Executive Summary / Key Takeaways

• Permitted Flagship Project: U.S. Gold Corp. has achieved a critical milestone with its CK Gold Project in Wyoming, securing all major permits (MOP and ISP) by November 2024, significantly de-risking its path to production.
• Compelling Economics & Growth: The updated Prefeasibility Study (PFS) for CK Gold, released in February 2025, projects robust economics, including 1.11 million AuEq ounces over a 10-year mine life at an All-in Sustaining Cost (AISC) of $937 per AuEq ounce, with initial capital requirements of $277 million.
• Strategic Domestic Focus: The company positions itself as a vital domestic producer of copper and gold, leveraging Wyoming's favorable jurisdiction amidst global supply chain uncertainties and increasing demand for critical minerals.
• Capital-Intensive Development: As a development-stage company, USAU currently generates no revenue and incurs significant losses, necessitating ongoing equity financing to advance its projects beyond current engineering studies and into construction.
• Niche Player with Upside: While smaller than industry giants like Newmont Corporation (NEM) and Barrick Gold Corporation (GOLD), USAU's fully permitted, U.S.-based CK Gold Project offers a unique, lower-risk profile for investors seeking exposure to a near-term production story in a stable jurisdiction.

The Genesis of a Gold Developer: From Dataram to Domestic Gold

U.S. Gold Corp. (USAU) has undergone a profound transformation, evolving from its roots as Dataram Corporation, a New Jersey-incorporated entity since 1967, into a focused gold, copper, and precious metals exploration and development company. This strategic pivot culminated in the 2017 merger with Gold King Corp., which reshaped the company's core business and led to its rebranding as U.S. Gold Corp. This historical shift underscores a deliberate strategy to capitalize on the burgeoning demand for critical minerals within secure, domestic jurisdictions.

The company's portfolio is anchored by the CK Gold Project in Wyoming, acquired in 2014, complemented by the Keystone Project in Nevada and the Challis Gold Project in Idaho. While the latter two remain in the exploration phase, the CK Gold Project stands out as a development-stage asset with proven and probable mineral reserves. This focus on domestic resource development is particularly pertinent given broader industry trends, where geopolitical instability and supply chain disruptions highlight the strategic importance of secure, in-country mineral production. The company's emphasis on Wyoming, a "resource state jurisdiction," is a testament to its strategy of pursuing projects in environments with predictable regulatory frameworks.

The CK Gold Project: A Permitted Pathway to Production

The CK Gold Project represents the cornerstone of U.S. Gold Corp.'s investment thesis. Located in southeast Wyoming, this proposed open-pit mine aims to produce a copper concentrate rich in gold, copper, and silver. A significant achievement in the company's history was securing all major operating permits for CK Gold. The Industrial Siting Permit (ISP) was granted in June 2023, and by November 2024, the Mine Operating Permit (MOP) received final approval after satisfying all three conditions: reclamation bond acceptance, water discharge permit, and air quality permit. This comprehensive permitting process substantially de-risks the project, setting it apart from many early-stage mining ventures that face protracted regulatory hurdles.

The company's operational approach for the CK Gold Project is grounded in rigorous metallurgical testing and geological understanding. Initial test work by a previous owner between 2009 and 2012, combined with U.S. Gold Corp.'s extensive additional testing from 2020 to 2023, underpins the chosen extraction methodology: froth flotation. This process efficiently separates gold, silver, and copper values from non-mineralized rock into a concentrate. While not a novel technology, the company's meticulous application and optimization of this proven method, supported by comprehensive geotechnical and hydrological data from 47 core and rotary drill holes in 2021, contribute to the project's enhanced economics. The use of geophysical and hyperspectral surveys in exploration, particularly at the Keystone project, demonstrates a commitment to leveraging advanced tools for target identification and resource expansion. This systematic approach to data collection and processing aims to maximize resource recovery and minimize operational inefficiencies, contributing to the project's viability.

The updated Prefeasibility Study (PFS), released in February 2025, outlines compelling project economics. The PFS projects total AuEq production of 1.11 million ounces over a 10-year mine life, averaging 111,250 AuEq ounces annually, with the first three years anticipated to yield 143,278 AuEq ounces per year. Total life-of-mine sales are estimated at approximately 662,560 ounces of gold, 195.4 million pounds of copper, and 1.07 million ounces of silver. The All-in Sustaining Cost (AISC) is projected at a competitive $937 per AuEq ounce (life-of-mine average), with initial capital requirements estimated at $277 million. These figures, particularly the 16% increase in AuEq ounces reflected in the mineral reserves and the 42% improvement in Net Present Value (NPV) over the prior PFS, underscore the project's potential. Management's focus is now on finalizing the Definitive Feasibility Study (FS) by the end of 2025, with the ambitious goal to be "in the ground early next year."

Financial Performance: Investing in the Future

As a development-stage company, U.S. Gold Corp. currently has no revenue-producing activities. Its financial statements reflect the significant investments required to advance its projects. For the fiscal year ended April 30, 2025, the company reported a net loss of approximately $20.56 million, a substantial increase from $6.90 million in the prior fiscal year. This widening loss is primarily attributable to increased operating expenses, which rose by approximately $5.75 million to $13.01 million in FY2025.

The increase in expenses is a direct consequence of the intensified efforts to advance the CK Gold Project. Compensation and related taxes, exploration costs, and professional and consulting fees all saw significant increases. For instance, professional and consulting fees surged by approximately $1.47 million, driven by strategic, permitting, and engineering studies. General and administrative expenses also rose, notably due to increased advertising and insurance costs. These expenditures are critical for moving the CK Gold Project towards production, but they underscore the company's current cash burn profile. Net cash used in operating activities for FY2025 was approximately $9.87 million, up from $7.08 million in FY2024.

