November 28, 2011 / 2:18 PM / 7 years ago

UPDATE 1-US Gold completes study on Nevada gold project

TORONTO, Nov 28 (Reuters) - US Gold Corp UXG.TO said on Monday it has completed a preliminary feasibility study (PFS) on its Gold Bar mining project in Nevada.

The study indicates that the mine could potentially produce 51,000 ounces of gold annually over an eight-year period at cash costs of $665 an ounce.

Initial capital expenditure at Gold Bar is expected to be about $56 million, while the study outlines total capital expenditure of about $95 million over the life of the mine.

US Gold, which is led by Goldcorp’s (G.TO) former CEO Rob McEwen, believes the level of detail in the preliminary study would allow the company to move toward production without completing a full feasibility study.

Toronto, Ontario-based US Gold said it intends to go directly to the permitting phase and move toward production as quickly as possible.

The small project, about 35 miles northwest of Barrick Gold’s (ABX.TO) Cortez mine in Nevada, is located on public lands managed by the Bureau of Land Management.

The project will require both state and federal permits. It will also require an environmental review, under the National Environmental Policy Act. (Reporting by Euan Rocha)

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