Fully Permitted, Low-Risk, Open-Pit Gold-Copper Project in Mining-Friendly Wyoming
The SK-1300 Feasibility Study (FS) demonstrates a robust, technically straightforward project with strong economics, low development risk, and significant upside. Using base-case metal prices of $3,250/oz gold, $4.50/lb copper, and $40/oz silver, the Project delivers compelling returns with a rapid payback and substantial free cash flow in early years.
Key Project Features:
- Fully permitted and shovel-ready — All major permits in hand, including the Mine Operating Permit, with a $5M reclamation bond in place.
- 11-year initial mine life open pit, low strip ratio of 0.89:1, ~20,000 short tons per day throughput) with potential for extension.
- Production profile — ~931,000 payable AuEq ounces over LOM (average ~85 koz AuEq/year; higher grades in Years 2–8 averaging ~102 koz AuEq/year).
- Simple, compact layout — Ore processed via conventional SAG-ball mill and flotation to produce a clean gold-rich copper concentrate; dry-stack tailings for water efficiency.
- Strong community and state benefits — Average of ~198 direct permanent jobs; 2.1% royalty supporting K-12 education; no significant cultural impacts identified.
Robust Economics (Base Case):
- After-tax NPV (5%): $632 million
- After-tax IRR: 27%
- Payback Period: 2.5 years
- Initial capital: ~$394 million (includes contingency; assumes contractor mining) + $28M pre-production owners’ costs
- Sustaining capital: $35 million over LOM
- LOM AISC (co-product): ~$1,785–$1,814/oz AuEq
- Strong leverage to higher prices — At recent spot prices (~$4,500/oz Au, $5.50/lb Cu, $70/oz Ag): After-tax NPV (5%) of $1.30 billion and IRR of 45%.
Additional Value Opportunities (Beyond the FS Base Case):
- Significant measured & indicated resources excluded from the initial mine plan (e.g., to protect a drainage channel).
- Potential recovery improvements and extensions at depth/along strike.
- Aggregate sales from waste rock (largely excluded from the FS).
- Post-mining land use options (e.g., pit as recreation/water reservoir) that could reduce reclamation costs.
The CK Gold Project stands out as one of the few fully permitted, large-scale precious metals projects in the U.S. at the Feasibility Study level. It benefits from exceptional infrastructure, strong local support, and a clear pathway for expansion in a geopolitically stable jurisdiction.
Cautionary Note Regarding Non-GAAP Financial Measures
Alternative performance measures in this news release such as "cash cost", "AISC" and "free cash flow" are furnished to provide additional information. These non-GAAP performance measures are included in this news release because these statistics are used as key performance measures that management uses to monitor and assess performance of the Project, and to plan and assess the overall effectiveness and efficiency of mining operations. These performance measures do not have a standardized meaning within the accounting principles generally accepted in the Unites States of America ("GAAP") and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with GAAP.
Total Cash Costs
Total cash costs include site operating costs (mining, processing, site G&A), refinery costs and royalties, but exclude head office G&A and exploration expenses. While there is no standardized meaning of the measure across the industry, the Company believes that this measure is useful to external users in assessing operating performance.
All-In Sustaining Cost
Site level AISC includes total cash costs and sustaining and expansion capital, but excludes head office G&A and exploration expenses. The Company believes that this measure is useful to external users in assessing operating performance and the Company's ability to generate free cash flow from potential operations.
Free Cash Flow
Free cash flows are revenues net of operating costs, royalties, capital expenditures and cash taxes. The Company believes that this measure is useful to the external users in assessing the Company's ability to generate cash flows from the Project.