The Top 5 Reasons to Consider U.S. Gold Corp.
Much of this has come from one core idea: Trust in financial institutions and central banking has been waning.
This has created renewed support for tangible assets having value not based on government fiat.
“We have gold because we cannot trust governments,” President Herbert Hoover famously said in 1933 in his statement to Franklin D. Roosevelt. (1)
1933 was nearly a century ago, but with such uncertainty over the past few decades, it’s no surprise that traders have time and time again turned to safe-haven assets.
Investopedia defines a “safe haven” as a type of investment that is expected to retain or increase in value during times of market turbulence. (2)
Remember the 2008 financial crisis? Beginning in 2007 and running through 2009, gold ran to unprecedented highs and surged hundreds of dollars in price. (3)
The price of 1 ounce of gold hit an all-time record of $1,895 on September 5, 2011, in response to worries that the United States would default on its debt. (3)
CV19? It sent gold prices skyrocketing to over $2,000 an ounce in 2020. (3)
Now here we are in 2022 and uncertainty has become our daily lives.
As the Ukraine and Russia conflict intensifies, we’re seeing the price of gold on their own warpath.
Meet U.S. Gold Corp. United States NASDAQ: (USAU) and its historically promising projects. As USAU advances 4 high-potential projects: The Copper King (CK) Gold Project in Southeast Wyoming, Keystone on the Cortez Trend in North Central Nevada, Maggie Creek on the Carlin Trend in Nevada, and the Challis Gold Project located in Idaho, it could very well have a generational type of upside in this current environment. And based on 5 prime reasons, U.S. Gold Corp. United States NASDAQ: (USAU) could be the top junior mining play on the planet right now.
Reason #1 – Right Place, Right Time- Mounting Potential Catalysts Could Help USAU’s CK Gold Project Generate Millions
USAU announced a positive Pre-Feasibility Study (PFS) for the CK Gold Project on Dec 1, 2021. To put it mildly, it even exceeded the most potentially positive expectations. For example, see how Alliance Global Partners reacted in their Dec 2, 2021 report. In their view, the PFS outlined a robust project featuring “low-cost production of over 100,000 gold equivalent ounces per annum over a 10-year mine life.” 28
Alliance added that “given the project’s production profile of over 100,000 ounces of gold per year, strategic location in the United States, manageable CapEx, and accelerated permitting timeline, we view the CK Project as an attractive asset that warrants development.” 28
After all, the announcement did cause them to raise their price target for the company from $20 to $25.
Plus, USAU released this video on the heels of releasing its positive Pre-Feasibility Study:
With much of the heavy lifting related to Feasibility level work already completed, the project’s development may only accelerate from here.
Reason #2 – With Tesla Exceeding a $1 Trillion Market Cap,(35) The Global Copper Shortage and EV Boom May Have Created a Historic Opportunity
Globally speaking, copper is strategically essential. Industries that produce solar panels, windmills, and electric vehicles are frantically looking for more and more supply.(5) But do you know what each brand new Tesla requires? Around 80 kg (176 lbs) of copper! (36)
The potential for copper makes US Gold Corp (NASDAQ:USAU) even more intriguing, outside of being a potential inflation hedge. While the CK Project is estimated to hold nearly 700,000 ounces of gold awaiting extraction, the company estimates the mine has a mind-blowing 230 million pounds of copper.(33) Other estimates show that the CK mine may hold enough copper to build about a million electric vehicles.(26)
Another significant catalyst to consider is its location. It’s located roughly 2 miles north of a central East-West Union Pacific rail line, giving it potentially easy rail access to Tesla’s Nevada Gigafactory.(37)
To possibly be THE copper supplier for the world’s latest $1 trillion giant could be game-changing. It’s not just Tesla, though, that could cause this property to see a surge in copper demand. Traditional automakers like General Motors Co. and Ford are going electric, which means a supply boom is expected, causing copper demand to soar.(37) This could be American copper from a future American mine, creating American jobs. CK spokesman, Jason Begger, was also sure to point out that as Wyoming and the country embrace new technologies like EVs, manufacturers will require a lot of copper – copper the CK Gold Project could produce.(33) Begger also added that the project is roughly a 10-year operation.(33)
Meanwhile, to add to the theme of sustainability, the CK Gold Project should run far cleaner. The company does not intend to use hazardous chemicals; there’s no refinery or air-polluting smokestack. In fact, the hole in the ground can potentially be used for water storage for the city of Cheyenne.(9)
There could even be other deals for the waste rock, adding even more revenue potential and reducing environmental impact.(9) Another significant usage of copper is wind turbines. Wyoming for decades profited from the coal mining industry but is now one of the states leading the way in the future of clean energy. Wyoming is the largest exporter of energy in the United States and ranks first in land-based class 6 and 7 wind turbine sites.(37)
Trafigura Group believes copper could hit $15,000 a ton over the next decade, according to Bloomberg.(6)
After all, “You can’t move to a green economic environment and not have the copper price moving significantly higher,” says Kostas Bintas, a trader at Trafigura. “How can you have one without the other?”(7)
You can see more about the CK Gold Project below. (It’s quite eye-opening!)
