Printer Friendly

U.S. Gold reports favorable feasibility study; gold production targeted for 1995.

DENVER--(BUSINESS WIRE)--Feb. 9, 1995--U.S. Gold Corp. (NASDAQ:USGL) announced Thursday that its partner at the Tonkin Springs Project, Gold Capital Corp., has received a favorable feasibility study performed by an independent engineering firm.

The study, conducted by Lynteck Inc., Denver, confirms the economic viability of gold production from presently defined gold mineralization at the Tonkin Springs Gold Mine located on the Battle Mountain-Eureka Gold Trend in Eureka County, Nev.

U.S. Gold holds, through subsidiaries, a 40% working interest in Tonkin Springs and further holds preferred stock in Gold Capital which can be converted through June 30, 1996, into 20% of the outstanding common stock of Gold Capital, resulting in an effective economic interest of 52% in the Project. Gold Capital is manager of the Project and is responsible for funding all costs until commencement of commercial production.

The feasibility study represents an estimate of the economic viability of producing gold from a milling and heap leach operation at the Tonkin Springs Project and, subject to certain conditions and assumptions set forth therein, concludes that gold can be successfully mined over the estimated five-year life of the initial phase of the Project.

Assuming Gold Capital is successful in raising the necessary additional funding to place the Project into production, and that permitting goes as anticipated, gold production from Tonkin Springs could begin by the fourth quarter of 1995. U.S. Gold is of the opinion that the Project can be extended several more years beyond the estimated 5 year life.

"We are very pleased with the results of this independent feasibility study that shows a targeted rate of about 80,000 ounces per year for the Project at full production. Based on a gold price of $375 per ounce, and other economic and operational assumptions included in the study, the company's effective economic interest in net cash flow from the Project would approximate up to $5 million per year," said William W. Reid, president of U.S. Gold.

"We look forward to again joining the ranks as a gold producer."

CONTACT: U.S. Gold Corp., Denver

William W. Reid, 303/322-8002
COPYRIGHT 1995 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1995, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Feb 9, 1995
Previous Article:Fourth Litton-built LHD amphibious assault ship to join Navy fleet Feb. 11.

Related Articles
USMX Inc. announces execution of formal agreement with North Pacific Mining Corp. to develop the Illinois Creek Gold property in Alaska, and commits...
Canarc forms strategic alliance with Echo Bay Mines.
FirstMiss Gold Inc. Reports Fourth Quarter and Year-end Results.
Southwestern Gold Corp. and Cominco/Teck joint venture agreements signed for the Desierto and Dinamarquesa Projects, Chile.
Pegasus Reports the Suspension of Operations at Mt. Todd and Third Quarter Results.
TVX Cash Costs Below US$200 per ounce Year to Date; Production Continues to Improve.
X-Cal Resources Ltd. Annual Report.
Production up.
Record earnings.
Cambior Files Mineral Reserves Report Regarding the Gross Rosebel Gold Property.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters