The economy may be roughed up, but gold and copper prospects have one Wyoming mining company seeing new riches as pricing for the commodities have gone on a tear of late.
Cheyenne-based U.S. Gold Corp. recently hit a major permitting milestone toward development of a gold and copper mine west of the state’s capital city even as surging prices for the commodities bring the project’s worth up to about $3.7 billion.
The CK Gold Project, named after the century-old idled Copper King mine, is believed to contain more than 1 million ounces of gold deposits and 248 million pounds of copper. Not a monster mine, but a potentially profitable one nonetheless for U.S. Gold, which has never developed a mining property.
“At this time, diversification from coal — which is diminishing — to gold and copper is a good thing,” U.S. Gold President and CEO George Bee told the Cowboy State Daily. “The permit is a huge step for us.”
The CK Gold Project is on a fast track to complete state permitting and start mining land a few miles south of Happy Jack Road near Curt Gowdy State Park.
Wyoming’s Department of Environmental Quality recently approved a key operation and closure permit that guarantees how U.S. Gold plans to return the grassland to how it looked prior to an open pit mining operation.
Other permits are expected in coming months to deal with dust and emissions from equipment, and water discharge to handle sediment running into creeks and tributaries.
“We remain on track to receive the necessary permits around mid-year, as per prior guidance," Bee said.
Prices Soar
Timing is everything in mining.
Gold prices have shot up 32% from the average price of $1,801 an ounce two years ago to Wednesday’s close of $2,386. At that price, the 1 million ounces the company believes it has in the claim would be worth about $2.4 billion.
Copper prices have surged to a nearly 15-month high and are up 30% in 2024. The commodity closed this week at $5.17 a pound, according to the London Metal Exchange. That’s potential for about $1.3 billion worth of copper.
Copper plays a pivotal role in electric vehicles and renewable energy generation for wind turbines and solar panels, both of which are hot sectors fueled by the clean energy economy.
“Electrification and concerns about the economy and [a strong] U.S. dollar [with inflation] means a lot of interest in copper and gold,” Bee said. “We are in the right place at the right time with the right project. When you look at the energy transition and renewable energy, it all takes copper.”
When U.S. Gold first crunched its numbers on the mining operation a few years ago, it figured an ounce of gold at $1,625 and copper at $3.25, said Bee.
“Revenues have gone up, but so too have expenses and inflation,” he said.
Breaking New Ground
Bee is a longtime mining engineer and executive who has worked for some of the world’s largest mining companies — Barrick Gold Corp., Rio Tinto Group and American Anglo plc to name a few. Born in the United Kingdom, he now lives in Park City, Utah.
U.S. Gold is working with fifth-generation rancher Walter Ferguson, who plans to kick in about 360 acres of the 1,000-acre mining project. It’s the first time Ferguson has leased off a chunk of his family’s ranch for income.
Bee wants to raise up to $250 million for his mining venture that could eventually employ 250-300 full-time workers over a 10-year period.
Bee said construction of roads, infrastructure and facilities to process the gold and copper could begin by early 2025 after final permits are approved by DEQ before the end of June. Mining could begin by the end of 2026, Bee said.
“I’ve been developing mines for 40 years, and I saw a lot of potential with this project,” Bee said. “Wyoming is a resource state and a great place to be in the resource business.”
Pat Maio can be reached at pat@cowboystatedaily.com.