Reason #3 – A Regional “Player to Watch”(20) Exploring Untapped Promise in the World’s 5th Largest Gold-Producing “Country”(17)
In fact, in 2017 alone, Nevada claimed to have seen roughly 5.6 million oz. of gold produced, accounting for approximately 75% of American gold production.(18)
Historically, the region has also produced approximately 225 million oz. of gold. Thanks to Nevada’s pro-mining environment, geopolitical stability, and high-quality infrastructure, this could be yet another bullish catalyst for U.S. Gold.(19)
After all, INN Gold Investing News recently deemed U.S. Gold Corp. United States NASDAQ: (USAU) a regional “player to watch.”(20) U.S. Gold Corp. is currently exploring for gold in the Keystone project in the heart of the Cortez Gold Trend. It’s also about 10 miles south of Barrick’s Cortez Hills Mine Complex.
Reason #4 – Beyond Cortez Trend, U.S. Gold Corp. United States Has Staked Its Claim Where Nevada’s Gold Boom Started(23) Along With Another Project in Idaho
Furthermore, back in June, U.S. Gold Corp. announced the successful completion of 2021 Drilling at Maggie Creek. U.S. Gold Corp. drilled 4,440 feet (approx. 1,353 meters) in 2 holes. Drilling successfully identified targeted structure, host stratigraphy, and Carlin-style alteration at similar depths to current mining operations along the Carlin Gold Belt.(39) Most of all, the strength of alteration and anomalous geochemistry warrant potential additional exploration.(39)
In addition to Maggie Creek, U.S. Gold Corp. boasts the Challis Gold Project, another project with significant upside exploration potential. It’s located about 75 km southwest of Salmon, ID, and 20 km southwest of Revival Gold’s Beartrack Project in the Tertiary Challis Volcanic Field. The project is also located close to the Stibnite Au project, Bear Track Au project, Delamar Ag-Au mine, Coeur d’Alene Ag- Zn-Pb mines, Black Pine Au mine, and Thompson Creek Mo mine.(25) Ken Coleman, U.S. Gold Corp.’s Chief Geologist, added:
Reason #5 – With 175+% Of Upside Potential (as of 3/9/22) According to Alliance Global Partners 28, U.S. Gold Corp.’s Stunning Breakout May Just Be Starting
The Key Takeaway:
Its copper prospects are also perfect for the EV boom and push for a cleaner, sustainable world. Tesla just reached a $1 trillion market cap,(35) and its CK Project could be 2 miles north of a central East-West Union Pacific rail line, giving it potentially quick and easy rail access to Tesla’s Nevada Gigafactory.(37)
Couple that with a strong, experienced, and high-quality team running the company, and you have all the ingredients of a big-time winner in the near term and long term. H.C. Wainwright gave USAU a $16.00 price target for a reason.(28)
With over 50% of upside potential from its Mar 9, 2022 close of $9.00 based on this target, along with the rally it’s seen since the beginning of February, watch out. Very few companies are at the right place at the right time from numerous angles like this one.
