U.S. Gold Corp. Releases Additional Drill Results and is on Track to Complete Pre-Feasibility Study for the CK Gold Project - Seite 2

Comments on overall progress:

• All results for metallurgical core holes have been received, representative composites have been made, and metallurgical testing is ongoing and well advanced. Preliminary results to date suggest higher gold and copper recoveries from high-grade oxide mineralization than in the previous Preliminary Economic Assessment (PEA).
• RC drilling to the southeast of the known deposit has extended the footprint of mineralization; mineralization remains open along strike to the southeast and at depth.
• Mineralization remains open down-plunge to the northwest, where previously released hole CK20-01c ended in mineralization better than 2 g/t Au.
• Final results for the remaining eight drill holes are expected by end of March.
• A better understanding and application of geologic constraints (structural, lithologic and alteration) to the resource estimation suggests a potentially better overall grade relative to the MDA model and the conversion of material to measured and indicated categories from inferred.

Geologic Observations:

The 2020 drilling program included televiewer surveys of geotechnical core holes and surface mapping by our geotechnical consultants, Piteau Associates USA Ltd. Data generated from this work allowed the development of a fault model for the CK Gold deposit which did not previously exist. The importance of these faults is in forming hard boundaries to gold-copper mineralization, as well as lithologic-alteration boundaries. Of perhaps the greatest importance is the verification of the position of the Copper King fault on the east side of the deposit, forming a clear, hard boundary to gold-copper mineralization. Whether this fault is post-mineral or syn-mineral and grade controlling is yet to be determined, requiring drilling under post-mineral White River Formation to the southeast of the known mineralization. The 2017 work by Mine Development Associates (MDA) did not have the information now available, and as a consequence grade was estimated across the Copper King fault. The updated block model for the upcoming PFS should be much better constrained geologically and more reliable.