Capital & Liquidity: Fueling Development

U.S. Gold Corp.'s ability to fund its ambitious development plans hinges on its capital-raising efforts. As of April 30, 2025, the company held cash and cash equivalents of $8.17 million and working capital of $8.02 million. A significant portion of this liquidity was bolstered by a registered direct offering in December 2024, which generated approximately $10.15 million in gross proceeds from the sale of common stock and warrants. Additionally, the exercise of stock warrants contributed approximately $2.33 million in proceeds during FY2025.

Despite these capital infusions, the company's financial statements include a "going concern" warning, indicating that current cash resources are sufficient only for corporate activities, general and administrative costs, and ongoing permitting and engineering studies for the next twelve months. To advance any of its projects beyond these pre-development objectives, the company explicitly states it "will need to raise additional funds." This highlights the inherent capital intensity of mining development and the ongoing reliance on external financing.

Competitive Landscape: Niche Player in a Giant's World

The gold and copper mining industry is dominated by large, established players with global footprints, such as Newmont Corporation, Barrick Gold Corporation, Kinross Gold Corporation (KGC), and Agnico Eagle Mines Limited (AEM). These majors possess vast financial resources, extensive operational experience, and often leverage advanced technologies like AI-driven exploration tools and mine automation to achieve superior efficiency and lower operating costs.

In contrast, U.S. Gold Corp. operates as a niche player with a comparatively minor market share. While precise, directly comparable market share figures for all niche competitors are not publicly detailed, USAU's current market capitalization of approximately $144 million pales in comparison to Newmont's $50-60 billion or Barrick's $30-40 billion. This scale difference is reflected in financial performance: Newmont and Barrick reported robust revenue growth of 10-20% in 2024, with gross margins of 40-50% and strong positive cash flows. Kinross and Agnico Eagle also demonstrate solid revenue growth (5-15%) and healthy margins (35-50%). USAU, as a pre-revenue company, has no gross profit margin and negative operating cash flow, typical for its development stage.

USAU's competitive advantage does not lie in current production volume or market share, but rather in its strategic focus and project-specific attributes. Its primary differentiator is the CK Gold Project's fully permitted status in a stable U.S. jurisdiction. This offers a lower regulatory risk profile compared to projects in less predictable international regions, a factor that resonates with investors seeking supply chain security. While major players like Newmont and Barrick utilize cutting-edge digital technologies for predictive mining and automation, USAU's technological edge is found in its rigorous application of proven metallurgical processes and detailed geological modeling, which have demonstrably improved the project's economics in the updated PFS.

The company also benefits from the CK Gold Project's proximity to Cheyenne, Wyoming, which provides access to existing infrastructure, a skilled local workforce, and established contractors. This contrasts with the logistical challenges faced by some global miners, as exemplified by recent "blockages on roads affecting deliveries of copper in Peru." However, USAU faces competition in securing essential supplies and services, and the recent inflationary environment has increased costs, a challenge shared across the industry but potentially more acutely felt by smaller players. The rising demand for energy, partly driven by AI and data centers, could also increase operational expenses for all miners, including USAU.

Outlook & Value Proposition: The Path Ahead

U.S. Gold Corp.'s outlook is firmly tied to the successful development of its CK Gold Project. Management is committed to finalizing the Definitive Feasibility Study by the end of 2025, a crucial step before a construction decision. The projected production of over 100,000 AuEq ounces annually, coupled with a competitive AISC of $937 per AuEq ounce, positions CK Gold as a potentially attractive asset once operational. The project's estimated initial capital requirement of $277 million, while substantial for a company of USAU's size, is manageable within the context of a fully permitted project in a favorable jurisdiction.

The company sees significant upside potential beyond the current study economics, particularly from the beneficial use and commercialization of aggregate produced from mine waste. This could provide an additional revenue stream, enhancing the project's overall profitability. Furthermore, exploration potential exists to expand resources at depth and to the southeast of the main orebody, which could extend the mine life or increase production beyond current estimates.

Key Risks to Consider

Despite the significant progress, investing in U.S. Gold Corp. carries inherent risks typical of a development-stage mining company. The most pressing is the need for substantial additional capital to fund the CK Gold Project's construction. Failure to secure this financing on favorable terms could lead to delays or even abandonment of the project. The company's "going concern" warning underscores this fundamental challenge.

Volatility in gold and copper prices remains a significant external risk. A sustained decline in metal prices could render the project uneconomic, impacting its value and the company's ability to raise funds. While the CK Gold Project is fully permitted, unforeseen regulatory changes or increased bonding requirements could still impact costs and timelines. Moreover, as a smaller entity, USAU is more susceptible to supply chain disruptions and competition for equipment and skilled labor, which could increase operational costs. Finally, the company's reliance on a small team of key management and consultants presents a personnel risk if these individuals are lost or unable to perform.

Conclusion

U.S. Gold Corp. stands at a pivotal juncture, having successfully transformed into a focused gold and copper developer with its flagship CK Gold Project now fully permitted. This achievement, coupled with compelling economics outlined in the updated Prefeasibility Study, provides a clear, de-risked pathway towards becoming a domestic producer of critical minerals. The company's strategic emphasis on a stable U.S. jurisdiction and its rigorous approach to project development offer a unique value proposition in an industry dominated by larger, globally diversified players.

While the path to production necessitates significant capital raises and navigating the inherent risks of commodity price volatility and operational execution, the company's progress in permitting and optimizing its metallurgical processes positions it for potential long-term value creation. For discerning investors, U.S. Gold Corp. represents a compelling, albeit capital-intensive, opportunity to gain exposure to a near-term gold and copper production story, underpinned by a strategic domestic focus and a clear roadmap for development.