U.S. GoldMining Applauds U.S. Presidential Executive Order Recognizing Copper & Gold as 'Critical Minerals' - Strong Economic and Policy Tailwinds will benefit Whistler Gold-Copper Project, Alaska

Rhea-AI Summary

U.S. GoldMining Inc. (NASDAQ: USGO) welcomes a new Presidential Executive Order recognizing copper and gold as critical minerals, directing government agencies to facilitate domestic mineral production. This follows a January 2025 order focused on maximizing Alaska's resource development.

The company's Whistler Gold-Copper Project in Alaska contains significant resources including:

• Indicated Resources: Over 1 billion pounds of copper and nearly 4 million ounces of gold
• Inferred Resources: 0.3 billion pounds of copper and 3.3 million ounces of gold

CEO Tim Smith highlighted the order's significance in securing domestic supply chains, particularly as gold, copper, and silver prices reach record highs. The company aims to develop responsible mining operations contributing to America's resource security needs.

Positive

• Significant mineral resources: Over 1 billion pounds of copper and 4 million ounces of gold in Indicated Resources
• New Executive Order status as critical minerals may expedite project development
• Record high prices for project's main commodities (gold, copper, silver)
• Favorable regulatory environment with two supportive Executive Orders

Negative

• None.

Insights

Mining Policy Expert

The Executive Order designating gold and copper as critical minerals represents a notable shift in U.S. resource policy but warrants measured expectations. This designation typically streamlines permitting processes, potentially reducing Whistler Project's regulatory timeline by months or even years, and may open access to certain federal funding programs or tax incentives. However, the tangible benefits remain largely theoretical until implementation details emerge.

This policy builds upon the January Executive Order specific to Alaska, creating a potentially favorable regulatory environment for USGO. While positive, investors should recognize that: 1) Executive Orders can be reversed by subsequent administrations, creating policy uncertainty; 2) implementation may vary significantly from announcement; and 3) mining projects still face substantial non-regulatory hurdles including financing, infrastructure development, and technical challenges.

The critical minerals designation signals government recognition of domestic copper and gold production importance, but doesn't fundamentally alter the project's economic reality or significantly accelerate its path to production. The resource estimates cited (4 million ounces of gold and 1 billion pounds of copper in indicated resources) remain unchanged, as do the capital requirements and development timeline. This policy shift creates an improved operating environment rather than transforming project fundamentals.

Resource Development Analyst

The Whistler Project represents a substantial resource base with 1 billion pounds of copper and 4 million ounces of gold in the Indicated category, plus additional Inferred resources. At current market prices, this resource carries significant potential value, though development costs and timeline remain considerable factors.

The Executive Order could potentially expedite the permitting process, addressing one of several hurdles facing development-stage mining projects. However, the critical mineral designation doesn't address other key challenges including the remote location, infrastructure requirements, and capital intensity of developing a large-scale copper-gold project in Alaska.

While the CEO highlights "record high commodity prices" for gold, copper and silver, it's important to note that USGO remains pre-production, with substantial capital requirements before monetizing these resources. The current market cap of $123.5 million reflects early-stage valuation relative to the potential resource value, indicating the market is discounting both the timeline to production and development risks.

The policy shift represents a favorable regulatory tailwind, but investors should recognize that Whistler remains years from potential production even with accelerated permitting. The designation as critical minerals may enhance the project's strategic importance and potentially attract partnership interest, but doesn't fundamentally change near-term operations or financial outlook for USGO.

ANCHORAGE, Alaska, March 24, 2025 /PRNewswire/ - U.S. GoldMining Inc. (NASDAQ: USGO) ("U.S. GoldMining" or the "Company") welcomes the signing of an Executive Order by President Donald Trump titled "Immediate Measures to Increase American Mineral Production". The Executive Order directs government agencies to immediate action to facilitate domestic mineral production to the maximum extent possible, including copper and gold. This decision underscores the essential role these metals play in energy security, defense, and economic stability, while further highlighting the strategic importance of domestic mining projects such as the Company's Whistler Gold-Copper Project in Alaska.

