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U.S. Gold Corp. (NASDAQ: USAU): District Scale Gold Exploration in Nevada and Near Term Gold and Copper Production Potential in Wyoming, Interview with Edward Karr, President and CEO

on 10/8/2018
U.S. Gold Corp. (NASDAQ: USAU) is a gold exploration and development company with two high potential exploration projects: Copper King in Southeast Wyoming, and Keystone, identified and consolidated by Dave Mathewson on the Cortez Trend in Nevada. The advanced-stage Copper King gold-copper porphyry project has a Preliminary Economic Assessment (PEA) technical report, showing robust resource and lots of exploration upside. The big blue-sky Keystone exploration property is located about 10 miles south of Barrick Gold's Cortez Hills mine and has a potential for a major gold discovery. We learned from Edward Karr, President and CEO of US Gold Corp., that 2018 has been a very active year for the company. They have completed several geochemical and geophysical surveys and started drilling at Keystone. They recently received environmental approval from the BLM. They have completed the summer drill program at Copper King that will generate news flow over the next several weeks. With a nice cash position, tight capital structure, no debt and two great properties in a safe jurisdiction with huge upside exploration potential, U.S. Gold Corp. is well positioned for the positive turn in gold market.


US Gold Corp Copper King gold-copper project

Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-Chief of Metals News, interviewing Edward Karr, who's President and CEO of U.S. Gold Corp. Could you give our readers/investors an overview of your Company and an update on what has been happening?

Edward Karr: Sure. I'd be happy to and thanks so much for having me back. U.S. Gold Corp is a public company, traded on the NASDAQ under the symbol USAU. We are advancing, what we believe to be, high potential exploration projects in the state of Wyoming and the state of Nevada.

In the state of Wyoming, we have our Copper King project. Copper King is an advanced-stage, gold-copper porphyry, with a lot of history and an existing deposit of known mineralization. Mine Development Associates has completed a preliminary economic assessment on the deposit, showing a robust resource there.

Then in Nevada, we have a big blue sky exploration property called Keystone. That has been identified and consolidated by Nevada exploration geologist, Dave Mathewson. Keystone is located about 10 miles south of Barrick Gold's Cortez Hills mine. We believe it shares a lot of similar geology and potential for a major gold discovery there.



Those are the two projects we currently have within the Company. For a general update of what's been going on, it's been a very active year for us, in 2018. We have completed several geochemical and geophysical surveys at Keystone. We announced some prior press releases on these programs in the early part of the year. We started drilling at Keystone in Nevada. We have already announced that.

We also put together, this summer, a Copper King drill program. We have now completed our Copper King summer drill program. We are awaiting assays. I would tell your readers to just watch our press releases over the next several weeks. We don't know exactly when those assays will be back, but I would think sometime within the next month we will have assay results coming out of Copper King.



Another major news announcement, we've had pretty recently, is at our Keystone project in Nevada. We received our environmental assessment and approval of our plan of operations from the BLM. We put out a recent press release on this important news for us. We believe this permit approval is a game-changing event for us, because it really opens up the whole Keystone property.


US Gold Corp Keystone project

We have been very limited over the past two years in the amount of disturbance and drilling we can do at Keystone, because we have been working off of five notices of intent (NOIs). We had four last year and we put in a fifth NOI in place this year for our Potato Canyon scout hole drilling. Now with the plan of operations being approved, once we post the bond and get all the additional state approvals, then we'll be able to really have the entire Keystone district open to exploration. Our team has developed targets that we are really looking forward to going after that we have not been able to approach until this time. That is the general update.



Dr. Allen Alper: Well, that's a lot of news. It's great to be able to move forward now, aggressively, at the Keystone project, which is a very high potential Carlin-type gold deposits. That sounds excellent. Could you refresh our readers/investors’ memories of your background, Dave's background, and the Team and the Board?

Edward Karr: Absolutely, with pleasure, Al. I am a financial markets expert. I've set up several different investment banking and asset management companies over the years. I have a lot of corporate governance experience. I've been on the boards of many publicly-traded companies, several companies in the natural resource space, as an independent director. I'm really good with corporate governance, capital raising, things like that.

Dave Mathewson is a pretty well-known Nevada, early-stage, exploration geologist. He's had an impressive 40 plus year career. He was formerly head of the Great Basin Exploration Program in Nevada for Newmont Mining, where he made several discoveries up in the Rain district. Had his own company that he founded and took public, called Tone Resources, which was acquired by Rob McEwen at one point.



He was the first geologist for a company called Gold Standard Ventures. They have a project on the Carlin Trend and had a lot of discovery success there. Then Dave came on board with U.S. Gold Corp early on. Dave joined us by contributing the Keystone Project that he had consolidated, identified and staked. He has been on and off that project for more than 30 years.

In addition to Dave Mathewson, we have a project geologist named Ken Coleman. We have several different contractors. A gentleman named Tom Chapin who worked many years for Barrick Gold. Tom is a mapper, mapping all of the geology at Keystone and a whole host of other contractors, including Brion Theriault, Jim Wright and Joe Laravie that we work with.

Our board is pretty seasoned, a combination of financial market executives and mining industry executives. John Braca is now the Chairman of the Board. John is a US CPA, has tremendous private equity, corporate governance experience, and is very experienced in dealing with external auditors. John's a very solid set of hands and we are happy to have him as our Chairman.

Tim Janke is on our board. He is a mine engineer. Tim is the Chief Operating Officer at Pershing Gold Corporation. Andrew Kaplan is a Board member with a lot of mining industry experience. He's on the board of Coral, also was on the board of Avino Silver. Andrew is our Compensation Committee Chair.

