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What: Shares of gold miner U.S. Gold Corporation
So what: The company said its wholly owned Gold Bar Project in Nevada could produce 51,000 ounces of gold annually over an eight-year life at a cost of $665 per ounce. The net present value of the project -- assuming a $1,200 price per ounce of gold and an 8% discount rate -- is $36.4 million. With gold's current price, the NPV rises to $109.1 million.
Now what: It didn't hurt that the entire market was up today, so it's hard to tell just how excited investors were with the feasibility study. It's positive to get this data back, but it's hard for me to get too excited until I actually see revenue and profits hit the income statement. Until then, I'll sit this move out from the sidelines.
Interested in more info on U.S. Gold? Add it to your watchlist by clicking here.
Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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