Codrus stands ready as Washington supercharges US mining

• Codrus Minerals’ Bull Run project sits next to Paramount Gold Nevada’s Grassy Mountain project, which just inked Fast-41 status
• Fast 41 is a federal initiative to streamline approvals of critical infrastructure
• Policy momentum could bring indirect but meaningful benefits to Codrus and Bull Run, where a 14,000m drilling program is underway 

While Washington rolls out the red carpet for US resources projects by smoothing the approvals process, small cap gold explorer Codrus Minerals could be sitting pretty with its Nevada asset rubbing shoulders with a company that’s just hit the regulatory jackpot.

Codrus Minerals’ (ASX:CDR) neighbour Paramount Gold Nevada is one of the latest explorers to gain FAST-41 status, a federal initiative to streamline approvals of critical infrastructure.

Paramount’s Grassy Mountain gold project in Oregon, home to 1Moz gold and 3Moz silver, is now allowed to jump the queue on permitting – to the delight of gold-hungry investors.

According to a September 2022 feasibility study, Grassy Mountain is projected to operate at 750 tonnes per day, delivering recoveries of 93% for gold and 78% for silver, with annual output estimated at 47,000oz of gold and 55,000oz of silver over eight years.

As part of the FAST-41 program, projects are expected to get record of decision (ROD) – the final step by a lead federal agency regarding the environmental review and authorisation process – about 18 months quicker than non-designated ones.

By setting clear timelines for permits and providing open tracking via the federal dashboard, the program encourages efficiency with agencies now trying to finish the final environmental impact statement (EIS) and ROD in about two years, compared to the median of 2.2 years under the old rules.

Codrus poised to gain

For Codrus, this policy momentum could bring indirect but meaningful benefits.

While it hasn’t received FAST-41 status yet, being geographically close to a project that has could enhance the strategic profile of its own asset in several ways.

Paramount’s advancement might lead to new infrastructure or upgrades in the region (roads, power and water access), indirectly de-risking Codrus’ development path at the Bull Run project.

Its proximity to Grassy Mountain could also improve how investors and potential partners view Codrus’ asset, possibly lifting its valuation or making it a more attractive acquisition target.

With gold playing a role in financial security and now classified as a critical mineral in the US, the country is more motivated than ever to back domestic production, positioning the Bull Run project with that geopolitical and policy shift.

Better yet, gold prices are still at record highs, surging to around $3340 per ounce  this week as Donald Trump’s tariff war stoked investor fears and boosted demand for the safe-haven metal. Although prices have fallen 0.65% over the last month, they are still 36.21% higher than a year ago.

Codrus executive chairman Greg Bandy told Stockhead the Trump Administration’s move to list gold as a critical mineral heavily influenced the company’s timing to start drilling once permits were secured in May.

The company launched a 14,000m drilling program at Bull Run last month, targeting five high-priority gold prospects identified through soil and rock sampling, with additional confidence drawn from historical intercepts such as a standout 20.5m at 3.53g/t gold.

Bull Run is wedged between the 400,000oz historical producer Cracker Creek and Paramount’s 1Moz gold, 3Moz silver Grassy Mountain deposit.

If modern drilling validates historical data, it could join the ranks of the USA’s next generation of gold developments.

Potential company-maker

Bandy views Bull Run as a potential company maker for Codrus, which could finally deliver on the potential of the historic Record gold mine, part of the company’s tenement package and a producer of 5000oz between 1933 and 1937.

“Upon confirming that there are ounces in the ground, we will then assess next steps which may involve approvals to do more work around resource definition,” Bandy said.

“We are of the view that gold prices are more than sustainable at these prices and the US supporting drilling and development of their own natural resources projects is a good thing.”

While other ASX explorers are now potentially eyeing the US as a prime location for project development on the back of these policy tailwinds, Bandy said first mover advantage is always key.

“This project was identified many years ago and it has only now been given a chance to be proven,” he said.

“It’s very hard to gain exposure to advanced projects in Tier 1 jurisdictions as per the old adage ‘if it was any good, it would been acquired by now’.

“At current prices, proving up a modest amount of these types of ounces can be company making and we look forward to updating the market very soon as to how we’re going.”

At Stockhead we tell it like it is. While Codrus Minerals is a Stockhead advertiser, it did not sponsor this article.