not
Required
Based
on source hazard classification definitions.
Wyoming
Rules and Regulations
Slope
Stability
Static
FOS (operational)
≥
1.3
TMF
should provide sufficient strength to withstand anticipated static loading conditions (i.e., no additional external forces).
NDEP-BMRR,
2015
Static
FOS (long-term)
≥
1.5
Pseudo-Static
FOS
≥
1.1
The
TMF should withstand forces from earthquake events. Pseudo-static analyses were used to simulate earthquake loading.
Post-Earthquake
FOS
≥
1.1
The
TMF should remain stable with residual strength parameters for materials that could weaken during earthquake loading.
CDA,
2019
Seismicity
Design
Earthquake Event
2,475-yr
-
RCRA
Subtitle D, Part 258
PGA
0.14g
Wyoming
Seismic Hazard Map
Wyoming
State Geological Survey, 2014
Horizontal
acceleration for pseudo -static analysis (kh)
0.093g
Bray
and Rathje, 1998.
Bray
and Rathje, 1998.
CK Gold Project S-K 1300 Technical Report 205 May 2026
Figure
15.12: TMF Section
Source:
Tierra Group International, 2026.
CK Gold Project S-K 1300 Technical Report 206 May 2026
Figure
15.13: TMF Underdrain
Source:
Tierra Group International, 2026.
CK Gold Project S-K 1300 Technical Report 207 May 2026
Figure
15.14: TMF Underdrain and Overdrain Sections
Source:
Tierra Group International, 2026.
CK Gold Project S-K 1300 Technical Report 208 May 2026
Figure
15.15: TMF Overdrain
Source:
Tierra Group International, 2026.
CK Gold Project S-K 1300 Technical Report 209 May 2026
15.4.3 TMF
Environmental Management
The
following specific environmental management aspects will be incorporated into the TMF operation and maintenance plan:
● Erosion
and sediment control
● Water
management and seepage control
● Dust
control
● Off-specification
tailings management
● PAG
waste rock disposal
● Monitoring
and inspection
● Reclamation
These
environmental management controls are further described in Section 17.2.1.
15.4.4 Pit
Backfilling
The
pit is planned to be excavated for approximately 8.25 years and will generate an ore stockpile to be fed to the process plant. The stockpiled
ore will be depleted during the last two years of post-mining mineral processing and the associated tailings will be transported to the
pit bottom for backfilling up to an elevation of 6,630 ft amsl (assuming this plan is consistent with other possible closure plans for
the pit concerning its potential alternative use as a water storage reservoir). Then, with a combination of blasting and earthmoving,
the pit rim will be bulldozed into the pit to create a 3H:1V final pit wall slope. The final backfilled pit elevation will be approximately
6,720 ft amsl, as shown on Figure 15.16. The associated long-term ARD implications and effects on groundwater are described in Sections
17.1.2 and 17.2.1.
CK Gold Project S-K 1300 Technical Report 210 May 2026
Figure
15.16: Open-Pit Backfill and Pit Wall Grading
Source:
NEIRBO, 2023.
15.5 MINE
INFRASTRUCTURE
Mine
infrastructure required for conventional open pit mining typically includes a truck shop and wash bay (heavy equipment maintenance, parts
storage, and controlled wash-down with oil/water separation), fuel storage and dispensing facilities (bulk diesel tanks, metered dispensing,
lubrication/oil storage, spill containment, and fire protection), explosives storage and handling facilities (licensed magazine(s), detonator
storage, secure access control, and a designated loading/assembly area in accordance with applicable regulations), and mine dewatering
and water management systems (sump and pump stations, pipelines/hoses, sediment control, and discharge/recirculation infrastructure).
Civil
works and connections to power, water supply, and other utilities required to service the mining infrastructure will be constructed during
the initial construction phase, including foundations/pads, drainage, stormwater diversion, and containment systems as required. The
mining contractor will provide the detailed design, procurement, installation, and commissioning of the mine infrastructure during the
mobilization phase prior to commencing mining operations.
CK Gold Project S-K 1300 Technical Report 211 May 2026
15.6 PROCESS
PLANT
15.6.1 PLANT
FACILITY EARTHWORK
The
Project’s mill and associated infrastructure are situated to the south of the pit within Section 36, is illustrated in Figure 15.17.
Site grading plan have been developed for the mill area, mining equipment maintenance zone, administration building and warehouse, primary
crusher, ore stockpile, and all supporting facilities. The site grading design aims to optimize the balance between cut and fill volumes,
effectively manage stormwater run-off, and mitigate erosion risks. Each pad has been engineered with a gentle slope to ensure proper
drainage throughout the facility. All surface run-off water and contact water will report to the collection ditch and accumulate in Mill
Pond.
Figure
15.18 summarizes the bank cut and fill volumes and overall grading area.
Table
15.3: Plant Area Quantities
Grading
Area
Excavation
(CY)
Backfill
(CY)
Dump
Area
53,968.9
20,703.8
Primary
Crushing
24,632.2
-
Mill
Site Pond
7,434.2
86
Mill
and Stockpile Area
135,318.1
163,552.4
Warehouse
24,477.7
5,640.7
Truck
Shop
13,590.8
26,591.5
Plant
Roads
28,555
15,529
Total
287,977.10
232,104.30
CK Gold Project S-K 1300 Technical Report 212 May 2026
Figure
15.17: Mill and Truck Area
Source:
Halyard, 2025.
CK Gold Project S-K 1300 Technical Report 213 May 2026
Figure
15.18: Mill and Truck Area Grading
Source:
Halyard, 2025.
CK Gold Project S-K 1300 Technical Report 214 May 2026
15.6.2 Layout
The
process plant layout was developed to follow the natural landscape and to maximize gravity-driven material flow wherever practical. The
haul-truck dump pocket is positioned on elevated ground along the hillside to minimize rehandling and to provide a direct feed arrangement
to the primary crusher. Crushed ore from the crusher is then transferred by conveyor to the crushed-ore stockpile, which provides surge
capacity and decouples upstream mining/primary crushing operations from downstream milling operations.
Ore
is reclaimed from the crushed-ore stockpile through belt feeders that regulate withdrawal rates and maintain a steady feed to the downstream
conveying system. The reclaimed material reports to a stockpile reclaim conveyor and associated transfer points, and is conveyed to the
Process Building at a controlled tonnage. This reclaim arrangement supports consistent mill feed and provides operational flexibility
for stockpile management and blending.
The
Process Building houses the primary comminution and concentration circuits, with major equipment arranged to support straightforward
maintenance access and efficient material transfer between stages. The grinding circuit consists of a SAG mill followed by a ball mill
in series, providing the required size reduction prior to flotation. Downstream of grinding, the flotation equipment is installed to
produce concentrate, followed by a regrind mill to achieve final liberation targets as required. The building also contains the tailings
filtration plant to dewater tailings prior to transport and deposition.
The
tailings thickener is located immediately north of the Process Building to shorten slurry piping runs and to take advantage of gravity
flow where practical. The thickener and associated feed/discharge piping are situated within a fully bunded, lined containment area with
perimeter berms to control and capture any spills or overflows. Collected runoff and any thickener-area spillage is directed via graded
sumps and ditches to the mill pond located on the south side of the plant for recovery and reuse, in accordance with the site water management
plan.
Filtered
tailings are discharged from the Process Building and conveyed by belt conveyors to a dedicated truck-loading bin. The bin is designed
to provide adequate live capacity and controlled discharge to facilitate safe, efficient loading of haul trucks. Loaded trucks will transport
the filtered tailings to the tailings management facility (TMF) for placement in accordance with the overall tailings deposition plan
and site operating procedures.
The
concentrate filtration plant is located on the south side of the Process Building to support a direct, contained transfer path to product
storage and loadout. Filtered concentrate is transferred from the filtration area to the covered concentrate storage using tubular conveyors
to minimize dust generation and to protect product quality. Concentrate prepared for shipment is reclaimed from storage and loaded into
highway trucks using a front-end loader (or equivalent loadout equipment) within the covered area to reduce spillage and maintain housekeeping
standards.
Reagent
storage and preparation systems are located in an adjacent, dedicated building that is physically separated from the main Process Building
for fire protection and operational segregation. This area is equipped with appropriate ventilation, access control, and spill management
features, including secondary containment sized for the largest credible release. The layout provides safe delivery routes for bulk reagents
and supports efficient transfer to the process while meeting applicable environmental and safety requirements.
Overall
Process Plant layout is indicated in Figure 15.19 to Figure 15.25.
CK Gold Project S-K 1300 Technical Report 215 May 2026
Figure
15.19: Process Plant
Source:
Halyard, 2025.
Figure
15.20: Process Plant – Grinding Area
Source:
Halyard, 2025.
CK Gold Project S-K 1300 Technical Report 216 May 2026
Figure
15.21: Process Plant –Flotation Regrind and Tailing Filters
Source:
Halyard, 2025.
Figure
15.22: Process Plant – Tailing Thickener
Source:
Halyard, 2025.
CK Gold Project S-K 1300 Technical Report 217 May 2026
Figure
15.23: Process Plant – Tailings Loadout
Source:
Halyard, 2025.
Figure
15.24: Process Plant – Reagent Storage
Source:
Halyard, 2025.
CK Gold Project S-K 1300 Technical Report 218 May 2026
Figure
15.25: Process Plant – Concentrate Storage
Source:
Halyard, 2025.
15.6.3 Equipment
A
comprehensive mechanical equipment list was developed based on the project Process Flow Diagrams (PFDs) and the associated process design
basis. The list identifies all major mechanical and packaged items and captures key information such as service description, preliminary
sizing/duty, design and operating conditions, applicable codes and standards, materials of construction, and utility and tie-in requirements.
Process equipment was selected, designed, and specified using available material test data, process and operating envelopes, and vendor
input from major equipment manufacturers, together with established good engineering practice. Where vendor packages were anticipated,
requirements were defined to support consistent evaluation, interface coordination, and integration with the overall process and layout.
Equipment
layouts were developed to support safe operation and efficient maintenance, incorporating access, lifting and handling, removal paths,
and equipment clearances. Layout development considered operational walkthroughs, routine inspection and isolation points, and maintainability
requirements such as pull-space for bundles, access to rotating equipment, and proximity to utilities and drainage. The arrangement also
accounted for practical constructability, routing of piping and electrical/instrument interfaces, and segregation where required, consistent
with good engineering practice and the project’s overall plot plan constraints.
A
set of design criteria and project specifications was developed to define the statutory, safety, and operational requirements governing
equipment selection and design. These documents established the basis for design and operating conditions, required allowances and margins,
environmental and site conditions, inspection and testing expectations, and applicable codes, standards, and regulatory obligations.
The criteria also defined the expected operating regime and specified a proposed equipment life of 10 years, with requirements aimed
at supporting reliability, maintainability, and consistency across supplier packages and engineered items.
CK Gold Project S-K 1300 Technical Report 219 May 2026
Equipment
specifications and datasheets were prepared for the identified items and issued to a selected list of vendors to obtain budgetary quotations
and confirm technical assumptions. Enquiries were used to validate key equipment data (e.g., capacities, materials, weights/dimensions,
utilities, and performance guarantees) and to identify any vendor-specific constraints that could affect plot space, interfaces, or delivery.
Vendor feedback was incorporated, as appropriate, to refine the layouts, and used for capital and operating cost estimates.
15.6.4 Building
The
Process Building is designed as a conventional pre-engineered building (PEB). The structural layout incorporates two crane runways aligned
in the east–west direction to support material handling and maintenance activities within the building footprint.
The
building will be equipped with an HVAC system designed to maintain indoor conditions within ranges compatible with process equipment
operation and maintenance requirements. Space heating will be provided by propane-fired heaters supplied from an on-site propane storage
tank, with propane delivered by truck as required.
The
building structure and installed equipment are predominantly supported on conventional concrete spread footings. Based on the geotechnical
engineer’s recommendations, selected areas of the Process Building will require deep foundation support. To inform constructability
and budget development, a qualified deep foundation contractor with relevant experience was retained to provide a technical proposal
and budgetary quotation. Aggregate piers were evaluated as a potential deep ground improvement solution and have been included in the
project capital cost estimate.
The
Process Building includes a concrete slab-on-grade incorporating collection sumps equipped with sump pumps. This system is intended to
capture and remove slurry and washdown effluent generated during operations, supporting housekeeping and controlled drainage within the
building.
Final
foundation selection and extents should be confirmed during detailed design in coordination with the geotechnical engineer and the selected
specialty contractor, including verification of load criteria for equipment and crane runway reactions, and confirmation of sump discharge
routing and tie-in requirements.
Figure
15.26: Process Plant Building
Source:
Halyard, 2025.
CK Gold Project S-K 1300 Technical Report 220 May 2026
15.7 BUILDINGS
15.7.1 Admin
and Change House Building
An
Admin and Change House building will be provided to support on-site personnel during construction, commissioning, and operations. The
facility will include administrative work areas, meeting space, change rooms, washrooms, showers, lunch/break areas, and secure storage
as required for site activities.
The
Admin and Change House is planned to be installed in the early stages of site mobilization to support construction supervision and contractor
personnel. Feasibility planning assumes the majority of the building will be fabricated off-site as transportable modules, with on-site
activities limited to civil works (foundations, pads, and underground services), module set and connection, and commissioning of building
utilities. Temporary services may be used during construction, with permanent tie-ins completed as site utilities become available.
Figure
15.27: Admin and Change House Building
Source:
Halyard, 2025.
CK Gold Project S-K 1300 Technical Report 221 May 2026
15.7.2 Warehouse
The
proposed warehouse will be constructed to accommodate ongoing needs for storage of supplies and materials. The facility is intended to
provide secure, weather-protected space for receiving, staging, and storage in support of ongoing operations.
The
building will be delivered as a conventional pre-engineered metal building (PEMB) system supported on conventional cast-in-place concrete
foundations with a slab-on-grade floor.
Figure
15.28: Warehouse
Source:
Halyard, 2025.
15.8 POWER
AND WATER
15.8.1 Power
Supply
Electrical
power for the Project will be supplied by a local utility company, Black Hills Energy, under an Industrial Contract Service Agreement.
The anticipated Connected Power Load for the Project is approximately 40 megawatts (MW) with a Demand Power Load of 27 MW. The power
demand for the Project requires that a new 115 kV power line be constructed for the Project by Black Hills Energy. The power line would
be constructed from Black Hills Energy’s West Cheyenne substation, located approximately 16 miles east of the Project to a new
Black Hills Energy owned, built and operated 115/13.8 kV (50 MVA) distribution substation (including transformer) near the mine. The
powerline alignment would take advantage of existing easements and planned county roads in the vicinity of the Project. The alignment
would require easements from the City of Cheyenne, State of Wyoming, and two local ranches.
The
mine electrical facilities would be required to provide sufficient reactive support for the mine’s electrical system to maintain
reliability and voltage levels on the Black Hills Energy system. Black Hills Energy performed a load addition report to determine the
impact of the CK Gold proposed mining operation.
CK Gold Project S-K 1300 Technical Report 222 May 2026
Unit
costs for construction of the infrastructure for the power line and unit rates for the delivered power under an Industrial Contract were
provided by Black Hills Energy in August 2022. A cost estimate for the RoW easement was also provided by Black Hills Energy. The estimated
construction costs for the proposed power line, easement cost and substation have an option to be amortized in an addition to the base
power unit rate charged. The estimated construction cost for the proposed power line and substation is included in the power supply rate
and will be amortized over the LoM. The power unit rate inclusive of amortized power supply construction costs the unit rate is estimated
to be 7.1. c/kWh.
The
easement costs are US$140,000 per mile.
15.8.2 Power
Distribution
Electrical
power to the site will be supplied via a 13.8 kV overhead powerline routed from the south side of the property. The incoming supply will
be distributed across the site via a combination of overhead lines and underground cabling to serve the Process Plant building, Crusher
and Stockpile, Truckshop and Washbay, and water collection ponds. Distribution will be arranged to suit operational reliability, maintainability,
and safe access for isolation and maintenance activities.
Prefabricated
electrical rooms (E-Rooms) will house key power distribution equipment, including switchgear, variable frequency drives (VFDs), and unit
substations. These E-Rooms will be positioned to minimize cable runs, support efficient commissioning and maintenance, and provide appropriate
separation from process areas while maintaining convenient access for operations.
● Main
Plant Substation ER-2930 – south of the Process Plant.
● Electrical
Room ER-2910 – Crusher Station.
● Electrical
Room ER-2920 – northeast of the Process Plant.
Emergency
power will be provided by a standby diesel generator to support critical loads during loss of the normal supply. The standby system will
be arranged to enable safe changeover and to maintain essential services required for personnel safety, communications, lighting, and
critical control and protection functions, as applicable. Fuel storage, refuelling arrangements, ventilation, and routine testing/maintenance
requirements will be incorporated into the installation to support reliable operation when required.
15.8.3 Water
Supply
The
Project will operate in a net water deficit situation, given that the mean annual evapotranspiration exceeds the mean annual precipitation.
The Project’s total average water consumption is 562 gpm. This number is the estimated total consumption, excluding reductions
in demand for water from off-site sources associated with planned water saving measures. Water consumption includes use for mineral processing,
general operations and dust control. Tierra Group developed a site-wide water management plan to maximize water reuse and minimize freshwater
make-up. Details of the site-wide water management plan can be found in Section 17.2.3.
The
Project has a water supply agreement with the Cheyenne Board of Public Utilities (BOPU). Sunrise Engineering was retained to design a
water supply line from the Crystal Reservoir.
Sunrise
Engineering was engaged to design a dedicated water supply pipeline originating from Crystal Reservoir. The planned infrastructure consists
of an 8-inch diameter HDPE pipeline, which will convey water from the pumping station situated on the southeast shore of Crystal Reservoir
to the freshwater storage tank located to the north of the Process Plant Building. The proposed design includes the raw water intake
system, pump booster station and electrical power supply line and control from the Process plant area.
CK Gold Project S-K 1300 Technical Report 223 May 2026
Schematic
route of the proposed pipeline is indicated on Figure 15.19.
A
construction cost estimate for this waterline was provided at US$5,800,000.
The
cost of water supply was estimated at US$5.325/1000 gallons and included in the OPEX and cash flow model.
Water
generated from pit dewatering, surface run-off, and waste rock and tailings seepage will be recycled for use in mineral processing and/or
dust suppression to supplement water supplied from the Christal Lake pipeline.
Alternatively,
other sources of water for the Project include on-site existing surface water rights and potential new on-site wells.
U.S.
Gold, operating under a water agreement with Ferguson Ranch, is conducting a water exploration program on land immediately north of the
Project area. The Casper Formation, a significant water-bearing rock, has been intercepted twice in the Red Canyon area one mile north
of the proposed project water tank. Significant sandy intervals have been logged and the geophysical log indicates high resistivity consistent
with sand-bearing intervals. U.S. Gold is conducting draw down tests and will model the hydrology and estimate the water well pumping
capacity. The potential ease of construction, operation and cost savings make the Red Canyon water well the alternative water source.
CK Gold Project S-K 1300 Technical Report 224 May 2026
Figure
15.29: Water Pipeline
Source:
Sunrise, 2025.
CK Gold Project S-K 1300 Technical Report 225 May 2026
15.8.4 Potable
Water
Potable
water will be delivered to site by licensed water-hauling trucks and transferred to the potable water holding tank located outside the
Admin and Changehouse Building. Deliveries will be scheduled as required to maintain an adequate supply for drinking, handwashing, and
other domestic uses, and will be managed to prevent cross-contamination during loading, unloading, and storage.
15.8.5 Waste
Disposal
Sanitary
sewage will be conveyed to and collected in an on-site septic tank. The septic tank will provide primary treatment by allowing solids
to settle and scum to separate prior to off-site disposal. The tank will be sized and installed in accordance with applicable local requirements
and manufacturer recommendations, including provision for access covers to allow inspection and pumping. Accumulated septage will be
removed at regular intervals, and as required to maintain proper operation, by a licensed sewage hauling contractor using a vacuum truck,
and transported to an approved receiving facility for treatment and disposal.
CK Gold Project S-K 1300 Technical Report 226 May 2026
16
MARKET STUDIES
16.1 FLOTATION
CONCENTRATES
The
Project will produce a copper-gold flotation concentrate at a rate of between 200 and 300 wet tons per day. The product will include
marketable concentrations of copper, gold, and silver, will be largely free of deleterious elements and is expected to be of significant
interest to domestic and overseas smelters alike. The concentrate product will contain 8% to 9% moisture and will be transported in bulk
form.
Recent
strong demand for commodities such as copper in the Asian markets has tended to stimulate the expansion of processing capacities for
raw materials in the East, and this together with more stringent environmental regulation in the West has driven a steady reduction of
similar processing capacities elsewhere in the international market. This global balancing of supply and demand is expected to continue,
and Asian copper smelting capacity should absorb much of the new copper concentrate production capacity that will be realized.
The
quantity, quality, and value of the CK Gold concentrate product opens the possibility of shipment to a wide range of geographic regions,
although focus will be placed on regions and consumers that provide the optimum return to the Project. At least two smelters within North
America are able to accept the CK Gold concentrate product, whilst a larger number of international facilities are also under consideration.
With gold accounting for at least 70% of the project’s revenues, those facilities with a greater emphasis on the accountability
of this metal will be preferred. Metallurgical testing has highlighted a strong inverse correlation between copper concentrate grade
and recovery of gold, meaning that higher gold revenues are theoretically possible through the production of a lower-grade copper concentrate
product. Markets that can accept lower copper concentrations (below 15%) will be preferred, assuming that gold and silver accountability
is still acceptable and that transportation costs do not neutralize the gold recovery advantage.
16.2 GENERAL
CONSIDERATIONS
Based
on the results of recent metallurgical testwork, the flotation concentrate will be a clean product that will be in demand for its contained
gold and lack of deleterious elements. The minor element analyses summarized in Table 16.1 have been communicated to smelters and traders
with positive feedback. While the anticipated average copper content is slightly lower than many copper concentrates with a 13% to 15%
copper grade, the gold grade of 25 g/mt to 55 g/mt and a sulfur-to-copper ratio of at least 1:1 will make it attractive to smelter facilities.
As
the Project develops toward production, it is recommended that focus is maintained on selective smelting and refining complexes that
currently process copper concentrates in North America. Compared to overseas markets, transportation logistics and timelines should be
more streamlined, resulting in more attractive payment terms.
Normal
deviations in moisture content and the methods established to sample and determine the settlement dry weight must be closely examined
and controlled to ensure appropriate confidence in the metallurgical balance. It is recommended that moisture samples be taken when the
filter cake product batches are weighed and sampled for assay. Care must be taken to immediately seal the moisture samples and follow
the established procedures for drying and determination of dry weight. Sampling for assay determination should be carefully monitored
but is expected to follow normal procedures. Samples will be taken from trucks via representative “spearing” when departing
site, and this sampling process may be automated if required.
Note
that although sampling at source is recommended, final settlement results will always be determined from samples taken at the receiving
smelter, during which the Seller may be present and/or represented.
CK Gold Project S-K 1300 Technical Report 227 May 2026
Assaying,
exchange of assay results, and the splitting limits for determining settlement results will be determined during final contract negotiations
and must be professionally managed.
It
is anticipated that loss of material will occur as the bulk concentrate is loaded, transported and unloaded. More complex transloading
solutions will generally result in higher losses. A 0.3% mass loss has been assumed in the feasibility study NSR calculations.
16.2.1 Accountable
and Deleterious Metals
The
flotation concentrate shipped from the Project will contain accountable levels of copper, gold, and silver, with generally low levels
of deleterious elements. The anticipated ranges of minor/non-payable metals are summarized in Table 16.1.
Table
16.1: Minor Element Summary
Major
Element
Min
% (w/w)
Max
% (w/w)
Average
% (w/w)
Minor
Element
Min
ppm (w/w)
Max
ppm (w/w)
Average
ppm (w/w)
Cl
0
0.02
<0.01
As
50
300
200
F
0
0.01
<0.01
Bi
<10
40
30
Fe
10
32
23
Cd
<10
75
45
S
15
33
28
Co
100
450
240
Si
7
14
6
Cr
70
470
200
Al
0.1
3.1
2
Hg
6
18
10
K
0.1
1
0.5
Ni
70
400
200
Na
<0.1
0.1
<0.1
Pb
400
4,000
1,400
Ca
0.2
1.6
0.65
Sb
8
114
35
Mg
0.05
0.3
0.15
Se
70
280
120
Te
8
110
40
Zn
1,600
27,000
10,000
16.2.2 Production
Schedule
The
metallurgical model outlined within Section 22 has been used, together with latest mine plan information, to prepare estimates of concentrate
production rates and specifications by year over the LoM. The quantity and quality of concentrate produced will depend on the process
plant feed grades, the mixture of oxide, mixed and sulfide mineralization and the prevailing market conditions for copper/gold concentrates.
Two examples of anticipated concentrate production are given below, corresponding to a moderate mass pull (Table 16.2) and a more aggressive,
high mass pull, low-grade scenario (Table 16.3) with correspondingly higher metal recoveries.
CK Gold Project S-K 1300 Technical Report 228 May 2026
Table
16.2: Concentrate Production Schedule Estimate – Low Mass Pull
Parameter
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10
Y11
LoM
Dry
Tons (st)
33,366
65,566
71,768
64,128
71,572
75,103
70,942
73,877
45,159
35,284
20,241
627,007
Wet
Tons (st)
36,202
71,139
77,868
69,579
77,656
81,487
76,972
80,157
48,997
38,283
21,962
680,302
Cu
grade (%)
12.7
16.4
16.9
16.6
16.5
16.5
16.5
16.5
15.9
15.4
15.4
16.2
Gold
Grade
(oz/st)
2.41
1.47
1.33
1.03
1.21
0.85
0.98
0.92
0.93
0.88
0.88
1.14
(g/mt)
83
50
46
35
41
29
34
31
32
30
30
39
Silver
Grade
(oz/st)
5.69
4.05
3.37
2.99
2.68
2.03
2.19
2.28
3.49
4.78
4.78
3.17
(g/mt)
195
139
116
103
92
70
75
78
120
164
164
109
S
grade (%)
28.1
27
27.4
28.7
28.9
28.9
28.9
28.9
28.7
28.5
28.5
28.7
Fe
grade (%)
29.6
25.9
25.4
26.2
26.4
26.4
26.4
26.4
27.2
27.8
27.8
27.1
Table
16.3: Concentrate Production Schedule Estimate – High Mass Pull
Parameter
Y1
Y2
Y3
Y4
Y5
Y6
Y7
Y8
Y9
Y10
Y11
LoM
Dry
Tons (st)
44,497
86,359
94,355
84,187
93,940
98,574
93,111
96,964
59,368
46,462
26,654
747,947
Wet
Tons (st)
48,279
93,700
102,375
91,343
101,925
106,953
101,026
105,206
64,414
50,411
28,919
894,550
Cu
grade (%)
10.0
12.9
13.3
13.0
13.0
13.0
13.0
13.0
12.5
12.1
12.1
12.7
Gold
Grade
(oz/st)
1.88
1.15
1.03
0.79
0.92
0.64
0.75
0.70
0.71
0.68
0.68
0.88
(g/mt)
64
39
35
27
32
22
26
24
24
23
23
30
Silver
Grade
(oz/st)
4.45
3.24
2.70
2.40
2.15
1.63
1.76
1.83
2.79
3.81
3.81
2.53
(g/mt)
153
111
93
82
74
56
60
63
96
131
131
87
S
grade (%)
22.2
21.3
21.6
22.6
22.7
22.7
22.8
22.8
22.6
22.5
22.5
22.6
Fe
grade (%)
23.5
20.4
20.0
20.7
20.8
20.8
20.8
20.8
21.5
21.9
21.9
21.3
CK Gold Project S-K 1300 Technical Report 229 May 2026
16.2.3 Metal
Pricing
Gold,
copper, and silver each contribute to the project revenue stream and so future price predictions are necessary for this Feasibility Study.
The metal price assumptions outlined below for purposes of the economic analysis in this study may differ from the metal prices used
to establish the resource and reserve inventories which are cast at lower levels (see relevant sections). A conservative approach was
adopted in outlining resource and reserve inventories.
Commodity
price forecasts use a combination of three-year rolling averages, long-term consensus pricing, and benchmarks to pricing used by industry
peers over the past year. Higher metal prices are used for the mineral resource estimates to ensure the mineral reserves are a subset
of, and not constrained by, the mineral resources, in accordance with industry-accepted practice. The base-case metal prices used in
the Project’s economic evaluation within this Feasibility Study are shown in Table 16.4.
Table
16.4: Feasibility Study Base Case Metal Prices
Metal
Unit
Base
Case Price
Gold
US$/oz
3,250
Copper
US$/lb
4.50
Silver
U$S/oz
40
16.2.4 Smelting
and Refining Charges
The
smelting and refining terms used within the Feasibility Study economic models are consistent with current market trends. The QP has established
current market trends through discussions with a number of smelters and commodities traders, in addition to ongoing consultation with
industry experts and operators with producing projects.
No
forward-looking adjustments are made to these terms in later years.
Discussions
with several concentrate offtake companies have continued and indicative term sheets have been received in response to formal requests.
No definitive smelter agreements have been obtained for the concentrate at this time. It is apparent however, that it will not be difficult
to market the concentrate under normal market conditions, due mainly to the higher gold grade and the absence of deleterious elements.
Metallurgical
testwork results indicate that deleterious elements in the concentrate will be at levels below typical industry penalty thresholds.
Table
16.5 summarizes the smelter terms utilized for FS economic analysis. These terms are based upon the verbal and written terms received
from several potential offtake partners, and have been applied quarterly for the first three years and so account for short-term variability
in payable metal grades as the mix of plant feed ore type changes (Refer to Section 16.2.2).
Table
16.5: LoM Average Smelting and Refining Terms
Term
Unit
Copper
Gold
Silver
Minimum
Deduction
%,
g/dmt
1.00
– 1.50
n/a
n/a
Payable
Metal
%
96.5
90.00
– 98.00
90
Base
Smelting Charge
US$/dmt
60
n/a
n/a
Copper
Refining Charge
US$/lb
payable
0.06
n/a
n/a
Gold
/ Silver Refining Charge
US$/oz
-
0.6
0.5
Concentrate
Moisture
%
8.5
CK Gold Project S-K 1300 Technical Report 230 May 2026
Note
that a range of minimum deduction levels are used for copper, inversely proportional to the copper concentrate grade (i.e., a lower copper
grade incurs a higher minimum deduction). Likewise, the gold payable percentage is linked to the concentrate gold grade, with higher
grades attracting better payable percentages.
16.2.5 Transportation
The
bulk concentrate will be shipped from site on a continuous basis using rear or side-tipping trucks (30 yd3 to40 yd3 capacity)
to a transloading facility in Laramie. The transloading facility will include a fully enclosed storage building designed to minimize
losses and will be suitable for indoor loading of gondola rail cars by front end loader. Storage capacity within this facility will be
equivalent to 10 days to 12 days of production. From the transloading facility, gondolas can be transported easily to domestic smelters,
or to the Pacific coast in Guaymas, Mexico for ocean shipment overseas.
The
feasibility study takes the cost of shipping by road and rail, together with loading/offloading and other handling costs at transloading
and destination facilities into account. A total cost of US$177 per wet tonne has been assumed, based on an assumed delivery to a North
American smelter destination.
16.3 MINING
CONTRACT
The
project will adopt a contract mining strategy under which an experienced mining contractor will be responsible for all primary mining
activities. These activities will include pit drilling, blasting, loading, hauling, and the placement of tailings. The contractor will
supply the necessary equipment, workforce, and operational expertise to execute these tasks in accordance with the project’s production
schedule, safety requirements, and environmental standards.
A
separate contract will be negotiated for aggregate mining and production of approximately 1,200,000 short tons of waste in Year-1, Q1.
Waste material mined as part of these operations will be used in project construction activities. At the end of Year-1, Q1 this mining
contract will be closed.
It
is contemplated that one of several contractors will be selected to conduct topsoil stripping, ground preparation and pre-production
mining to satisfy initial construction needs. RoM rock will be crushed and screened to provide various crushed product sizes to serve
as aggregate, material for drainage infrastructure, top-dressing for roads and around the site, and over-liner material.
16.4 OTHER
CONTRACTS
Besides
power supply, negotiation will be held for major consumer item supplies encompassing fuels oils, and grease, reagent supply. Proximal
to the Project is a major prill manufacturer for ANFO explosives and contractors for the downhole supply of explosives for blasting on
site. Additionally, contracts for several non-core activities such as employee bussing, security, and waste disposal will be established.
Where possible contract services for administrative functions will be sought in nearby Cheyenne.
CK Gold Project S-K 1300 Technical Report 231 May 2026
17 ENVIRONMENTAL STUDIES
17.1 INTRODUCTION
This
chapter summarizes the status of environmental compliance, permitting and community engagement, including the following specific topics:
● Results
of environmental studies (Section 17.2): Environmental studies began in October 2020 to establish
the pre-mining site conditions and fulfill the information requirements for Project permitting.
The scope and results of these studies, which include environmental baseline characterization,
groundwater and seepage modeling, and geochemical characterization of tailings and mine rock,
are summarized herein.
● Requirements
and plans for waste and tailings disposal, site monitoring, and water management during operations
and after mine closure (Section 17.3): Based on the Project mine plan and results of the
environmental studies, specific requirements, and plans have been identified and summarized
for management of waste rock and tailings, site monitoring and water management, to avoid
or mitigate environmental impacts throughout the Project life cycle.
● Project
permitting requirements, the status of permit applications, and requirements to post a reclamation
bond (Section 17.4): Permitting is primarily at the state and local level; no major federal
permits are required. The principal state permits have been obtained and are described herein.
Additional required state and local level permitting is also identified. Bonding is in place
for the reclamation of areas to be disturbed during the first year of construction and mining
operations, and additional reclamation bonding will be required annually for subsequent operations.
● Plans,
negotiations, and agreements with local individuals and groups (Section 17.5): Other than
permitting, various agreements with local stakeholders needed for the construction and operation
of the Project are described.
