Significant Progress, Tiny Float, Hot Junior Gold Mining Company
U.S. Gold to Drill at Their Keystone Project
Good day everyone,
Today we are again initiating coverage of U.S. Gold Corp. (NASDAQ: USAU) a gold, copper, silver, and zinc exploration and development company.
The Current Market Cap of $14.88M represents a ridiculous 7.5% of the NET present value ($200M) of just the Copper King Project alone.
Current price $6.02 per share
Shares outstanding (est.) 2.47M
Float (est.) 1.89M
Insider ownership 22.38%
The company’s chart, tiny share structure, current price action, sector and progress could facilitate a sharp upward momentum in the near to mid-term.
USAU shares have crossed their 50 DMA of $5.12 and are looking like they may cross their 200 DMA of $7.64 per share. Additionally, the shares are leading their SMA 20 by 16.16% and their SMA 50 by 18.23% suggesting that USAU shares may continue trending higher.
Analyst: 5/12/2020 HC Wainwright Buy $14.50
Gold prices have been consistently strong this year:
Current Gold Price $1727.00/oz
Year Average
2020 $1,622.64
2019 $1,393.34
2018 $1,268.93
The fortunes of gold stocks can be tied directly to the price of gold. There are more than one gold analysts indicating they expect gold may go as high as $2000/oz in the next 18 months.
In the past six years there have been 19 insider stock purchases and only one sale for $19K, creating a 22.38% insider interest and a vested interest by management.
Many companies were forced to close temporarily due to restrictions under most state’s Covid 19 response. USAU was one of them. As states begin to remove restrictions on businesses, many are moving toward reopening. USAU is one of them.
For all our new members, here is a summary report on USAU:
USAU operates as a gold exploration and development company. The company’s properties include the Copper King project, a gold and copper exploration and development project located in Wyoming; Keystone project, an exploration property on the Cortez Trend in Nevada; and the Gold Bar North project, a gold exploration property located in Eureka County, Nevada.
The Keystone Project was the company’s first and founding project. It is located on the prolific Cortez Gold Trend. Over the past 50 years, the Cortez and Carlin trends in Nevada have produced more than 245 million ounces of gold. The Cortez Trend is also home to major mining operations of Barrick Gold (GOLD) and Newmont Mining (NEM), both just miles from the Keystone Project.
Last week the company advised it will potentially drill up to 38,200 feet in up to 22 holes at Keystone this year. This program is designed to assess several targets that have seen little or no historic drilling.
There’s much more detail in the press release: https://finance.yahoo.com/news/u-gold-corp-announces-proposed-120500612.html
The resumption of drilling, and the potential for positive data as a result of the drilling could act as catalysts for USAU shares in the near to mid-term.
The Copper King Project is a gold and copper exploration and development project located in southeast Wyoming and has a Preliminary Economic Assessment (PEA) report, authored by Mine Development Associates (MDA), dated December 5, 2017, Net Present Value near $200 million (with today’s gold price).
Gold Bar North is a gold exploration property, consisting of 49 unpatented lode mining claims situated in Eureka County, Nevada. Gold Bar North is also on the Cortez Trend and is located near to the Keystone Project.
The recent acquisition of an interest in the Maggie Creek exploration project on the Carlin Gold Belt in Nevada could earn USAU up to a 70% interest. The company announced this month, the completion of a detailed gravity survey on the project.
The company has stated “Considering the restrictions we all have been facing due to the COVID-19 pandemic, U.S. Gold Corp. has been able to make meaningful advancements on both of its key Nevada exploration projects. The Nevada Governor has recently released protocols for businesses within Nevada to begin the re-opening process, and we will be returning to the field shortly.”
The new drilling plan at Keystone is exciting because the mining properties owned by USAU, on the Cortez Trend may make the company a potential buyout target for the major gold mining companies (Barrick, Newmont) operating nearby.
USAU has an impressive management team and board of directors. These are just a few of them:
Edward Karr, CEO, was affiliated with several mining companies as an executive and founder. He was a founder and served on the Board of Directors of Pershing Gold Corp. He also had many years of experience at Prudential Securities.
The Honorable Ryan K. Zinke, Director – Two tours of duty at SEAL Team SIX, Bronze Star for combat in Iraq, Congressman, 52nd US Secretary of the Interior.
Ken Coleman, Geologist, has extensive experience in Nevada. Ken joined U.S. Gold Corp. from Barrick Gold Corporation where he was a mine geologist at the Goldstrike Mine.
David Rector, COO, served as the CEO and President of Valor Gold. From February 2012 through January 2013, Mr. Rector served as the VP Finance & Administration of Pershing Gold Corp.
The company’s Copper King Project has an assessed potential value of $200 million. The company’s market cap is under $15 million.
We believe that continuing improvement in the price of gold could create consolidation within the industry. USAU seems like it could be a desired acquisition target and they have assembled a team that could make that happen.
As the chart below indicates, USAU shares flattened out as the economy shut down. The chart also seems to indicate a price recovery as the economy begins to reopen.
https://stockcharts.com/h-sc/ui?s=USAU
We will have a full updated report on U.S. Gold available very soon,
The Traders News Group
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