U.S. Gold Corp. provided 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 volcanics. The Challis Gold Project is a low-sulphidation, 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 volcanics. The PoO will outline U.S. Gold Corp.’s planned potential exploration activities and future potential drill programs.
“The Challis Gold Project was last mined in the late 1920s, when miners focused underground on veins grading better than 1 ounce/ton gold,” Ken Coleman, U.S. Gold Corp.’s chief geologist, said. “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 (not current) report that shows a 313,825-ounce gold inferred mineral resource at a grade of 1.22 grams per ton, Coleman said. “Our whole team believes that with additional exploration, Challis has the potential to become a significant resource,” he added.
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. A timeline for completion of the PoO is not yet clear.