● Mine
closure plan, including remediation and reclamation, and associated costs (Section 17.6):
The state has approved a reclamation plan covering the full extent of the project, which
is summarized herein. The state also developed a reclamation cost estimate, which it accepted
as part of the reclamation bonding process.
● The
qualified person’s opinion on the adequacy of current plans to address issues related to
environmental compliance, permitting, and local individuals or groups (Section 17.7).
● Commitment
to local procurement and hiring (Section 17.8).
17.2 ENVIRONMENTAL
STUDIES
17.2.1 Baseline
Characterization
Baseline
characterization studies began in October 2020 to establish the pre-mining site conditions and fulfill the information requirements for
Project permitting. The baseline studies have been concluded and the associated reports submitted to the state as part of the various
permit applications required by the Wyoming Department of Environmental Quality (Section 17.4).
17.2.1.1 Land
Use
The
Project site is located on land owned by the State of Wyoming (Section 36) and the Ferguson Ranch (south half of Section 25 and Section
31), as shown on Figure 17.1. In Section 36, the surface and minerals are owned by the State of Wyoming and the surface is leased for
grazing to the Ferguson Ranch, Inc. The Project site has been used as rangeland for cattle grazing and mineral exploration.
CK Gold Project S-K 1300 Technical Report 232 May 2026
Past
mining activity occurred on the site and in the surrounding historical Silver Crown Mining District since the district was established
in 1879, including prospecting, exploration drilling, surface mining, and expansive underground excavation. The Project is centrally
located within the historic Copper King Mine and has been the focus of past exploration and mining activities associated with that Mine.
The mine is considered one of the top five gold deposits in the state of Wyoming (Hausel 2019). The deposit was first discovered by James
Adams of the Adams Copper Mining and Reduction Company in 1881. The deposit was primarily developed as an underground copper mine. But
despite several mining campaigns spanning several generations and transfers of ownership, much of the deposit is still intact. At least
13 exploratory drilling programs with over 173 drill holes have been developed on the site since 1930 for metallurgical, technical, hydrological,
and resource expansion purposes.
17.2.1.2 Climate
The
Project has operated a weather station on the Project site since November 2020. Figure 17.2 shows the location of the Project weather
station. Additionally, more than 20 weather stations are located between Laramie and Cheyenne and provide temperature, precipitation,
wind speed, and wind direction measurements.
Based
on data compiled from the site weather station and other surrounding stations (the latter over at least a ten-year period), the daily
average temperature ranges from about 25°F in February to about 70°F in July. The average low temperature is -11°F in February
and the average high is 90°F in July.
The
Project site is in a net water deficit. The average annual precipitation is about 17 inches, while the annual evaporation is about 53
inches, as determined by the on-site meteorological station. May is the wettest month, with an average of about 3 inches; January is
the driest, with an average of about 0.6 inches. Snowfall typically occurs from September to May.
The
site experiences relatively strong winds, with an average monthly wind speed ranging from about 8 mph in July to about 17 mph in December.
For those same months, the average maximum wind speeds are 43 mph and 63 mph, respectively, with peak wind speeds of 55 mph and 75 mph
(86 mph for January). The predominant wind direction is westerly.
17.2.1.3 Air
Quality
The
Project has monitored baseline air quality since November 2020 to collect ambient air quality data and establish the pre-mining air quality.
The air quality monitoring station is located approximately 0.2 miles north of the Project site on the Ferguson Ranch along County Road
210, as shown in Figure 17.2. The location was selected in general accordance with 40 CFR Part 58 Ambient Air Quality Surveillance. The
station collects integrated particulate matter data sized less than 10 µm (PM10) once every six days over 24 hours using
two collocated BGI PQ200 particulate air samplers. The samplers collect integrated 24-hour samples in accordance with EPA protocols (Quality
Assurance Guidance Document 2.11, Reference Method for the Determination of Particulate Matter as PM10 in the Atmosphere).
To
date, the background air quality has met the National Ambient Air Quality Standard 24-hour PM10 level of 150 μg/m3,
with PM10 measurements ranging from 0 μg/m3 to 45 μg/m3.
CK Gold Project S-K 1300 Technical Report 233 May 2026
17.2.1.4 Surface
Water and Wetlands
An
Aquatic Resources Inventory (ARI) was performed in September 2020 (Trihydro 2020) to identify jurisdictional Waters of the United States
in and around the Project site. The United States Army Corps of Engineers (USACE) regulates jurisdictional Waters of the US, which are
defined and regulated by Section 404 of the Clean Water Act (CWA) 33 CFR Part 328.3 and Section 10 of the Rivers and Harbors Act (RHA)
33 USC 1344, including streams and wetlands. The jurisdictional waters and wetlands were identified to facilitate Project infrastructure
planning to prevent impacts on the Waters of the US.
The
surface water features investigated under the ARI are shown on Figure 17.3. They include the intermittent South Crow Creek, the ephemeral
South and Middle tributaries of Middle Crow Creek, and the perennial/intermittent North tributary of Middle Crow Creek. Based on the
findings of the ARI, on February 5th, 2021 the USACE issued an Approved Jurisdictional Determination (AJD) for the drainages
and wetlands within the Project area. The AJD is the official determination from the USACE on the Waters of the US that are present in
the Project area. The jurisdictional Waters of the US identified in the AJD include South Crow Creek and the North tributary to Middle
Crow Creek. The AJD concluded that the drainages and wetlands associated with the South and Middle tributaries to Middle Crow Creek are
not jurisdictional Waters of the US. The Project mine facilities have been designed to avoid and will not impact jurisdictional Waters
of the US.
In
November 2023, Western EcoSystems Technology (WEST) prepared an additional ARI report (WEST 2023a) for the proposed Project access road
and vicinity. This ARI identified one dry drainage with a defined channel that may be jurisdictional. The access road will not cross
the drainage, and mine activities will not affect it.
A
surface water baseline monitoring program was initiated in October 2020 and completed in April 2022. The program included a collection
of surface water quality samples, field water quality parameters, and stream flow measurements monthly at up to six monitoring locations
within the Project site, as shown in Figure 17.3. The monitoring locations are located along the primary surface water features within
the Project and include the intermittent South Crow Creek, the South and North tributaries to Middle Crow Creek, and one spring in the
South tributary of Middle Crow Creek.
17.2.1.5 Groundwater
Groundwater
monitoring at the Project site began in 2020 to characterize the potentiometric surface, groundwater flow, and groundwater quality (NEIRBO
Hydrogeology 2023). Data has been collected over a period of approximately 18 months using monitoring wells, standpipe wells, vibrating
wire piezometers (VWP), HQ core holes, and reverse-circulation boreholes. This data formed the basis for development of a groundwater
flow model, as described in Section 17.2.2.
Quarterly
groundwater monitoring has been performed at seven monitoring wells within the Project site (MW-1, MW-3, MW-4, MW-5 MW-7, MW-8a, MW-8b),
as shown on Figure 17.3. Groundwater sampling started in the fourth quarter of 2020. Results from six quarterly sampling events were
included in the Mine Operating Permit application submitted to the DEQ-LQD in January 2024.
CK Gold Project S-K 1300 Technical Report 234 May 2026
Figure
17.1: Project Site and Access Road Location
Source:
Trihydro, 2020.
CK Gold Project S-K 1300 Technical Report 235 May 2026
Figure
17.2: Locations of the Meteorological Station and PM10 Monitoring Station
Source:
Air Resource Specialists year?
CK Gold Project S-K 1300 Technical Report 236 May 2026
Figure
17.3: Surface and Groundwater Sampling Locations
Source:
Trihydro, 2020.
CK Gold Project S-K 1300 Technical Report 237 May 2026
Results
indicate that the groundwater is generally of a bicarbonate type. Wells MW-7 and MW-8a are drilled in granodiorite and alluvium, respectively,
and have calcium-bicarbonate type water, whereas MW-1, 3, 4, and 5, drilled in granodiorite and metasediments, have sodium bicarbonate
water. Monitoring well MW-8b has a mixed calcium-sodium bicarbonate water and is the only well screened in the White River Formation
(NEIRBO Hydrogeology 2023).
Water
quality has mostly met standards, although some measurements have been above DEQ limits, variably between domestic, agricultural, and
livestock standards. Table 17.1 summarizes the baseline groundwater quality that exceeds DEQ standards in each monitoring well for each
quarter, as reported by NEIRBO Hydrogeology (2023).
Table
17.1: Baseline Monitoring Wells with Constituent Concentrations Exceeding Water Quality Standards
Constituent
2020
Q4
2021
Q1
2021
Q2
2021
Q3
2021
Q4
2022
Q1
Fluoride
1,
3, 4, 5
1,
3, 4, 5
1,
3, 4, 5
1,
3, 4, 5
1,
3, 4, 5
1,
3, 4, 5
pH
1,
3, 4, 5
1,
3, 4, 5
1,
3, 4
1,
3, 4, 5
1,
3, 4, 5
1,
3, 4
Dissolved
Iron
3,
5
5
—
—
7
—
Total
Iron
1,
3, 5, 7
3,
5
3,
4, 5
—
5,
7
4,
7
Mercury
—
7
7
—
—
—
Manganese
3,
7, 8a, 8b
7,
8a, 8b
7,
8a, 8b
7,
8a, 8b
7,
8b
4,
7
Sodium
Adsorption Ratio (SAR)
1,
4
4
4
1,
4
4
4
Dissolved
Uranium
7
7
7
7
7
7
Total
Uranium
*
*
*
*
7
7
Gross
Alpha
7
3,
7
7
3,
7
7
3,
7
Adjusted
Gross Alpha
—
3
7
—
7
7
Notes:
From NEIRBO Hydrogeology 2023:
● Well
names are preceded by “MW-”.
● Wells
listed for each constituent exceeded at least one of the DEQ water-quality standards for
Class 1 Domestic, Class 2 Agriculture, or Class 3 Livestock uses
● “—”
No wells exceeded standards.
● “*”Not
measured.
17.2.1.6 Soils
The
Project site is located on the eastern flank of the Laramie Range between the Rocky Mountains and High Plains sections of the Great Plains
physiographic province. The Laramie Range is an approximately 130-mile-long mountain range between Laramie and Cheyenne, Wyoming, that
trends north from the Colorado-Wyoming border towards Casper, Wyoming. The Laramie Range consists of granite/granodiorite peaks and rolling
hills bound to the east non-conformably by shallow eastward dipping sedimentary rocks of the White River Formation. East of the Project
area, towards Cheyenne, the topography transitions to flatter plains along the western margin of the Great Plains physiographic province.
The Project site geology is further described in Section 6.
The
Natural Resource Conservation Service (NRCS) database of mapped soil units was reviewed. The nine soil units described by the NRCS soil
database at the Project site were identified and field verified in July 2021. Preselected sample locations and respective field survey
soil profile descriptions were used to confirm or modify the coverage of the nine soil map units. For soil map units that were modified,
the acreages were revised (Figure 17.4).
A
test pitting subsurface exploration program was implemented around the same time to evaluate the soils in the proposed development areas
(Trihydro 2022). The ore body is exposed at the hilltop and is generally surrounded by granite. Weathered soil is located around the
base of the slopes. The north and western faces of the hill are the steepest portions of the Project site and have the least amount of
soil cover. The northeast and southern saddle areas have gentler slopes and generally contain more soil.
CK Gold Project S-K 1300 Technical Report 238 May 2026
Topsoil
was generally encountered throughout the Project site at the ground surface with localized areas of outcropping bedrock. The topsoil
consists of brown to dark brown silt with trace sand and gravel and decomposing organic matter. The topsoil typically ranges from approximately
0.25 ft to 4.25 ft in thickness with an average thickness of 1.1 ft. Generally, topsoil was found to be thickest in the drainages and
valley bottoms and thinner along slopes and ridges.
Subsoils
are typically aeolian or colluvial soils or were derived from the lightly cemented White River Formation, which is composed primarily
of lightly cemented alternating layers of siltstone, sandstone, and claystone.
Silty
soil is common, as the White River Formation has a primarily silty matrix. Silty soil tends to be low plasticity and lie above massive
siltstone beds. The silt is predominantly dark brown and either dry or slightly moist and contains sand. Silts observed in test pits
were predominantly under 5 feet thick, with some reaching up to 10 ft thick. Silty sand layers were also encountered and generally found
overlying sandstone beds. They tend to be olive brown in color, lean, dry to slightly moist and up to a few feet thick.
The
clayey soil encountered is primarily lean clay with brown to gray color and tends to have noticeable sand content. The lean clays, as
classified by the Unified Soil Classification System, are primarily associated with the B soil horizon where fine grained particles migrate
down from the topsoil into the subsoil regions and create the silty clay layer. Lean clays can be found primarily in the Mill Area, the
Ore Facility, and the TMF. Fat clays were encountered primarily to the southeast of the Mill Area and portions of the TMF. The fat clays
also have noticeable sand and gravel content. Fat clays are likely to have a shrink or swell potential in response to moisture changes;
they shrink as the soil dries and swell as more water is added.
Loose
sand and gravel are commonly found overlying sandstone or claystone with significant sand or gravel content. These loose soils are typically
light gray or brown with significant silt content. Gradation ranges from poor to well graded.
17.2.1.7 Vegetation
The
Project area consists primarily of rolling grassland/herbaceous habitat with forested and shrub/scrub-covered drainages. Most of the
Project site consists of prairie grasslands, with some areas of xeric forest and sparse areas of foothill, sagebrush shrublands, and
riparian vegetation. Habitat to be disturbed by Project development consists almost entirely of the grassland/herbaceous type.
Trihydro
performed a desktop review of national and state vegetation databases in 2021 as part of the Mine Operating Permit application to identify
vegetation types in the Project area and potential special status plant species. Figure 17.5 shows the different vegetation types at
the Project site according to the US Geological Survey’s National Land Cover Database.
CK Gold Project S-K 1300 Technical Report 239 May 2026
Figure
17.4: Field Survey Soil Sample Locations and Map Unit Modifications
Source:
Trihydro, 2020.
CK Gold Project S-K 1300 Technical Report 240 May 2026
Figure
17.5: USGS Land Cover Vegetation
Source:
Trihydro, 2020.
CK Gold Project S-K 1300 Technical Report 241 May 2026
Based
on field surveys conducted in July 2021 by Trihydro and June 2023 (WEST 2023b), it was concluded that the Project site does not contain
suitable habitat associated with special status plant species, and no such species were observed. The most common native species identified
during the field survey were in the grassland/herbaceous habitat and include needle and thread (Hesperostipa comata), western wheatgrass
(Pascopyrum smithii), blue grama (Bouteloua gracilis), prairie junegrass (Koeleria macrantha), and Sandberg bluegrass (Poa secunda).
Notably, cheatgrass (Bromus tectorum), a non-native, aggressively invasive weed species in Laramie County, was the sixth-most common
species found.
17.2.1.8 Wildlife
A
desktop study reviewed national and state data sources to determine the potential for listed wildlife species within the Project site.
The US Bureau of Land Management (BLM) Wyoming Sensitive Species List includes 16 species potentially occurring at the Project site,
including four mammals, 11 birds, and one amphibian. The US Fish and Wildlife Service (USFWS) Planning and Conservation website further
identified four federally listed species potentially present at the site, including the Preble’s meadow jumping mouse (Zapus
hudsonius preblei), piping plover (Charadrius melodus), whooping crane (Grus Americana), and pallid sturgeon (Scaphirhynchus
albus). No critical habitat was identified within the Project site. However, a portion of the Project site falls within the pronghorn
antelope (Antilocapra americana) crucial winter range, and the whole Project site and surrounding area is within the mule deer
(Odocoileus hemionus) crucial winter range. In consultation with the WGFD, mitigation action will be taken for the disturbance
of mule deer crucial winter range during Project construction and mining operations, including minimization of vehicular traffic by worker
busing, installation of wildlife-friendly fencing, and a US$300,000 payment to the WGFD.
A
field wildlife survey was conducted in and around the Project site by Trihydro in June 2021 as part of the Mine Operating Permit application,
focused primarily on the BLM sensitive species and the federally listed species. WEST conducted additional field surveys from May to
July 2023 (WEST 2023c, d, e), focused on raptors, fish, and species designated by WGFD as Species of Greatest Conservation Need (SGCN),
including upland sandpiper (Bartramia longicauda), swift fox (Vulpes velox), smooth greensnake (Opheodrys vernalis), western tiger salamander
(Ambystoma mavortium), and northern leopard frog (Lithobates pipiens).
Two
BLM sensitive bird species were observed: the northern goshawk and the Brewer’s sparrow. The Project site was determined to contain
potentially suitable habitat only for one of the four USFWS federally listed species, the Preble’s meadow jumping mouse, although
this species was not found and its associated potential habitat along the creeks is degraded from cattle grazing.
No
raptor nests were found within planned areas of Project disturbance, and no golden eagle nests were observed within the Project site.
None of the SGCN species were seen or heard on the Project site, though the site is within the upland sandpiper and swift fox predicted
distribution areas. Project development will avoid the flowing streams that offer potential habitats for amphibians and fish. Almost
all the wildlife field observations occurred in the riparian corridors along South Crow Creek and the North tributary of Middle Crow
Creek, both outside of the planned Project disturbance areas.
In
a concurrence letter for the Mine Operating Permit, WGFD recommended ongoing consultation with the agency regarding raptors and monitoring
for swift fox (Vulpes velox) before disturbing the ground within the Project area between April 1 and September 30 each year.
CK Gold Project S-K 1300 Technical Report 242 May 2026
17.2.1.9 Archeology
and Paleontology
A
Class I cultural resource data review was completed in June 2021 (Western Archaeological Services 2021). The review examined the State
Historic Preservation Office (SHPO) records for documented cultural resources within the Project boundary. Two sites were identified
near or within the Project boundary: the Fort D. A. Russell to Fort Sanders Wagon Road, which is eligible for nomination to the National
Register of Historic Places (NRHP); and the historic Copper King Mine, which is ineligible for nomination to the NRHP.
The
wagon road passes north of County Road 210 in the northeast portion of the south half of Section 25 within the Project site boundary.
It is a previously documented cultural site and is eligible for nomination to the NRHP with SHPO concurrence. No Project activity is
proposed north of County Road 210. Therefore, this site will not be disturbed by the Project.
The
historic Copper King Mine, located within the Project site, had two mine shafts, three adits, nine exploratory pits, and an excavation.
The Class I data review found that the Copper King Mine is not eligible for NRHP nomination. The DEQ reclaimed the mine features - Abandoned
Mine Lands Division (AML) in July 2017. Before the reclamation, the DEQ-AML performed a National Environmental Policy Act (NEPA) determination
and verified that the reclamation conformed with exclusion criteria and was exempted from further NEPA compliance.
A
Class III cultural resources field survey was conducted on the Project site in September 2024 (Centennial 2024) to identify potential
additional cultural sites. No identified sites were recommended for National Register of Historic Places classification. Management measures
will be implemented to protect additional cultural sites during Project construction, mining, and reclamation operations.
Most
of the construction and mining-related excavation will take place within the Pre-Cambrian age granite formation, an igneous intrusive
rock that does not contain fossils. According to the USGS, some activity will occur in the sedimentary White River formation, which could
host paleontological resources but is considered unlikely to contain preserved fossils (Bartos et al. 2014). Project activities will
be subject to “chance finds” protocol, requiring notification of state agencies in the event of a cultural or paleontological
find and a work stoppage at the affected location.
The
Project is not located adjacent to indigenous, Native American, or Bureau of Indian Affairs lands.
17.2.2 Groundwater
Modeling
The
orebody is hosted in Precambrian granitic rock with limited permeability and water-storage capacity. Groundwater wells completed in the
granite typically yield 0 gpm to 5 gpm. The granite groundwater flows from the higher elevation areas of the Laramie Range, west of the
project area, to the east. The White River formation is underlain by Cretaceous formations east of the mine. Figure 17.6 shows the hydrogeological
units, groundwater level and flow direction.
The
Project has completed extensive hydrogeological site characterization to support the development of a regional groundwater flow model.
Aquifer testing has included pumping tests and discrete depth-interval packer testing. These tests estimated hydraulic conductivity and
specific storage properties. Groundwater levels and pore pressures were obtained from wells and vibrating wire piezometers.
CK Gold Project S-K 1300 Technical Report 243 May 2026
NEIRBO
Hydrogeology (2023) developed a calibrated groundwater flow model to represent the hydrogeological system and assess the interactions
between the proposed mine and the groundwater system. The model incorporates hydrogeological features, including streams, reservoirs,
irrigated land, and wells in the project area, as well as aquifers, faults, stream-aquifer interactions, recharge, evapotranspiration,
and external boundary conditions.
The
model simulates pre-mining conditions and hydrological changes during the mining and post-mining phases. The model predicts groundwater
system changes due to passive pit dewatering, natural recharge changes due to facility construction, and pit backfill during the post-mining
phase.
Model
predictions during the mining and post-mining periods include groundwater level, pit inflow, streamflow, and evapotranspiration changes.
The predicted mine-induced drawdown is greatest near the pit and decreases rapidly away from the pit (Figure 17.7). Predicted drawdown
is generally 5-feet or less outside the Project site at the end of mining. After 150 years the discernable predicted drawdown is at its
maximum, extending about 180 ft outside the Project site boundary (Figure 17.8). The nearest domestic wells are 2,000 ft from the predicted
5-ft drawdown area. At this distance, mine induced drawdown would likely not be discernable from natural variation and groundwater level
changes induced by the domestic wells themselves.
The
Middle Crow Creek is the nearest stream, and its flow is predicted to decrease by 0.03 ft3/s 10 years after mining. The other
stream segments have zero to 0.02 ft3/s changes in flow.
The
average annual groundwater pit inflow is expected to be less than 15 gpm. This low pit inflow would be manageable using passive, in-pit
sumps, and dewatering wells are not expected to be necessary.
After
mining, the pit will be backfilled with tailings and waste rock. Groundwater and precipitation will flow into the backfill material,
and water levels will slowly rise until they stabilize at 6,717 ft after about 130 years. A pit lake is not expected to form since evaporation
losses will keep the groundwater level below the top of the backfill. This will result in the pit being a hydraulic sink with no groundwater
outflows.
The
groundwater modeling conducted to date precedes the recent development of Project water supply wells in the vicinity of the Project site
approximately 1.25 miles northwest of the pit (see Figure 17.13). The Project supply wells will extract groundwater from the Casper Formation,
which underlies the formations previously investigated and modeled. The new wells are not expected to induce significant drawdown in
the overlying units hosting the neighboring domestic water supply wells; however, this is pending confirmation through additional hydrogeological
assessment.
CK Gold Project S-K 1300 Technical Report 244 May 2026
Figure
17.6: Hydrogeological Units, Groundwater Level, and Flow Direction
Source:
NEIRBO, 2023.
CK Gold Project S-K 1300 Technical Report 245 May 2026
Figure
17.7: Cross-Section of Groundwater Levels
Source:
NEIRBO, 2023.
CK Gold Project S-K 1300 Technical Report 246 May 2026
Figure
17.8: Predicted Drawdown at the End of Mining and 150 Years Post-Mining
Source:
NEIRBO, 2023.
CK Gold Project S-K 1300 Technical Report 247 May 2026
17.2.3 Tailings
Seepage and Stability Analysis
Tailings
stability was analyzed by Tierra Group (2025b). The tailings were modeled overlying the Tailings Management Facility’s (TMF’s)
composite liner system (CLS), which in turn overlies a prepared foundation consisting of native soils that are underlain by weathered
bedrock.
17.2.3.1 Seepage
The
DEQ-LQD review of the MOP application required a rework of the liner system, and the Project will now use a CLS. The CLS will consist
of a geomembrane overlying a prepared subgrade composed of compacted Project area clays and silts. As required by WQD R&R, the CLS
will have an effective permeability of 10-7 cm/s or lower. The inclusion of the CLS means that tailings seepage modeling was not required
by WDEQ-LQD for the TMF.
17.2.3.2 Stability
Limit
equilibrium stability analyses were performed on the TMF for static (long-term) conditions, seismic loading conditions using pseudo-static
method, and post-peak (post-liquefaction) conditions. The slope stability models assumed a phreatic surface at the interface between
the upper and lower foundation soils (approximately 10 feet below the ground surface). The model also assumes a phreatic surface along
the CLS and tailings interface, as a phreatic surface is not likely to develop within the tailings mass. Slope stability analyses were
completed for the downstream and side buttress sections. Slope stability for the downstream section was modeled as the TMF advanced construction
to its full height in Year 9. The side buttress section was selected at the greatest embankment height, where the starter berm had not
been constructed.
The
requisite factors of safety are met for the stability analyses completed for the two sections when the ultimate waste rock retention
shell is constructed. Additional analyses were completed to analyze the TMF during construction and allow for operating flexibility.
The TMF stability results are detailed in the TMF Stability Analyses Technical Memo (Tierra Group, 2025b).
17.2.4 Geochemical
Characterization of Mine Rock and Tailings
Geochemical
Solutions (2023) evaluated the potential to generate acid rock drainage (ARD) and metal leaching from the mine rock and tailings storage.
Fifty-six representative rock samples and four tailings samples were collected for geochemical characterization. The 56 rock samples
represent in-place mine rock at the projected surface of the proposed pit shell and the rock to be mined. The rock samples are distributed
widely both horizontally and vertically across the proposed pit and surrounding the ore body, as shown on Figure 17.9.
CK Gold Project S-K 1300 Technical Report 248 May 2026
Figure
17.9: Mine Rock Sample Spatial Distribution
Source:
Geochemical Solutions, 2023.
The
four tailings samples were derived from bench-scale metallurgical (locked cycle) testing of representative ore samples. Bench scale process
water samples from the locked cycle testing were also submitted to an analytical laboratory for analysis.
Geochemical
analyses included:
● Whole
Rock Characterization: Assesses
the bulk geochemical composition of the waste rock, tailings, and low-grade ore materials.
● Acid-base
Accounting (ABA): Determines
the balance of acid-generating sulfide minerals and acid-neutralizing minerals in the samples.
● Net
Acid Generation (NAG): This
method uses hydrogen peroxide to oxidize the exposed sulfide minerals in the samples. The
oxidation provides a high-end estimate of the acidity that may be produced through oxidative
weathering of any exposed materials. It also allows the identification of potential elemental
release through oxidative weathering of mine materials.
● Meteoric
Water Mobility Procedure (MWMP): A
single-pass column leach test used for non-acid generating mine rock to assess the chemical
quality of contact water.
● Humidity
Cell Testing (HCT): This
is a multi-week column weathering test that provides the test sample with excess water and
oxygen to facilitate rapid oxidation of sulfide minerals. Weekly column rinses are analyzed
for various parameters (such as pH, alkalinity, iron, and sulfate), and a monthly rinse sample
is analyzed for a range of regulated metals and metalloids.
Geochemical
Solutions (2023) also evaluated the mineralogy and petrography of mine rock to better understand the controls on acid-generation potential
(AP) and neutralization potential (NP). Mineralogical analyses included:
● Quantitative
mineralogy by x-ray diffraction (XRD).
● Optical
microscopic examination.
● Scanning
electron microscopy (SEM), using backscattered electron imaging.
CK Gold Project S-K 1300 Technical Report 249 May 2026
The
ABA and NAG tests are considered static test procedures, while the subsequent MWMP and HCT tests are considered kinetic tests. Water
samples are obtained weekly from the testing apparatus to evaluate whether leaching is occurring and when it may be expected to start.
The HCTs were conducted over a 108-week period. Figure 17.10 summarizes the ABA results, and Figure 17.11 summarizes the HCT results.
Figure
17.10: Results of ABA Tests
Source:
Geochemical Solutions, 2023.
Figure
17.11: Results of Humidity Cell Tests
Source:
Geochemical Solutions, 2023.
Using
industry-standard methods, the characterization of the geochemical properties of Project mine rock and representative tailings indicates
the limited probability of the rocks and tailings producing ARD in contact water. ABA and NAG static testing results indicated the presence
of potentially acid producing mine rock and release of metals in 5 of the 56 samples, two located approximately halfway up the west side
of the projected pit surface and three with excavated waste rock. Some higher sulfur-containing samples indicate the limited and local
presence of PAG mine rock. However, little mine rock is mapped as having elevated sulfur and increased ARD potential. Most of mine rock
is characterized as NPAG, with an overall median Net Neutralization Potential (NNP) of 24.5 short tons of CaCO3 per 1,000
tons of rock (t CaCO3/1,000 t rock) and Neutralization Potential Ratio (NPR) of 33.3; rock with either NNP greater than 20
t CaCO3/1,000 t rock or NPR greater than three is considered NPAG. The median NAG pH was 6.2; samples with NAG pH greater
than 4.5 were classified as NPAG. Results from the NAG metal analysis showed that arsenic, cadmium, copper, lead, and zinc were observed
in five samples. However, HCT and MWMP results show no low pH (acidic) water or metal release production, which resulted in NPAG classification,
regardless of sulfur content.
CK Gold Project S-K 1300 Technical Report 250 May 2026
The
mineralogy of the mine rock affects the potential for the formation of ARD. Sulfide minerals appear primarily as small pyrite and chalcopyrite,
with trace percentages of other sulfides disseminated in the silicate matrix. Silicate minerals provide the bulk of NP. Based on the
extended HCT results, it appears that the rate of NP from silicate minerals is able to keep pace with the limited rate of acid production.
MWMP
leach testing of NPAG demonstrates low to no leaching of dissolved regulated metals. Leaching of total iron and manganese was
observed to produce concentrations that exceeded domestic use criteria but were consistent with ambient background groundwater
concentrations. In one instance domestic use criteria was exceeded for dissolved arsenic. One sample exceeded the agricultural use
criteria for total iron. MWMP results for representative tailings samples indicated that leached water from tailings were
consistently below domestic use criteria. HCT testing of rock samples, which spanned the range of sulfur concentrations
results from the ABA data, resulted in neutral to slightly alkaline pH conditions for up to 108 weeks of testing with metal release
observed to be negligible and low sulfate release rates. The four metallurgical testing tailings samples analyzed contain limited
sulfide sulfur; therefore, the representative tailings produced NPAG results.
Four
samples representative of process water were submitted for analysis. Arsenic concentrations in these samples routinely exceeded domestic
and agricultural use criteria, but not livestock use criteria. The remaining constituents were below regulatory criteria.
17.3 REQUIREMENTS
AND PLANS FOR WASTE AND TAILINGS DISPOSAL, SITE MONITORING, AND WATER MANAGEMENT
This
section is divided into three subsections as follows:
● Waste
Rock and Tailings Management (Section 17.3.1)
● Site
Monitoring (Section 17.3.2)
● Water
Management (Section 17.3.3)
This
section summarizes design and operational requirements during construction, mining, mineral processing, closure, and post-closure.
17.3.1 Waste
Rock and Tailings Management
Waste
rock and tailings generated during mining and mineral processing will be deposited in engineered facilities on the Project site.
17.3.1.1 Waste
Rock
The
waste rock consists of excavated overburden and rejected material from the pit containing insufficient concentrations of copper or gold
for economic mineral processing. Waste rock will have various on-site uses/destinations, including construction and capping of haul roads
and erosion control features, deposition in the West and East Waste Rock facilities (WWRF and EWRF, respectively), and use as the TMF’s
outer retention shell and buttress. The waste rock facility design and construction are described in Section 15. This section focuses
on the associated environmental management controls.
CK Gold Project S-K 1300 Technical Report 251 May 2026
The
following environmental management controls will be incorporated:
● Stability:
The WWRF, EWRF
and SWWRF are designed to have a slope angle of 3H:1V, substantially flatter than the rock’s
angle of repose, inherently providing an acceptable safety factor for geotechnical stability.
These facilities will be constructed using 20 ft to 30 ft thick lifts. Construction will
start from the lower ground surface elevations, moving upward and outward a lift at a time,
stepping back such that the final angle of the entire facility is 3H:1V.
● Water
Management and Seepage Control: Each
lift will have a running surface that drains precipitation away from the dumping fronts for
stability and to minimize percolation. The driving surface will be compacted by the haul
trucks. Run-off and seepage will be collected in detention ponds constructed at the downstream
toe of the two waste rock facilities. Overflow spillways will be provided to prevent the
overtopping of detention ponds during run-off events exceeding the design storm event (Section
17.2.3). The water in the detention ponds will be pumped out for use in dust control on-site
or other production-related uses. Accumulated sediments will be periodically removed from
the ponds and disposed of in the TMF.
● ARD
Control: Kinetic
testing on waste rock resulted in non-potentially acid rock drainage (ARD)/metal leaching
(Section 17.1.4). The Project will implement a Material Testing Program (MTP) to test blast
hole cuttings to quantify Au, Cu, and Ag grades to differentiate between ore and waste rock.
Additionally, the waste rock blast hole cuttings will be subjected to Net Acid Generation
(NAG) pH testing to delineate non-potentially acid generating (NPAG) and potentially acid
generating (PAG) waste rock polygons. Waste rock will be considered non-PAG (NPAG) if the
NAG pH is greater than or equal to 4.5, per the Global Acid Rock Drainage (GARD) Guide (INAP
2023). PAG waste rock will be routed to either the CLS lined TMF or temporarily to the CLS
lined Ore Stockpile. PAG waste rock that is placed within the Ore Stockpile will be relocated
to the pit after Year 8 of operations. NPAG waste rock will be placed in the WWRF, EWRF,
SWWRF or the TMF rock buttresses or shell. A mine-bench scale 3-D database comprised of NAG
pH grades and coordinates will be maintained and used for short term and LoM planning. Results
of the NAG pH analyses will be made available within 24 hours, transmitted electronically
to the ore control engineer to delineate NPAG and PAG waste rock polygons. In the event of
delayed assay results, the waste rock would either remain in the pit until assays are received
or handled as PAG.
