Samuel Rae Blog | Here's Where The Gold Bar North Claims Fit Into U.S. Gold Corp.'s Strategy | Talkmarkets
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Samuel is a currency trader, retail investor, author and contributor to a number of the leading trading market publications, including Futures Magazine, FX Trader Magazine, Master Investor and Spreadbet Magazine. 

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Here's Where The Gold Bar North Claims Fit Into U.S. Gold Corp.'s Strategy

Date: Tuesday, January 9, 2018 7:10 PM EDT

TM Editors' Note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

On July 5, 2017, U.S. Gold Corp. (USAU) announced that it had completed the acquisition of the Gold Bar North [GBN] claims in Nevada. The acquisition expands on the company's existing claims in the region and represents an important strategic expansion of both mineral rights and potential target deposit size with minimal financial outlay.

In response to the acquisition, here's a look at what the GBN claims mean for US Gold Corp. right now and how they play into the company's development strategy going forward.

By way of a brief introduction to the company, US Gold Corp. is a junior explorer based out of Nevada that is currently working to bring a couple of core projects through to production.

One of these projects is located in Wyoming and is called Copper King. As its name suggests, the project is a copper deposit and – in terms of historical development – is the more advanced of US Gold Corp.'s two projects, with a Preliminary Economic Assessment (PEA) having been completed back in 2012. It's the more advanced, but it is secondary in terms of proportionate representation of forward valuation to the company's second project, a Nevada based district called Keystone.

Keystone is a gold deposit project along the Cortez trend in Nevada, strategically located in and among a range of elephant-size deposits (deposits producing multi-million ounces of gold annually) that are already established and producing gold under the management of some big name owners in the sector and region – Newmont Mining Corporation (NEM), Barrick Gold Corporation (ABX) and more.

Over the past few months, Keystone has generated a substantial amount of attention from the mining and financial communities in the US. The project, which has historically been subject to a very limited amount of drilling and exploration, is the primary benefactor of US Gold Corp.'s financial and operational resources right now. The company is working towards the establishment of a resource estimate for the claims in question and conducted a scout drilling program throughout 2016 that continued throughout the second half of last year. This program, ultimately, will serve to inform (and by proxy, underpin) a full-scale drilling and exploration program during 2018 and beyond.

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