This follows an earlier Executive Order signed January 20, 2025, titled "Unleashing Alaska's Extraordinary Resource Potential", which, as the Company reported on January 27, 2025, is designed to boost the mining industry by maximizing the development of natural resources located on Federal and State lands in Alaska and expediting the permitting of Alaskan natural resource projects.

Tim Smith, Chief Executive Officer of U.S. GoldMining, commented: "This new Executive Order is a significant step forward in securing a reliable domestic supply chain for copper, gold and other essential resources. Our Whistler Project has estimated Indicated Resources of over 1 billion pounds of copper and almost 4 million ounces of gold plus estimated Inferred Resources of 0.3 billion pounds of copper and 3.3 million ounces of gold*, positioning it as a potentially valuable asset in strengthening the nation's mineral independence.

The Company believes that this policy shift provides increasing tailwinds for responsible resource development in Alaska and across the U.S. and comes at a time when the three metals which are contained within the Whistler mineral resource estimate - gold, copper and silver - are at record high commodity prices. This Executive Order aligns directly with our vision to develop responsible, world-class mining operations that contribute to America's energy and resource security needs," added Tim Smith. "As we advance our Whistler Project, we look forward to working with federal and state agencies to seek to capitalize on this momentum and further contribute to the strengthening of domestic supply chains."  

^{*See Table 1}

Table 1 Mineral Resource Estimate for the Total Whistler Project (Effective date: September 12, 2024)

Class	Deposit	Cut-off  Value	ROM  Tonnage	In situ Grades					In situ Metal
		(US$/t)	(ktonnes)	NSR (US$/t)	AuEqv (g/t)	Au (g/t)	Cu (%)	Ag (g/t)	AuEqv (koz)	Au (koz)	Cu (mlbs)	Ag (koz)
Indicated	Whistler Pit	10	282,205	22.84	0.68	0.41	0.16	1.89	6,201	3,724	999	17,166
	Raintree Pit	10	8,905	21.08	0.63	0.46	0.08	4.81	180	131	16	1,378
	Indicated Open Pit	varies	291,410	22.79	0.68	0.41	0.16	1.98	6,381	3,855	1,015	18,544
	Raintree UG	25	3,064	34.41	1.03	0.79	0.13	4.49	101	78	9	443
	Total Indicated	varies	294,474	22.91	0.68	0.42	0.16	2.01	6,482	3,933	1,024	18,987
Inferred	Whistler Pit	10	18,224	21.01	0.63	0.40	0.13	1.75	368	233	54	1,025
	Island Mountain Pit	10	124,529	18.21	0.54	0.45	0.05	1.02	2,180	1,817	139	4,084
	Raintree Pit	10	15,056	23.12	0.69	0.55	0.06	4.36	335	267	21	2,112
	Inferred Open Pit	varies	157,809	19.00	0.57	0.45	0.06	1.42	2,883	2,317	214	7,221
	Raintree UG	25	40,432	32.81	0.98	0.76	0.12	3.31	1,275	994	103	4,300
	Total Inferred	varies	198,241	21.82	0.65	0.52	0.07	1.81	4,158	3,311	317	11,521

Notes to Table 1:
	1.	Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources will be converted into mineral reserves.
	2.	Inferred mineral resources are subject to uncertainty as to their existence and as to their economic and legal feasibility. The level of geological uncertainty associated with an inferred mineral resource is too high to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability.
	3.	The mineral resource estimate for the Whistler, Island Mountain, and the upper portions of the Raintree West deposits have been confined by an open pit with "reasonable prospects of economic extraction" using the following assumptions:
		Metal prices of US$1,850/oz Au, US$4.00/lb Cu and US$23/oz Ag; Payable metal of 95% payable for Au and Ag, and 96.5% payable for Cu; Refining costs for Au of US$8.00/oz, for Ag of US$0.60/oz and for Cu of US$0.05/lb; Offsite costs for Au of US$77.50/wmt, for Ag of US$3.50/wmt and for Cu of US$55.00/wmt; Royalty of 3% NSR; Pit slopes are 50 degrees; Mining cost of US$2.25/t for waste and mineralized material; and Processing, general and administrative costs of US$7.90/t.
	4.	The lower portion of the Raintree West deposit has been constrained by a mineable shape with "reasonable prospects of eventual economic extraction" using a US$25.00/t cut-off.
	5.	Metallurgical recoveries are: 70% for Au, 83% for Cu, and 65% Ag for Ag grades below 10g/t. The Ag recovery is 0% for values above 10g/t for all deposits.
	6.	The net smelter return royalty (NSR) equations are: below 10g/t Ag: NSR (US$/t)=(100%-3%)*((Au*70%*US$54.646/t) + (Cu*83%*US$3.702*2204.62 + Ag*65%*US$0.664)), and above 10g/t Ag: NSR (US$/t)=(100%-3%)*((Au*70%*US$56.646g/t) + (Cu*83%*US$3.702*2204.62)).
	7.	The Au Equivalent equations are: below 10g/t Ag: AuEq=Au + Cu*1.771 +0.0113Ag, and above 10g/t Ag: AuEq=Au + Cu*1.771.
	8.	The specific gravity for each deposit and domain ranges from 2.76 to 2.91 for Island Mountain, 2.60 to 2.72 for Whistler with an average value of 2.80 for Raintree West.
	9.	Numbers may not add due to rounding.