● Reclamation:
The WWRF, EWRF
and SWWRF will be reclaimed by topsoil covering and revegetation. The soil growth medium
component of the cover will limit infiltration, promoting vegetation growth, run-off, and
evapotranspiration. The soil growth medium layer thickness will be 12 inches. Geotechnical
site investigations indicate there is sufficient material located on the Project site suitable
for a soil cover that meets these requirements. The waste rock is expected to be suitable
for a base for the soil cover. Some waste rock processing will be required to produce a transition
zone between the rock and the soil growth medium cover material. Preliminary design of the
transition zone indicates a minimum two-foot-thick layer of well graded (coefficient of uniformity
greater than four) material with a maximum particle size of three inches.
CK Gold Project S-K 1300 Technical Report 252 May 2026
17.3.1.2 Tailings
The
tailings will be filtered to extract as much moisture as feasible prior to their deposition, maximizing their structural strength and
geotechnical stability, thereby avoiding the need for a tailings dam and the associated stability and seepage risks. Filtered tailings
also maximize the amount of water that can be recycled to mineral processing, reducing make-up water requirements and minimizing overall
water consumption (Section 17.2.3). The processed tailings will be hauled to and placed in the TMF until Year 8.25. After that, the remaining
tailings produced will be hauled to and placed in the open pit.
The
following environmental management controls will be incorporated into the TMF operation and maintenance plan:
● Stability:
Tailings filtration
produces tailings near their optimum moisture content for compaction, maximizing their geotechnical
strength and stability. Thus, the risk of slope failures and spills is significantly reduced.
The filtered tailings will be co-deposited with waste rock. The waste rock retention shell
will function as a buttress to stabilize the TMF. The TMF outer surfaces will be monitored
for movement, and piezometric pore pressure will be monitored within the tailings mass for
signs of potential decreased stability.
● Erosion
and Sediment Control: Grading
of the TMF will be controlled to maintain the active crest surface of the TMF with a gradient
that slopes downhill to avoid pooling and infiltrating water into the placed tailings. The
general design of the TMF includes zonation, such that a waste rock retention shell will
be constructed concurrently with tailings placement. During wet conditions, placement of
tailings will be in the interior of the TMF, away from the perimeter. Compaction will be
performed as quickly as feasible following initial tailings deposition using a smooth roller
compactor to seal the surface, prevent fugitive dust, and promote run-off.
● Water
Management and Seepage Control: Run-off
and seepage from the TMF will be collected in detention ponds. Overflow spillways will be
provided to prevent overtopping of detention ponds during run-off events exceeding the design
storm event. A pond will be constructed upstream of the TMF to capture run-off from the watershed
to the west of the TMF. Overflow from this pond will be conveyed through the TMF underdrain,
overdrain, or both, depending on the stage of the project. The water in the detention ponds
will be pumped out for use in the process plant and dust control on site. Accumulated sediments
will be periodically removed from the ponds and disposed of in the TMF. Seepage control of
the TMF is provided by the seepage collection drain installed above the TMF liner as discussed
in Section 15.3.2. The drain will maintain a low hydraulic head in the bottom of the tailings
mass, to promote free drainage of the tailings, and minimize tailings saturation.
● Dust
Control: To
minimize fugitive dust emissions from the TMF, compaction of the top of the tailings surfaces
will be performed as quickly as feasible following tailings deposition and spreading by dozers
using a smooth roller compactor to seal the surface. The waste rock retention shells will
be placed over the exposed tailings slopes once the final tailings slope and elevation have
been achieved. Speed limits will be imposed and enforced throughout the Project site. Water
will be sprayed on active surfaces to control fugitive dust emissions as required. Use of
soil binders and tackifiers or other approved dust suppressants may be considered, depending
on the effectiveness of the above measures. Erection of wind breaks may also be considered
as a backup solution, if required.
CK Gold Project S-K 1300 Technical Report 253 May 2026
● Off-Specification
Tailings Management: The
process plant will use a batch filtration process for drying the tailings. Bench-scale testing
has been performed on tailings samples to determine the type and size of filter press needed
for the Mine to achieve the design moisture content criteria of at or below 14% metallurgical.
It is expected that commercial-scale tailings filtration equipment will generally meet the
moisture content criteria. However, there may be variations in the ore feed (e.g., clay content)
that could affect the performance of the filters, requiring adjustments to be made. During
the adjustment period, off-specification tailings may result. In addition, as the plant transitions
from one filtration unit to the other there may be upset conditions. The plant has been designed
to cater to these conditions, but for limited periods the moisture content specifications
may not be achieved until adjustments are made to the filtration units. Off-specification
tailings may also occur during the initial commissioning of the filter presses as the equipment
is adjusted to field conditions. Off-specifications tailings delivered to the TMF will be
air dried at the placement site prior to roller compaction. Air drying will be enhanced by
blading and/or discing the tailings surface into windrows on a regular basis until a lower,
workable moisture content is achieved. Monitoring and adjustments will be made, as necessary,
to the filter presses to regularly meet the specifications to allow hauling, placement, and
surface rolling of the tailings. The moisture content of the delivered tailings will be monitored
and no tailings with moisture content exceeding the criteria will be disposed at the TMF.
If wet conditions cause excess moisture in the tailings, then placement may need to stop
until suitable conditions can be restored. Monitoring and adjustments will be made, as necessary,
to the filter process to regularly meet the specifications.
● PAG
Waste Rock Deposition in the TMF: PAG
waste rock identified during the operational life of the TMF will be placed on top of the
CLS and within the interior of the waste rock retention shell on the south side of the TMF,
to isolate it from weathering effects and prevent it from acting as a potential source of
ARD and metal leaching. The PAG waste rock will be spread to limit vertical accumulation
in concentrated areas, which will limit contact with the limited amount of infiltrating water
migrating vertically through the waste rock. The CLS will prevent seepage that may have come
into contact with PAG materials from infiltrating into the groundwater.
● Monitoring
and Inspection: An
Operations, Maintenance and Surveillance (OMS) Plan will be prepared and implemented for
the TMF addressing requirements for the operation, safety, and environmental performance
of the facility, including a framework for identifying, evaluating, and reporting significant
observations. Specific monitoring and inspections related to the TMF will include:
○ Structural
stability assessment of the TMF and related water control structures,
○ Water
quality sampling at designated monitoring points, and
○ Piezometric
monitoring of water levels in the tailings mass.
● Reclamation:
A vegetated soil
cover will be placed over the closed TMF to achieve a stable hydrological configuration and
minimize infiltration. The cover will promote conveyance of stormwater; prevent surface water
ponding; disperse rather than concentrate run-off; limit erosion and channel scour; provide
long-term erosional stability; and promote establishment of perennial, self-sustaining, native
vegetation. The soil growth medium component of the cover will limit infiltration, promoting
vegetation growth, run-off, and evapotranspiration. The soil growth medium layer thickness
will generally be 12 inches. Geotechnical site investigations indicate there is sufficient
material located on the Project site suitable for a soil cover that meets these requirements.
The waste rock shell is expected to be suitable for a base for the soil cover. Some waste
rock processing will be required to produce a transition zone between the rock structural
shell and the soil growth medium cover material. Preliminary design of the transition zone
indicates a minimum two-foot-thick layer of well graded (coefficient of uniformity greater
than four) material with a maximum particle size of three inches. Micro-topographical undulations
will be created in the TMF slope for wildlife habitat. The TMF will receive shrub-specific
vegetation for wildlife on the south face. Rock outcroppings will also be constructed to
enhance wildlife habitat. Post-mining, the TMF landforms will provide long vegetated south-facing
slopes with shrubbery to support local wildlife.
CK Gold Project S-K 1300 Technical Report 254 May 2026
As
described in Section 15, after the pit is fully excavated during Year 8, the pit will be backfilled with tailings produced during the
last two years of post-mining mineral processing up to an elevation of 6,630 ft amsl. Then, with a combination of blasting and earthmoving,
the pit rim will be dozed into the pit to create a 3H:1V final pit wall slope and final backfilled pit elevation of approximately 6,720
ft amsl.
Groundwater
and precipitation will flow into the pit backfill material and the groundwater level will slowly rise within the pit until it stabilizes
at about 6,717 feet elevation about 130 years after mining (NEIRBO Hydrogeology 2023). As described above, geochemical testing of mine
rock and tailings indicates limited potential to produce ARD and/or metal release, therefore water contacting the pit wall rock and backfill
is not expected to result in detectable metal leaching. A pit lake is not expected to form because evaporation losses will keep the groundwater
level below the surface of the backfill. The pit is predicted to act as a hydraulic sink with no groundwater outflows.
17.3.2 Site
Monitoring
The
scope of site monitoring activities during construction, mining, mineral processing, reclamation, and closure is derived from impact
and risk assessment, permit conditions of approval, and commitments made in the permit applications (Section 17.4). The following site
monitoring activities will be performed:
● Meteorology:
The current meteorological
monitoring program (Section 17.2) will continue through the construction and operating phases
of the mine.
● Air
Quality: Continued
ambient air quality monitoring will be conducted for PM10 emissions. Opacity monitoring
will be conducted at the crusher, screens, conveyor transfer points, and other points of
fugitive emissions. Water and chemical dust suppression use will be recorded, including quantities
and water truck operating hours. Emergency generator usage will be recorded.
● Surface
Water: Monitoring
of flow and water quality in streams, post-storm seeps, and at detention ponds and associated
channels and other engineered flow paths will be conducted per WYPDES permit conditions (Section
17.4).
● Groundwater:
Monitoring
of groundwater level and quality will be conducted. Additional groundwater monitoring wells
will be installed and periodically sampled. Some existing and planned monitoring wells will
be lost to mine development. Open pit dewatering water quality and flow rates will be monitored
during operations.
● Waste
Rock ARD Potential: Blast
hole cuttings will be geochemically tested to classify the rock as either PAG or NPAG for
handling accordingly (Section 17.3.1).
● TMF
Operations, Maintenance and Surveillance (OMS) Plan: TMF
performance monitoring and inspections will be conducted, including structural stability,
water quality sampling, and piezometric monitoring of water levels in the tailings mass (Section
17.3.1).
CK Gold Project S-K 1300 Technical Report 255 May 2026
● Pit
Wall Stability: Survey
monuments will be placed around the pit excavation to monitor for movement. Ongoing geotechnical
mapping and monitoring of the pit slope faces will be conducted. Movement beyond that which
would be expected from rock mass dilation and unloading will trigger redesign or remedial
measures. Piezometric water levels in the pit wall rock will be monitored for signs of potential
decreased stability.
● Noise
and Vibrations: Ground
vibration, air overpressure, flyrock distances, and dust and gas emissions from blasting
will be measured.
● Topsoil
Stockpiles: Monitoring
of wind and water erosion of stockpiles will be ongoing during operations.
● Weed
Growth: Operational
areas, stockpiles and reclaimed areas will be monitored to limit the spread of noxious weed
species.
● Wildlife
Monitoring: Operational
areas will be inspected for the presence of listed and other sensitive species (Section 17.2.1)
prior to construction disturbance.
● Cultural
and Paleontological Finds: A
chance finds procedure will be implemented to protect unknown cultural or paleontological
resources potentially encountered during initial construction disturbance.
● Post-Closure
Monitoring: A
post-closure monitoring plan will be implemented to verify that closure objectives are met,
including water quality, the closed facilities’ long-term physical and chemical stability,
and establishment of post-mining land use.
17.3.3 Water
Management
The
Project will operate in a net water deficit situation, given that the mean annual evapotranspiration exceeds the mean annual precipitation
(Section 17.2). The Project will implement water saving measures, as summarized below. Also described below are the Project’s water
balance, water supply source, and groundwater/surface water management design and monitoring approach.
17.3.3.1 Water
Saving Measures
The
Project will implement the following water saving measures to minimize its water consumption from off-site sources:
● Tailings
Filtration: Tailings
generated in the flotation process will be filtered to an optimum low moisture content to
produce “dry stack” tailings, thereby minimizing water consumption and avoiding
the need for a tailings dam and the associated environmental and safety risks. The tailings
slurry produced by flotation initially containing about 65% water (by weight) will first
be thickened for initial water recovery. The water content of the thickened underflow slurry
will be reduced to about 45%, while the thickener overflow water will be returned to the
process for reuse. The thickened slurry will be pumped to storage tanks ahead of a large
pressure filtration plant comprising multiple large pressure filters that further reduce
the water content to <15% (typically 14%). The recovered water is recycled back into the
flotation process, instead of being disposed of in a tailings dam where much of it would
be lost to seepage and evaporation.
● Pit
Dewatering Recycling: Groundwater
and precipitation inflow into the pit will be collected in a sump and used for dust control
on site, lowering the overall demand for water from external sources. The Project’s
rights to the pit inflow water are permitted (Section 17.4).
CK Gold Project S-K 1300 Technical Report 256 May 2026
● Surface
Run-Off and Seepage Recycling: Surface
run-off and seepage from mine facilities, including the waste rock facilities, TMF, and other
facilities will be collected in detention ponds and recycled for reuse as dust control or
to meet process water demand. These water rights have been permitted (Section 17.4).
● Irrigation
Ditch: Water
from an existing irrigation ditch (“Simmons No. 4 Ditch”) currently supplying
water to a hayfield at the proposed mineral processing plant location, fed during the late
spring/early summer months by the South Crow Creek Reservoir south of the Project site, will
be consumed by the Project during construction and operations, and restored to its current
use during the reclamation phase.
● On-Site
Potable Water Supply Well: An
on-site water supply well was permitted to supply potable water for on-site staff consumption.
● Truck
Wash Water Recycling: Used
wash water will be collected at the truck wash facility, decanted and reused for dust control
on site.
● Dust
Control Water Recycling: The
fraction of water consumed in the pit and primary crusher for dust control Purposes that
is left over after evaporation and infiltration will be collected and recycled for dust control
on site.
17.3.3.2 Water
Balance
The
Project’s total average water consumption is 562 gpm. This number is the estimated total consumption, excluding reductions in demand
for water from off-site sources associated with the water saving measures described above. Consumption for mineral processing, general
operations, and dust control is as follows:
● Process
Plant: 475
gpm, based on a daily feed of 20,000 short tons of ore. The initial moisture of the incoming
ore to the primary crusher is estimated to be 3%. The metallurgical testwork identified the
moistures of the two final products of ore processing, which are as follows: concentrate
(less than 1% of the total ore feed by weight) with remnant moisture by weight of 10%; and
tailings (99% of the total feed by weight) with 14% moisture.
● Truck
Wash: 3.5
gpm, based on the design of this facility that utilizes high efficiency (low water consumption)
nozzles and an average wash time of 25 minutes for each piece of equipment, 3 4 times a month
for preventive and unplanned maintenance. Approximately 75% of the water may be recycled
back into the system.
● Primary
Crusher: 5.5
gpm, based on spray nozzles operating for 60 seconds each time a truck dumps in the crusher
dump hopper, at a rate of 40 gpm. For a 100-ton truck there are 200 loads in a day dumped
into the crusher dump hopper.
● Dust
Control: The
various consumptions below are estimated by making assumptions on the frequency and supply
capacity of spraying on a daily basis:
○ Pit
dust control spraying on the shot rock loading faces: 10 gpm, groundwater seepage and precipitation
collected in the pit sump.
○ Waste
Rock Facilities dust control spraying at the dumping locations: 5 gpm, sourced from precipitation
run-off collected in the detention ponds and the water storage tank as needed.
○ Dust
control spraying at the newly spread tailings on the TMF surface: 14.1 gpm, sourced from
precipitation run-off collected in the detention ponds and the water storage tank as needed.
CK Gold Project S-K 1300 Technical Report 257 May 2026
○ Temporary
haul roads dust control spraying: 37.5 gpm, sourced from precipitation run-off collected
in the sedimentation ponds and the water storage tank as needed. No water will be applied
for dust suppression on the roads outside of the pit and the access road. These roads will
be periodically sprayed/treated with dust suppression agents, such as magnesium chloride
or other dust suppressant solution.
● Staff:
4.5
gpm, based on a maximum of 260 staff present for each shift and an average consumption of
25 gallons per day per person.
17.3.3.3 Recycled
Water
Tierra
Group developed a site-wide water balance for the Project to maximize the reuse of contact and non-contact water within the site’s
watershed (Tierra Group, 2025c). The water balance assumes that the meteoric precipitation that falls on Project facilities will generally
be collected by the detention ponds and pumped back to TMF-1 for reuse as dust suppression or to meet the process water demand. A system
of pumps and pipelines will deliver the surface water collected in the detention ponds around site to TMF-1. The pumping system is conservatively
designed to convey the design storm volume reporting to each pond within 30 days, or the maximum monthly volume calculated from the water
balance, whichever is greater.
17.3.3.4 Water
Supply Source
Water
will be sold to the Project by the BOPU under an agreement approved by the Cheyenne City Council. The source will be from Crystal Reservoir
and the design and delivery system has been engineered by a local engineering firm. The design outlines the principal supply coming from
an infiltration gallery situated in Crystal Reservoir through an HDPE delivery pipeline and system depositing water in the plants freshwater
tank. Following studies by TGI water generated from pit dewatering, surface run-off, and waste rock and tailings seepage will be recycled
for use in mineral processing and/or dust suppression, reducing the volume of make-up water.
As
a water supply back up, the Project negotiated a water supply agreement with the Ferguson and Sutherland Ranches and have drilled water
wells as an alternative water source. As shown on Figure 17.14, a water line will tap into the South Crow Creek pipeline and transmit
water to the Project’s proposed on-site water storage tank. A pumping system may be installed at the water line tap to pump water
to the Project’s storage tank. The pumping system will have variable frequency drives and are required to maintain a constant water
supply to the tank and to the process plant.
CK Gold Project S-K 1300 Technical Report 258 May 2026
Figure
17.12: Water Balance
Source:
U.S. Gold, 2025.
CK Gold Project S-K 1300 Technical Report 259 May 2026
Figure
17.13: New Water Source and Approximate Alignment to Fresh Water Tank
Source:
Trihydro, 2025.
CK Gold Project S-K 1300 Technical Report 260 May 2026
Figure
17.14: Proposed Water Transmission Infrastructure
Source:
Trihydro, 2023.
CK Gold Project S-K 1300 Technical Report 261 May 2026
17.3.3.5
Groundwater
Management
The
open pit formed by mining will collect precipitation and groundwater inflow. Based on groundwater modeling performed by NEIRBO (2023),
pit inflow is expected to be diffuse and limited due to the overall low permeability and low water storage capacity of the surrounding
rock. Faults and fracture zones will yield little water and will drain rapidly due to limited spatial extents.
The
annual pit bottom elevation starts at 6,900 feet AMSL in Year 1 and progresses to 6,120 ft at the end of mining. Passive open pit dewatering
begins when pit advancement reaches the water table. Predicted pit inflow during the first year is 6 gpm. As the pit advances pit inflows
are predicted to be less than 15 gpm. This water will be recycled on site during the operations phase, as described above.
Pit
dewatering during mining will result in a groundwater level decline (drawdown) relative to the pre-mining level. Drawdown will also result
from changes in groundwater recharge due to changes in precipitation infiltration caused by changes in the Project site’s ground
surface. The groundwater model differentiates between mine-induced groundwater drawdown and groundwater level changes caused by non-Project
groundwater pumping and seasonal and annual precipitation variation. Based on Project groundwater monitoring from 2020 to 2022, Project
induced drawdown would need to exceed 10 ft to be distinguishable from natural and other non-Project variation.
The
modeled mine-induced drawdown decreases rapidly with distance away from the pit, as shown on Figure 17.7. The 5-ft drawdown contour is
predicted to remain completely within the Project boundary at except for a small jut along the western edge (Figure 17.8). The drawdown
extent is limited mainly due to the low permeability of the rock.
The
nearest domestic wells are approximately 2,000 feet from the predicted 5-feet drawdown area. At this distance, any mine induced drawdown
would likely not be discernable from natural variation and groundwater-level changes induced by the domestic wells themselves.
After
mining, the backfilled pit will slowly fill with water as precipitation and groundwater flows in. The backfill materials consist of tailings
and rock bulldozed from the pit rim. As described in Section 17.2.4, geochemical testing of mine rock and tailings using industry standard
methods on representative samples (Geochemical Solutions 2024) indicates limited probability to produce ARD and/or metal release to water.
Groundwater quality is not expected to significantly deteriorate due to contact with pit wall rock, waste rock, or tailings.
The
backfill surface elevation is modeled at 6,720 ft and the groundwater level is predicted to stabilize at 6,717 ft after about 130 years.
The pit is roughly conical in shape, so the rate of water level rise slows as the pit volume increases with increasing elevation. Evaporation
is modeled to start when the water level is within 5 feet beneath the backfill surface. Evaporation losses depress the groundwater level
and prevent water from daylighting and forming a permanent pit lake. Water may temporarily pond in the pit following large precipitation
events, but evaporation losses will gradually lower the water level to below the surface of the backfill. This depressed water level
creates a hydraulic sink with lower groundwater levels immediately adjacent to the pit and no groundwater outflow from the pit. Therefore,
any unforeseen water quality deterioration would be contained within the pit zone.
During
the post-mining period, drawdown is predicted to propagate slowly and remain near the pit. Drawdown greater than 5 feet is predicted
to generally extend a small distance outside the Project boundary, except for the northeast corner, at peak drawdown, 150 years after
mining (Figure 17.8).
CK Gold Project S-K 1300 Technical Report 262 May 2026
Groundwater
monitoring wells around the Project site, including up- and down-gradient of mine facilities, will be sampled quarterly during the first
year of mining operations. The data will be reported to the Wyoming DEQ-LQD in the Annual Reports and if the data is similar to baseline
data, a request to reduce the frequency of sampling to semi-annually will be made. Actual groundwater drawdown and quality data will
be recorded to confirm the modeling predictions or identify any deviations from the predictions that would trigger remedial action.
17.3.3.6 Surface
Water Management
The
proposed Project facilities will be limited to ephemeral drainages that are not capable of hosting aquatic life. Two water courses traversing
the Mine Area (Figure 17.3) have been designated Waters of the United States, and are described in Section 17.1.1:
● South
Crow Creek.
● North
tributary of Middle Crow Creek.
Project
disturbance will remain outside of these water courses and associated adjacent wetlands. The NEIRBO (2023) groundwater flow model predicts
reductions in streamflow in these streams of only one percent or less due to mine-induced groundwater drawdown.
Mine
construction, operation, and reclamation activities involving excavation and grading could potentially cause surface soil erosion and
sedimentation of adjacent streams. Mitigation measures that will be implemented to avoid these potential impacts include the following:
● Phased
clearing and grubbing of vegetation in areas closely preceding planned excavation and grading
activities, minimizing the aerial extent and duration of surface soil exposure.
● Stockpiling
of topsoil for use in covering and reseeding (reclamation) of disturbed areas.
● Implementing
surface reclamation activities as soon as feasible after disturbance to minimize the duration
of exposed soil surfaces, including concurrently with mining operations to the extent feasible.
● Compaction
of exposed soil surfaces to minimize erosion and sediment transport.
● Deployment
of erosion control materials on exposed sloped soil surfaces to minimize erosion and sediment
transport.
● Directing
and capturing surface run-off from Project disturbed areas via surface channels discharging
into detention ponds.
Surface
water flow and quality will be monitored. Water quantity and quality in the detention ponds will also be monitored as required by the
WYPDES permit (Section 17.4).
Surface
run-off (contact water) from the Project facilities will be collected in channels and detention ponds and recycled on-site as described
above (Tierra Group, 2025c). Diversion ditches will be constructed to reduce the volume of stormwater run-on to the Project site from
undisturbed areas outside of the Project boundary and to direct contact water run-off into the detention ponds. Ditches will be armored
with riprap where the slope/flow velocity requires it to protect against erosion. Riprap drops and pipe drops will be constructed at
the end of the diversion ditches to convey the water to a detention pond. Energy dissipators will be constructed at the end of the pipe
drops to prevent erosion.
CK Gold Project S-K 1300 Technical Report 263 May 2026
Detention
ponds will be constructed to collect contact water run-off from the mine facilities. Additional ponds will be constructed in the process
plant area for contact water collection and for emergency containment of process water (Figure 17.15). Generally, there is a detention
pond located at the downstream end of the waste rock, Ore Stockpile, and TMF within draw bottoms to collect contact water and prevent
routine discharges outside of the Project site. Water that collects in the detention ponds will be pumped to TMF-1 for use as on-site
dust control and process demands. Most of the ponds are permitted by the Wyoming State Engineer’s Office (SEO). TMF-1, TMF-2a,
TMF-2b, and TMF-3 have been revised since the original permit submittal and the permits will need to be updated with the SEO.
The
ponds will consist of an embankment that is less than 20 feet tall and have a capacity that is less than 35 acre-feet each, maintaining
a dam classification of non-jurisdictional. The embankments will be constructed from available soil at each pond’s location and/or
excess material from other construction operations. The embankment soil will be compacted to 90% of standard Proctor dry density. The
prevalent on-site silty clays with sand and gravel are suitable for embankment construction. The embankment crest will be a minimum of
12 feet wide. The upstream slope will be no steeper than 3H:1V, and the downstream slope no steeper than 2.5H:1V. The ponds will be lined
with a CLS, consisting of 60-mil HDPE liner. Overflow spillways will be provided to prevent overtopping of detention ponds during run-off
events exceeding the design storm event. Ponds are designed to contain either the 10-year, 24-hour storm event (EWRF-1, WWRF-1, WWRF-2,
WWRF-3, TMF-2A, TMF-2B, TMF-3) or the 100-year 24-hour storm event (TMF-1, Ore-1, Mill Site, South Mill, Admin, South Creek)while the
spillways are designed to pass flow for the 100-year, 24-hour event.
CK Gold Project S-K 1300 Technical Report 264 May 2026
Figure
17.15: Project Site Layout
Source:
U.S. Gold, 2026?
CK Gold Project S-K 1300 Technical Report 265 May 2026
17.4 REQUIRED
PERMITS AND STATUS
The
Project occupies state-owned and private land. Construction and operation of the mine requires various permits issued at the state and
local levels. Some limited federal permitting is involved. Below is a list of the most significant agencies and associated permits. The
major required permits have been obtained, as described in the sections that follow.
● US
Army Corps of Engineers: Approved Jurisdictional Determination (Section 17.4.1)
● US
Environmental Protection Agency: Public Water Supply Permit (Section 17.4.2)
● Wyoming
Office of State Lands and Investments: Mining Lease (Section 17.4.3)
● Wyoming
Department of Environmental Quality:
○ Land
Quality Division
■ Exploration
Permit (Section 17.4.4)
■ Mine
Operating Permit (Section 17.4.5)
○ Air
Quality Division: Air Quality Permit to Construct and Operate (Section 17.4.6)
○ Industrial
Siting Division: Industrial Siting Permit (Section 17.4.7)
○ Water
Quality Division (Section 17.4.8)
■ Wyoming
Pollutant Discharge Elimination System (WYPDES) Permit
■ Stormwater
Pollution Prevention Plan and Notices of Intent and Termination under the Large Construction
General Permit (for Construction) and Industrial General Permit (for Operation)
■ Permit
to Construct Water Supply and Wastewater Facilities
■ Operator
Certification for Drinking Water System
● State
Engineer’s Office: Permits for Water Use and Water Related Facilities (Section
17.4.9)
● State
Historical Preservation Office (Section 17.4.10)
● State
Fire Marshall (Section 17.4.11)
● Laramie
County (Section 17.4.12)
17.4.1 Approved
Jurisdictional Determination
In
February 2021 the US Army Corps of Engineers (USACE) Omaha District, Wyoming Regulatory Office, issued an Approved Jurisdictional Determination
(AJD) covering the Project site. Under this AJD, the following two surface water bodies and associated wetlands in the Project area are
considered Waters of the United States and subject to USACE jurisdiction and permitting for discharging of dredged or fill materials:
● South
Crow Creek.
● North
tributary of Middle Crow Creek.
There
are no plans for Project infrastructure that would lead to deposition of dredge or fill material in the above surface waters on the Project
site, therefore no further USACE permitting is anticipated to be required. In April 2024 the USACE issued a confirmatory letter in this
regard. The AJD is valid for five years from the date of issue. The legal definition of Waters of the US is subject to change in the
meantime, and subsequent AJD could potentially incorporate different surface water bodies.
CK Gold Project S-K 1300 Technical Report 266 May 2026
17.4.2 Public
Water Supply Permit
USEPA
Region 8 implements the Safe Drinking Water Act in Wyoming (the only state that has not taken over this responsibility itself). The Act
covers public water systems with 15 or more service connections, or that serve 25 or more persons for at least 60 days per year. The
Project plans to supply its personnel with potable water from an on-site well and is therefore subject to this requirement. This permit
has not yet been applied for. Prior to supplying potable water, an application will be filed with the USEPA Region 8. The Project will
be required to monitor the quality of the supplied water and report the results to USEPA.
17.4.3 Exploration
Permit
Exploration
activities conducted by the Project to date have been permitted by the Wyoming Department of Environmental Quality, Land Quality Division
(DEQ-LQD), which has primary jurisdiction over mining projects in Wyoming. The Project has posted bonds to guarantee the reclamation
of surface disturbance caused by the development of exploration drill pads, test pits and some roads. All such surface disturbance has
been reclaimed, including revegetation. With issuance of the mine operating permit, exploration disturbance within the project footprint
is covered by the mine reclamation bond. Exploration bond release for exploration disturbance is currently pending inspection by the
DEQ-LQD.
17.4.4 Mine
Operating Permit
The
Project received its Mine Operating Permit (MOP) from the DEQ-LQD in May 2024. The MOP process began in October 2020 with a “Pre-Application
Meeting” and a resulting Action Plan defining the information, environmental studies, and operational and closure plans required
as part of the MOP application.
The
MOP application package included the following main components:
1. Adjudication
File: Signed
application forms; landowner consent and list of landowners of record; tabulation of lands
within the Project Permit Area; and associated maps and aerial photos. Reclamation bonding
and proof of public notification are added to the Adjudication File after the public noticing
and technical review.
2. Baseline
Studies: Land
use, history, archeology, paleontology, climatology, topography, geology, hydrology, soils,
vegetation, wildlife, and wetlands (Section 17.2.1).
3. Mine
Plan: General
description of mining operation, mining method and schedule, mining hydrology, waste disposal,
public nuisance and safety measures, and mineral processing and tailings management.
4. Reclamation
Plan: Post-mining
land use; land contouring plan; surface preparation; topsoil and/or subsoil placement; revegetation;
hydrological restoration; infrastructure and processing facility decommissioning, stabilization
and reclamation; reclamation schedule; reclamation cost estimate; and public nuisance and
safety measures. The reclamation cost estimate is based on the cost that would be incurred
if the DEQ-LQD were to hire contractors to reclaim the mine and facilities. Reclamation bonding
can take the form of an irrevocable letter of credit, self-bond, or collateral bond (including
federally insured certificates of deposit, cash, government securities or real property).
The bond amount is determined by the DEQ-LQD approved Reclamation Plan and associated cost
estimate.
CK Gold Project S-K 1300 Technical Report 267 May 2026
The
initial MOP application package was submitted to the DEQ-LQD in September 2022. The first public notice took place in November 2022,
following the issuance of DEQ-LQD’s completeness review of the permit application. After the agency’s subsequent technical
review, the Project submitted an amended application in January 2024 addressing public and agency comments, and a second public notice
was issued. In May 2024 DEQ-LQD formally approved the MOP and issued the associated License to Mine. The following conditions of approval
were attached to the license, which have been fully satisfied by the Project:
● Construction
and mining may start after posting and approval of the US$5,010,000 reclamation bond, covering
reclamation of the first year’s planned site disturbance.
● Water
discharge activities are authorized after issuance of the WYPDES permit by DEQ Water Quality
Division.
● Construction
and mining may start after issuance of the Air Quality Permit by DEQ Air Quality Division.
The
foregoing permit conditions are in addition to the Project commitments made in the MOP application package, namely the technical provisions
in the Mine Plan and Reclamation Plan.
Additionally,
the permit requires submittal to DEQ-LQD of an annual report within 30 days prior to the permit issuance anniversary date. Project requested
changes to the approved MOP Mine Plan or Reclamation Plan would be highlighted in the annual report. The annual report is followed by
a site inspection conducted by DEQ-LQD. A reclamation bond increase must be posted each year covering the next year’s planned site
disturbance, minus any credit due for completed reclamation of previous site disturbance. The project is in compliance with the annual
report filing.
17.4.5 Air
Quality Permit to Construct and Operate
The
Project received its Air Quality Permit to Construct from the DEQ’s Air Quality Division
(DEQ-AQD) in November 2024, following a public hearing held the month before during which no comments were received. The permit will
expire if construction is not started by November 2026. The Project must notify DEQ-AQD of the anticipated date of mine startup between
30 and 60 days prior and obtain the Air Quality Permit to Operate within three months after the start of mining operations (generally
a simple formality, absent significant Project changes). The permit conditions of approval include specific requirements for:
● A
variety of dust suppression and wind erosion control measures during construction, mining
and mineral processing.
● Limiting
opacity of fugitive emissions.
● Avoiding
exceeding ambient air quality standards and reporting exceedances.
● Air
quality and meteorological monitoring and reporting.
● Limiting
use of the emergency generator (grid power will be relied upon during normal conditions).
● Limiting
the size and specifications of the mobile equipment fleet as specified in the permit application.
● Limiting
blasting operations.
This
permitting process consisted of a New Source Review, including the development and submittal of the Project’s air emission inventory
and dispersion modeling. The Project is classified as a Minor Source and falls under the DEQ-AQD’s requirements for general air
quality permitting to construct and minor source permitting to operate. Title V of the Clean Air Act does not apply.
CK Gold Project S-K 1300 Technical Report 268 May 2026
17.4.6 Industrial
Siting Permit
The
Industrial Siting Permit (ISP) requirement is triggered by an overall project construction cost estimate amount threshold which changes
each year. When the Project’s ISP application was submitted to the DEQ - Industrial Siting Division (ISD) in February 2023, the
construction cost estimate threshold triggering the ISP requirement was approximately US$254 million. The state’s intent with this
requirement is to plan for and mitigate potentially significant environmental and socioeconomic community impacts arising from a temporary
influx of construction workers.