James Davidson, well-known author, has been very active in the natural resource industry. I’m also on the Board. That's the board. A gentleman named David Rector is our Chief Operating Officer. Robert Del Aversano is our Principal Financial Officer.



Dr. Allen Alper: Well, you have a very accomplished Team and Board. Sounds very, very strong! Could you elaborate a bit on why you and your team feel so confident about the properties, on which you're working? Why you feel they're so important and have such great potential?

Edward Karr: Absolutely, we are confident in our projects. Let's start first with Copper King in Wyoming. We know that there is an existing resource there from our preliminary economic assessment. That resource looks quite robust and economically viable. The PEA is on our website, if anyone wants to go and look at all the underlying assumptions, costs, and commodity input prices.

Most importantly, we believe that there is blue sky exploration potential at Copper King. Our summer drill program has convinced us. We really believe we are going to increase the resource there. We believe we are going to add ounces of gold and pounds of copper to our resource. It will be interesting for us and exciting to see these summer Copper King drill assay results, as they come out.

I would caution your readers, Al, Copper King is a bulk tonnage low-grade, open pit deposit. It doesn't have all these flashy high-grade intercepts that sometimes excites the market. However, the nice thing about Copper King is the mineralization we've seen is very consistent. That consistency in the gold, the copper and the silver really should lead to nice potential economic mining. It just becomes a big dirt moving operation. The mine engineers like to see consistent grades.



In addition, Copper King is in the state of Wyoming and the claims are on Wyoming state ground. That makes the regulatory process, the permitting process going forward, very straightforward. We deal with the state regulators in Cheyenne. Wyoming is a mining friendly state. There're plenty of coal mines and uranium mines in Wyoming. We believe that this will have a clear path towards permitting. Depending on how the overall markets do for the price of gold and the price of copper, if they continue to go up in the future, we believe at some point Copper King will be going into production.

Let us switch to Keystone in Nevada and tell you why we are excited there. All of the work that we have done at Keystone in 2016, '17, even '18, has shown us what we believe is a major epithermal gold system at Keystone. We have not yet drilled into that high-grade feeder zone, but the drill holes we have drilled have shown us just incredible alteration, brecciation, the right host rocks of limestone carbonates. The stratigraphy of all of our scout drill holes so far looks very similar to stratigraphic columns from the Cortez Hills deposit to our North.

We're seeing incredible alteration and brecciation. We are getting just amazing, off-the-chart indications of arsenic, realgar, orpiment, stibnite. These are a lot of the right trace elements that you want to see and signs of a potential major gold system. We have seen anomalous gold in the rocks from surface all the way down to 2,000 feet in these holes. That shows us that there's a major gold system at work at Keystone that has pushed the gold out into the host rocks.



Now we need to vector into a discovery. We are currently trying to vector into a high-grade feeder zone. This is a very intuitive process, we believe every drill hole gets us closer to a potential discovery. We are incredibly encouraged with what we're seeing. All of the technical data tells us there is a world-class deposit just lurking in the shadows, waiting to be discovered.

Dr. Allen Alper: That sounds exciting. Sounds like it's going to be a fun year going forward.

Edward Karr: Yeah. I'll tell you, Al, it takes time in the gold exploration business. A lot of times investors have short-term expectations, because they see right now and mid-September 2018, these marijuana stocks are going up 50% a day. There's always a sector, whether it's biotechnology or cryptocurrency or marijuana that's the hot-sector du jour. Gold exploration can take time. It could take years to come up with a discovery, but one drill hole can really make a discovery.

We have a tight capitalization structure. We have just over 18 million shares, all common stock on the Nasdaq. I believe our stock is just north of a dollar a share, so around a 18 million dollar market cap, as of this interview. We have cash in the bank and no debt. If we can make a real discovery at Keystone, it could get very exciting. If we can prove that our Copper King deposit in Wyoming has additional blue sky upside, we think that can get exciting, as well.



Dr. Allen Alper: Sounds very promising. Could you tell our readers/investors the primary reasons they should consider investing in U.S. Gold Corp.?

Edward Karr: The primary reasons are we have two great projects. I really believe, Al, that Copper King, alone, with our known resource and the potential blue-sky upside justifies our current market cap. It's a tough market right now. Most of the exploration stocks are trading closer to their 52 week lows, than highs, but that's the opportunity. I really think that we have this incredible optionality on our Keystone Nevada project. If we hit a discovery hole at Keystone this year, we believe that there will be real upside to our company.



We are a US company, listed on a major US exchange, on the NASDAQ. All of our properties are in the United States of America, so we're trying to help make mining great again in the United States. We have a nice cash position. We have no debt. We have a plain vanilla cap table, all common stock, no preferred outstanding, no ratchets or resets or anything like that. We have a very diversified shareholder base. Really all we need is the market to turn in our favor and deliver the fundamentals. We think that it is a great opportunity.

Dr. Allen Alper: Sounds like compelling reasons our high-net-worth readers/investors should consider investing in U.S. Gold Corp. Ed, is there anything else you'd like to add?

Edward Karr: We appreciate the interest, appreciate the updates, so continue to watch the company. A lot of information is on our website. That's www.usgoldcorp.gold. Your readers, if they want to sign up for updates on our news, they can do so. They can sign up right online on the website. All your readers should feel free to reach out, call us, email us if anyone has any questions. We like to be pretty responsive and get back to everyone who gets in touch with us.

Dr. Allen Alper: That sounds excellent. We’ll publish your press releases as they come out so our readers/investors can follow your progress.

https://www.usgoldcorp.gold/

U.S. Gold Corp. Investor Relations:
+1-800-557-4550
ir@usgoldcorp.gold










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