With gold and copper prices still high, Luke Norman, co-founder and chairman of U.S. Gold Inc., said there is excitement around the company’s CK Gold Project in Wyoming that the company reported is nearing a mining permit.
U.S. Gold, which also owns the Keystone exploration project in Nevada, is planning an open pit gold and copper mine that Norman said will be the first new hardrock mine in Wyoming in many years. The project is roughly 20 miles west of Cheyenne.
Norman told Steve Darling of Proactive in an April 19 webcast that “copper and gold are doing extremely well,” although he feels equities are “still trailing the metals,” and he said the markets have been rough the past five years for companies seeking investors.
The New York spot gold price on April 19 closed at $2,395.90 an ounce, and copper was at $4.42 per pound.
Market Insights and Trends
Neils Christensen wrote for Kitco on April 19 that chaos in the Middle East continues to attract investors looking for a safe haven, but there are signs that gold’s bull run is losing momentum.
The futures price spiked sharply above $2,400 an ounce overnight after Israel carried out a limited military strike against Iran in retaliation for Iran’s drone attack, Christensen wrote.
Analysis of Gold Price Trends
Earlier in the week, U.S. Gold’s founder Edward Karr talked about the gold market with Proactive’s Stephen Gunnion, according to a U.S. Gold announcement.
Karr said the gold price’s new highs around $2,400 an ounce are a positive trend for the industry, particularly for junior mining companies.
He also shared insights from the recent European Gold Forum, stating that there was a drop in investor attendance compared with prior years, which he interpreted as indicative of a “stealth bull market.”
Karr said he was optimistic for future gold prices, emphasizing strong fundamentals despite potential headwinds from high interest rates and a robust U.S. dollar. He said he believes that gold’s resilience in the current geopolitical and economic climate suggests further upward potential for gold prices.
Additionally, he said increased central bank and Asian purchases of gold are signs of sustained demand.
Financial Developments in U.S. Gold
U.S. Gold also announced this week that it reached a securities purchase agreement with certain investors to provide $4.9 million to the company at a time when it expects a mining permit from the Wyoming Department of Environmental Quality by the end of the second quarter.
No federal permits are required for the CK Gold Project, which is mainly on state land.
Norman said the new funds will allow U.S. Gold to explore another target flanking the gold and copper deposit at the CK Gold Project site and explore additional targets.
Norman highlighted the company’s anticipation of pivotal changes in the upcoming months, particularly with the expected mining permit, and he told Proactive that Wyoming has a favorable regulatory environment, and the state is enthusiastic about the planned project.
U.S. Gold also stated that the CK Gold Project and the company’s projects in Nevada and Idaho stand to benefit from the higher gold prices.