The
Project’s ISP application was approved in June 2023 via a written Order by the Industrial Siting Council (ISC). The ISC was convened
by the DEQ-ISD to review and rule on the Project’s ISP application. The ISP application package included a project description,
socioeconomic and environmental impact assessment, and management plan. Associated technical studies were focused primarily on Project
induced noise and traffic, as well as socioeconomic impacts. Other types of environmental impacts were assessed as part of the MOP process
described above. The socioeconomic impacts were generally assessed as positive in the ISP application.
The
impact assessment study area covered portions of Laramie County and the adjacent Albany County to the west (the Project is wholly located
within Laramie County). The Project notified and consulted with these county governments and other local government agencies. Following
submittal of the permit application, public notifications were issued and public informational meetings held in the cities of Cheyenne
and Laramie (the respective county seats) in December 2022. Various agencies provided written feedback to the Project and the DEQ-ISD,
mainly consisting of requests, recommendations, and notification of their applicable requirements. The ISC presided over a public hearing
held in May 2023, during which the Project’s representative answered questions under oath.
The
ISC’s June 2023 permit approval Order includes a provision to award “unmitigated impact assistance funds” of approximately
US$408,000 to Laramie County and US$726,000 to the City of Cheyenne. These awards will be funded by the state from increased state tax
receipts associated with anticipated Project related procurement of materials within the state. According to the ISC’s Order, “these
funds are to compensate for unmitigated impacts to the affected counties, cities, and towns in the area primarily affected.”
The
ISP will expire if Project construction does not start by June 2026. Permit conditions of approval include:
● Obtaining
and adhering to conditions of the other required state and local permits.
● Notifying
the DEQ-ISD in advance of proposed Project changes in “scope, purpose, size, or schedule,”
and filing of an evaluation of Project changes potentially resulting in significant environmental
and social impacts not evaluated in the ISP, before such changes are implemented.
● Developing
a written plan and program for achieving compliance with the permit conditions and commitments
made in the permit application, including identification of a compliance coordinator. Detail
procedures for local hiring in the compliance plan and file job postings with the local Workforce
Center.
● Performing
additional mitigation measures beyond those committed to in the ISP, if certain unforeseen
adverse environmental or social impacts are caused by the Project.
CK Gold Project S-K 1300 Technical Report 269 May 2026
● Additional
notifications are as follows:
○ To
the DEQ-ISD of the start date of construction and when “physical components of the
facility are 90 percent complete”.
○ Public
notification via local newspaper ad when the “facility is nearing completion.”
● Submitting
annual reports through the first year of mining operations documenting:
○ Efforts
to comply with the permit conditions and commitments made in the permit application.
○ Construction
completion status relative to the approved schedule, and schedule revisions.
○ Summary
of construction, reclamation and other activities to be conducted the following year.
○ Demonstration
of compliance with permit conditions.
● Implementing
a monthly monitoring program and quarterly results reporting to DEQ-ISD of:
○ Average
and peak numbers of employees of the Project owner, contractors and subcontractors.
○ Employee
city and state residency while hired and employed.
○ Number
of new students enrolled by grade level and school district related to Project employees.
○ Wyoming
resident vs non-resident mix.
○ Updated
construction schedule.
● Notification
in advance of changes in the construction workforce schedule triggering a 15% or more exceedance
of the committed peak workforce number, or changes in the committed lodging plan.
● Submitting
to the DEQ-ISD at least 30 days prior to the start of construction, the following documents:
○ “Spill
Prevention, Control, and Countermeasure (SPCC) Plan which additionally adheres to the recommendations
of the DEQ’s Water Quality Division for the Fuel Depot/Truck Shop and Truck Wash Building,
Standard Operating Procedures and Spill Kit, and Water Recycling”.
○ The
signed Wyoming Game & Fish Department (WGFD) monitoring plan.
○ Class
III Cultural Resources Survey.
The
foregoing permit conditions are in addition to the Project commitments made in the ISP application package.
17.4.7 Water
Quality Division Permits
The
DEQ - Water Quality Division (WQD) issues several permits applicable to the Project as summarized below.
Wyoming
Pollutant Discharge Elimination System (WYPDES) Permit
A
WYPDES Permit regulating potential Project water discharges from 12 outfalls was issued by the WDEQ-WQD in May 2024. The outfalls
consist of controlled discharge points from stormwater run-off and seepage detention ponds located on the Project site (Section
17.2.3). The Project’s WYPDES permit number is WY0997003 and the permit expires in April 2029.
CK Gold Project S-K 1300 Technical Report 270 May 2026
The
permit imposes effluent limits in terms of concentrations of various metals (total and dissolved), pH, and total suspended solids. Daily
effluent flow measurements are required, along with monthly chemical quality sampling, and quarterly reporting of results. Other requirements
include:
● Notification
of changes resulting in classification as a new source or changes in the nature, or increase
in quantity, of pollutants discharged. Also, notification of noncompliance or potential noncompliance
within 24 hours.
● Proper
operation and maintenance of water treatment and control facilities. Bypasses of treatment
facilities are prohibited except for essential maintenance and if effluent limits are not
exceeded, or if a bypass was unavoidable to prevent loss of life, personal injury or severe
property damage. Noncompliance with effluent limits may be excused during upset conditions
if the water treatment and control facilities are properly designed and operated.
● Taking
reasonable steps to minimize adverse impacts on receiving waters due to noncompliance.
Stormwater
Pollution Prevention Plan (SWPPP) and Notices of Intent (NOI) and Termination
A
Stormwater Pollution Prevention Plan (SWPPP) and Notice of Intent (NOI) must be submitted and approved by the DEQ-WQD prior to the start
of construction. This is still pending. Stormwater discharges from the Project site during the construction phase are expected to be
approved by the DEQ-WQD under the Large Construction General Permit (LCGP). Upon completion of the construction phase, the Project must
file a Notice of Termination of the stormwater discharges approved under the LCGP. Before the start of mining operations, another SWPPP
and NOI must be submitted to WQD for approval of stormwater discharges from the project site during the operations phase under the Industrial
General Permit (IGP). Permit decisions by the DEQ-WQD for both the LCGP and IGP can generally be expected within 30 days of submittal
of complete SWPPPs and associated notices.
Permit
to Construct Water Supply and Wastewater Facilities
Construction
of the Project’s water supply and wastewater infrastructure will require a DEQ-WQD permit. The permit application must include
plans, specifications, design data and potentially an environmental monitoring plan. This permit application is still pending. A permit
decision can generally be expected in 60 days.
Operator
Certification for Drinking Water System
The
Project must obtain an operator certificate from the DEQ-WQD to operate the water treatment and distribution system of potable water
serving Project site personnel and visitors. This is still pending. The certificate must be renewed every three years.
17.4.8 State
Engineer’s Office Permits for Water Use and Related Facilities
The
Wyoming State Engineer’s Office (SEO) issues permits appropriate water for beneficial use, as well as permits to construct and
operate water related infrastructure such as wells, mine dewatering systems and reservoirs. Between August 2022 and October 2023, the
SEO issued 13 permits for water detention and storage ponds on the Project site. Three of these permits will need to be updated and one
additional pond will need to be permitted with the SEO as a result of changes made to the water management plan as noted in Section 17.2.3.
Additionally, in November 2022 the SEO granted permits for the planned groundwater abstraction from the pit sump and from a water supply
well on the Project site.
CK Gold Project S-K 1300 Technical Report 271 May 2026
17.4.9 State
Historical Preservation Office
The
Wyoming State Historical Preservation Office (SHPO) requires a Cultural Resource Clearance if cultural resources are encountered within
the Project site. A Class I cultural resource review was completed in June 2021, and a Class III field survey was conducted in September
2024. In the event that cultural or paleontological resources are encountered during construction or mining operations, activities must
be halted at the find location and the DEQ-LQD and SHPO must be contacted within five days of discovery. If a resource is encountered
on State land (Section 36), the OSLI must also be notified. Agency approval would be required to resume work at the find location.
17.4.10 State
Fire Marshal Permits
An
electrical plan and above ground fuel storage tank plan must be submitted to the State Fire Marshall for approval in accordance with
the National Electrical Code. This is pending.
A
fire protection system plan must be submitted in accordance with the Wyoming Department of Fire Protection and Electrical Safety. The
State of Wyoming has adopted the International Codes, including the International Fire Code. Additionally, the fire protection system
plan must meet the Laramie County Rural Fire Protection Development Rules and the Mining Safety and Health Administration (MSHA) regulations.
This is also pending.
Fire
hazard in the CK Gold Project area is generally low. The pit, stockpiles, and mine facilities will be stripped of vegetation and topsoil
prior to disturbance during development and mining. Mine site water trucks will be available for fire suppression. Mobile equipment must
have fire extinguishers per MSHA regulations.
17.4.11 Laramie
County Permits
Laramie
County received the permit for the Project access road intersection to County Road 210. The County will also require a road maintenance
agreement. A traffic study was conducted as part of the ISP, establishing baseline traffic volumes and modeling Project related traffic
volume increases on local roads. Work on public roadways will also require coordination and review by the Wyoming Department of Transportation
(WYDOT).
The
Site Plan permit was issued by Laramie County on June 17, 2025.
The
County may require permits for the various buildings to be constructed on the Project site. These permits have not yet been processed.
The Project may be subject to inspections by the County Building Department.
17.5 LOCAL
INDIVIDUALS AND GROUPS
In
addition to the permitting requirements and associated interaction with the relevant federal, state and local government agencies as
summarized in the previous section, development of the CK Gold Project will require certain agreements with private local entities as
follows:
● Ferguson
Ranch: land
use rights and easements for access road and power line. Irrigation ditch temporary water
rights and water supply well.
● Black
Hills Energy, subsidiary of Black Hills Corporation: power
supply agreement.
● Financing
and contracting: Subject
to Project financing and satisfactory contracting arrangements.
CK Gold Project S-K 1300 Technical Report 272 May 2026
U.S.
Gold has also reached out and provided Project information to various additional local public and private entities which may be affected
by and/or interested in the project, as follows:
● Laramie
County: host
county potentially affected by Project environmental and socioeconomic impacts (employment,
procurement, tax revenue, worker influx, traffic, etc.).
● City
of Cheyenne: potentially
affected by Project environmental and socioeconomic impacts, and supplier of water to the
Project.
● Neighboring
residents and property owners west of the Project site: potentially
affected by Project environmental impacts.
● Wyoming
State Parks: the
Project site is near Curt Gowdy State Park.
● Wyoming
Game and Fish Department: the
Project site occupies mule deer winter range.
● US
Fish and Wildlife Service: the
Project site potentially hosts federally listed species.
● Wyoming
School Boards Association: the
state-owned section of the Project site is held in trust specifically to benefit Wyoming
public schools.
● University
of Wyoming: the
Geology Department has collaborated on the Project’s mineral exploration activities.
● Granite
Canyon Quarry: nearby
producer of construction aggregates.
● Sutherland
and King Ranches: neighboring
cattle ranches.
● Wyoming
Mining Association: statewide
trade association representing and advocating for mining.
● Wyoming
Taxpayers Association: trade
association representing taxpayers, including large mineral taxpayers.
● Cheyenne
Area Chamber of Commerce: local
business organization.
● Cheyenne
LEADS: economic
development organization for the city of Cheynne and Laramie County, Wyoming.
The
Project is not located adjacent to any indigenous, Native American, or Bureau of Indian Affairs lands.
17.6 MINE
CLOSURE
The
Project has submitted a Reclamation Plan as part of the MOP application (Section 17.4). The closure objective is to reclaim the site
to enable the resumption of its current use of cattle grazing, mule deer winter range, and other wildlife grazing. A reclamation cost
estimate has been developed and submitted to the state as part of the reclamation bonding process. The reclamation plan is summarized
as follows.
Topsoil
will be removed from disturbed surfaces during the mine construction and operating phases and stockpiled on site for subsequent use as
cover soil and revegetation during site reclamation. Concurrent reclamation will be practiced during the LoM to reclaim portions of the
Project site as soon as feasible prior to the end of mining, securing corresponding early releases in bonding obligations. Cattle grazing
will continue as feasible during mining on Project areas not directly affected by mine operations.
CK Gold Project S-K 1300 Technical Report 273 May 2026
At
the end of mineral processing operations, the mineral processing plant and support structures and facilities will be dismantled or demolished
down to their foundations, with the latter left in place under a layer of revegetated cover soil. Materials and equipment will be salvaged
or disposed of off-site. Process vessels and fuel and reagent tanks will be cleaned prior to salvaging or disposal, and any contents
and residues will be managed and disposed of according to the applicable regulations. Certain structures or facilities may be left in
place if requested by the landowners.
Quarries,
borrow pits, yards, pads, drainage channels and impoundments will be regraded and revegetated. Roadways will be similarly reclaimed,
except for segments to remain operational for post-closure monitoring purposes or at landowners’ request. Wells will be abandoned
and plugged unless the landowners wish to retain them.
The
waste rock and tailings facilities’ final reclaimed slopes will be 3H:1V or flatter. Micro-topographical undulations will be created
on the TMF slope to promote revegetation and to support wildlife habitat. The TMF will receive shrub-specific vegetation on the south
face to support mule deer and other wildlife. Rock outcroppings will also be constructed to enhance wildlife habitat.
Regraded
surfaces will generally be covered with topsoil and revegetated using approved seed mixes. A transition material of crushed rock will
be used to limit topsoil from being lost into TMF or waste rock facility rock voids. While the new vegetation grows, erosion control
best practices will be implemented to protect against soil erosion. In certain areas of natural rock outcrop, the final exposed surface
may be bare rock instead of vegetation.
Precipitation
falling on the reclaimed areas will flow into natural drainages and infiltrate into the ground. Based on geochemical study results (Section
17.1.4), the waste rock and tailings are not expected to be acid generating, and seepage from these facilities is expected to meet applicable
water quality standards. Seepage will be allowed to flow from the toes of the waste rock and tailings facilities into established natural
drainages in a controlled manner that prevents erosion and sediment transport.
After
the pit is fully excavated during Year 8, the pit will be backfilled with tailings produced during the last two years of post-mining
mineral processing up to an elevation of 6,630 ft amsl. Then, with a combination of blasting and earthmoving, the pit rim will be dozed
into the pit to create a 3H:1V final pit wall slope and final backfilled pit elevation of approximately 6,720 ft amsl.
Groundwater
and precipitation will flow into the pit backfill material and the groundwater level will slowly rise within the pit until it stabilizes
at about 6,717 ft elevation about 130 years after mining (NEIRBO 2023). Geochemical testing of mine rock and tailings indicates limited
potential to produce ARD and/or metal release; therefore water contacting the pit wall rock and backfill is not expected to result in
detectable metal leaching. A pit lake is not expected to form because evaporation losses will keep the groundwater level below the surface
of the backfill. The pit is predicted to act as a hydraulic sink with no groundwater outflows.
To
help increase the local area’s long-term water storage capacity, discussions have begun with BOPU about the possibility of converting
the post-mining open pit into a water storage reservoir. Upon completion of reclamation, water could be transferred from external sources
to the new reservoir to help meet the local area’s water storage needs.
A
post-closure monitoring plan will be implemented to verify that closure objectives are met, including the physical and chemical stability
of the closed facilities.
17.7 ADEQUACY
OF PLANS
Environmental
compliance to date has been applicable to mineral exploration and other site investigation pre-mining activities, including management
of surface disturbance, drilling, water use and discharge, reclamation of drill pads and roads, and associated bonding. Environmental
management of these activities appears to have been good. The Project has a positive, collaborative relationship with the Office of State
Lands and Investments, the Department of Environmental Quality, and the affected private landowner.
CK Gold Project S-K 1300 Technical Report 274 May 2026
Another
area of current focus is community engagement, including reaching out to and negotiating with the various private and public entities
with whom the Project seeks agreements to enable further Project development. Current community engagement efforts also extend to other
affected and interested local groups (Section 17.5).
Prior
to the start of construction of the mine facilities, a Project Environmental Management System (EMS) will be developed and implemented
consisting of a series of site-specific standards, plans and procedures governing the environmental management of the specific Project
activities causing potential environmental impacts during construction, operations, closure and post-closure. The plans and procedures
will identify management measures designed to avoid, mitigate or compensate for such impacts. The EMS will address the physical, natural
biological and human community environmental components of the Project site and surroundings, including potentially affected local individuals
and groups. The final engineering design of the Project, the environmental baseline studies (Section 17.2), the environmental impact
and risk assessment, and the permit conditions of approval (Section 17.4), collectively form the basis for developing the Project EMS.
17.8 COMMITMENTS
TO LOCAL PROCUREMENT OR HIRING
The
CK Gold Project’s policy is to prioritize procurement and hiring from within the State of Wyoming to the extent feasible.
To
date, the Project has found and utilized excellent local and in-state providers for the following services:
● Environmental
baseline studies.
● Preparation
of permit applications.
● Geological
field work and logging.
● Revegetation
and reclamation.
● Miscellaneous
site works and preparation in support of drilling and test pit activities.
● Sample
transportation.
● Hydrological
and hydrogeological studies and engineering design.
● Environmental
laboratory testing of water and rock samples.
● Geotechnical
site investigation and laboratory testing.
● Rock
quality testing for aggregate.
● Socioeconomic
impact assessment.
● Traffic
study.
● Site
management support.
● Community
relations.
As
development of the Project moves forward, U.S. Gold will continue to prioritize local procurement of competitively available goods and
services, and local hiring of qualified personnel.
CK Gold Project S-K 1300 Technical Report 275 May 2026
18
CAPITAL AND OPERATING COSTS
18.1 CAPITAL
COST ESTIMATE
Capital
costs are categorized as either initial capital or sustaining capital. Initial capital costs are expended before production begins, in
Year -2 and Year -1. Sustaining costs are expended starting in Year 1.
18.1.1 Initial
Capital Cost Summary
Fo
the purpose of FS, the estimate has a target accuracy of +/- 15 %. The capital cost is expressed in US dollars and represents 1st Quarter
2026 money. The capital cost estimate conforms to Association for the Advancement of Cost Engineering International (AACEI) Class 3 estimate
standards as prescribed in AACEI recommended practice 47R11. The capital estimate for the Project is summarized by discipline in Table
18.1.
Table
18.1: Summary of Initial Capital Cost by Discipline
Description
Total
Cost
(USS)
A-General
Construction
45,125,669
B-SiteWorks
31,650,407
C-Concrete
35,260,676
D-Structural
Steel
14,464,382
E-Platework
10,381,439
F-Mechanical
90,722,831
G-Piping
26,174,812
H-Electrical
27,272,730
I-Instrumentation
6,912,968
J-Architecture
14,763,772
K-Mining
5,500,000
M-Indirects
39,640,963
Contingency
46,513,865
Total
394,384,514
The
exchange rates to the US$ that have been used in the compilation of the estimate are noted in Table 18.2.
Table
18.2: Exchange Rates
Currency
Exchange
Rate
CD$
0.71
EUR
1.18
AUD
0.65
18.1.1.1 Capital
Cost Estimate Breakdown Structure
The
major areas for development of the capital have been developed utilizing the Work Breakdown Structure (WBS) coding system which was provided
by U.S. Gold.
18.1.1.2 Mining
The
capital cost estimate has been developed on the basis that mining will be executed under a contract mining arrangement (base case). For
estimating purposes, the contractor scope is assumed to include the supply, operation, and maintenance of the mining fleet and associated
ancillary equipment, and the provision of all required personnel to complete the mining activities. A request for tender (RFT) was issued
to multiple qualified mining contractors and bids were received. Contractor mobilization costs have been included in the capital cost
estimate.
CK Gold Project S-K 1300 Technical Report 276 May 2026
18.1.1.3 Early
Contractor Involvement
US
Gold engaged two independent construction firms to provide Early Contractor Involvement (ECI) services to support preparation of a Class
3 capital cost estimate. Based on the project definition available at the time and current market conditions, the ECI contractors provided
budgetary pricing input, advised on material and equipment availability, identified potential long-lead items, and noted procurement
risks and constraints. This input was used to inform key estimating assumptions and to benchmark selected unit rates and allowances;
it remains subject to change as engineering definition, quantities, procurement strategy, and commercial terms are further developed.
Where
available and applicable to the defined scope, budgetary quotations received through the ECI process were used as reference pricing within
the Class 3 capital cost estimate. Such quotations are indicative and non-binding and may change as engineering definition, market conditions,
and procurement and contracting arrangements are finalized.
18.1.2 Direct
Cost
18.1.2.1 Quantity
Development
The
Project works were quantified to represent the defined scope of work and to enable the application of rates to determine costs.
Quantity
information was derived from a combination of sources and categorized to reflect the maturity of design information as follows:
● Detailed,
Quantities taken off from the design completed for this study. MTOs from design drawings,
3D models and equipment lists based on PFDs.
● Concept,
Quantities taken off conceptual design, sketches and preliminary drawings
● Historical,
Quantities taken from previously completed studies / projects.
● Allowance,
Provisional or lump sum allowances based on degree of engineering completed and comparison
of the historical experience.
The
derivation of quantities is provided in Table 18.3 weighted by value of the direct permanent works (i.e. excluding temporary works, construction
services, commissioning assistance, engineering costs, escalation and contingency).
Table
18.3: Derivation of Quantities
Classification
Vendor
Quoted
MTO
Prepared
Factored
Earthwork
-
X
-
Concrete
-
X
-
Structural
Steel
-
X
-
Platework
-
X
-
Mechanical
Equipment
X
-
Process
Piping >4” OD
-
X
-
Process
Piping <4” OD
-
X
Electrical
Bulks
-
X
-
Electrical
Equipment
X
-
-
Instrumentation
and Control
-
-
X
Buildings
X
-
-
CK Gold Project S-K 1300 Technical Report 277 May 2026
Design
growth by discipline is provided in Table 18.4.
Table
18.4: Design Growth by Discipline
Discipline
Design
Growth
Earthworks
5%
Concrete
5%
Steel
5%
Platework
-
Mechanical
-
Piping
-
Instrumentation
N/A
Architectural
-
18.1.2.2 Pricing
Basis
Table
18.5 identifies the sourcing of costs included in the estimate.
Table
18.5: Supply and Install Cost Source
Classification
Total
Supply and Installation Cost (US$)
Allowance
/ Factored
(US$)
Budgetary
Quote Source
Mining
5,500,000
-
Mining
Contractor
Civil
31,650,407
-
ECI
Contractor
Concrete
35,260,676
-
ECI
Contractor
Structural
Steel
14,464,382
-
ECI
Contractor / Steel fabricator
Platework
10,381,439
-
ECI
Contractor
Mechanical
90,899,370
-
Equipment
Vendors/ECI Contractor
Piping
26,174,812
-
ECI
Contractor
Electrical
27,272,730
-
ECI
Contractor
Instrumentation
-
6,912,968
-
Architectural
14,763,772
-
Modular
and Pre-Eng Building Suppliers
Installation
This
component represents the cost to install the plant equipment and bulk materials on site or to perform site activities. Installation costs
are further divided between direct labor, equipment and contractors’ distributable. It is intended that all installation efforts
have be supplied by the ECI contractor considering the following assumptions.
The
labor component reflects the cost of the direct workforce required to construct the Project scope. The labor cost is the product of input
provided by vendors and ECI contractors for the installation hours and installation cost. The labor cost will utilize non-union provided
rates and is based on a six-day week, 10-hour day work schedule. The labor rate includes for Overtime, Tax, Consumables and Small tools.
The labor will be travelling from Cheyenne.
The
equipment component reflects the cost of the construction equipment and running costs required to construct the Project. The equipment
cost also includes cranes, vehicles and the applicable contractor’s margin. The rental rates have been quoted by a local contractor
and will be included within the labor portion of the direct costs.
CK Gold Project S-K 1300 Technical Report 278 May 2026
Contractors’
in-direct costs encompass the remaining cost of installation and include items such as offsite management, onsite staff and supervision
above trade level, crane drivers, mobilization and demobilization, R&Rs, and the applicable contractors’ margin. This is included
under the General Indirect cost and included with the installation rates provided by the ECI contractors.
Earthworks
Quantities
for plant site bulk earthworks and roads were calculated using Civil 3D software and provided as an MTO and were developed using the
layout.
Quantities
for Tailing Management facility, stockpiles, haul roads, and other associated infrastructure were calculated from first principles based
on preliminary design.
Concrete
Quantities
for concrete works were established based on basic engineering calculations, 3D modeling, and design assumptions. Material take-offs
have been prepared for the quantities in Table 18.6 which include a 5% growth factor.
Table
18.6: Concrete Material Take-Off
Material
Take-Off Description
Unit
of Measure
Quantity
All
in Unit Rate
(US$)
Excavation
yd3
26,274
41.46
Backfill
yd3
14,581
116.71
Crushed
Stone
yd3
11,666
17.6
Lean
Concrete
yd3
3,293
471.26
Concrete
yd3
17,516
735.23
Formwork
ft2
101,773
64.59
Rebar
Ton
2,295
3,503.11
¾
Dia A-Bolts
each
17
360.91
1
Dia A-Bolts
each
2,499
373.57
1
½ Dia A-Bolts
each
1,195
474.83
1
¾ Dia A-Bolts
each
25
531.19
2
½ Dia A-Bolts
each
17
719.02
2
½ Grout
ft2
4,764
136.22
Chemical
Resistant Coating
ft2
294
108.94
Waterstop
ft
3080
47.13
Rates
for concrete works were provided by the ECI contractor and are based on quotations from local contractors who have undertaken similar
works in the region. Rebar densities (pound per yd3) were identified for each type of concrete element.
Rates
and quantities were prepared on a composite per cubic yard basis for each specific type of concrete construction.
Steelwork
Structural
steel quantities were prepared using 3D Model for the plant site. Material take-offs have been prepared for the following quantities
and include a 5% growth factor (Table 18.7).
CK Gold Project S-K 1300 Technical Report 279 May 2026
Table
18.7: Steelwork Material Take-Off
Material Take Off
Description
Unit
of Measure
Quantity
All
in Unit Rate
(US$)
<20
lb/ft
t
66
9,816
20
lb/ft to 40 lb/ft
t
178
7,947
>40
lb/ft
t
654
6,612
H/Rails
ft
8,787
179
Stairs
ft
1,485
9,954
Ladders
ft
298
192
1
1/2” Grating
ft
43,851
47
Steel
Deck
ft2
8,608
35
Surface
Painted
ft2
165,387
1.53
Site
installation hours and installation rates for structural steel were based on budget contractor rates from ECI contractors who have undertaken
similar works in the region. The supply of the structural steel was quoted by fabricators, the scope included the preparation of workshop
fabrication drawings, marking plans and bolt lists.
Platework
Platework
and tankage quantities were provided in the plant mechanical equipment list prepared for the study, and quantities were detailed in a
Platework MTO. The MTO included liners and surface preparation. Rates for the supply and fabrication, installation effort for plateworks
were based on ECI Contractor quotations.
Equipment
A
mechanical equipment list was prepared and provided the quantity, specification and sizing for the cost estimate. All major equipment
such as: Crushers, Conveyors, Mills, Cyclone Clusters, Thickeners, Tanks, Pumps, Samplers and more were quoted by vendors.
Piping
Material
take-offs were developed for major in-plant piping for larger than 4” diameter, and small bore piping was factored. Process plant
piping costs allow for the supply and installation of pipe, fittings, mountings and manual valves as provided by ECI contractors.
Electrical
/ Instrumentation
MTOs
were developed for electrical equipment, and instrumentation bulks. Major electrical equipment was quantified for: MCC’s, transformers,
VFD’s, emergency generators were quoted by vendors.
Instrumentation
Control System which includes PLC hardware, Software and programming, is factored based on a past project of similar size and complexity.
Buildings
/ Architectural
Process
Building and adjacent structures were designed in terms of sizing based on layout requirements and assumed to be designed, fabricated
and installed by a pre-engineered building supplier. Quotations from pre-engineered building suppliers were sourced for the estimate.
HVAC system was estimated and quoted separately.
Auxiliary
buildings, such as Admin building, Warehouse, Security were sized and based on current project requirements and quotes obtained from
modular and pre-engineering building suppliers.
Mobile
Equipment List
The
plant equipment such as mobile crane, forklifts, trucks, etc. is based on dealer quotations.
CK Gold Project S-K 1300 Technical Report 280 May 2026
Field
Indirect Cost
Construction
indirect costs include items such as offsite management, onsite staff and supervision above trade level, crane drivers, equipment and
labor mobilization and demobilization.
Construction
indirect costs for all direct labor are included for all works in the capital estimate. This is inclusive of PPE, travel and clothing.
Scaffolding, Fuel and large crane rental has been estimated separately from the field indirects and is based on construction hours.
Field
indirects costs are based ECI on contractor estimates. These indirects include contractor indirects such as temporary facilities, provision of services, contractor communication, mobilization and demobilization.
18.1.3 Indirect
Cost
18.1.3.1 Engineering,
Procurement and Construction Management (EPCM)
The
EPCM cost was based on a factored approach, applying an EPCM percentage to the estimated installed cost to represent engineering, procurement
support, construction management, commissioning support and project controls. The factor was selected using benchmarks from comparable
projects and adjusted for project complexity, execution strategy, schedule constraints and contractor interface requirements.
18.1.3.2 First
Fill
First
fill cost has been factored.
18.1.3.3
Spares
The
cost of spares for major equipment was provided by the vendors, if the spares costs were not provided they were estimated considering
2% of the equipment supply costs.
18.1.3.4 Vendor
Representatives
Some
equipment will require vendor representation during construction and / or commissioning. A provision has been included in the estimate
to cover the vendor representatives’ services; it is estimated based on major mechanical equipment packages. If a rate was provided
by the vendor, it was used to develop the cost of the vendor representative for that package.
18.1.3.5 Commissioning
The
commissioning cost has been factored.
18.1.3.6 Freight
Freight
was based on historical rates depending on assuming sourcing of materials and equipment. Where possible, a container count has been used
to determine costs for inland freight for number of containers being transported from port of entry, either Seattle or Houston.
18.1.4 Contingency
Contingency
is a monetary provision intended to cover items that are included in the scope of work as described in this report but cannot be accurately
defined at this stage. This is due to normal variability of quantities, productivity, unit rates, the current level of engineering and
other factors that could affect the accuracy of the expected final cost of the project. Contingency should be considered as expenditure
that is predictable but indefinable at this stage of the project, therefore contingency is expected to be spent. Contingency does not
provide for any project scope change, nor does it exist to cover any of the items listed within the exclusions in this Report.
CK Gold Project S-K 1300 Technical Report 281 May 2026
At
this stage of the Project, contingency would be applied using a deterministic approach. The term “deterministic” infers that
the contingency applied to the base estimate is based on a single point evaluation of contingency. The following contingency was estimated
based on the type of quotations and scope definitions:
● 8%
- Firm Quotation.
● 12%
- Budgetary Quotation.
● 18%
- Historical/Estimated.
● 25%
- Factored/Allowance.
18.1.5 Owner’s
Cost
Owner’s
cost is excluded from the cost estimate. These costs are included in the Economic model and Discount Cash Flow Model (DCF) described
in Section 19 of this Report.
18.1.6 Assumptions
and Exclusions
18.1.6.1 Assumptions
The
following assumptions were made in preparing this basis of estimate:
● Local
construction contractors will be used for execution of all construction works.
● The
execution work will be continuous without interruption or stoppage.
● Concrete
will be purchased from local ready-mix suppliers.
● Taxes/duties
have not been allowed within the estimate.
● There
is no allowance for unforeseen blasting in relation to obtaining materials in the bulk earthwork
disciplines.
18.1.6.2 Exclusions
The
following are excluded from this basis of estimate:
● Financing
costs or interest costs during construction.
● Project
sunk costs.
● Exchange
rate variations.
● Project
insurance cost.
● Cost
of working capital.
● Change
in design criteria.
● Changes
in scope or schedule.
18.1.7 Initial
and Sustaining Capital Cost
Initial
and sustaining capital costs have been developed and consolidated into a comprehensive summary. These estimates represent both the upfront
investments required to initiate the Project and the ongoing expenditures necessary to maintain operational performance throughout its
lifecycle.
The
initial capital costs account for major equipment procurement, installation, infrastructure development, and all associated mobilization
activities.
The
Initial capital cost estimate is summarized in Table 18.8.
CK Gold Project S-K 1300 Technical Report 282 May 2026
Table
18.8: Initial Capital Costs
WBS
- Item
US$
1000
- Mining
5,500,000
2000
- Process Plant
219,193,621
3000
- Geotechnical Structures
21,622,744
4000
- Infrastructure
21,388,100
5000
- Construction Indirects
43,913,945
6000
- Consultants
16,136,120
8000
- Other Indirect Costs
20,116,119
9000
- Contingencies
46,513,865
Total
394,384,514
Sustaining
capital costs reflect the periodic reinvestments needed to ensure reliability, maintain regulatory compliance, and support operations
and asset integrity. Together, these cost components form the financial baseline used for planning, budgeting, and evaluating the overall
economic feasibility of the Project. Sustaining capital costs have been included in Life of Mine economic model discussed in Section
19.
18.2 OPERATING
COST ESTIMATE
The
operating cost estimate for the Project has been prepared to a target accuracy of +/- 15% and is summarized in this section.
Table
18.9 presents a summary of the operating costs for the Project categorized by general area over the duration of the Project, or LoM.
Please note Table 18.10 exclude aggregate production cost.
Table
18.9: Project Operating Cost Summary
Parameter
Total
LoM
(US$
million)
Avg
Annual
(US$
million)
Processed
(US$/st
Total
Project Operating Costs
1,375.73
134.30
18.44
Mining
Cost
546.04
53.30
7.33
Process
Cost
600.53
59.41
8.16
Tailings
Haulage
114.26
10.39
1.41
Site
G&A
114.90
11.20
1.54
CK Gold Project S-K 1300 Technical Report 283 May 2026
18.2.1 Mining
A
detailed trade-off analysis was completed to evaluate the suitability of Contractor versus Owner-Managed mining models for the basis
of cost estimation (Table 18.11). The Contractor Mining model was selected based on competitive bids demonstrating mining unit costs
within 1%, and 8% lower tailings haulage unit costs compared to an owner-operated alternative. These savings align well with the relatively
short mine life and support a lower-risk operating strategy.
