Wyoming’s only gold mine, located near Curt Gowdy State Park, has recently received the green light from state regulators, marking a significant milestone for the CK Gold Project, Cowboy State Daily reports.
The approval clears the way for US Gold Corp to move forward with a feasibility study, bringing the company one step closer to extracting gold from the site.
The permit process for the mine had been ongoing, with US Gold receiving a conditional mine operating permit earlier in the year. This was contingent on securing a discharge permit and posting a bond for the reclamation of the initial disturbances caused by the project. With the air quality permit now approved, the company can proceed with finalizing all necessary studies, including the feasibility study.
The feasibility study is a crucial step for the project, as it will provide the economic data necessary to secure financing for the mine’s development. US Gold estimates that the site may contain up to 1 million ounces of gold, which could make the project a highly profitable venture. However, the company is adjusting its financial estimates due to inflationary pressures, with initial capital requirements now expected to range between $290 million and $300 million, up from the original estimate of $222 million.
While the company has not yet begun extensive hiring, US Gold plans to start workforce recruitment once financing is finalized. The company estimates that during the construction phase, which will take about 18 months, 231 people will be employed. Once operational, the mine will employ around 255 individuals, with an additional 183 jobs expected through service providers. Indirect employment related to the mine could total over 500 jobs during its 10-year lifespan.
The CK Gold Project is situated near the ghost town of Hecla, Wyoming, where remnants of the old Copper King mine can still be seen. The area once housed about 800 people, who worked small deposits of gold and copper. The Copper King mine was abandoned in the 1920s after high-grade materials became scarce and the operation became economically unfeasible.
US Gold has taken a different approach by mining lower-grade materials that were not as attractive to the miners of the past. Advances in technology and higher commodity prices have made it viable to extract gold and copper from the site using modern equipment and techniques. This has allowed the company to resurrect the site as the CK Gold Project and move forward with development instead of pursuing exploration in Nevada, as initially planned.
US Gold plans to mine both copper and gold from a sulfide mineral called chalcopyrite, using a process known as froth flotation. This method involves grinding the ore into a fine slurry, which is then mixed with water and air bubbles. The minerals are attracted to the bubbles, which rise to the surface, allowing the company to collect and sell the mineral concentrate to smelters for further processing.
While the mine will not perform smelting on-site, the company is committed to minimizing environmental impact. There will be no emissions from smelting, and the use of chemicals will be kept to a minimum. Additionally, US Gold intends to recycle the water used in the mining process and use a filtration press to remove water from the tailings, which will be used to help rehabilitate the site with native plants and grasses.
“We are aiming to return the land as close as possible to its original habitat,” said George Bee, CEO of US Gold.
The company plans to leave some boulder piles and rocks around the site to provide habitats for local wildlife.
