U.S Gold Corp (NASDAQ: USAU) was a top gainer in yesterday’s session and closed the day with gains of 122.89%. This came after the company announced that it had updated the copper king deposit economics to mirror the recent increase in gold prices. In its update, the company announced that it had used the price of $1600 for gold in its latest economic calculation for March 2020. The company further announced that copper was calculated at $2.80.

Breaking down the updated economic calculation, the company stated that by adjusting the economics of the Copper King mine to reflect gold prices at $1600 and copper at $2.80, it would generate $510.54 million in pre-tax cash flows. The company also announced that on the basis of initial data, it’s NPV at a 5% discount rate would stand at $321.60 million.  The company further announced that its pre-tax IRR was projected to be around 52%.  It further announced that with gold trading at $1600, the copper king deposit economics stand at 20% copper and 80% gold. 

Commenting on the new economic calculation, one of the company’s directors Timothy Janke stated that the company’s copper king project is worthwhile. He added that with gold prices above $1600, the company deemed it suitable to review the value of its deposits and reflect current prices. He added that the company modified the PEA cash flow to reflect the same. He added that on the basis of his experience as an engineer, the resource increment at $1600 Au enabled for the doubling of the PEA processing rate to 20,000 tons daily up from 10,000 tons within the mine’s life.

From its price action, USAU was in a breakout in yesterday’s session. The stock opened the day at $4.88 and traded between a low of $4.25 and a high of $9.50, before closing the day at $7.40. Volumes in the day stood at 534.05k.

About U.S Gold Corp

U.S Gold Corp is a gold exploration company. It is headquartered in Elko, Nevada.