It
is important to note that the contractor unit rates exclude fuel and lubricants, senior supervision, Technical Services, and management
costs, all of which are carried separately within the operating cost estimate.
Table
18.11: Mine Operating Cost Trade Off Summary
Cost
Description
Contractor
(US$)
Owner
Managed
(US$)
Variance
(%)
Ore
and Waste Mining Unit Cost (US$/st)
3.27
3.24
-1
Unit
Cost for Tailings to Storage Facility and Pit Backfill (US$/st)
1.41
1.53
8
The
average contracting mining cost (covering all activities from open pit operations through delivery to the primary crusher, inclusive
of G&A) is estimated at US$7.33/st mined over 11-year operating life. This value is derived from a total net operating cost of US$546.04
million and a total Expit quantity of 138 million tons. Operating costs incorporated into the economic model reflect expenditures incurred
subsequent to capitalization, consistent with SK 1300 reporting requirements. A mine operating cost summary is presented in Table 18.12.
Table
18.12: Mine Operating Cost Summary
Item
Cost
(US$
million)
Total
Mine Operating Cost
546.04
Contractor
Indirects
80.14
Drill
and Blast
132.16
Load
and Haul
245.76
Fuel
& DEF
47.98
Operation
Supervision
7.22
G&A
- Technical Services
32.76
18.2.1.1 Drilling
and Blasting
Drilling
and blasting contractor costs associated with open pit operations are estimated at US$0.94/st at a total net drill and blast of US$132
million. This unit rate covers all production drilling as well as auxiliary activities, including pre-split drilling and blasting, required
to sustain consistent ore material delivery to the mill. Table 18.13 presents a drill and blast cost summary on an annual basis using
the mine drilling profile over the LoM.
Table
18.13: Drill and Blast Cost Summary on Annual Basis with mine Drilling Profile
Description
Unit
Yr
1
Yr
2
Yr
3
Yr
4
Yr
5
Yr
6
Yr
7
Yr
8
Yr
9
OPEX
Total
Ore
and Waste
st
million
17
22
22
19
19
17
10
9
4
138
Drill
and Blast Cost
US$
million
16
20
20
17
18
16
11
9
5
132
Production
Drilling
ft
million
1.1
1.3
1.3
1.1
1.1
1.0
0.6
0.6
0.2
8.4
Auxiliary
Drilling
ft
million
0.2
0.3
0.3
0.2
0.2
0.2
0.1
0.1
0.1
1.8
CK Gold Project S-K 1300 Technical Report 284 May 2026
18.2.1.2 Loading
and Haulage
The
contractor haulage fleet will consist of production front end loaders, 100 ton haul trucks, and a complement of support and ancillary
equipment sized to sustain an average mining rate of 40,000 st/d over the LoM. The total contracting loading and Haulage cost are estimated
at US$245.8 million at a unit cost of US$3.3/st over LOM. Table 18.14 provides a detailed breakdown of the mining haulage destinations
and the associated haulage costs, exclusive of dry stack tailings haulage at the TMF.
18.2.1.3 Maintenance
and Supervision
The
mobile maintenance, dust suppression and all in directs including supervision and mine dewatering are costed on a contracting model basis
as stated in Table 18.12. Table 18.15 shows the annual basis of all indirect contracting costs. The total maintenance and supervision
cost are estimated at US$80.1 million at a unit cost of US$1.08/st over LOM.
18.2.1.4 Fuel
and Lubricants
Fuel,
lubricants, and DEF required to support the mobile fleet over the LoM will be supplied by the owner, with contractors responsible for
dispensing and managing these consumables as part of their operational duties. The Client has secured LoM pricing agreements with vendors
at US$2.079/gal for diesel and US$3.00/gal for DEF, which form the basis of estimate for operating costs. The total cost for fuel and
lubricants is estimated at US$47.99 million at a unit cost of US$0.64/st over LOM.
Fuel
and DEF consumption rates were benchmarked using performance data from the most recent edition of the CAT Performance Handbook for large
mining equipment, ensuring alignment with industry standard burn rates for comparable mining and support fleets.
Table
18.16 and Table 18.17 present the annual fuel requirements by fleet class for both mining and tailings haulage operations. Table 18.17,
Table 18.18 and Table 18.19 summarize the corresponding annual DEF consumption over the LoM for these same operational categories.
18.2.1.5 Technical
Services
Technical
Services including Mine Survey, Engineering, Geology, Mine Dispatch, Finance, and senior mine supervision will be owner managed to ensure
adequate planning, control, and oversight required to execute the mine plan. A basis of estimate was developed using modern mining benchmarks
from comparable single pit operations to size these departments appropriately for sustaining mining and tailings management activities
over the LoM.
To
maintain a lean and efficient Technical Services function, emphasis was placed on deploying automated and high productivity technologies.
This includes modern fleet dispatch systems, survey grade drone platforms, advanced engineering and geotechnical software suites, and
critical hardware to support grade control, reconciliation, and operational decision making. These tools collectively reduce staffing
requirements, improve data quality, and enhance execution reliability.
An
evaluation was also completed to determine the optimal financial enterprise system to integrate mine operations across all departments,
including processing. Based on implementation complexity, cost, and the single site nature of the project, a simplified financial software
solution was selected for the basis of estimate. Large Enterprise Resource Planning (ERP) systems were deemed unnecessary at this stage
due to their higher capital and operating costs, extended implementation timelines, and functionality exceeding the needs of a single
mine operation. The selected solution provides sufficient integration, reporting, and financial savings while minimizing overhead costs.
Table
18.20 to Table 18.22 summarizes the software suites and hardware requirements by each department, forming the basis for the Technical
Services cost estimate. The total cost for technical services is estimated at US$39.98 million at a unit cost of US$0.54/st over LOM.
CK Gold Project S-K 1300 Technical Report 285 May 2026
Table
18.14: Haulage Cost Summary by Destination on Annual Basis
Description
Unit
Yr
1
Yr
2
Yr
3
Yr
4
Yr
5
Yr
6
Yr
7
Yr
8
Yr
9
Yr
10
Yr
11
Yr
12
OPEX
Total
Load
& Haul - Open Pit to Mill
US$
million
7.6
11.0
11.5
11.5
1.5
11.5
11.5
11.5
4.1
-
-
-
92.1
Load
& Haul - Open Pit to SP
US$
million
6.3
4.2
2.8
4.9
4.8
4.8
3.5
4.5
1.3
0.66
32.7
Load
& Haul - SP to Mill
US$
million
0.4
0.3
0.0
-
-
-
-
-
-
4.2
7.4
4.2
16.5
Load
& Haul - Waste Rock to Southwest Dump
US$
million
8.4
9.4
2.3
-
-
-
-
-
-
-
-
-
20.1
Load
& Haul - Waste Rock to East Dump
US$
million
-
-
7.3
12.8
-
-
-
-
-
-
20.1
Load
& Haul - Waste Rock to West Dump
US$
million
-
-
-
-
8.2
6.6
-
-
-
-
-
-
14.8
Load
& Haul - Waste Rock to TSF (Ph. 1)
US$
million
6.7
5.9
0.95
-
-
-
-
-
-
13.5
Load
& Haul - Waste Rock to TSF (Ph. 2)
US$
million
3.07
9.5
0.23
3.4
3.1
3.6
1.8
0.7
-
-
-
25.4
Load
& Haul - Reclaim EC Dump to TSF (Ph. 1)
US$
million
-
-
-
-
-
-
-
-
-
-
-
-
0.0
Load
& Haul - Reclaim East Dump to TSF (Ph. 2)
US$
million
-
-
-
-
-
-
-
6.3
6.2
1.6
-
-
14.1
Table
18.15: Indirect Contracting Costs on Annual Basis
Description
Unit
Cost (US$/st)
Unit
Yr
1
Yr
2
Yr
3
Yr
4
Yr
5
Yr
6
Yr
7
Yr
8
Yr
9
OPEX
Total
Maintenance
and Supervision
0.57
US$
million
10
12
12
11
11
10
6
5
3
80
Table
18.16: Mining Operation Fuel Consumption Summary on Annual Basis
Description
Fuel
Burn Rate (gal/hr)
Unit
Yr
1
Yr
2
Yr
3
Yr
4
Yr
5
Yr
6
Yr
7
Yr
8
Yr
9
Yr
10
Yr
11
OPEX
Total
100-ton
Haul Truck
18.5
US$
million
1.7
2.8
3.1
2.6
2.8
2.9
2.5
2.4
2.6
1.0
1.0
25.4
Production
Front End Loader
20.4
US$
million
0.6
0.8
0.8
0.7
0.7
0.6
0.5
0.5
0.3
0.2
0.1
5.8
Auxiliary
Wheel Loader
9.4
US$
million
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.2
Auxiliary
Drill Rig
15.2
US$
million
0.1
0.1
0.1
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.6
Production
Drill Rig
20.2
US$
million
0.5
0.7
0.7
0.6
0.6
0.5
0.3
0.3
0.1
0.0
0.0
4.3
36-ton
Excavator
6.9
US$
million
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.0
0.8
Production
Dozer
12.3
US$
million
0.4
0.5
0.5
0.5
0.5
0.5
0.5
0.5
0.4
0.4
0.3
5.4
20K
Water Truck
17.1
US$
million
0.2
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.4
0.2
3.8
16M
Grader or Similar
6.5
US$
million
0.1
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.1
0.1
0.1
1.5
Total
Mine Operations
US$
million
3.7
5.5
5.8
5.1
5.4
5.3
4.5
4.4
4.1
2.2
1.7
47.6
Total
Fuel
Gallon
million
1.8
2.7
2.8
2.4
2.6
2.5
2.2
2.1
2.0
1.0
0.8
22.9
CK Gold Project S-K 1300 Technical Report 286 May 2026
Table
18.17: Tailing Haulage Operation Fuel Consumption Summary on Annual Basis
Description
Fuel
Burn Rate (gal/hr)
Unit
Yr
1
Yr
2
Yr
3
Yr
4
Yr
5
Yr
6
Yr
7
Yr
8
Yr
9
Yr
10
Yr
11
OPEX
Total
CAT
777
18.5
US$
million
0.7
1.0
1.0
0.8
0.8
0.9
0.6
0.5
1.2
1.5
1.4
10.5
CAT
D8 LGP Dozer
10.2
US$
million
0.2
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.2
3.4
8k
Water Truck or Similar
7.3
US$
million
0.1
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.1
1.8
16
Grader or Similar
6.5
US$
million
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.9
Total
TMF Operation
US$
million
1.0
1.6
1.6
1.4
1.4
1.5
1.2
1.1
1.8
2.1
1.7
16.6
Total
Fuel Consumption
Gallon
million
0.5
0.8
0.8
0.7
0.7
0.7
0.6
0.5
0.9
1
0.8
8
Table
18.18: Mining Operation DEF Consumption Cost on Annual Basis
Description
DEF
Burn Rate (gal/hr)
Unit
Yr
1
Yr
2
Yr
3
Yr
4
Yr
5
Yr
6
Yr
7
Yr
8
Yr
9
Yr
10
Yr
11
OPEX
Total
100-ton
Haul Truck
0.6
US$
‘000
72.6
120.4
133.6
112.0
122.9
126.2
106.9
104.6
112.9
42.7
42.6
1,098
Production
Front End Loader
0.5
US$
‘000
23.3
28.7
29.0
24.7
24.9
22.2
17.4
18.4
11.0
7.1
2.9
209.7
Auxiliary
Wheel Loader
0.2
US$
‘000
0.2
0.4
0.0
0.0
0.0
0.0
0.0
0.0
3.4
1.7
1.7
7.3
Auxiliary
Drill Rig
0.3
US$
‘000
2.1
2.6
2.6
2.2
2.2
2.0
1.2
1.1
0.5
0.0
0.0
16.4
Production
Drill Rig
0.4
US$
‘000
15.7
19.4
19.6
16.7
16.8
15.0
9.1
8.3
3.6
0.0
0.0
124.2
36-ton
Excavator
0.2
US$
‘000
2.1
2.7
2.7
2.7
2.7
2.7
2.7
2.7
2.7
2.7
1.4
28.2
Production
Dozer
0.4
US$
‘000
17.7
23.6
23.6
23.6
23.6
23.6
23.6
23.6
17.7
17.7
14.2
232.9
20K
Water Truck
0.5
US$
‘000
8.2
16.4
16.4
16.4
16.4
16.4
16.4
16.4
16.4
16.4
8.2
163.8
16M
Grader or Similar
0.2
US$
‘000
2.9
5.8
5.8
5.8
5.8
5.8
5.8
5.8
2.9
2.9
2.9
52.6
Total
Mine Operation
US$
‘000
145
220
234
204
215
214
183
181
171
91
74
1,933
Total
DEF
Gallon
‘000
48.3
73.4
77.8
68.1
71.8
71.3
61.1
60.3
57.1
30.4
24.6
644.2
Table
18.19: DEF Consumption Cost for Tailings Haulage on Annual Basis
Description
DEF
Burn Rate (gal/hr)
Unit
Yr
1
Yr
2
Yr
3
Yr
4
Yr
5
Yr
6
Yr
7
Yr
8
Yr
9
Yr
10
Yr
11
OPEX
Total
CAT
777
0.6
US$
‘000
28.7
43.1
45.0
35.3
35.8
37.2
27.8
23.2
52.3
65.3
59.0
452.7
CAT
D8 LGP Dozer
0.5
US$
‘000
13.1
24.5
24.5
24.5
24.5
24.5
24.5
24.5
24.5
24.5
13.1
246.8
8k
Water Truck or Similar
0.2
US$
‘000
3.9
7.9
7.9
7.9
7.9
7.9
7.9
7.9
7.9
7.9
3.9
78.9
16
Grader or Similar
0.2
US$
‘000
2.9
2.9
2.9
2.9
2.9
2.9
2.9
2.9
2.9
2.9
2.9
32.2
Total
TMF Operation
US$
‘000
48.7
78.4
80.4
70.6
71.2
72.6
63.1
58.5
87.6
100.6
79.0
810.6
Total
DEF Consumption
Gallon
million
15.7
25.4
26.0
22.9
23.1
23.6
20.6
19.1
28.3
32.5
25.3
262.6
CK Gold Project S-K 1300 Technical Report 287 May 2026
Table
18.20: Engineering Technical Services Summary Cost on Annual Basis
Area
Description
Quantity
Unit
Yr
1
Yr
2
Yr
3
Yr
4
Yr
5
Yr
6
Yr
7
Yr
8
Yr
9
OPEX
Total
Survey
Survey
Total Station
1
US$
‘000
-
-
-
-
55
-
-
-
-
55
Survey
Grade Rover
2
US$
‘000
-
-
-
-
26
-
-
-
-
26
Survey
Grade Drone
2
US$
‘000
-
28
-
28
28
-
-
28
110
Survey
Software
2
US$
‘000
40
40
40
40
40
40
40
40
20
340
Survey
Supplies
1
US$
‘000
16
17
17
17
17
17
17
17
8
144
Engineering
Mine
AutoCAD Software
4
US$
‘000
56
56
56
56
56
56
56
56
28
476
Mine
Scheduler Software
2
US$
‘000
36
36
36
36
36
36
36
36
18
306
Drill
and Blast Design Software
2
US$
‘000
20
20
20
20
20
20
20
20
10
170
Strategic
Software
1
US$
‘000
45
45
45
45
45
45
45
45
23
383
Geotechnical
Software
1
US$
‘000
6
6
6
6
6
6
6
6
3
51
Geology
Grade
Control Software
2
US$
‘000
40
40
40
40
40
40
40
40
20
340
Geo
AutoCAD Software
2
US$
‘000
28
28
28
28
28
28
28
28
14
238
Resource
Modeling Software
1
US$
‘000
50
50
50
50
50
50
50
50
25
425
Blast
Predict Software
1
US$
‘000
80
80
80
80
80
80
80
80
80
720
Assay
Lab
1
US$
‘000
205
253
256
218
220
196
118
108
41
1,616
Blast
Movement Monitoring Hardware
1
US$
‘000
27
-
-
-
-
-
-
-
-
27
Blast
Movement Monitoring Balls (BMM)
1
US$
‘000
346
-
-
-
-
-
-
-
-
346
General
Software
Training and Implementation
1
US$
‘000
161
161
161
161
161
161
161
161
40
1324
Hardware
Training and Implementation
1
US$
‘000
3
3
0
3
8
3
0
0
1
20
Light
Duty Pickup
9
US$
‘000
-
-
203
203
-
-
203
203
810
Hardware
Insurance
1
US$
‘000
17
17
17
17
17
17
17
17
17
154
Mining
Grade Handheld Radio
11
US$
‘000
-
-
7
7
-
-
7
7
-
26
Technical
Services Payroll
US$
‘000
2,239
2,239
2,239
2,239
2,239
2,239
2,239
2,239
2,239
20,151
Total
Technical Services
US$
‘000
3,415
3,118
3,300
3,293
3,143
3,061
3,162
3,152
2,614
28,259
CK Gold Project S-K 1300 Technical Report 288 May 2026
Table
18.21: Mine Operation Technical Summary Cost
Area
Description
Quantity
Unit
Yr
1
Yr
2
Yr
3
Yr
4
Yr
5
Yr
6
Yr
7
Yr
8
Yr
9
OPEX
Total
Mine
Operations Technical Services
Dispatch
System
1
US$
‘000
-
-
-
-
-
-
-
-
-
0
Dispatch
Subscription Cost
2
US$
‘000
218
218
218
218
218
218
218
218
109
1,849
Dispatch
Training
2
US$
‘000
65
65
65
65
65
65
65
65
33
555
Mine
LTE System
2
US$
‘000
-
-
-
275
-
-
-
-
-
275
Mine
LTE Maintenance Cost
1
US$
‘000
88
88
88
88
88
88
88
88
88
792
Total
Mine Operations Technical Services
US$
‘000
371
371
371
646
371
371
371
371
229
3,470
Table
18.22: Enterprise Finance and Asset Maintenance Software Summary Cost
Area
Description
Quantity
Unit
Yr
1
Yr
2
Yr
3
Yr
4
Yr
5
Yr
6
Yr
7
Yr
8
Yr
9
OPEX
Total
Finance
Enterprise
Software Implementation
1
US$
‘000
50
-
-
-
-
-
-
-
-
50
Software
Licensing
1
US$
‘000
62.2
62.2
62.2
62.2
62.2
62.2
62.2
62.2
62.2
560
Total
Financial Enterprise Cost
US$
‘000
112
62.2
62.2
62.2
62.2
62.2
62.2
62.2
62.2
610
CK Gold Project S-K 1300 Technical Report 289 May 2026
18.2.1.6 Tailing
Management Facility
Dry
stack tailings, filtered to approximately 15% moisture content, will be hauled by the contractor fleet to the TSF throughout the LoM.
Placement will occur in multiple phases, with a portion of the material directed to pit backfill near the end of the mine life. Table
18.23 presents the annual cost basis for tailings haulage by destination.
18.2.2 Process
Plant
The
process plant operating cost estimate has been developed based on the projected throughput, equipment utilization, reagent consumption,
grinding wear, power consumption, labor demand, and maintenance needs for the facility using vendor quotes. These costs have been compiled
and categorized to provide a clear understanding of the operational expenditures associated with sustaining steady state production.
A detailed breakdown of these operating cost components including processing, consumables, power usage, staffing, and general site services
is presented in Table 18.23 to Table 18.26.
CK Gold Project S-K 1300 Technical Report 290 May 2026
Table
18.23: Summary of Tailing Haulage Cost on Annual Basis
Description
Unit
Yr
1
Yr
2
Yr
3
Yr
4
Yr
5
Yr
6
Yr
7
Yr
8
Yr
9
Yr
10
Yr
11
OPEX
Total
Tailings
to TSF Phase 1
US$
million
2.9
2.8
0.3
-
-
-
-
-
-
-
-
6.01
Tailings
to TSF Phase 2
US$
million
2.3
5.7
9.4
9.8
9.8
9.7
9.8
9.8
9.8
9.8
5.6
91.5
Tailing
Haulage Total
US$
million
5.2
8.5
9.7
9.8
9.8
9.7
9.8
9.8
9.8
9.8
5.6
97.5
Table
18.24: Process Plant Operating Cost Summary
Operating
Cost Summary
Annual
Cost (US$)
US$
000’s
per
d.m.t.
per
st
Fixed
10,997
1.66
1.51
Variable
46,597
7.04
6.40
Total
57,594
8.70
7.91
Table
18.25: Process Plant Fixed Operating Cost
Fixed
Costs
Annual
Cost (US$)
US$
000’s
per
d.m.t.
per
st
Process
Labor (Incl. Assay Laboratory)
Salaried
1,570
0.24
0.22
Hourly
6,690
1.01
0.92
Tools/Equipment/Safety
Supplies
84
0.01
0.01
Tailings
Fixed (Env. Sampling etc..)
55
0.01
0.01
Maintenance
Parts (fixed component)
1,153
0.17
0.16
Contracts
(Support/Maintenance, Fixed Cost)
150
0.02
0.02
Training
(Plant Specific)
79
0.01
0.01
Power
(Fixed)
775
0.12
0.11
Assay/General
Laboratory - Plant Costs
-
-
-
Miscellaneous
Fixed Cost
209
0.03
0.03
Assays
- Fixed Cost
232
0.04
0.03
Sub
Total
10,997
1.66
1.51
CK Gold Project S-K 1300 Technical Report 291 May 2026
Table
18.26: Process Plant Variable Operating Cost Summary
Variable
Costs
Annual
Cost (US$)
US$
000’s
per
d.m.t.
per
st
Power
Variable
14,717
2.22
2.02
Process
Plant Reagents
6,235
0.94
0.86
Grinding
Media
15,700
2.37
2.16
Wear
Liners (Crusher + Mills)
2,482
0.37
0.34
Filter
Plant Consumables
2,248
0.34
0.31
Maintenance
Parts (Variable Component)
2,691
0.41
0.37
In-Plant
Piping Repair/Replacement
728
0.11
0.10
Lubricants
235
0.04
0.03
Contracts
(Support/Maintenance, Variable)
250
0.04
0.03
Abnormal/Miscellaneous
Items and Contingencies
454
0.07
0.06
Fresh
Water
855
0.13
0.12
Sub
Total
46,597
7.04
6.40
CK Gold Project S-K 1300 Technical Report 292 May 2026
Major
process operating cost categories have been estimated as follows:
● Labor.
● Tools
and Equipment.
● Maintenance
Parts.
● Power.
● Reagents.
● Grinding
Media.
● Wear
Liners.
● Filtration
Plant Consumables.
● Piping
Repair and Replacement.
18.2.2.1 Labor
Labor
cost estimates were derived by applying process plant headcount requirements to a project-specific labor rate schedule provided by U.S.
Gold. This methodology utilizes a bottom-up approach that incorporates base wages and a standardized benefits burden to establish the
total annual operating labor expenditure for the process plant.
Processing
workforce requirements were defined through a detailed bottom-up assessment of operational areas, developed in consultation with U.S.
Gold. The total process plant workforce comprises 102 personnel, consisting of 12 salaried and 76 hourly employees. The estimated annual
labor cost is US$1.57 million for salaried staff and US$6.69 million for hourly personnel, resulting in a unit labor cost of US$1.134
per short ton of ore processed.
18.2.2.2 Tools
and Equipment
Tools,
equipment, and safety supplies were estimated at US$1,100 per hourly employee, resulting in a total annual cost of approximately US$83,600,
or US$0.01 per short ton of ore processed.
18.2.2.3 Maintenance
Parts
The
total maintenance parts expenditure, estimated at US$3.84 million, was derived using project benchmarks for comparable operations, resulting
in a unit maintenance parts cost of US$0.53 per short ton of ore processed. This cost was calculated by applying a 5% factor to the mechanical
equipment CAPEX, with an additional 4% allowance included for transporting parts to the site. The fixed component for maintenance parts
was estimated to be 10% of the total cost.
18.2.2.4 Power
Annual
operating power consumption was estimated based on equipment installed power, applying appropriate utilization factors and percentage
of full-load current (%FLC) to reflect expected operating conditions. The fixed power cost component was estimated as 5% of the power
consumption cost. An electricity unit rate of US$0.06578 per kWh, as quoted by the power supply utility, was used for the cost estimate.
Total
annual power consumption is estimated at 235,513 MWh, resulting in an annual power cost of approximately US$15.49 million. The total
power cost equates to approximately US$2.13 per short ton of ore processed. The annual power consumption cost summary is presented in
Table 18.27.
CK Gold Project S-K 1300 Technical Report 293 May 2026
Table
18.27: Power Consumption Cost Summary
Area
Units
Annual
kWh
Annual
Consumption
MWh
235,513
Cost
per MWh
US$
65.78
kWh
per Ton Milled
-
32.3
Total
US$15,492,017
18.2.2.5 Reagents
Reagent
consumption rates were estimated based on metallurgical testwork and process design criteria, with unit pricing derived from supplier
quotations. The total annual reagent supply cost is estimated at approximately US$6.09 million, with an additional US$0.15 million included
for transportation, resulting in approximately US$6.24 million per year. The combined reagent cost is US$0.86 per short ton of ore processed.
The reagent consumption cost summary is presented in Table 18.28.
Table
18.28: Reagent Consumption Cost Summary
Reagent
Consumption
Unit
Cost
(US$/kg)
Annual
Cost US$ 000’s
(g/t)
(t/a)
Reagent
Transport
Total
Quick
Lime
523
3,464
0.23
779
87
866
Frother,
MIBC
150
993
2.39
2,374
5.0
2,379
Collector
1 (PAX)
30
199
3.80
755
19.9
775
Collector
2 (Aero 208)
25
166
2.85
560
0.8
561
Flocculant,
anionic SNF 905
60
397
4.08
1,621
33.8
1,654
Sub
Total
-
5,218
-
6,089
146.0
6,235
18.2.2.6 Grinding
Media
Grinding
media consumption costs were estimated through vendor quotes. The total grinding media cost, including supply and delivery for the SAG
mill, ball mill, and regrind mill, is estimated at US$15.7 million per year, equivalent to US$2.16 per short ton of ore processed. The
grinding media cost summary is presented in Table 18.29.
Table
18.29: Grinding Media Consumption Cost Summary
Grinding
Media
Unit
(kg/mt)
Annual
(mt)
Unit
Cost (US$/mt)
Annual
Cost
(US$
000’s)
SAG
Mill, 125 mm forged
0.45
2,980
1,532
4,565
Ball
Mill, 60 mm 18% Cr
1.1
5,099
2,039
10,396
Regrind
Mill
0.03
22
6,200
135
Transportation
to Site
-
8,101
75
604
Total
15,700
18.2.2.7 Wear
Liners
Liner
costs for the plant were estimated based on previous project experience and vendor consultations and include the supply and replacement
of steel and rubber liners for the crushing circuit, SAG mill, ball mill, and regrind mill. Costs were developed from liner consumption
rates and liner transportation to site. The total liner cost is estimated at US$2.48 million per year, equivalent to US$0.34 per short
ton of ore material processed. The wear liners cost summary is presented in Table 18.30.
CK Gold Project S-K 1300 Technical Report 294 May 2026
Table
18.30: Wear Liners Consumption Cost Summary
Liners
Unit
(kg/mt
or sets p/a)
Annual
(mt)
Unit
Cost (US$/mt)
Annual
Cost
(US$
000’s)
Crusher
Circuit
0.022
146
4,800
699
SAG
Mill
0.042
278
3,165
880
Ball
Mill
1.25
26
442,500
553
Regrind
Mill
1.55
7
189,600
294
Transportation
to Site
-
456
122
56
Total
2,482
18.2.2.8 Filtration
Plant Consumables
Filtration
plant consumable costs were estimated based on annual unit consumption derived from similar projects and vendor consultations. These
costs include tailings and concentrate filtration cloths, concentrate filter plates, and miscellaneous consumables for both the tailings
and concentrate filtration circuits, with transportation to site included. The total filtration plant consumable cost is estimated at
US$2.25 million per year, equivalent to approximately US$0.31 per short ton of ore processed. The filtration plant consumables consumption
cost summary is presented in Table 18.31.
Table
18.31: Filtration Plant Consumables Consumption Cost Summary
Reagent
Units
Consumed
(p/a)
Unit
Cost
(US$)
Annual
Cost
(US$
000’s)
Tailings
Filtration Cloth
3.0
600,000
1,800
Concentrate
Filter
3.0
11,500
34.5
Concentrate
Filter Plates
0.6
21,800
13.1
Tailings
- Miscellaneous Consumables
18
8,500
153
Concentrate
- Miscellaneous Consumables
18
4,500
81
Transportation
8%
-
167
Total
2,248
18.2.2.9 Piping
Repair and Replacement
An
allowance of US$0.728 million per annum has been allocated for in-plant piping repair and replacement. This amount equates to US$0.10
per short ton of ore processed.
18.2.3 Lubricants
A
provision of US$0.235 million per year has been allocated for lubricants required for rotating and mechanical equipment, including the
crushing circuit, SAG mill, ball mill, regrind mill, conveyors, feeders, filtration systems, thickeners, and associated pumps and equipment.
This allowance corresponds to an estimated cost of US$0.03 per short ton of ore processed.
18.2.4 Contracts
(Support/Maintenance, Fixed and Variable)
US$0.15
million has been allocated annually for fixed support and maintenance contracts, and US$0.25 million for variable components, totaling
US$0.05 per short ton of ore processed.
18.2.5 Abnormal/Miscellaneous
Items and Contingencies
An
allowance equal to 0.8% of the total operating cost has been allocated to cover abnormal operational disruptions, miscellaneous items,
and contingencies. This provision amounts to approximately US$0.454 million and is included under the variable component of the OPEX.
CK Gold Project S-K 1300 Technical Report 295 May 2026
18.2.6 Fresh
Water
Process
make-up water requirements during steady-state operations are estimated at 1.06 million m3 annually its estimated 50% of this
volume will be supplied from TGI which reduces raw water demand by same percentage, This amount includes process, sewage, potable, and
other water uses. At a unit cost of US$1.49 per m3, the total annual water expenditure is approximately US$855 million.
Table
18.32: Raw Water Consumption Cost Summary
Item
Units
US$
Make-Up
Process Water
m3
p.a.
572,378
Sewage/Potable
8%
84,797
Water
Rate
US$/m3
1.49
Water
Cost per Annum
US$
855,072
18.2.7 Tailings
Fixed Cost
Tailings
sampling for environmental monitoring and compliance purposes is estimated to cost approximately US$0.055 million annually.
18.2.8 Training
Training
for process plant operators and other personnel has been budgeted at US$900 per employee, resulting in an annual cost of approximately
US$0.079 million.
18.2.9 Assay/General
Laboratory - Plant Costs
Laboratory
cost estimates are based on contract laboratory quotations. Samples include routine process plant samples, concentrate shipment samples,
metallurgical samples, and process control samples, with an estimated annual cost of US$0.232 million. Additional fixed costs for equipment
leasing, buildout, and laboratory operations amount to US$0.209 million. The total laboratory cost equates to approximately US$0.06 per
short ton of ore processed.
18.2.10 General
and Administrative
General
and administrative costs have been calculated on an annual basis and include a comprehensive range of expenditures necessary to support
overall business operations. These costs cover corporate management salaries, office administration, accounting and legal services, insurance,
information technology support, human resources, and other overhead expenses required to maintain day-to-day organizational functions.
Additional costs such as office supplies, communications, travel, and ongoing compliance obligations are also incorporated to ensure
an accurate representation of the company’s annual administrative burden.
G&A
Cost are summarized in the Table 18.33.
CK Gold Project S-K 1300 Technical Report 296 May 2026
Table
18.33: General and Administrative Summarized Cost over LoM
Item
US$/st
US$
000’s
General
and Admin Supervision
1.08
80,654
Project
Development (Owner’s Cost)
0.07
5,341
Communications/IT
0.02
1,853
Computer
Software Licenses
0.01
1,030
Admin
and Technical Office Supplies
0.01
515
Warehouse
Supplies
0
103
Freight
0.01
1,030
Postage,
Courier and Light Freight
0.01
1,030
Environmental
Laboratory Testing Costs
0.01
515
Environmental
Protection
0.01
1,064
Environmental
Consultants
0
253
Environmental
H&S Audits
0.01
412
Personnel
Recruitment/Relocation Costs
0.02
1,287
Dues
and Subscriptions
0
103
Permits
and Licenses
0.03
2,059
Auditing
0.01
1,030
Insurance
0.13
9,731
Land
and ROW Lease Payment
0.03
2,601
ERP
Software
0.01
620
Government
Institutional Support
0
103
Social
Programs
0
103
Donations
0
103
Public
Relations and Advertising
0
103
Entertainment/PR/Awards
0
103
Safety/PPE
and Medical Supplies
0.01
412
Professional
Fees - Accounting
0.01
515
Professional
Fees - Legal
0.01
515
Surface
Transportation - Pickups
0.01
809
Travel
and Accommodation
0.01
515
Closure
G&A
0.01
819
Capitalized
Pre-Production
-
0
Total
G&A Costs
1.55
115,327
CK Gold Project S-K 1300 Technical Report 297 May 2026
19 ECONOMIC
ANALYSIS
19.1 INTRODUCTION
The
economic analysis of the Project is reliant on the project schedule, mine schedule, capital, and operating costs discussed in the previous
sections of this report. This economic analysis excludes Inferred Mineral Resources, and the positive economic outcome is used to delineate
a Mineral Reserve for the Project. The economic parameters used are believed to be reasonable for the type of project. All figures shown
represent constant Q1 2026 US Dollars.