Source 1: https://www.investopedia.com/ask/answers/09/gold-standard.asp
Source 2: https://www.investopedia.com/terms/s/safe-haven.asp
Source 3: https://goldprice.org/spot-gold.htm
Source 4: https://d1io3yog0oux5.cloudfront.net/usgoldcorp/files/video/U.S.+Gold+Corp.+I+CK+Gold+Project.mp4
Source 5: https://www.cnbc.com/2021/05/06/copper-is-the-new-oil-and-could-hit-20000-per-ton-analysts-say.html
Source 6: https://www.visualcapitalist.com/why-gold-mining-stocks-outperform-gold-bull-markets/
Source 7: https://sprott.com/insights/sprott-gold-report-gold-the-simple-math/#
Source 8: https://www.prnewswire.com/news-releases/us-gold-corp-announces-the-appointment-of-senior-mining-industry-executive-mr-george-bee-as-president-301111513.html
Source 9: https://youtu.be/QO1d5tUdE5Q
Source 10: https://sciencing.com/open-pit-mining-pros-cons-12083240.html
Source 11: https://www.intechopen.com/chapters/71931
Source 12: https://finance.yahoo.com/news/healthy-correction-bear-market-silver-141406103.html
Source 13: https://www.barchart.com/stocks/quotes/USAU/performance
Source 14: https://www.investing.com/equities/dataram-corp-technical
Source 15: https://www.vaneck.com/us/en/investments/junior-gold-miners-etf-gdxj/
Source 16: https://www.barchart.com/etfs-funds/quotes/GDXJ/performance
Source 17: https://www.reviewjournal.com/business/2-new-major-finds-may-extend-nevadas-gold-boom-for-years-1972010/
Source 18: https://www.usgoldcorp.gold/properties/challis-gold/overview
Source 19: https://goldbull.ca/big-balds/
Source 20: https://investingnews.com/innspired/cortez-trend-nevada/
Source 21: https://d1io3yog0oux5.cloudfront.net/_99cb187746de0507d7057beee5eadd57/usgoldcorp/db/280/795/pdf/USAU+Corporate+Presentation+May+2021.pdf
Source 22: https://www.usgoldcorp.gold/news-media/press-releases/detail/125/u-s-gold-corp-receives-bureau-of-land-management-approval Source 23: https://www.mining-technology.com/projects/carlin/
Source 24: https://www.prnewswire.com/news-releases/us-gold-corp-highlights-progress-on-challis-gold-project-as-it-moves-toward-plan-of-operations-301299634.html
Source 25: https://www.usgoldcorp.gold/properties/challis-gold/overview
Source 26: https://finance.yahoo.com/news/u-gold-corp-amplifies-potential-130919049.html
Source 27: https://www.foxbusiness.com/economy/yellen-says-americans-havent-experienced-current-inflation-rate-in-a-long-time
Source 28: https://d1io3yog0oux5.cloudfront.net/_f5ca51969ee43abae80b0d958cd37587/usgoldcorp/db/280/795/pdf/USAU+Corporate+Presentation+Oct+2021.pdf
Source 29: https://bit.ly/3mlsA0o
Source 30: https://www.cnbc.com/2021/10/25/economists-expect-shipping-problems-to-linger-well-into-2022.html
Source 31: https://www.thebalance.com/gold-prices-and-the-u-s-economy-3305656
Source 32: https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=0&mn=0&dy=15&id=p23897033209&a=1042871741&listNum=3
Source 33: https://county17.com/2021/10/14/tcs-cheyenne-gold-mine/
Source 34: https://www.wyomingnews.com/news/local_news/potential-gold-copper-mine-could-generate-millions-for-state/article_5ff26327-d9f5-5af0-8762-a26fed274d66.html
Source 35: https://www.cnn.com/2021/10/25/investing/tesla-stock-trillion-dollar-market-cap/index.html
Source 36: https://alphaomegarecycling.com/electric-cars-role-may-increase-demand-base-metals/#:~:text=A%20fully%20electric%20car%20uses,upside%20in%20other%20green%20technologies.
Source 37: https://www.yahoo.com/now/u-gold-corp-amplifies-potential-130919049.html
Source 38: https://www.usgoldcorp.gold/news-media/press-releases/detail/137/u-s-gold-corp-outlines-2021-field-season-activities-and
Source 39: https://www.usgoldcorp.gold/news-media/press-releases/detail/129/u-s-gold-corp-successfully-completes-2021-drilling-at
Source 40: https://schrts.co/ApjTJDre
Source 41: https://schrts.co/eManmckD
Source 42: https://schrts.co/niFycXVH
Source 43: https://schrts.co/urgMpVjn
Source 44: https://www.barchart.com/stocks/quotes/usau/opinion
Source 45: https://money.com/gold-vs-gold-miner-stocks/
Source 46: https://www.foxbusiness.com/economy/producer-inflation-set-record-for-sixth-straight-month
Source 47: https://www.etftrends.com/gold-silver-investing-channel/gold-hits-1800-as-yields-take-a-dip/