U.S. Gold Corp., a gold exploration and development company, provides an update on its Challis Gold Project as it moves towards a Plan of Operations (PoO) for the next phase of exploration.
The Challis Gold Project is just 75 kilometers southwest of Salmon, Idaho, in the Challis volcanic. The Challis Gold Project is a low-sulfidation, gold/silver epithermal vein and stockwork deposit, localized by intersecting northwest and northeast-trending shear structures in a window of sedimentary rocks exposed through the Challis volcanic. The PoO will outline U.S. Gold Corp.’s planned potential exploration activities and future potential drill programs for its Challis Gold Project under current local, state, and federal regulations, permits, and regulatory guidance.
Ken Coleman, Chief Geologist, U.S. Gold Corp., states: “The Challis Gold Project was last mined in the late 1920s when miners focused underground on veins grading better than 1 ounce/ton gold. Since that time, several other companies, including Newmont, have worked on the project. There are several opportunities at Challis, including further exploration of cobalt-copper showings on the project and developing a better structural picture of low-strip-ratio existing gold resources with upside expansion potential. Challis has a historic NI 43-101 geological report showing a 313,825-ounce gold inferred mineral resource at a grade of 1.22 grams per ton. Our whole team believes that with additional exploration, Challis has the potential to become a significant resource. We look forward to getting our PoO approval so we can begin designing and implementing future explorations plans.”
U.S. Gold Corp. has contracted with EM Strategies of Reno, Nevada, to complete the permitting process started by a predecessor company for a PoO for drilling in the historic resource area. The completion of the PoO is not yet clear further updates of the exploration will be provided once PoO is approved.
Surface exploration activities at Challis this summer will include detailed geologic mapping and rock sampling, with a focus on defining the structural controls and depositional sites of gold in the Johny’s Point resource area and its extensions. In addition, further mapping and sampling along a copper-cobalt showing identified in fall 2020 will be completed. The Blackbird district includes other copper-cobalt-gold deposits, including the Idaho Cobalt project of Jervois Mining located 11 km north of Challis Gold. Limited follow-up soil sampling will be completed once access to the project is gained. Concurrently, a ground magnetics survey will be done over the entire claim block.
U.S. Gold Corp. has received initial interest in the Challis Gold Project from a variety of industry participants. The Company has set up an internal data room with detailed technical information that interested parties can access after signing a confidentiality agreement.