19.2 CAUTIONARY
STATEMENT
Certain
information and statements contained in this section and in the Report are “forward looking” in nature. Forward-looking statements
include, but are not limited to, statements with respect to the economic and study parameters of the Project; Mineral Resource estimates;
the cost and timing of any development of the Project; the proposed mine plan and mining methods; dilution and extraction recoveries;
processing method and rates and production rates; projected metallurgical recovery rates; infrastructure requirements; capital, operating
and sustaining cost estimates; the projected LoM and other expected attributes of the Project; the net present value (NPV) and internal
rate of return (IRR after-tax) and payback period of capital; capital; future metal prices; the timing of the environmental assessment
process; changes to the Project configuration that may be requested as a result of stakeholder or government input to the environmental
assessment process; government regulations and permitting timelines; estimates of reclamation obligations; requirements for additional
capital; environmental risks; and general business and economic conditions.
All
forward-looking statements in this Report are necessarily based on opinions and estimates made as of the date such statements are made
and are subject to important risk factors and uncertainties, many of which cannot be controlled or predicted. Material assumptions regarding
forward-looking statements are discussed in this Report, where applicable. In addition to, and subject to, such specific assumptions
discussed in more detail elsewhere in this Report, the forward-looking statements in this Report are subject to the following assumptions:
● There
being no significant disruptions affecting the development and operation of the Project.
● The
availability of certain consumables and services and the prices for power and other key supplies
being approximately consistent with assumptions in the Report.
● Labor
and materials costs being approximately consistent with the assumptions in the Report.
● Permitting
and arrangements with stakeholders being consistent with current expectations as outlined
in the Report.
● All
environmental approvals, required permits, licenses and authorizations will be obtained from
the relevant governments and other relevant stakeholders.
● Certain
tax rates, including the allocation of certain tax attributes, being applicable to the Project.
● The
availability of financing for the planned development activities.
● The
timelines for exploration and development activities on the Project.
CK Gold Project S-K 1300 Technical Report 298 May 2026
● Assumptions
made in Mineral Resource estimate and the economic analysis based on that estimate, including,
but not limited to, geological interpretation, grades, commodity price assumptions, extraction
and mining recovery rates, hydrological and hydrogeological assumptions, capital and operating
cost estimates, and general marketing, political, business, and macro-economic conditions.
While
internally consistent, the production schedules and annualized cash flow forecasts presented here use dates that assume a decision to
proceed with project development is imminent. No such decision has been taken at the time of writing and the dates shown in these tables
are for illustrative purposes only. Any additional mining, technical, and engineering studies undertaken may alter the Project assumptions
as discussed in this Report and may result in changes to the calendar timelines presented.
19.3 ECONOMIC
MODEL
Micon
has prepared its assessment of the Project on the basis of a discounted cash flow model, from which Net Present Value (NPV), Internal
Rate of Return (IRR) and payback period can be determined. Assessments of NPV are generally accepted within the mining industry as representing
the economic value of a project after allowing for the cost of capital invested.
The
objective of the study was to determine the economic viability of the Project. In order to do this, the cash flow arising from the base
case has been forecast, enabling a computation of NPV, IRR and Payback to be made. The sensitivity of NPV to changes in the base case
assumptions for price, operating costs and capital expenditure was then examined, as well as the sensitivity of NPV to the discount rate.
The
discounted cash flow analysis was performed on a stand-alone project basis with quarterly cash flows for Year -2 through Year 3 and annual
cash flows from Year 4. The economic evaluation used a real discount rate of 5% with cashflows discounted to the start of construction
using Q1 2026 US dollars.
All
costs prior to the start of construction are considered as “sunk costs” and not considered in the economic analysis.
This
economic analysis depends directly on the capital and operating cost estimates and is therefore considered to have the same overall level
of accuracy, minus 10% to plus 15%.
19.4 MODEL
PARAMETERS
Table
19.1 presents a summary of the key economic parameters used in the economic model, and the resulting key metrics.
CK Gold Project S-K 1300 Technical Report 299 May 2026
Table
19.1: Economic Model Parameters
Item
Unit
Value
Mining
Total
Tonnage Mined
k
ton
140,597
Total
Tonnage Moved (includes stockpile and waste rehandle)
k
ton
163,546
Total
Ore Mined
k
ton
74,527
Strip
Ratio (Waste: Ore)
t:t
0.89
Operating
Mine Life
years
11
Contained
Gold
koz
Au
1,015
Contained
Copper
k
lbs Cu
259,880
Contained
Silver
koz
Ag
3,030
Contained
Gold Equivalent
Moz
AuEq
1.4
Processing
LoM
Average Gold Recovery
%
71.5%
LoM
Average Copper Recovery
%
80.6%
LoM
Average Silver Recovery
%
68.7%
Payable
Metals in Concentrate
LoM
Gold Payable
koz
Au
707.2
LoM
Copper Payable
k
lbs Cu
186,726
LoM
Silver Payable
koz
Ag
1,874
LoM
Gold Equivalent Payable
koz
AuEq
931
Average
Annual Gold Payable - Yr 1 to Yr 11
koz
Au
64.3
Average
Annual Copper Payable - Yr 1 to Yr 11
k
lbs Cu
17.0
Average
Annual Silver Payable - Yr 1 to Yr 11
koz
Ag
170
Average
Annual Gold Equivalent Payable - Yr 1 to Yr 11
koz
AuEq
85
Average
Annual Gold Payable - Yr 2 to Yr 8
koz
Au
77
Average
Annual Copper Payable - Yr 2 to Yr 8
k
lbs Cu
21
Average
Annual Silver Payable - Yr 2 to Yr 8
koz
Ag
189
Average
Annual Gold Equivalent Payable - Yr 2 to Yr 8
koz
AuEq
102
Costs
per Ton
Mining
Costs (per ton mined)
US$/st
mined total
3.88
Mining
Costs (per ton milled)
US$/st
processed
7.33
Processing
Costs (including Tailings Placement)
US$/st
processed
9.59
G&A
Costs
US$/st
processed
1.54
Total
Site Operating Cost
US$/st
processed
18.46
Total
Cash Costs
LoM
Total Cash Cost, Net-of-Copper-Silver By-Product
US$/oz
Au
1,007
LoM
Total Cash Cost, Co-Product
US$/oz
AuEq
1,748
LoM
AISC, Net-of-Copper-Silver By-Product
US$/oz
Au
1,094
LoM
AISC, Co-Product (US$/oz AuEq)2
US$/oz
AuEq
1,814
Capital
Expenditure
Initial
Capital – including Contingency
US$
million
394
Pre-production
Owners Costs
US$
million
28
Sustaining
Capital
US$
million
35
Reclamation
Cost (US$ million)
US$
million
27
Base
Case Metal Price Assumptions
Gold
Price (US$/oz)
US$/oz
Au
3,250
Copper
Price (US$/lb)
US$/lb
Cu
4.50
Silver
Price (US$/oz)
US$/oz
Ag
40.00
Base
Case Project Economics
After-Tax
IRR
%
27
After-Tax
NPV5%
US$
million
632
Payback
Period
years
2.5
Average
Annual Operating Net Free Cash Flow (US$M)2 – Yr 1 to Yr 11
US$
million
124
LoM
Total Net Free Cash Flow (US$ million)
(incl.
capital investment and closure)
US$
million
967
CK Gold Project S-K 1300 Technical Report 300 May 2026
19.5 PRODUCTION
AND SALES
Table
19.2 presents a summary of the mining, processing and production statistics.
Table
19.2: LoM Production Statistics
Description
Units
Value
Mining
NAG
mined to WSF
t’000
36,636
NAG
mined to TSF
t’000
21,755
PAG
mined to TSF
t’000
7,678
Total
Waste Rock Mined
t’000
66,069
Waste:Ore
Ratio
t:t
0.89
NAG
Rehandled from WSF to TSF
t’000
6,653
Processing
HG
Oxide Feed Mined to Mill
t’000
3,646
HG
Mixed Feed Mined to Mill
t’000
6,096
HG
Sulfide Feed Mined to Mill
t’000
46,732
Mill
Feed Reclaimed Ex-Stockpile
t’000
16,296
Total
Mill Feed
t’000
74,527
Copper
Grade
%
0.17%
Gold
Grade
oz/st
0.0136
Silver
Grade
oz/st
0.0407
Copper
Content
000
lbs
259,880
Gold
Content
000
ozs
1,015
Silver
Content
000
ozs
3,030
Copper
Recovery
%
80.60%
Gold
Recovery
%
71.50%
Silver
Recovery
%
68.70%
Concentrate
Grade
%
Cu
26.00%
Concentrate
Dry Mass Recovered
t’000
(dry)
808.4
Concentrate
Wet Mass Recovered
t’000
(wet)
883.5
Copper
Grade in Concentrate
%
13.00%
Gold
Grade in Concentrate
oz/st
0.897
Silver
Grade in Concentrate
oz/st
2.576
Payable
Copper in Concentrate
000
lbs
186,726
Payable
Gold in Concentrate
000
ozs
707.2
Payable
Silver in Concentrate
000
ozs
1,874
Figure
19.1 shows the annual tonnages of ore and waste mined from the open pit and mill feed reclaimed from the low-grade stockpile.
Figure
19.2 shows the annual tonnage of concentrate shipped and its metal content.
CK Gold Project S-K 1300 Technical Report 301 May 2026
Figure
19.1: Mining Production Profile
Figure
19.2: Product Mass and Metal in Concentrate
Table
19.3 shows the key selling cost parameters assumed for the Feasibility Study, based on Micon’s experience.
CK Gold Project S-K 1300 Technical Report 302 May 2026
Table
19.3: Key Selling Cost Parameters
Description
Units
Value
per tonne
Value
per short ton
Maximum
Gold Payable
%
98.00%
-
Gold
Minimum Deduction
g/tonne
variable
-
Silver
Payables
%
90.00%
-
Silver
Minimum Deduction
g/tonne
-
-
Maximum
Copper Payables
%
96.50%
-
Copper
Minimum Unit Deduction
%
1.00%
-
Shipping
Costs
US$
(wet)
US$143.30
US$130.00
Smelting
Charge
US$
(dry)
US$66.14
US$60.00
Gold
Refining Charge
US$/oz
US$0.60
-
Silver
Refining Charge
US$/oz
US$0.50
-
Copper
Refining Charge
US$/lb
US$0.055
-
Insurance
and Losses
%
GMV
0.40%
-
As
shown in Figure 19.3, gold comprises 76% of the NSR value of the concentrate sales, with copper at 22% and silver contributing just 2%
to NSR value.
Figure
19.3: NSR Composition by Metal
The
annual contribution from each metal to the NSR value of concentrate sales is shown in Figure 19.4
CK Gold Project S-K 1300 Technical Report 303 May 2026
Figure
19.4: NSR Contribution by Metal
19.6 CAPITAL
EXPENDITURES
Total
LoM capital expenditure is estimated at US$483.9 million, including US$422.4 million incurred during construction, US$34.5 million for
sustaining capital and US$27.0 million on mine closure. Working capital averages approximately US$40 million during steady state operations
and is recovered at the end of the LoM period. Table 19.4 summarizes the initial, sustaining and closure capital expenditures over the
LoM.
Table
19.4: LoM Capital Cost Summary
Description
Initial
(US$’000)
Sustaining
(US$’000)
LoM
Total
(US$’000)
Mining
5,500
1,303
6,803
Process
Plant
219,194
20,275
239,469
Geotechnical
Structures
21,623
8,000
29,623
Infrastructure
21,388
4,946
26,334
Construction
Indirects
43,914
-
43,914
Consultants
16,136
-
16,136
Other
Indirect Costs
20,116
-
20,116
Contingency
46,514
-
46,514
Sub-Total
Capital Expenditure
394,385
34,525
428,909
Mining
/ Mobilization
4,085
-
4,085
Insurance
(Construction)
1,958
-
1,958
Owner’s
Costs
21,959
-
21,959
Sub-Total
Pre-Production Owner’s Costs
28,001
-
28,001
Closure
Costs
0
26,995
26,995
LoM
Capital Expenditure
422,386
61,520
483,906
CK Gold Project S-K 1300 Technical Report 304 May 2026
19.7 OPERATING
COSTS
The
LoM total operating cost is estimated at US$1,627.1 million, or US$1,748 per equivalent ounce of gold produced. On a by-product basis,
after credits for copper and silver sales, net operating costs are US$711.9 million, or US$1,007 per ounce gold, as summarized in Table
19.5.
Table
19.5: Summary of Operating Costs (Excluding Aggregate)
Description
Total
LoM
(US$’000)
Average
Unit Cost (US$/st)
US$/oz
AuEq
US$/oz
Au (net)
Gold/Gold
Equivalent production (000’ oz)
931
707
Contractor
Indirects
80,140
1.08
86
113
Drilling
and Blasting
132,161
1.77
142
187
Loading
and Hauling
245,759
3.3
264
347
Fuel
and DEF
47,997
0.64
52
68
Supervision
and Services
39,983
0.54
43
57
Sub-Total
- Mining
546,040
7.33
586
772
Power
159,090
2.13
171
225
Process
Plant Reagents
63,793
0.86
69
90
Grinding
Media, Liners, etc.
186,015
2.5
200
263
Other
Consumables
81,802
1.1
88
116
Tailings
Disposal
97,569
1.31
105
138
Fuel
and DEF
16,692
0.22
18
24
Laboratory
4,094
0.05
4
6
Supervision
and Labor
105,736
1.42
114
150
Sub-Total
- Processing
714,792
9.59
768
1,011
General
& Admin Supervision
85,995
1.15
92
122
Insurance
9,588
0.13
10
14
Administrative
Expenses
19,331
0.26
21
27
Sub-Total
- G&A
114,915
1.54
123
162
Cash
Operating Costs
1,375,746
18.46
1,478
1,945
Selling
Costs (Cu, Au, Ag)
187,837
2.52
202
266
Royalties
& Production Taxes (Cu, Au, Ag)
63,544
0.85
68
90
Total
Operating Costs
1,627,127
21.83
1,748
2,301
Less
By-Product Credits
-915,219
-12.28
-
-1,294
Net
Operating Costs
711,908
9.55
1,748
1,007
Unit
costs per ounce gold (on by-product basis) and per ounce gold equivalent (on co-product basis) are presented in Figure 19.5.
CK Gold Project S-K 1300 Technical Report 305 May 2026
Figure
19.5: Unit Production Costs
19.8 AGGREGATE
PRODUCTION AND SALES
Table
19.6 presents the key results from the conversion of non-acid-generating waste rock from the open pit into saleable aggregate products
for the local market at the rate of 1 million tons per year.
Table
19.6: Aggregate Production and Sales
Aggregate
Sales
Unit
Value
Rock
Crushed for Aggregate
000
tons
13,750
Weighted
Average Selling Price
US$/st
17.06
Gross
Sales Value - Aggregate
US$
million
234.5
Royalty
Payable to Ranches
US$
million
4.1
Royalty
Payable to Wyoming
US$
million
8.3
Total
Royalties - Aggregate
US$
million
12.4
Crushing
Costs
US$
million
142.9
Water
Usage
US$
million
10.8
SG&A
US$
million
7
Operating
Contingency
US$
million
4.7
Operating
Costs - Aggregate
US$
million
165.4
Net
Operating Surplus - Aggregate
US$
million
56.7
Initial
Capital
US$
million
0.7
Permanent
Plant and Equipment
US$
million
1
Total
Capital for Aggregate
US$
million
1.7
Pre-Tax
Cashflow - Aggregate
US$
million
55.1
19.9 TAXES,
ROYALTIES, DEPRECIATION AND DEPLETION
The
CK Gold Project is subject to a production royalty of 2.1% on the gross sales value of the product sold, less deductions for costs incurred
for processing, refining, transportation, and related costs. This royalty is paid to the Office of State Lands and Investments, State
of Wyoming. Note that the typical value of this royalty is 5% in Wyoming; however, US Gold has received an exception from the Office
of State Lands. The concentrate value, less applicable deductions, is multiplied by 2.1% to yield the royalty payment. The Project’s
net income value already considers the royalty payment.
CK Gold Project S-K 1300 Technical Report 306 May 2026
In
addition to royalites, Wyoming imposes ad valorem taxes on Production and Property. Production taxes are assessed at 6.7% and calculated
using the proportionate profits methodology. This methodology is a ratio defined as (direct mining costs) / (total direct costs) less
administration costs. The gross sales value of product sold, less deductions for costs incurred for processing, refining, transportation,
and royalties is multiplied by the ratio described above and 6.7% to yield the Ad Valorem Production tax. The ad valorem property tax
also applies to the real and tangible assets. In this situation the real property is owned by the State. The tangible assets including
plant and equipment owned by U.S. Gold Corp would be subject to the tax. The fair market value of the assets less depreciation is multiplied
by the assessment ratio of 11.5% for industrial property. This becomes the taxable value which is then multiplied by the mills levied
which has been estimated at 6.7%, or 67 mills.
Wyoming
also imposes a 2% severance tax calculated using the proportionate profits methodology described above. The gross sales value of the
product sold, less deductions for costs incurred for processing, refining, transportation, and royalties, is multiplied by the (direct
mining costs)/(total direct costs) less administration costs and 2% to yield the Severance tax.
A
Federal tax rate of 21% is assessed on taxable income. Federally taxable income is gross revenue less operating costs, sustaining capital,
depreciation, depletion, property taxes, state severance taxes, and tax losses carried forward.
For
the purpose of federal tax calculation, depreciation of infrastructural capital is based on a unit of production model, whereas equipment
depreciation is over a period of 7 years on a straight-line basis. Depletion for federal tax purposes may not to exceed 50% of the taxable
income, subject to which it is taken as the greater of (i) 15% of gross revenue less royalties, or (ii) a percentage of the undepreciated
capital costs, with the percentage calculated on a unit of production basis.
A
summary of the royalties and taxes is provided in Table 19.7.
Table
19.7: Summary of Royalties & Taxes
Description
Total
LoM (US$ ‘000)
Average
Unit Cost (US$/st)
US$/oz
AuEq
US$/oz
Au (net)
Royalties
State
of Wyoming Office of State Lands
58,352
0.78
58
82
Taxes
Federal
Tax
70,919
0.95
70
100
Wyoming
Production Tax
37,432
0.5
37
53
Wyoming
Property Tax
13,750
0.18
14
19
Wyoming
Severance Tax
14,027
0.19
14
20
Total
194,480
2.61
193
275
CK Gold Project S-K 1300 Technical Report 307 May 2026
19.10 BASE
CASE CASHFLOW
Income
from concentrate sales is based on the metal grades estimated within the resource model, adjusted for modifying factors such as mining
dilution and losses, and associated with material scheduled for the concentrator during the corresponding time period. Concentrator recovery
factors are applied to the contained metal to yield a total metal contained in the concentrate.
Smelter
terms were synthesized by Micon based on current industry trends and were applied in the economic model to determine payable metal and
gross income from concentrate sales. Smelter treatment and refining charges, concentrate transportation costs, and royalty payments were
subtracted to yield net Project revenue. Table 19.8 shows the cash flow summary for the Project. Table 19.9 shows a summary of metal
production and revenue projections for the Project.
The
LoM Project cashflows are summarized in Figure 19.6 and in Table 19.8, which shows the concentrate and aggregate-related cash flows
separately, and also presents the unit costs on a Co-product (Gold Equivalent) basis as well as on a By-product basis (with copper
and silver credits).
Figure
19.6: LoM Annual Cash Flow
CK Gold Project S-K 1300 Technical Report 308 May 2026
Table
19.8: LoM Cash Flow Summary
Description
LoM
total (US$’000)
Average
Unit Cost (US$/st)
US$/oz
AuEq
US$/oz
Au (net)
Gold
Sales (gross)
2,298,544
-
-
3,250
Gross
by-Product (Cu, Ag)
915,219
-
-
1,294
Gross
Sales (Cu-Conc.)
3,213,764
43.12
3,452
4,544
Mining
546,040
7.33
586
772
Processing
714,792
9.59
768
1,011
G&A
114,915
1.54
123
162
Cash
Operating Costs
1,375,746
18.46
1,478
1,945
Selling
Costs (Cu, Au, Ag)
187,837
2.52
202
266
Royalties
(Cu, Au, Ag)
63,544
0.85
68
90
Total
Operating Costs
1,627,127
21.83
1,748
2,301
Less
By-Product Credits (Cu, Ag)
-
-
-
-1,294
Net
Operating Costs
1,627,127
21.83
1,748
1,007
Operating
Cash Flow (EBITDA)
1,586,636
21.29
1,704
2,243
Initial
Capital Expenditure
400,427
5.37
430
566
Sustaining
Capital Expenditure
61,520
0.83
66
87
Net
Cashflow Before Tax
1,124,689
15.09
1,208
1,590
Corporation
Tax (State & Federal)
213,267
2.86
229
302
Net
Cashflow After Tax
911,423
12.23
979
1,289
AISC
(excluding aggregate)
1,688,647
22.66
1,814
1,094
AIC
(excluding aggregate)
2,089,074
28.03
2,244
1,660
Aggregate
Tons Sold
-
13,750
-
-
Aggregate
Sales
234,548
17.06
-
-
Aggregate
Operating Costs
165,430
12.03
-
-
Aggregate
Royalties
12,375
0.9
-
-
Aggregate
Capital Expenditure
1,652
0.12
-
-
Aggregate
Net Cashflow
55,090
4.01
-
-
Project
Net Cashflow
966,513
-
-
-
Consolidated
LoM annual cash flows are presented in Table 19.9.
CK Gold Project S-K 1300 Technical Report 309 May 2026
Table
19.9: Annual Production and Cash Flow Forecast
Period
End Date
Unit
LoM
Total
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
Tonnes
Mill Feed
tonnes
74,527
0
0
4,869
7,253
7,299
7,282
7,282
7,282
7,282
7,282
7,270
7,261
4,166
0
0
0
0
0
Copper
Grade in Mill Feed
%
0.17%
0.00%
0.00%
0.22%
0.20%
0.18%
0.18%
0.18%
0.20%
0.19%
0.19%
0.14%
0.12%
0.12%
0.00%
0.00%
0.00%
0.00%
0.00%
Gold
Grade in Mill Feed
oz/st
0.014
0
0
0.023
0.019
0.015
0.016
0.016
0.013
0.014
0.013
0.009
0.007
0.007
0
0
0
0
0
Silver
Grade in Mill Feed
oz/st
0.041
0
0
0.06
0.057
0.047
0.045
0.039
0.033
0.032
0.035
0.033
0.035
0.035
0
0
0
0
0
Copper
Concentrate
US$’000
3,213,764
0
0
276,845
399,279
348,892
366,799
367,772
334,435
334,403
322,199
211,182
160,100
91,858
0
0
0
0
0
Aggregate
US$’000
234,548
0
0
0
4,265
8,529
17,058
17,058
17,058
17,058
17,058
17,058
17,058
17,058
17,058
17,058
17,058
17,058
17,058
Gross
Sales Revenue
US$’000
3,448,312
0
0
276,845
403,544
357,421
383,857
384,830
351,493
351,461
339,257
228,240
177,158
108,916
17,058
17,058
17,058
17,058
17,058
Operating
Expenses
Mining
546,040
0
7,977
55,221
69,595
73,502
62,414
61,926
57,143
48,445
42,040
31,465
23,312
13,001
0
0
0
0
0
Processing
714,792
0
348
48,564
68,004
69,506
69,276
69,290
69,308
69,099
68,990
69,623
69,882
42,903
0
0
0
0
0
G&A
114,915
3,657
9,978
10,545
10,035
10,035
10,035
10,035
9,935
9,562
9,431
9,230
7,687
4,478
272
0
0
0
0
Aggregate
165,430
0
0
0
3,008
6,016
12,031
12,031
12,031
12,031
12,031
12,031
12,031
12,031
12,031
12,031
12,031
12,031
12,031
S/Total
Direct Operating Costs
US$’000
1,541,177
3,657
18,302
114,331
150,642
159,058
153,756
153,282
148,417
139,138
132,492
122,348
112,912
72,413
12,304
12,031
12,031
12,031
12,031
Selling
Costs (Cu, Au, Ag)
187,837
0
0
9,080
19,370
20,108
21,293
21,266
23,304
21,726
22,146
13,901
9,939
5,703
0
0
0
0
0
Royalties
and Production Taxes (Cu, Au, Ag)
63,544
0
0
5,623
7,978
6,904
7,256
7,277
6,534
6,566
6,301
4,143
3,153
1,809
0
0
0
0
0
Royalties
and Production Taxes (Aggregate)
12,375
0
0
0
225
450
900
900
900
900
900
900
900
900
900
900
900
900
900
Total
Operating Costs (C1)
1,804,933
3,657
18,302
129,034
178,215
186,521
183,205
182,725
179,155
168,330
161,839
141,292
126,904
80,825
13,204
12,931
12,931
12,931
12,931
Operating
Cash Flow (EBITDA)
1,643,379
-3,657
-18,302
147,811
225,329
170,899
200,652
202,106
172,338
183,131
177,419
86,947
50,254
28,091
3,854
4,127
4,127
4,127
4,127
Capital
Expenditures and W/Cap Mvmt
463,599
182,721
221,396
37,451
14,185
-5,555
14,162
4,451
1,953
5,192
3,612
-9,285
-3,198
5,368
-8,851
0
0
0
0
Net
Cashflow before Tax
US$’000
1,179,779
-186,377
-239,698
110,360
211,144
176,454
186,490
197,655
170,385
177,938
173,807
96,233
53,452
22,723
12,706
4,127
4,127
4,127
4,127
Internal
Rate of Return (IRR)
30.7%
Net
Present Value (NPV) at 5% discount
759,136
Undiscounted
Pre-Tax Payback (yrs)
2.3
Corporation
Tax (State & Federal)
213,267
0
0
12,535
14,096
13,088
21,076
34,195
27,271
32,497
31,401
13,182
6,112
3,215
870
932
932
932
932
Net
Cashflow after Tax
US$’000
966,513
-186,377
-239,698
97,825
197,048
163,366
165,414
163,460
143,114
145,441
142,406
83,050
47,340
19,509
11,835
3,195
3,195
3,195
3,195
Internal
Rate of Return (IRR)
27.0%
Net
Present Value (NPV) at 5% discount
632,259
Undiscounted
After-Tax Payback (yrs)
2.5
CK Gold Project S-K 1300 Technical Report 310 May 2026
Economic
results of the Feasibility Study are presented in Table 19.10.
Table
19.10: Economic Evaluation Results
Key
Project Indicators
Units
Value
Pre
Tax Results
IRR
%
30.70%
Cash
Flow (Undiscounted)
US$
million
1,180
NPV
at 5% Discount Rate
US$
million
759
Payback
Years
2.3
Ratio
NPV/Initial Capital
-
1.9
After
Tax Results
IRR
%
27.00%
Cash
Flow (Undiscounted)
US$
million
967
NPV
at 5% Discount Rate
US$
million
632
Payback
(years)
Years
2.5
Ratio
NPV/Initial Capital
-
1.6
Co-Product
Basis
Gold
Equivalent Sales
koz
AuEq
931
Total
Cash Costs per oz Gold Eq.
US$/oz
AuEq
1,748
All-in
Sustaining Cost per oz Gold Eq.
US$/oz
AuEq
1,814
All-in
Cost per oz Gold Eq.
US$/oz
AuEq
2,244
By-Product
Basis
Gold
Sales
koz
Au
707
Total
Cash Costs per oz Gold
US$/oz
Au
1,007
All-in
Sustaining Cost per oz Gold
US$/oz
Au
1,094
All-in
Cost per oz Gold
US$/oz
Au
1,660
19.11 SENSITIVITY
STUDY
The
sensitivity of project NPV and IRR to changes in metal prices, capital expenditure and operating costs has been tested over a range of
30% above and below base-case values. Results are presented in Figure 19.7, and sensitivity of IRR to the same parameters is shown in
Figure 19.8.
It
is apparent that project returns are most sensitive to metal price changes, with a reduction of 20% resulting in NPV reducing to near
zero. Sensitivity to capital and operating cost changes are similar, showing that the project NPV and IRR both remain positive within
the range tested for each of these parameters.
Adjusting
the metal prices to reflect recent spot prices of US$4,500/oz Au, US$5.50/lb Cu and US$70/oz Ag, the Project’s after-tax NPV5 rises
to US$1.30 billion and after-tax IRR increases to 45%, while the NPV5-to-capex ratio and payback improve to 3.2 years and
1.5 years, respectively.
Table
19.11 presents the metal price sensitivity.
CK Gold Project S-K 1300 Technical Report 311 May 2026
Figure
19.7: Sensitivity of NPV After Tax
Figure
19.8: Sensitivity of IRR After Tax
Table
19.11: Metal Price Sensitivity
Gold
Price
(US$/oz)
Before
Tax
After
Tax
NPV
(US$
million)
IRR
(%)
NPV
(US$
million)
IRR
(%)
Payback
(Years)
6,000
2,151
65.00%
1,774
57.50%
1.1
5,500
1,898
59.40%
1,569
52.50%
1.3
5,000
1,645
53.50%
1,363
47.40%
1.4
4,500
1,392
47.40%
1,155
42.00%
1.6
4,000
1,139
41.00%
946
36.30%
1.8
3,500
886
34.30%
737
30.20%
2.2
(Base
Case) 3,250
759
30.70%
632
27.00%
2.5
3,000
633
27.10%
528
23.80%
2.9
2,500
380
19.20%
320
16.80%
3.8
2,000
127
10.20%
98
8.50%
5.6
1,500
-126
0.00%
-147
0.00%
15.8
19.12 CONCLUSION
The
results of the economic analysis presented in this section indicate that the Project base case is economically viable at the base case
metal prices and that the Project remains robust within a range of 20% for metal prices and at least 30% for capital and operating costs.
CK Gold Project S-K 1300 Technical Report 312 May 2026
20
ADJACENT PROPERTIES
There
is no information from adjacent properties that is material to the Project. There are no adjacent properties requiring any disclosure.
The area is an historical mining district; however the QPs are not aware of any mineral exploration occurring on adjacent properties.
The proximity and similarities of these historical copper-gold deposits do not, on their own, indicate the Project should be similarly
mineralized.
Approximately
two miles to the south of the property is the operating open pit Granite Canyon Quarry that has no material impact on the Project.
CK Gold Project S-K 1300 Technical Report 313 May 2026
21
OTHER RELEVANT DATA
21.1 AGGREGATE
PRODUCTION
In
addition to metal concentrate sales from operations, there is also potential to sell granite/granodiorite waste rock to local construction
companies as feed material for aggregate production. The material considered for aggregate feedstock has been sampled from existing exploration
holes and is representative of the rock selected for aggregate production and rail ballast. Analysis shows that the material is suitable
for aggregate production. Production parameters are shown in Section 21.2.
21.2 AGGREGATE
MARKET STUDY
The
Project is located in southeast Wyoming approximately 18 miles east of Cheyenne in the southern Laramie Mountains. The area is attractive
for the quarrying of granite for use as construction aggregate. In the state of Wyoming, there are currently three permitted operating
granite quarries. These three quarries are located within four miles of the project site location. On average, in recent years, the two
operational pits in the area produced a total of approximately 2.9 million tons of granite annually. Having conducted extensive testing
on the rock quality under the supervision of Mountain Plains Consulting and associates, aggregate specialists, a study was commissioned
by Burgex and completed in August 2024.
The
report evaluates the technical, market, and economic viability of producing and selling crushed stone aggregate from waste rock
generated by the Project in Wyoming. While CK is primarily a gold–copper mine, its waste rock presents a commercially
attractive aggregate opportunity.
The
report can be summarized as follows:
21.2.1 Aggregate
Quality
● Waste
rock (mainly granodiorite and mylonite) meets ACI, ASTM, and BNSF rail ballast standards.
● Potassium
altered granodiorite is excluded due to inconsistent performance.
● Testing
confirms the material is suitable for construction aggregate and rail ballast applications.
21.2.2 Market
Opportunity
Two
main regional markets were assessed:
Fort
Collins, CO characterized by:
● Strong
supply shortfall: demand significantly exceeds local production.
● Aggregate
demand is projected to grow ~1.6% annually.
● Market
dominated by a few large producers, leaving room for new supply.
Cheyenne,
WY which:
● Also
shows a clear aggregate supply deficit.
● Demand
growth ~1.5% annually.
● Lower
transport costs make this an especially attractive near-term market.
CK Gold Project S-K 1300 Technical Report 314 May 2026
21.2.3 Production
Scenarios
Three
scenarios of aggregate production were studied. All scenarios assume 1 million tons per year of aggregate production.
Table
21.1: Aggregate Production Scenarios
Scenario
Description
Key
Outcome
A
New
crushing equipment
Highest
NPV, higher upfront capital
B
Used
equipment
Lower
capital, higher operating cost
C
Contract
crushing
Lowest
capital, highest IRR, lowest risk
Scenario
C (contract crushing) is identified as the preferred option, combining strong economics with minimal upfront investment.
21.2.4 Economics
and Pricing
Brief
historic and current market analyses have been conducted with following:
● Regional
average aggregate price: ~US$23.93/ton (discounted for volume sales and including transportation
cost).
● Transport
costs favor Cheyenne over Fort Collins.
● All
scenarios are economically viable, even after transportation costs.
21.2.5 Resources
and Mine Life
Mine
aggregate resources and reserves were analyzed with the following outcomes:
● 32
million tons of proven aggregate reserves identified from mine waste.
● ~160
million additional tons classified as inferred resources with upside potential.
● At
planned production, this supports decades of aggregate output.
21.2.6 Strategic
and Environmental Benefits
Aggregate
production presents clear benefits such as:
● Converts
mine waste into a saleable product.
● Reduces
need for new quarries in the region.
● Generates
royalties for Wyoming and supports local infrastructure.
● Potential
future rail connection could unlock larger, more distant markets.
In
conclusion, the CK Aggregate Project is technically sound, strongly profitable, and strategically attractive. Using a contract crushing
model allows U.S. Gold Corp to monetize waste rock with low risk, low capital, and high returns, while delivering environmental and regional
economic benefits.