Please refer to the technical report summary titled "S-K 1300 Technical Report Summary Initial Assessment for the Whistler Project, South Central Alaska" with an effective date of September 12, 2024, and the technical report titled "NI 43-101 2024 Updated Mineral Resource Estimate for the Whistler Project, South Central Alaska" with an effective date of September 12, 2024, available under the Company's respective profiles at www.sec.gov and www.sedarplus.ca  for further information regarding the Whistler Project and the mineral resource estimates referenced herein.

Tim Smith, P.Geo., Chief Executive Officer of the Company, has supervised the preparation of this news release and has reviewed and approved the scientific and technical information contained herein. Mr. Smith is a "qualified person" as defined in Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

About U.S. GoldMining Inc.

U.S. GoldMining Inc. is an exploration and development company focused on advancing the 100% owned Whistler Gold-Copper Project, located 105 miles (170 kilometers) northwest of Anchorage, Alaska, U.S.A. The Whistler Project consists of several gold-copper porphyry deposits and exploration targets within a large regional land package entirely on State of Alaska Mining claims totaling approximately 53,700 acres (217.5 square kilometers). The Whistler Project Mineral Resource Estimate comprises 294 Mt at 0.68 g/t AuEq for 6.48 Moz AuEq Indicated, plus 198 Mt at 0.65 g/t AuEq for 4.16 Moz AuEq Inferred.

Visit www.usgoldmining.us for more information, including high resolution figures.

Forward-Looking Statements

Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" within the meaning of the United States federal securities laws and "forward-looking information" within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). Such statements include statements with regard to the Company's expectations regarding the Project and the impacts of the Executive Order. Words such as "expects", "anticipates", "plans", estimates" and "intends" or similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on U.S. GoldMining's current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict and involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of future exploration may not confirm expectations, variations in the underlying assumptions associated with the estimation or realization of mineral resources, the availability of capital to fund programs, accidents, labor disputes and other risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals or permits, title disputes other risks inherent in the exploration and development of mineral properties and the other risk factors set forth in the Company's filings with the U.S. Securities and Exchange Commission at.www.sec.gov and Canadian Securities Administrators at www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release. Forward-looking statements contained in this news release are made as of this date, and U.S. GoldMining does not undertake any duty to update such information except as required under applicable law.

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SOURCE U.S. GoldMining Inc.

FAQ

What are the current resource estimates for USGO's Whistler Project in Alaska?

The Whistler Project has Indicated Resources of over 1 billion pounds of copper and 4 million ounces of gold, plus Inferred Resources of 0.3 billion pounds of copper and 3.3 million ounces of gold.

How does the March 2025 Executive Order impact USGO's Whistler Project?

The order recognizes copper and gold as critical minerals and directs agencies to facilitate domestic mineral production, potentially streamlining development of USGO's Whistler Project.

What is the significance of the January 2025 Alaska Executive Order for USGO?

The order aims to boost mining by maximizing resource development on Federal and State lands in Alaska and expediting permitting processes for natural resource projects.

When was the latest technical report for USGO's Whistler Project published?

The latest technical report for the Whistler Project has an effective date of September 12, 2024.