21.3 AGGREGATE
PRODUCTION AND SALES
For
the purposes of this FS, the weighted average price for saleable aggregate from the Project has been recalculated to be US$17.06 per
ton before operating costs of US$12.03 per ton, selling costs of US$0.90 per ton and capital expenditures of US$0.12 per ton, leaving
a net cash margin of US$4.01 per ton of aggregate sold.
The
revenue and cost build up for saleable aggregate is summarized in Table 21.2.
CK Gold Project S-K 1300 Technical Report 315 May 2026
Table
21.2: Aggregate Cost Buildup
Aggregate
Sales
Unit
Value
Rock
Crushed for Aggregate
000
tons
13,750
Weighted
Average Selling Price
US$/st
17.06
Gross
Sales Value - Aggregate
US$
million
234.5
Royalty
Payable to Ranches
US$
million
4.1
Royalty
Payable to Wyoming
US$
million
8.3
Total
Royalties - Aggregate
US$
million
12.4
Crushing
Costs
US$
million
142.9
Water
Usage
US$
million
10.8
SG&A
US$
million
7.0
Operating
Contingency
US$
million
4.7
Operating
Costs - Aggregate
US$
million
165.4
Net
Operating Surplus - Aggregate
US$
million
56.7
Initial
Capital
US$
million
0.7
Permanent
Plant and Equipment
US$
million
1.0
Total
Capital for Aggregate
US$
million
1.7
Pre-Tax
Cashflow - Aggregate
US$
million
55.1
CK Gold Project S-K 1300 Technical Report 316 May 2026
22 INTERPRETATION AND CONCLUSIONS
22.1 METALLURGICAL
TESTWORK INTERPRETATION
22.1.1 General
Metallurgical
testwork programs have been carried out by different certified laboratories, with work starting in 2008 but focused mainly over the last
5-years. The work has helped to identify a conventional SAG, Ball Mill, pebble crushing comminution circuit, with froth flotation using
Jameson cells as the preferred mineral recovery technology for the Project. Relatively conventional products handling has been selected,
with thickening and pressure filtration of concentrates, and thickening plus vacuum filtration for the tailing streams.
The
QP has reviewed all testwork, participated in the development of the selected flowsheet and concurs with the overall approach to processing.
Limited additional confirmatory testwork is considered necessary and the mineral processing flowsheet is not expected to change materially
in future.
The
metallurgical testwork results summarized within Section 10 have been used as the basis for the process design criteria and flowsheet
configuration described within Section 14. An overview of the QP’s interpretation in key areas of the process design is given in
the following subsections.
A
brief chronology of testwork and sample selection criteria is given below.
● Work
at SGS Lakefield in 2008-2010 characterized composite samples of sulfide and oxide mineralization
and indicated gold and copper recovery of 68% and 77% respectively for sulfide, and 55% gold
and 10% copper recovery for oxide. Copper concentrate grade was 25% to 26% Cu for sulfide
and 15% Cu for the oxide composite. Whilst lower in copper, this oxide concentrate had an
exceptionally high gold content of 380 g/t Au. By industry standards these grades and recoveries
would be considered reasonable, considering the relatively low copper head grade and the
mineralogy.
● The
subsequent 2020 test program at KCA, although comprehensive in scope, was largely unsuccessful,
with over-dosage of flotation collectors and depressants resulting in generally poor performance.
Although comminution and mineralogical characterization work gave useful data, the flotation
results from this program have not been considered in the metallurgical interpretation, or
the modeling of flotation recovery.
● In
April 2021, the metallurgical program was moved to BML in Kamloops, Canada. The
BL-0789 program commenced shortly thereafter and by adjusting the reagent recipe, the recoveries
and concentrate grades achieved earlier by SGS were replicated. With the benchmark set, a
larger test program (BL-0835 and BL-0882) was then initiated to test variability samples
and master composites via a program of rougher optimization tests, rougher-cleaner open cycle
tests and finally a series of LCTs. This work was successful and confirmed the favorable
mineralogy that was reported earlier by FLSmidth.
● As
the flowsheet development continued at BML, it was noted that the Sulfide Composite contained
10% to 15% of non-sulfide copper minerals that originated from the mixed ore zone, accounting
for the challenges experienced with copper recoveries. A second sulfide composite (named
“Sulfide Comp 2”) was therefore prepared from samples that avoided the mixed
ore zone, and this immediately realized improved copper recoveries.
● BL-0882
included comminution testing of 10 variability composites, and open circuit flotation testing
of 29 variability composites. The work provides variability data for the development of geometallurgical
models.
CK Gold Project S-K 1300 Technical Report 317 May 2026
● BL-0882
also included a program of LCTs on composites of oxide, mixed, shallow sulfide and deep sulfide
mineralization. The results of these LCTs are incorporated into the variability data set
and represent a key part of the data set used for metallurgical performance modeling.
● As
it was noted that metallurgical samples had, to date, carried head grades higher than latest
mine plan information, two additional BML flotation programs (BL-0980 and BL-1066) were scheduled
using lower grade sulfide composites. The work culminated in two locked cycle tests on low-grade
composites (LG Comp and LG Comp 2), and again, these test results represent key inputs to
the metallurgical performance model.
● In
late 2024/early 2025 two further programs (BL-1702, BL-1859) focused on the potential of
Glencore’s Jameson Cell technology. Flotation testwork was completed at BML and XPS
(Sudbury, Ontario) to demonstrate the effectiveness of the Jameson Cell as an alternative
technology for flotation at the Project. The work demonstrated that the Jameson Cell represents
viable technology for the Project, with at least an equal metallurgical performance predicted,
and some important advantages in terms of layout and simplicity.
● Later
in 2025, additional samples of Oxide, Mixed and Sulfide mineralization were shipped to BML
as part of the BL-1990 program with the objective of demonstrating whether the mixing of
ore types would be detrimental to performance, but also to generate material for tailings
characterization. Three production period composites (Y1, Y2, and Y3) were tested with results
showing good correlation to past data. Tailing samples were shipped to various third parties
for additional characterization work.
The
results of flotation tests completed in all BML programs (2021-2025) have been consolidated by the QP into a single metallurgical model
for incorporation into mine planning exercises and Project cashflow models. The FS recovery model is summarized in Section 22.1.10.
22.1.2 Sampling
Significant
sample masses have been shipped from site to the various metallurgical laboratories:
● 2008
– around 500 kg of oxide, mixed and sulfide ½ core from an unknown number of drill
holes.
● 2020
– around 800 kg of oxide, mixed and sulfide ½ core from 7 drill holes.
● 2021
– around 100 kg of oxide and sulfide from multiple drill holes.
● 2022
– around 200 kg of lower grade sulfide from 12 drill holes.
● 2024
– around 130 kg of lower grade sulfide ½ core from 6 drill holes.
● 2025
– around 200 kg of oxide, mixed and sulfide ½ core from 8 drill holes.
In
all cases, sample mass is judged by the QP to be sufficient for the intended purpose, and the sample locations are sufficiently diverse
to achieve good spatial coverage. Drill holes used for sampling are noted to be within or near the FS pit shell. An accurate chain of
custody records has been maintained, and the QP is satisfied that the deposit has been well and properly represented by the numerous
composites and variability samples tested in these programs.
Variography
suggests that within each ore zone of the deposit, the mineralogical variability is relatively low. Both grindability and flotation testwork
have verified this, and where results have been seen to be inconsistent, the reason is normally attributable to differences in copper
deportment (i.e., inclusion of oxide or native copper in a sulfide composite). The metallurgical performance of copper is unsurprisingly
linked to the degree of oxidation of copper minerals.
CK Gold Project S-K 1300 Technical Report 318 May 2026
Sample
head grades in earlier programs tended to be on the high side, and most composites prior to 2022 had grades significantly higher than
more recent reserve grades. This fact drove the selection of samples for subsequent composites, including LG Comp 1 and 2 (tested during
the summer of 2022); LG-2025 Comp (tested during 2025) and the testing on mine production period composites (occurring in 2025).
22.1.3 Mineralogy
Quantitative
mineralogical work by SGS, FLSmidth, and BML has improved the understanding of copper deportment throughout the deposit and currently
represents a good foundation for more comprehensive geometallurgical modeling that could be carried through into operations. The work
by FLSmidth in 2021 provides some additional insight into the gold deportment and liberation.
Copper
is primarily found in chalcopyrite, with lesser amounts in secondary sulfides such as bornite or chalcocite, or in oxides such as chrysocolla,
cuprite or clays/micas. In a small, centrally located high-grade oxide zone, native copper is common, although this is only noted occasionally
through the bulk of the deposit. The metallurgical response of samples from different locations within the deposit is dependent upon
the specific blend of oxide and sulfide copper minerals.
The
main sulfide gangue component within the deposit is pyrite, although this generally occurs in lower concentrations (relative to copper)
than many porphyry deposits. Base metal sulfides such as sphalerite and galena are noted in trace concentrations throughout the deposit
and although these will recover to the flotation concentrate, for the majority of cases they appear to do so in amounts that avoid smelter
penalties.
Host
rocks are mainly feldspar (around 45%), quartz (around 25%) and mica (around 14%).
Liberation
data is variable but suggests that copper sulfides are not well liberated at a P80 of 100 µm to 125 µm and therefore
rougher concentrate regrinding is an essential aspect of the flowsheet. In general, the very small quantities of rougher concentrate
generated in laboratory scale tests makes the concentrate regrind optimization studies difficult, but the program has settled on a regrind
P80 target in the 20 µm to 25 µm size range for the FS. Whilst this has been found to be a workable range, the
opportunity to run the cleaner flotation circuit with a finer grind is significant.
By
virtue of the grades involved, the statistical significance of gold deportment data is less than that for the sulfides. However, the
measurements made by FLSmidth suggest that the majority of gold/silver particles are less than 10 µm in size and locked or associated
with a variety of sulfides, silicates and oxides. This reinforces the thought that the inclusion of gravity concentration is uneconomic,
and that significantly finer (uneconomic) primary grinds would be necessary to realize significant gains in gold recovery.
22.1.4 Comminution
22.1.4.1 Crushing
A
simple open circuit primary jaw crusher installation has been selected to complement the SAG/Ball mill circuit discussed below. A vibrating
grizzly feeder is used to remove roughly 50% of mass as fines prior to crushing. Crushing equipment sizing and selection is based on
instantaneous throughput requirements (assuming an average 18 h/d operation), estimated crushing work index (typical for the feldspar-quartz-mica
host rock) and a RoM size distribution that was derived from fragmentation studies that are described in Section 13 (Mining).
CK Gold Project S-K 1300 Technical Report 319 May 2026
22.1.4.2 Primary
Grind
The
primary grind used in the majority of flotation tests at SGS, KCA, and BML has been in the P80 range of 75 µm to 125
µm. Early work by SGS concluded that from a cost vs benefit perspective, the optimum primary grind appeared to be between 90 µm
and 100 µm.
As
discussed earlier, mineralogical studies indicate that both the copper sulfides and the gold/silver/electrum are fine grained, and this
suggests a relatively fine primary grind requirement. More recent results from studies by BML indicated the optimum grind to be between
75 µm and 90 µm, although there is some variability. Metallurgical performance does appear to deteriorate rather quickly
at grinds coarser than 100 µm.
The
copper recovery is relatively insensitive to the primary grind size. However, the gold recovery drops off more rapidly at coarser sizes
and this is a major revenue driver. Economic studies suggest that the NPV is similar between 80 µm and 90 µm primary grind.
At coarser grind sizes the revenue drops quite rapidly as gold recovery reduces more dramatically.
A
primary grind of 80% passing 90 µm was selected for the PFS design in late 2024 and subsequent work in 2025 has not deviated from
this assertion. The PFS included an order of magnitude trade off study for five grind sizes, that evaluated recovery of copper and gold
in addition to capital and operating costs. The relatively rapid rise in gold price since 2023 might perhaps point to a change in favor
of finer grinds, although the increased grinding costs, together with the considerable negative impact of additional fines on the tailing
filtration process represents an effective barrier to significantly finer grinds. The incorporation of Jameson Cell technology into the
FS design, together with the higher nominal rougher concentrate mass pull will also help to neutralize the impact of finer primary grinding.
22.1.4.3 Primary
Mill Sizing
The
comminution testwork summarized within Section 10 forms the basis for a grinding circuit design in the FS. Grindability testing was conducted
at SGS (11868-001), BML (BL882, BL1990) and Hazen Research (12827 and 13295). The quantity of tests in each program is given in Table
22.1.
Table
22.1: Grindability Test Quantities
Parameter
Bond
Ball Mill Wi
Bond
Rod Mill Wi
SMC
Test
Bond
Abrasion Index
SGS
11868-001
5
1
3
0
BML
882
5
0
1
0
BML
1990
3
3
0
0
Hazen
12827
3
0
3
3
Hazen
13295
12
12
0
0
Total
28
16
4
3
Average
Value
15.6
16.2
-
-
%
Relative Std. Dev.
8.5%
7.6%
-
-
Of
note, the comminution circuit equipment selection uses primarily Bond work index data, of which there are 44 data points. A quality control
problem was identified with the ball mill work index tests conducted in program BL1990, and a correction was applied based on a published
procedure (Nikolić, 2022) using the comminution consultant’s database of over 5,000 ball mill work index tests.
CK Gold Project S-K 1300 Technical Report 320 May 2026
The
expected relative standard deviation of a grinding circuit design database is between 10% and 20% of the work index average value based
on the comminution consultant’s global database of over 40 projects with large grindability datasets. The rod mill and ball mill
work index standard deviations for the Project did not meet this expectation, which is interpreted as meaning that the full variability
of the deposit may not have been captured by the current data set. The comminution equipment design criteria and resultant sizing/selection
calculations therefore make allowance for greater variability in ore grindability than what is indicated in Table 22.1 via additional
contingency allowances.
Values
for the comminution circuit design criteria are summarized as follows:
● Nominal
throughput: 20,000 short
tons per day
● Availability: 91.3%
● Design
throughput: 828 dmt/h (913 st/h)
● Cyclone
overflow P80: 90 µm
● Flowsheet
selected: SABC-A
● Design
work index for ball milling 17.9
kWh per metric tonne (average value + 15% contingency)
● Design
work index for rod milling 19.4
kWh per metric tonne (average value + 20% contingency)
● Design
crushing work index 15.0
metric per metric tonne (allowance)
The
flowsheet design parameters are also shown in Figure 22.1.
The
decision to include a pebble crusher in the flowsheet is based on the relationship between the ore’s Bond Ball Mill Work Index
(BWi) and Bond Rod Mill Work Index (RWi). Figure 22.2 was provided by Alex Doll, it displays CK Gold samples (indicated in purple) relative
to the red and green shaded regions. These samples, along with the selected design parameters (RWi of 19.4 kWh/t and BWi of 17.9 kWh/t),
plot on the periphery of the “optional pebble crushing” zone. This suggests a pebble crusher is required to prevent the accumulation
of critical-size material.
CK Gold Project S-K 1300 Technical Report 321 May 2026
Figure
22.1: Grinding Circuit Simulation
Note:
Throughput is in metric tonnes
CK Gold Project S-K 1300 Technical Report 322 May 2026
Figure
22.2 CK Gold Pebble Crushing Zones
22.1.5 Gravity
Concentration
Although
laboratory scale gravity tests were unsuccessful for the KCA Oxide Composite and the Sulfide Composite, a reasonable gravity concentrate
was achieved for the Hole 4 high-grade oxide composite as a result of higher gold grades and significant concentrations of native copper.
The addition of gravity concentration to a standard flotation circuit resulted in an overall copper recovery increase of 3% for the Hole
4 sample.
Despite
the reasonable Hole 4 performance, comparisons of overall flowsheet performance with and without the gravity stage for samples representing
the majority of the deposit show very similar gold and copper performances. This suggests that despite increased gold prices, a simple
“no gravity” approach will be most effective for the Project overall.
For
this reason, a gravity circuit has not been included in the FS flowsheet design.
22.1.6 Rougher
Concentrate Regrind
Much
of the recent metallurgical testwork has targeted a regrind P80 of between 20 µm and 25 µm, although variable
rougher concentrate mass pull rates have resulted in a regrind P80 as fine as 17 µm and as coarse as 40 µm, on
occasion. Mineralogical studies by BML suggest that a regrind P80 of 15 µm to 20 µm may still be insufficient
to provide performance gains and that a very fine regrind (approximately 10 µm) would be required to achieve noticeable recovery
gains.
The
FS has followed the recommendations set out in previous studies and a P80 target of 22 µm to 25 µm has been selected
for the PDC.
As
the collection of concentrates during laboratory testwork is challenged by the small quantities involved, relative to quantities required
for regrind testing, specific regrind mill testwork has not been completed for the Project. However, the applied power requirements for
HIG mills is well understood by the vendor, and an applied power of at least 25 kWh per metric tonne of feed to the mill is seen to be
required to achieve a product P80 of 25 µm. From the PDC, a design rougher concentrate mass pull of up to 90 dmt/h would
be scalped using a hydrocyclone to reduce HIG mill feed to approximately 65 dmt/h, and with the selected equipment being able to draw
approximately 2,100 kW, an applied power per tonne of mill feed in excess of 30 kWh/t is anticipated. This is considered adequate for
design purposes.
CK Gold Project S-K 1300 Technical Report 323 May 2026
22.1.7 Flotation
Parameters
Certain
elements of the flotation circuit have remained consistent since the SGS work in 2008/2009; for example the flowsheet rougher/cleaner
configuration and the primary grind. Reagent recipes and dosages have changed, with the most notable change being the reduction in collector
dosage to starvation levels ahead of cleaning. This change helped improve selectivity within the cleaner circuit and removed the need
for excessive depressant addition, which in turn helped to improve recovery.
A
pH adjustment to levels >8.5 is intended to depress the flotation of pyrite, although for many tests the sulfur recovery suggests
that pyrite has been well-recovered to concentrate regardless. The lime added to raise the pH also helps with froth stability, and this
in turn is believed to assist flotation performance in addition to helping with settling and filtration. Lime can have a depressing action
on gold flotation, but this has not been highlighted in the testwork for the Project.
CMC
addition could theoretically be required in certain areas of the deposit (where chlorite and/or talc may be present in minor concentrations),
although all evidence points to these areas being few and far between. It is therefore assumed that during normal operations, any areas
containing active gangue minerals will be diluted to inconsequential levels by the surrounding material. The addition of CMC is also
harmful to gold recovery and thus the motivation for not adding CMC is clear. CMC dosing facilities are not included in the FS design.
For
the FS, the flotation cleaner circuit configuration has been changed slightly as part of the transition to Jameson Cell flotation equipment.
The Jameson cell testwork outlined in Section 10, conducted at XPS in Sudbury Ontario, was supervised directly by Glencore personnel
and is believed to be reflective of performance at full scale. As the equipment scale-up knowledge is somewhat proprietary, feasibility
level scale-up calculations and subsequent equipment selection recommendations have been provided by Glencore Technology. The analysis
of testwork includes the results from pilot scale rougher performance data and conventional locked cycle test data for cleaner circuit
performance.
As
the Jameson Cell is less commonly used in industry (relative to tank cells), additional due diligence was completed by the QP and by
US Gold’s metallurgical consultant. The primary, or most logical reference for this project would be Hudbay’s New Brittania
mill in Manitoba, Canada. Discussions with operations management personnel, together with reference to published papers on the subject,
suggest that Glencore’s claims regarding recovery improvements are founded.
22.1.8 Concentrate
Dewatering
No
dewatering testwork has been completed for flotation concentrates. The final concentrate masses generated by laboratory scale tests are
particularly small when lower grade mineralization is tested, making such testwork challenging. Although this must be recorded as a Project
risk, it is worth noting that the performance of copper flotation concentrates after a 25 µm regrind is already well established,
and most dewatering equipment vendors carry significant databases of actual performance for this type of material.
As
such the sizing and selection of thickening and pressure filtration equipment has referenced QP and vendor databases, based on regrind
P80, mineralogical composition and pH. This method is deemed acceptable, albeit with the application of an increased contingency
to ensure conservatism.
CK Gold Project S-K 1300 Technical Report 324 May 2026
The
FS assumes that a final concentrate product will first be dewatered in a thickener to approximately 60% solids, then by a vertical (tower)
pressure filter, to 8% or 9% moisture prior to bulk transportation by road and/or rail.
The
selected thickener is 20’ in diameter, giving a settling area of 314 ft2. Accounting for the thickener underflow volume
and the feed slurry volume, this gives a very reasonable rise rate of 3.1 ft per hour and a thickener unit area of 1.37 ft2/st/d.
Flocculant will be dosed to the feed slurry at a rate of 45 g/st. These design parameters are deemed acceptable by the QP.
The
thickener is expected to make an underflow slurry with a density equivalent to 58% solids by weight. This will be fed via a storage tank
to the pressure filter (a fully automatic vertical type) for dewatering to a -10% moisture level. The selected unit provides almost 1,000
ft2 of filtration area, with further expansion capacity available via the addition of more plates. A design filtration rate
of 26 lb/ft2.h is considered quite conservative and suitable for the required duty.
22.1.9 Tailing
Dewatering Parameters
The
FS flowsheet includes a dewatering circuit designed to filter tailings and deposit the plant residues as a 14.5% (w/w) moisture filter
cake. The main advantages of this are the elimination of a wet tailings dam and the reduced demand for fresh make-up water.
Thickening
and filtration (vacuum and pressure) testwork was first carried out on samples of LCT tailings at Pocock in 2021 as part of the KCA metallurgical
program, and then again in 2022 at BML using a laboratory scale pressure filtration unit to dewater thickened samples of LCT Tailings.
The somewhat fine primary grind used in these tests reduces tailing filtration rates, and vacuum filtration tests all produced cake with
high moisture levels. However, in 2024 Jord International tested samples of LCT tailings using their proprietary “Viper”
belt filtration technology and achieved target moistures at very attractive flux rates.
This
vendor-coordinated work is described in Section 10, and subsequent economic trade off studies have led to selection of VIPERTM
belt filtration technology in the FS design. The selection of vacuum filtration equipment may be seen as controversial as vacuum filters
are normally unable to achieve <20% moisture (w/w). However, the introduction of VIPERTM vibrating cake technology was
seen to reduce moisture levels to acceptable levels during the testwork. In addition, the QP and U.S. Gold’s Metallurgical Consultant
have conducted a thorough due diligence including a review of Australian iron ore operations.
22.1.9.1 Thickener
Testwork
conducted at BML as part of the BL-0835/882 program (described in Section 10) forms the main reference for tailings thickener sizing.
A design unit area and net rise rate of 0.68 ft2/st/d and 3.15 ft/hr is considered appropriate given the results of the testwork.
This results in a tailing thickener sizing of 131 ft (42m) diameter, with a high rate feedwell design, 10 ft wall height and maximum
flocculant dosage of 45 g/st used to achieve an underflow slurry density of up to 60% (w/w).
22.1.9.2 Filtration
Testwork
by Jord International has been used as the primary reference for belt filter sizing. The samples used for this testwork were sourced
from the BL-1859 program, and so are considered reasonably representative. Under nominal operating conditions, an installed filtration
area of 7,300 ft2 gives a filtration rate of 0.93 st/yd2 which is considered appropriate based on testwork results.
22.1.10 Metallurgical
Recovery Prediction
A
large body of testwork has been reviewed by the QP, in consultation with others, to develop a model to estimate metallurgical performance
using flotation under various conditions. A database of 70 open circuit cleaner tests and locked cycle tests was collected from BML program
BL-0835 onwards and has been used to generate modeling information. A series of quality control checks were run to eliminate outlier
data, including head grade reconciliation (i.e., recalculated vs measured head grade), tests with outlier regrinds of P80
and those with poorly optimized conditions (giving unusually poor results), and this process removed 14 open circuit tests from the data
set. After QC checking, 18 locked cycle tests and 38 open circuit tests remained, and these formed the basis for predictions.
Table
22.2: Metallurgical Model Test Database
Parameter
Test
Type
Sulfide
Mixed
Oxide
Total
Total
Locked
Cycle Tests
11
5
2
18
Open
Cleaner Tests
21
22
9
52
Total
32
27
11
70
Post-QC
Locked
Cycle Tests
11
5
2
18
Open
Cleaner Tests
18
14
6
38
Total
29
19
8
56
The
56 tests under consideration gave a wide variety of copper, gold and silver grade and recovery results for each oxidation type. For example,
primary sulfide copper concentrate grades varied from 13% to 28% (after outlier removal). Concentrate grade statistics are summarized
in Table 22.3.
Table
22.3: Concentrate Grade Statistics
Test
Type
Sulfide
Mixed
Oxide
Min
Cu Grade (%)
13
14
5
Max
Cu Grade (%)
28
43
32
Average
Cu Grade (%)
21
23
20
%
Relative Standard Deviation
20
32
50
As
might be expected in a metallurgical development program including variability testing, the results show a wide range of results, in
terms of the copper product grade. This is especially noticeable with the oxide mineralization as both copper minerals and froth conditions
were noted to be more variable during testing. From the perspective of recovery prediction, this poses problems as a test that produces
a 32% copper concentrate grade cannot be directly compared to one with only 5% concentrate grade.
22.1.10.1 Data
Normalization
Given
the variability in copper concentrate grade, the model includes a normalization step that adjusts metal recovery data for differences
in concentrate grade. This is achieved via reference to grade vs recovery curves for each oxidation type (Sulfide, Mixed and Oxide).
A
second adjustment is made to open circuit test results, bringing them into line with locked cycle test results by approximating the metal
losses to intermediate streams in the open circuit test. For the majority of tests, these normalization changes result in an increase
in metal recovery, especially since target concentrate grades are now lower than the majority of tests. The adjustments for copper are
illustrated graphically in Figure 22.3.
CK Gold Project S-K 1300 Technical Report 325 May 2026
Figure
22.3: Cu Recovery Adjustments for Conc Grade and Open Circuit Losses
22.1.10.2 Concentrate
Grade Targets
Increases
in metal price, ongoing discussions with smelters and commodity traders, together with latest market conditions (global supply vs. demand
for copper-gold concentrate) all point to the production of lower grade concentrates, as these result in higher metal recoveries. Analysis
of the metallurgical testwork database suggests that a 1% drop in copper grade, achieved through pulling concentrate more aggressively
in flotation, will result in just under 1% increase in gold recovery.
For
the FS, the copper concentrate grade targets summarized in Table 22.4 were used to normalize test data, and to provide economic models
with theoretical limits of metallurgical performance.
Table
22.4: Metallurgical Model Concentrate Grade Targets
Scenario
Sulfide
Mixed
Oxide
Low
Cu Grade (%)
13.5
14.5
8.0
Higher
Cu Grade (%)
16.5
18.5
10.0
Realistically,
the flotation operation can be tuned to achieve any copper grade within this range, and testwork has shown that the processing of mixtures
of Sulfide, Mixed and Oxide will result in grades and recoveries that are simply pro-rated from the individual components.
CK Gold Project S-K 1300 Technical Report 326 May 2026
22.1.10.2 Model
Outputs
Normalized
test data was used to calculate average copper, gold and silver recovery rates for each oxidation type, and for the high and low concentrate
grade scenarios. The results are summarized in Table 22.5.
Table
22.5: Metallurgical Model Concentrate Grade Targets
Scenario
Average
Recovery
Copper
(%)
Gold
(%)
Silver
(%)
Sulfide
Ore – Low-Grade Concentrate
89.9
74.5
72.3
Sulfide
Ore – High-Grade Concentrate
88.2
72.1
71.9
Mixed
Ore – Low-Grade Concentrate
74.5
69.3
69.1
Mixed
Ore – High-Grade Concentrate
72.6
66.9
68.5
Oxide
Ore – Low-Grade Concentrate
21.9
66.2
53.5
Oxide
Ore – High-Grade Concentrate
20.4
64.6
53.1
No
strong relationships between head grade and recovery were noted. As an example, the gold, copper and silver recovery vs gold head grade
relationships are shown in Figure 22.3, Figure 22.4 and Figure 22.5 for the sulfide ore type with data normalized to reflect the low-grade
concentrate target. Red data points represent the LCT results.
Figure
22.4: Au Recovery vs Au Headgrade - Sulfide
CK Gold Project S-K 1300 Technical Report 327 May 2026
Figure
22.5: Cu Recovery vs Cu Headgrade – Sulfide
Figure
22.6: Ag Recovery vs Ag Headgrade – Sulfide
All
charts highlight limited relationships between recovery and head grade, and similar relationships were noted for Mixed and Oxide ore
types.
For
the FS economic model, the following metal recoveries have been used (again, assuming the lower concentrate grade target):
Sulfide
Ore (77% of the planned LoM tonnage):
● Copper
recovery – 85.0% below 0.15% Cu head grade, 90.0% between 0.15% and 0.40% head and
91.5% above 0.40% head.
● Gold
recovery – 69.1% below 0.40 g/t Au head grade, 72.5% between 0.40 g/t Au and 0.65 g/t
Au head and 74% above 0.65 g/t head.
● Silver
recovery – 72% between 1.0 g/t Ag and 4.0 g/t Ag head grade.
CK Gold Project S-K 1300 Technical Report 328 May 2026
Mixed
Ore (12% of the planned LoM tonnage):
● Copper
Recovery – 75.0% between 0.10% and 0.30% Cu head grade.
● Gold
Recovery – 69.0% below 0.9 g/t Au head grade, 71.0% between 0.90 g/t Au and 2.0 g/t
Au head.
● Silver
Recovery – 60.0% below 0.5 g/t Ag head grade, 69% above 0.5 g/t Ag head.
Oxide
Ore (11% of the planned LoM tonnage):
● Copper
Recovery – 22.0% between 0.10% Cu and 0.40% Cu head grade.
● Gold
Recovery – 66.5% between 0.20 g/t Au and 1.50 g/t Au head grade.
● Silver
Recovery – 55.0% between 1.0 g/t Ag and 4.0 g/t Ag head grade.
22.2 RISKS
AND OPPORTUNITIES
22.2.1 Risks
In
general terms, the processing aspects of the Project are viewed as being relatively low risk, as conventional mineral processing technology
is used, including crushing, SAG and ball milling, plus products dewatering with thickeners and filters. The metallurgical component
of the Project has been de-risked to an extent that is suitable for a FS. Some risks remain partially mitigated, and these are described
as follows:
● Head
Grades of composites used for SGS, KCA, and some BML testwork programs have tended to be
higher grade than the current reserve grades. This has been addressed through more recent
programs of work to provide a suitable reference of low-grade data points. These are now
incorporated into the metallurgical models for the FS.
● Mine
plan information suggests that initial periods of production will be mainly oxide ore. Results
from the oxide zone have been more variable than the majority sulfide ore, and copper grades
especially can be challenged. For this reason, it appears that Y1 concentrates will be lower
in copper, but higher in gold, and will likely be marketed as concentrates of gold rather
than copper.
● The
grindability database size has been improved for the FS, although it is still relatively
small given the size of the deposit. Results to date show unusually low levels of variability,
suggesting more consistent operations, although additional work would be beneficial to confirm
that the low variability persists as the dataset grows.
● Flotation
Technology: The selected flotation process is less commonplace than tank cell flotation although
the Jameson Cell technology has been in use around the world since the 1990’s with
many operating references including Hudbay’s New Britannia Project (Manitoba).
● Concentrate
Regrind: No project specific regrind testwork has been completed to date and so a larger
contingency has been applied to the sizing/selection data provided by Vendors. The mill sizing
has contingency in terms of the design rougher mass pull and applied power assumptions. Vendor-owned
applied power databases are extensive and the QP considers the risk of an undersized regrind
mill to be negligible.
● The
tailing filtration plant is a large, capital-intensive area of the flowsheet. The sizing
of such machinery is critical to the Project success and as such, more comprehensive testwork
(in conjunction with the preferred vendor) is recommended.
CK Gold Project S-K 1300 Technical Report 329 May 2026
● The
proprietary cake vibration technology used on the tailing belt filters may be viewed as a
technological risk, although it has been proven elsewhere in the world over a period of several
years. U.S. Gold has mitigated the technology risk through testwork and a comprehensive review
of operating installations. Additional testwork is recommended to confirm and perhaps optimize
the sizing/selection of the preferred equipment.
Although
a metallurgical/economic benefit is likely, the Project has purposely avoided using cyanide to recover additional gold as this approach
helps to maintain a responsible social and environmental footprint. Power consumption is lower than other processing routes (e.g., Hydrometallurgical)
and water consumption has been minimized through the application of relatively complex and expensive dewatering technology prior to tailings
storage.
The
mining risks are relatively low for the Project with the conventional proposed mining method and approach to the mine plan. Some risks
highlighted are identified below that can be managed with adequate planning and engineering controls:
● Insufficient
stockpile space for additional stockpiles leading to poor blending options and flexibility
in short term mine planning to realize the full potential of the deposit in the early mine
life.
● Lack
of physical space for additional waste dumps that could pose a risk if there are additional
resources that can be economically extracted later in the mine life due to pit expansion.
A trade off study to evaluate expanding claims lease can be conducted mid mine life to evaluate
the options for future waste stockpile space. Alternatively, aggregate sale of waste stockpiles
can potentially free up room on existing waste stockpiles mitigating future risks and allowing
mine life extension possibilities.
● Poor
grade control practices can result in higher than anticipated ore loss and dilution resulting
in inadequate mill ramp up. The risk can be mitigated by starting integrated mine to mill
reconciliation programs early in the pre-production period with Blast Movement, and Fragmentation
studies to ensure that the planning team onsite has a full understanding of mill feed quality.
22.2.2 Opportunities
22.2.2.1 Mineral
Resource
Mineral
Resources exclusive of reserves are reported in Section 11 (Tables 11.15 and 11.16) and total 1,267 koz AuEq, comprising 590 koz AuEq
of Measured and Indicated Mineral Resources and 677 koz AuEq of Inferred Mineral Resources. The Measured and Indicated Mineral Resources
exclusive of reserves include 306 koz AuEq of material within the reserve pit shell that falls below the reserve economic cut-off, and
284 koz AuEq of material within the resource pit shell but external to the reserve pit shell. Inferred Mineral Resources are reported
within the resource pit shell and include material both within and external to the reserve pit footprint.
The
relatively modest volume of Measured and Indicated Mineral Resources exclusive of reserves reflects the high conversion efficiency of
the deposit: approximately 84% of Measured + Indicated Mineral Resources containing gold converts to Mineral Reserves at FS economic
parameters. Material within the reserve pit that falls below the reserve cut-off represents potential mine life extension opportunities
at higher metal prices or lower operating costs. Material between the reserve and resource pit shells, combined with Inferred Mineral
Resources, occupy portions of the deposit at depth and to the southeast that are defined by limited and wide-spaced drilling.
CK Gold Project S-K 1300 Technical Report 330 May 2026
The
primary constraint on additional resource definition in peripheral areas is drill data density. Modeled mineralization extends beyond
the current resource pit shell to the southeast and at depth, and many drill holes terminate in mineralization. Resource growth potential
exists through two complementary pathways: infill and extension drilling to support classification of mineralization in data-limited
areas, and refinement of the geological and geostatistical model as the drill hole database matures. These opportunities could extend
the mine life and improve capital efficiency through increased throughput from existing processing infrastructure.
22.2.2.2 Regional
Exploration Context
The
CK Gold deposit is situated within the historic Silver Crown Mining District, which supported small-scale mining operations from the
late 1800s through the 1920s. Previous technical assessments (Hausel, 1997, 2012; Carson, 1998; Sillitoe, 2022; Dworian, 2024) have characterized
the CK deposit as potentially representing a portion of a copper-gold porphyry system based on hydrothermal alteration assemblages and
the geological setting. During a 2022 site visit, Sillitoe noted characteristics consistent with porphyry-style mineralization.
Regional
exploration targeting porphyry-related mineralization trends represents a potential opportunity for resource base expansion beyond the
current CK Gold deposit footprint.
22.2.2.3 Processing
and Recovery
Flotation
testwork continued in parallel with the FS and it is believed that little additional metallurgical upside remains. Glencore are confident
that metal performance improvements linked to the operation of Jameson cells are likely with marginal improvements in grade and/or recovery
anticipated. These have not been included in the FS recovery models.
Cyanide
leaching of the high-grade flotation tailings gave high extraction of gold and silver. This, together with possible leaching of scavenger
concentrates, may represent a future opportunity. However, the use of cyanide can be a controversial topic within the local community
and would certainly trigger additional regulatory reviews. With gold prices reaching all-time highs the opportunity to recover additional
gold through cyanidation is worth additional investigation.
The
process plant layout was improved significantly as part of the FS engineering, with a more compact plant layout as a result. Operability
improvements and cost savings associated with a smaller building are expected. However, further capital costs may be saved through additional
value engineering during detailed engineering.
22.2.2.4 Economic
Analysis
The
marketing outlook for a clean copper/gold flotation concentrate, such as that produced by the Project, is currently very healthy, and
is expected to remain this way for several years. Irrespective, the market is global and relatively stable, although subject to macroeconomic/global
trends.
This
FS considers the use of non-acid-generating “waste” rock from the mine to (i) mitigate site construction costs and (ii) supply
up to one million tons per year of crushed rock as aggregate which is expected to be sold locally and transported on public roads. Testing
of the rock that is barren of economic metals reveals that it is suitable not only for the production of aggregates but also meets the
more stringent criteria for use as rail ballast. To meet the anticipated high demand for aggregate, rail ballast and rock within the
region, further consideration may be given to the transport of additional rock and rock products to a nearby rail siding. In addition
mitigating the burden on the transportation infrastructure and public nuisance, and allowing additional movement of material locally
and further afield. Under the current plan approximately 30 million tons of surplus rock will be stockpiled. This rock, pre-sorted as
part of the ore control procedure, may be sold to the extent that the local market can absorb the product.
CK Gold Project S-K 1300 Technical Report 331 May 2026
The
aggregate and rail ballast market is cyclical, dependent on development and infrastructure projects within economic transportation distances.
Currently there is a high demand in the Cheyenne area owing to the ongoing construction of data centers. Further demand is due to the
proximity of major population centers including Denver, Boulder, Broomfield, Loveland, Fort Collins and Cheyenne. Union Pacific and BNSF
rail lines (3 miles to the south and 7 miles to the east, respectively) present opportunities for bulk rock and aggregate transportation.
The fact that the rock has been mined and brought to surface means that the only further steps necessary for commercialization are additional
crushing and screening and the payment of a modest royalty to the state. Complementary to the Project, therefore, the opportunity exists
to support a long-term rock/aggregate operation. Alongside the potential for growth in Mineral Reserves, expansion of the Project open
pit could potentially support an aggregate operation meeting local and regional demand for decades. This could be attractive to a specialist
producer and might also result in diminished closure costs for the CK Gold Mine.
22.3 OTHER
RELEVANT DATA AND INFORMATION
The
opportunity to utilize the exhausted pit as a water storage facility for the city of Cheyenne also represents an opportunity. Currently
the City of Cheyenne owns the land and BOPU operates two reservoirs, the Granite and Crystal Reservoirs. Around the reservoirs are recreational
facilities operated by the Wyoming State Parks Department. It is reported that in the long-term Cheyenne will require additional water
storage. While one possibility is to raise the height of the impound structures, this would inundate current recreation facilities which
would then need to be reclaimed and replaced. All of this activity would be costly and disruptive but could potentially be avoided by
utilizing the exhausted Project open pit as a water storage facility. The elevation difference between the Crystal Reservoir and the
pit bottom may also provide an opportunity to store renewable energy in a pumped storage scheme relying on abundant local wind energy.
The opportunity exists to investigate these options which might change the closure scenario for the Project so as to benefit the local
community and infrastructure.
CK Gold Project S-K 1300 Technical Report 332 May 2026
23
RECOMMENDATIONS
23.1 PROJECT
ADVANCEMENT
The
economic analysis presented in Section 19 demonstrates that the Project exhibits a level of financial robustness sufficient to justify
advancement into the subsequent development phases, including financing, detailed engineering design, and execution planning. The underlying
economic indicators, supported by conservative and transparently documented assumptions, indicate a stable and resilient financial outlook
across multiple modelled scenarios. These results are considered technically defensible based on the methodologies applied to date.
23.2 PROJECT
DEVELOPMENT
It
is recommended that the Project be advanced using an Engineering, Procurement, and Construction (EP+C) delivery strategy. This approach
provides single point accountability and improved cost and schedule certainty, which is appropriate given the Project’s advancing
design maturity and execution risk profile. By integrating engineering, procurement, and construction under one contractor, interface
risk is reduced and execution responsibility is clearly defined. Subject to appropriate definition of scope and performance criteria,
the EP+C strategy is expected to support disciplined execution and a reliable transition to operations.
23.2.1 Deposit
Understanding
As
indicated in Section 6 additional drilling should be performed to solidify the understanding of the Copper King fault and mineral deposit
model. However, the density of drilling and the distribution of metal values suggest a high level of confidence in the stated Mineral
Reserves.
23.2.2 Future
Metallurgical Testwork
The
metallurgical testwork completed to date is considered sufficient to support the FS. To further reduce residual risk and to support progression
into detailed engineering and early operations, additional metallurgical work is recommended as outlined below:
● While
recent programs have improved the representativity of lower-grade composites, additional
low-grade and variability testwork is recommended to further confirm recovery assumptions
across the full deposit grade range. This work would provide increased confidence that metallurgical
performance at lower head grades has been adequately captured in the process models.
● Although
the grindability database has been expanded for the FS and currently indicates relatively
low variability, further comminution testing across additional geological domains is recommended.
This would confirm whether the observed low variability persists as the dataset grows and
would reduce uncertainty associated with throughput and power consumption assumptions over
the LoM.
● While
the Jameson Cell technology is well established globally, further confirmation testing and
design development are recommended to ensure the selected configuration is well suited to
the Project specific ore types, particularly in the context of oxide variability. This work
would support circuit optimization and operational stability during ramp-up.
● Vendor-specific
regrind testwork is recommended to identify opportunities to reduce regrind mill power draw,
eliminate the risk of overgrinding, and further validate vendor sizing assumptions. The testwork
would also confirm the relationship between regrind particle size and incremental recovery,
thereby reducing uncertainty in regrind performance and operating cost assumptions.
CK Gold Project S-K 1300 Technical Report 333 May 2026
● Given
the scale and capital intensity of the tailings filtration plant, additional filtration testwork
is recommended in collaboration with the preferred vendor. This work would confirm sizing,
throughput, cake moisture, and water recovery performance across representative operating
conditions, thereby reducing operational risk.
● Additional
testing and optimization of the proprietary cake vibration technology are recommended to
confirm performance at the required scale and to refine operating parameters. This would
further mitigate technology risk and support equipment selection and reliability expectations.
23.2.3 Ore
Processing
Given
that early mine life is expected to be dominated by oxide ore, it is recommended that an oxide-dominant processing strategy be further
evaluated to determine whether blending or campaign (batch) operation is preferred during Year 1.
23.2.4 Design
and Engineering
To
advance into detailed design and project execution, we recommend the following actions:
23.2.4.1 Mine
Design
Refine
Ultimate Pit Slope Design:
● Refine
bench geometries to provide smooth transitions between adjacent slope sectors, minimizing
any localized over steepening on both 30 ft and 90 ft benches.
● Review
and smooth any convex slope geometries (bull noses) to maintain sector to sector slope continuity.
● Update
the design of Sector V to reflect the metasedimentary–metavolcanic (MSED) unit on the
eastern side of the pit, consistent with the latest geological model.
Optimize
Interim Wall Management Within Pit Phases:
● Review
all slope sectors within each pit phase to ensure that interim wall geometries reflect current
best geotechnical practices for stability, access, and water management as the Project progresses
towards construction.
Geotech
Review of West Dump Waste Facility Slope Stability
● Reassess
the West Waste slope design and its proximity to the interim pit limits to ensure compliance
with best geotechnical practices and to maintain an adequate offset for long term stability
and operational flexibility.
Evaluate
Pit Extension into Dry Creek Bed Easement:
● Review
the permitting timeline and associated engineering trade offs to assess the potential value
of extending the pit into the dry creek bed easement located northwest of the existing pit,
including any incremental resource gains and associated environmental and regulatory considerations.
Conduct
Grade Control Trade Off Studies for Pre Production:
● Complete
grade control trade off studies during the pre-production period, evaluating alternative
technologies and sampling strategies to maximize high-grade ore recovery with reduced mining
dilution. This will allow the mine and processing plant to capitalize on the front-loaded
high-grade ore zones available early in the mine life.
● Implement
a proactive mine to mill reconciliation integrated process when the mill commences production
to be able to assess the realized dilution and ore loss through the mining process.
CK Gold Project S-K 1300 Technical Report 334 May 2026
23.2.4.2 Finalize
Equipment Specifications and Procurement Packages
Confirm
all technical requirements, performance criteria, materials of construction, and quality expectations for each major equipment item.
Prepare comprehensive procurement packages, including specifications, datasheets, ITPs, commercial terms, and evaluation criteria. Advance
vendor engagement through RFQs, bid clarifications, technical and commercial evaluations, and recommendations for award.
23.2.4.3 Secure
Long-Lead Items
Identify
and procure long-lead components such as rotating equipment, transformers, structural steel, and critical process items. Initiate early
purchase orders to reduce schedule risk and align deliveries with construction sequencing. Establish tracking systems for expediting,
logistics, inspection, and material receipt.
23.2.4.4 Complete
IFC-Level Engineering
Progress
all multidisciplinary design packages to Issued-for-Construction (IFC) quality. This includes finalizing 3D models, incorporating vendor
data, completing detailed drawings, and ensuring full alignment across process, mechanical, electrical, instrumentation, civil, and structural
disciplines. Conduct structured design reviews (e.g., 30%/60%/90%) and implement updates based on constructability, safety, operability,
and maintainability assessments.
23.2.4.5 Define
Contractor Scopes and Execution Strategy
Validate
contractor scope definitions in alignment with the selected EPCM/EPC execution model. Clarify boundaries, deliverables, responsibilities,
and interfaces between contractors and the Owner’s Team. Ensure contracting plans reflect Project priorities, risk allocation,
local content requirements, and schedule constraints. Develop and finalize Construction Work Packages (CWPs) and Installation Work Packages
(IWPs) to support a seamless transition into field execution.
23.2.5 Concentrate
Off-Take Agreements
Finalize
the concentrate off-take agreements (MOU) and consider alternative concentrate transport options to the smelter.
23.2.6 Environmental,
Permitting and Social
The
following is a summary of the Environmental, Social and Permitting recommendations:
● Continue
with activities needed to obtain the required state and local permits.
● Continue
Project information disclosure and consultation with local stakeholders, especially focusing
on Project impact assessment, local Project benefits, and impact mitigation measures.
● Conclude
the power supply agreement.
● Identify
and secure a potential alternative backup water supply source.
● An
additional hydrogeological assessment will need to be conducted to determine the potential
impacts of the Red Canyon well source.
● Continue
engagement with the City of Cheyenne regarding the potential post-mining conversion of the
pit to a water storage reservoir serving the city.
● Develop
and implement a Project Environmental Management System (EMS) consisting of site-specific
plans and procedures governing the environmental management of Project activities causing
potential environmental impacts during construction, operations, closure and post-closure.
CK Gold Project S-K 1300 Technical Report 335 May 2026
23.3 BUDGET
FOR FURTHER WORK
The
Project capital expenditure (CAPEX) and operating expenditure (OPEX) cost estimates are detailed in Section 18, providing a comprehensive
breakdown of the anticipated upfront capital investments as well as the ongoing operational costs required over the life of the Project.
This section outlines the key cost components, underlying assumptions, and cost estimation methodology used to support the overall financial
evaluation of the Project.
Detail
design and procurement of major equipment should be the next logical step in the Project development, and provide the technical basis
needed to move into construction planning. Detail design includes: completing discipline engineering (process, mechanical, electrical,
instrumentation and controls, civil/structural); progressing key calculations and specifications; incorporating vendor data and advancing
drawings and deliverables to a level suitable for issuing for construction and for supporting permitting, constructability review, and
risk assessment.
Procurement
of major equipment should be initiated in parallel with late-stage design to secure long-lead items, confirm final technical requirements,
and lock in delivery dates that drive the overall Project schedule. This work generally covers preparation of bid packages, vendor prequalification
and technical/commercial evaluations, purchase order placement, review and approval of vendor drawings, and inspection and expediting
through fabrication, testing, and shipment. The budget for this work is estimated at US$13,13 million, inclusive of the engineering and
procurement effort described above and associated project, and subject to refinement as the design basis, vendor quotations, and execution
strategy are confirmed.
23.4 RECOMMENDATIONS
Based
on the results of the FS, it is recommended that the Project advance to the next stage of development. The study demonstrates that the
selected mining and processing option is technically feasible and economically viable under the stated assumptions. Mineral production
schedules, mine design, processing recoveries, infrastructure requirements, and capital and operating cost estimates have been developed
to a level of accuracy consistent with FS. Identified technical, environmental, permitting, and execution risks are considered manageable
with further detailed engineering and project controls. Advancement to detailed engineering and permitting is recommended, with the objective
of supporting a construction decision, subject to corporate approval and prevailing market conditions.
CK Gold Project S-K 1300 Technical Report 336 May 2026
24
REFERENCES
24.1 TECHNICAL
REPORTS, PAPERS AND OTHER PUBLICATIONS
1. “Confirmation
Locked Cycle Testing for Copper King Project Base Metals Laboratory Report, BL-0789”
September 2021.
2. “Metallurgical
Assessment of the Copper King Project Base Metals Laboratory Report, BL-0835 and 0882”
March 2022.
3. “Supplemental
Metallurgical Assessment Copper King Project Base Metals Laboratory Report, BL-0980”
June 2022.
4. “Metallurgical
Testing of the Copper King Project Base Metals Laboratory Report, BL-1066,” September
2022.
5. “Base
Metals Laboratory Results, Program BL-1702” September 2024.
6. “Base
Metals Laboratory Results BML Program BL-1859” March and April 2025.
7. “Base
Metals Laboratory Results BML Program BL-1990” July to October 2025.
8. XPS
Program 4025701.00 (2025).
9. “Copper
King Project Hole 4, Oxide and Sulfide Composites Report of Metallurgical Test Work Project
No. 8276C” June 2021.
10. An
Investigation into THE RECOVERY OF COPPER AND GOLD FROM SAMPLES OF COPPER KING DEPOSIT SGS,
Project 11868-001” December 2009.
11. An
Investigation into THE RECOVERY OF COPPER AND GOLD FROM SAMPLES OF COPPER KING DEPOSIT SGS,
Project 11868-002” December 2010.
12. “Comminution
Testing Report, Report and Appendices A and B, Revision 1”, September 2025.
13. “Comminution
Testing on Copper King and Oxide and Sulfide Samples, Revision 1 Hazen Project 12827, Report
and Appendices A–C “ March 2021.
14. “Environmental
and Permitting Report for CK Gold Pre-Feasibility Study” Report Date: July 2021.
15. “Recommended
Prefeasibility-Level Geotechnical Slope Designs for the Copper King Open Pit. Piteau Associates
July 13, 2021.
16. Mine
Development Associates (MDA) “Updated Technical Report and Preliminary Economic Assessment,
Copper King Project” December 5, 2017.
17. Nevin,
A. E., 1973 (May 30), Interim Report, Copper King property, Laramie County, Wyoming: Henrietta
Mines Ltd. company report: Wyoming State Geological Society mineral files, 16 p.
18. Tietz,
P., and Prenn, N., 2012 (August 24), Technical report on the Copper King Project, Laramie
County, Wyoming: Report prepared for Strathmore Minerals Corp. by Mine Development Associates,
133 p.
19. Aleinikoff,
J.N., 1983. U–Th–Pb systematics of zircon inclusions in rock-forming minerals:
a study of armoring against isotopic loss using the Sherman granite of Colorado–Wyoming,
USA; Contributions to Mineralogy and Petrology 83, pp. 259–269.
CK Gold Project S-K 1300 Technical Report 337 May 2026
20. Brady,
R.T., 1949. Geology of the east flank of the Laramie Range in the vicinity of Federal and
Hecla, Laramie County, Wyoming; M.A. Thesis, University of Wyoming, Laramie, 412 p.
21. Edwards,
B.R., and Frost, C.D. 2000. An overview of the petrology and geochemistry of the Sherman
batholith, southeastern Wyoming: Identifying multiple sources of Mesoproterozoic magmatism;
Rocky Mountain Geology; 35 (1): Fig.1, p. 35.
22. Frost,
C.D., Frost, B.R., Chamberlain, K.R. & Edwards, B.R., 1999. Petrogenesis of the 1.43
Ga Sherman batholith, SE Wyoming, USA: a reduced, rapakivi-type anorogenic granite; J. Petrol.
40, pp. 1771-1802.
23. Frost
C. D., Frost B. R., 1997. Reduced rapakivi-type granites: the tholeiite connection; Geology,
1997, vol. 25, pp. 647-650.
24. Hausel,
W.D., 1989. The geology of Wyoming’s precious metal lode and placer deposits; Wyoming
State Geological Survey Bulletin 68, 248 p.
25. Hausel,
W.D., 1992. Form, distribution, and geology of gold, platinum, palladium, and silver in Wyoming;
Geological Survey of Wyoming Reprint No. 51, 18 p.
26. Hausel,
W.D., 1997. Copper, lead, zinc, molybdenum, and associated metal deposits of Wyoming: Wyoming
State Geological Survey Bulletin 70, 229 p.
27. Hausel,
W.D., and Jones, S., 1982. Geological reconnaissance report of metallic deposits for in situ
and heap leach extraction research possibilities; Geological Survey of Wyoming Open File
Report 82-4, 51 p.
28. Hausel,
W.D., 2012. Copper King Mine, Silver Crown District, Wyoming (Preliminary Report); internal
report prepared for Strathmore Resources, 19 p.
29. Houston,
R.S. and Marlatt, G., 1997. Proterozoic geology of the Granite village area, Albany and Laramie
counties, Wyoming, compared with that of the Sierra Madre and Medicine Bow mountains of southeastern
Wyoming: U.S. Geological Survey Bulletin 2159, 25 p.
30. Karlstrom,
K. E. & Houston, R. S., 1984. The Cheyenne belt: analysis of a Proterozoic suture in
southern Wyoming; Precambrian Research 25, pp. 415–446.
31. Klein,
T., 1974. Geology and mineral deposits of the Silver Crown District, Laramie County, Wyoming;
Geological Survey of Wyoming Preliminary Report No. 14, 27 p.
32. McGraw,
R.B., 1954. Geology in the vicinity of the Copper King Mine, Laramie County, Wyoming; M.A.
Thesis, University of Wyoming, Laramie, 52 p.
33. Mountain
Lake Resources Inc., 1997. Resource Evaluation and Exploration Potential, C.K. Gold-Copper
Deposit, Laramie County, Wyoming; Mountain Lake Resources internal report, 24 p.
34. Reed,
J.C., Jr., Bickford, M.E., Premo, W.R., Aleinikoff, J.N., and Pallister, J.S., 1987. Evolution
of the early Proterozoic Colorado province—Constraints from U-Pb geochronology; Geology,
v. 15, pp. 861-865.
35. Reed,
J.C., Jr., Bickford, M.E., and Tweto, O., 1993. Proterozoic accretionary terranes of Colorado
and southern Wyoming; in Reed, J.C., Jr., and 7 others, Precambrian—Conterminous U.S.,
Boulder, Colorado, Geological Society of America, The Geology of North America, v. C-2, pp.
211-228.
CK Gold Project S-K 1300 Technical Report 338 May 2026
36. Sims,
P.K., Finn, C.A., and Rystrom, V.L., 2001. Preliminary Precambrian basement map showing geologic-geophysical
domains, Wyoming; U.S. Geological Survey Open File-Report 2001-199, 9 p.
37. Tweto,
O., 1987. Rock units of the Precambrian basement in Colorado; U.S. Geological Survey Professional
Paper 1321-A, 54 p.
38. Zielinski,
R. A., Peterman, Z. E., Stuckless, J. S., Rosholt, J. N. and Nkomo, I. T., 1981. The chemical
and isotopic record of rock–water interaction in the Sherman granite, Wyoming and Colorado;
Contributions to Mineralogy and Petrology 78, pp. 209–219.
39. Berger,
B.R., Ayuso, R.A., Wynn, J.C., and Seal, R.R., 2008. Preliminary model of porphyry copper
deposits; U.S. Geological Survey Open-File Report 2008–1321, 55 p.
40. Carson,
D. J. T., 1998. Mineralogical study of samples from Copper King prospect, Wyoming; Unpublished
report, 7 p.
41. Fossen,
H., 2016. Structural Geology; Cambridge University Press, 524 p.
42. Hausel,
W.D., 1997. Copper, lead, zinc, molybdenum, and associated metal deposits of Wyoming; Wyoming
State Geological Survey Bulletin 70, 229 p.
43. Hausel,
W.D., 2012. Copper King Mine, Silver Crown District, Wyoming (Preliminary Report); Internal
report prepared for Strathmore Resources, 19 p.
44. John,
D.A., Ayuso, R.A., Barton, M.D., Blakely, R.J., Bodnar, R.J., Dilles, J.H., Gray, Floyd,
Graybeal, F.T., Mars, J.C., McPhee, D.K., Seal, R.R., Taylor, R.D., and Vikre, P.G., 2010.
Porphyry copper deposit model, chap. B of Mineral deposit models for resource assessment;
U.S. Geological Survey Scientific Investigations Report 2010–5070–B, 169 p.
45. Klein,
T., 1974. Geology and mineral deposits of the Silver Crown District, Laramie County, Wyoming;
Geological Survey of Wyoming Preliminary Report No. 14, 27 p.
46. Bartos,
T., Diehl, S., Hallberg, L., and Webster, D. 2014. “Geologic and Hydrogeologic Characteristics
of the Ogallala Formation and White River Group, Belvoir Ranch near Cheyenne, Laramie County,
Wyoming” USGS Scientific Investigations Report 2013-5242.
47. Geochemical
Solutions, 2022. Geochemical Characterization of CK Gold Mine Rock and Tailings, Report No.
1083.10.1, December 6,2023.
48. Hausel,
W., 2019. Gold at the Copper King Gold-Copper Mine near Cheyenne, Wyoming Blog. Available
from: The Gem Hunter: (http://copperking.blogspot.com/).
49. NEIRBO
Hydrogeology, 2023. CK Gold Project Hydrogeologic Characterization and Groundwater Flow Model.
50. Tierra
Group International, Ltd., 2025a. Dry Stack TMF Stacking Plan. Technical Memorandum. February
05, 2025.
51. Tierra
Group International, Ltd., 2025b. Dry Stack TMF Stability Analyses. Technical Memorandum.
February 05, 2025.
52. Tierra
Group International, Ltd., 2025c. CK Gold Mine Site-Wide Water Management Report. February
05, 2025.
53. Trihydro,
2020. Aquatic Resources Inventory, CK Gold Project, November 4, 2020.
54. Trihydro,
2022. Subsurface Exploration Report, CK Gold Project, May 3, 2022.
55. Trihydro,
2023. CK Gold Mine Transmission Line, Laramie County, Wyoming, December 2023.
56. Western
Archaeological Services, 2021. Class I Cultural Resource Data Review for the Proposed U.S.
Gold Corp CK Gold Project, June 15, 2021.
57. U.S.
Gold Corp., 2017. NI 43-101 Technical Report on the Copper King Project, Laramie County,
Wyoming, USA. Prepared by Mine Development Associates (MDA), Reno, Nevada.
24.2 WEB
BASED SOURCES OF INFORMATION
CK Gold Project S-K 1300 Technical Report 339 May 2026
25
RELIANCE ON INFORMATION PROVIDED BY REGISTRANT
Table
25.1 provides a detailed list of information U.S. Gold (Registrant) provides for matters discussed in this Technical Report Summary (TRS).
Table
25.1: Information provided by U.S. Gold Corp
Category
TRS
Section
Reliance
Legal
Matters
Section
3 Property Description and Location
Information
and documentation regarding mineral titles, surface land agreements, current permitting status, royalties, and other agreements provided
by U.S. Gold.
General
Information
Section
4 Accessibility, Climate, Local Resources, Infrastructure and Physiography
Physical
information about the Project was provided by U.S. Gold. Information consisted of consultant reports, and correspondence with U.S.
Gold.
General
Information
Section
5 History
Historical
data provided by U.S. Gold, primarily previous Technical Reports.
Technical
Information
Section
6 – Geological Setting, Mineralization, and Deposit
Various
public and consultant reports. Dworian M.Sc. thesis.
Technical
Information
Section
7 – Exploration
Historical
project reports and exploration data.
Section
8
Sample
Preparation, Analysis, and Security
Consultant
reports, Hard Rock Mining Annual reports.
Technical
Information
Section
13.2 Geotechnical
2022
“Copper King Feasibility Design Memorandum Final 06sept2022” and 2026 “Design Compliance Review of the Copper King
Ultimate Pit Mine Plan 0311_final_surface1” Authored by Piteau Associates and provided by U.S. Gold.
Technical
Information
Section
13.2 Hydrology
NEIRBO
Hydrology Report provided by U.S. Gold. Dahlgren Water Supply and Yield Analysis Report for the CK Gold Deposit.
Technical
Information
Section
15
FS
level site plan and facility design and report by Trihydro and TGI. Mine operating permit application, Industrial Siting, WYPDES
and air permits.
Economic
Information
Section
16
Marketing
and concentrate memo prepared by Andy Holloway. Confidential concentrate sales term sheet.
Environmental
Matters
Section
17
Permitting
work completed provided by U.S. Gold. Mine operating, Industrial Siting, WYPDES and air permits.
Commitments
to Local Groups and Individuals
Section
17
Permitting
work done provided by U.S. Gold. Mine operating permit application, Industrial Siting, WYPDES and air permits.
25.1 MINERAL
TENURE AND SURFACE RIGHTS
Agreements
with Ferguson Ranch Inc (FRI) provide terms and land to be optioned for mine infrastructure. FRI is also compensated for loss of grazing
acreage and temporary transfer of water rights. Leases with the OSLI cover use of surface, mineral and aggregate rights on township 14n
range 70wSection 36 and mineral and aggregate rights in south ½ of Section 25.
25.2 ROYALTIES
AND INCUMBRANCES
There
is a 2.1 percent NSR with the OSLI on the sale of concentrate revenue produced from ore mined on the state lease at the gate. There are
no other incumbrances
CK Gold Project S-K 1300 Technical Report 340 May 2026
26
DATE AND SIGNATURE PAGE
The
S-K 1300 Technical Report Summary Feasibility Study for the CK Gold Project, Wyoming, USA with an effective date of March 30, 2026 and
issue date of May 7, 2026 was prepared and signed by:
Responsible
Company
QP
Individuals
Responsible
Sections
Signature
Date
Drift
Geo LLC
Mark
Shutty
1,
9, 11
May
11. 2026
Halyard,
Inc
Andy
Holloway
1,
10, 16, 22
May
13, 2026
Ivana
Sabaj
14,
18.2.2, 22
May
13, 2026
Micon
International Limited
Alex
Zaitchenko, Chris Jacobs, Mike Round, Mohsin Hashimi
1,
2, 12, 13, 14, 15.5, 15.6, 15.7, 15.8, 18, 19, 21, 22, 23.1, 23.2.1, 23.2.2, 23.2.3., 23.2.4, 23.2.5, 24,
May
13, 2026
May
13, 2026
May
13, 2026
BBA
(Tierra Group International Ltd.)
Justin
Knudsen, PE
1,
15.1, 15.2, 15.3 ,15.4
May
13, 2026
U.S.
Gold Corp (Registrant)
Kevin
Francis, SME-RM, VP,
1,
3, 4, 5, 6, 7, 8, 17, 20, 23.2.5, 25
May
12, 2026
CK Gold Project S-K 1300 Technical Report 341 May 2026
27
CERTIFICATES
CERTIFICATE
OF QUALIFIED PERSON
CK Gold Project S-K 1300 Technical Report 342 May 2026
28
APPENDIX
CK Gold Project S-K 1300 Technical Report 343 May 2026
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- Definition
For the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
No definition available.
+ Details
Name:
dei_DocumentPeriodEndDate
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Data Type:
xbrli:dateItemType
Balance Type:
na
Period Type:
duration
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- Definition
The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
No definition available.
+ Details
Name:
dei_DocumentType
Namespace Prefix:
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Data Type:
dei:submissionTypeItemType
Balance Type:
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Period Type:
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- Definition
Address Line 1 such as Attn, Building Name, Street Name
+ References
No definition available.
+ Details
Name:
dei_EntityAddressAddressLine1
Namespace Prefix:
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Data Type:
xbrli:normalizedStringItemType
Balance Type:
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Period Type:
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- Definition
Address Line 2 such as Street or Suite number
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No definition available.
+ Details
Name:
dei_EntityAddressAddressLine2
Namespace Prefix:
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Data Type:
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Balance Type:
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- Definition
Name of the City or Town
+ References
No definition available.
+ Details
Name:
dei_EntityAddressCityOrTown
Namespace Prefix:
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Data Type:
xbrli:normalizedStringItemType
Balance Type:
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Period Type:
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- Definition
Code for the postal or zip code
+ References
No definition available.
+ Details
Name:
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Namespace Prefix:
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Data Type:
xbrli:normalizedStringItemType
Balance Type:
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Period Type:
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- Definition
Name of the state or province.
+ References
No definition available.
+ Details
Name:
dei_EntityAddressStateOrProvince
Namespace Prefix:
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Data Type:
dei:stateOrProvinceItemType
Balance Type:
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Period Type:
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- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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dei_EntityCentralIndexKey
Namespace Prefix:
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Data Type:
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Balance Type:
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Period Type:
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- Definition
Indicate if registrant meets the emerging growth company criteria.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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Name:
dei_EntityEmergingGrowthCompany
Namespace Prefix:
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xbrli:booleanItemType
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Period Type:
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- Definition
Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
No definition available.
+ Details
Name:
dei_EntityFileNumber
Namespace Prefix:
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Data Type:
dei:fileNumberItemType
Balance Type:
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Period Type:
duration
X
- Definition
Two-character EDGAR code representing the state or country of incorporation.
+ References
No definition available.
+ Details
Name:
dei_EntityIncorporationStateCountryCode
Namespace Prefix:
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Data Type:
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Period Type:
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- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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Name:
dei_EntityRegistrantName
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Balance Type:
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- Definition
The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
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Name:
dei_EntityTaxIdentificationNumber
Namespace Prefix:
dei_
Data Type:
dei:employerIdItemType
Balance Type:
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Period Type:
duration
X
- Definition
Local phone number for entity.
+ References
No definition available.
+ Details
Name:
dei_LocalPhoneNumber
Namespace Prefix:
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Data Type:
xbrli:normalizedStringItemType
Balance Type:
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Period Type:
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- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
+ Details
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Namespace Prefix:
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Data Type:
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Balance Type:
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Period Type:
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- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
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dei_PreCommencementTenderOffer
Namespace Prefix:
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Data Type:
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Balance Type:
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Period Type:
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- Definition
Title of a 12(b) registered security.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
+ Details
Name:
dei_Security12bTitle
Namespace Prefix:
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Data Type:
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Balance Type:
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Period Type:
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X
- Definition
Name of the Exchange on which a security is registered.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
+ Details
Name:
dei_SecurityExchangeName
Namespace Prefix:
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Data Type:
dei:edgarExchangeCodeItemType
Balance Type:
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Period Type:
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X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14a
-Subsection 12
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Name:
dei_SolicitingMaterial
Namespace Prefix:
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Data Type:
xbrli:booleanItemType
Balance Type:
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Period Type:
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X
- Definition
Trading symbol of an instrument as listed on an exchange.
+ References
No definition available.
+ Details
Name:
dei_TradingSymbol
Namespace Prefix:
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Data Type:
dei:tradingSymbolItemType
Balance Type:
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Period Type:
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- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
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