US Gold: El Gallo Continues to Expand East & South New High Grade Mineralization Discovered in Two Areas
New High Grade Mineralization Discovered in Two Areas
TORONTO, ONTARIO -- (Marketwire) -- 03/30/11 -- US GOLD CORPORATION (NYSE: UXG)(TSX: UXG) is pleased to announce drilling continues to expand the size of the silver-gold resource and upgrade the inferred mineralization at the El Gallo Project in Sinaloa State, Mexico. In addition, drilling has intersected high grade mineralization 400 meters (m) (1,300 feet (ft)) southwest of the El Gallo resource. Also, drilling on the recently discovered Alamo vein has encountered mineralization 150 m (500 ft) south of the previous exploration.
EXPLORATION HIGHLIGHTS
El Gallo & Surrounding Area:
-- Drilling continues to expand the Main Zone resource further to the east
and south. Intersections include: 132.4 gpt silver over 9.1 m, 115.9 gpt
silver over 9.5 m and 423.0 gpt silver over 3.5 m.
-- Infill drilling, designed to upgrade inferred mineralization to the
measured and indicated categories continues to meet expectations: 211.6
gpt silver over 14.2 m and 83.9 gpt silver over 14.0 m.
-- High grade silver-gold mineralization discovered 400 m (1,300 ft)
southwest of the El Gallo resource: 2,400 gpt silver and 39.3 gpt gold
over 0.6 m.
Alamo (7 km North of El Gallo):
-- High grade gold mineralization intersected 150 m (500 ft) south of the
previous drilling: 18.2 gpt gold over 2.0 m and 20.3 gpt gold over 0.8
m.
-- An extensive drill program is currently underway at several of the new
veins in order for them to be included into an updated resource
estimate, which is expected by year-end. Assays results for these veins
will be released in approximately three weeks.
'With a $30 million exploration program over the next two years, a large land package and multiple new discoveries at and around El Gallo, the potential to expand the resource looks excellent. We are pushing aggressively to grow the size of the project as we move it through feasibility and towards production,' stated Rob McEwen, Chairman and CEO.
El Gallo Resource Expanded to the East and South (Fig. 2 and 3)
Drilling at El Gallo continues to focus on growing the size of the resource and upgrading inferred mineralization to the measured and indicated categories. Drilling to expand the known mineralization occurred in the eastern area of the Main Zone. Holes GAX-276, GAX-277, GAX-278 expanded the mineralization encountered in hole GAX-282 (released March 8, 2011), which returned 233.3 gpt silver over 12.4 meters, by approximately 30 m (100 ft). Also, GAX-275 intersected encouraging mineralization, expanding the resource by 30 m (100 ft) to the south. Additional drilling to follow-up on these results is underway.
Infill drilling continues to meet expectations, increasing the confidence associated with the inferred mineralization. The results of this drilling will be incorporated into an updated resource and initial reserve estimate due at year-end.
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Hole # Silver Length From Silver Length From
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(gpt) (meters) (meters) (opt) (feet) (feet)
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Expansion
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GAX-275 115.9 9.5 111.5 3.4 31.2 365.8
Including 586.0 1.4 113.4 17.1 4.6 372.0
And 109.4 5.0 144.5 3.2 16.4 474.1
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GAX-276 508.0 1.1 106.3 14.8 3.6 348.8
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GAX-277 132.4 9.1 119.9 3.9 29.9 393.4
Including 240.8 3.6 121.0 7.0 11.8 397.0
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GAX-278 423.0 3.5 110.5 12.3 11.5 362.5
Including 1,270.0 1.1 112.1 37.0 3.6 367.8
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GAX-286 293.8 1.8 27.2 8.7 5.9 89.3
Including 411.0 0.8 27.2 12.0 2.6 89.3
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Infill
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GAX-279 63.7 10.6 32.3 1.9 34.8 106.0
And 54.0 8.0 97.0 1.6 26.2 318.2
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GAX-287 83.9 14.0 0.0 2.4 45.9 0.0
And 211.6 14.2 44.4 6.2 46.6 145.7
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High Grade Silver-Gold Mineralization Discovered Southwest of El Gallo
Drilling 400 m (1,300 ft) southwest of the El Gallo resource has encountered high grade mineralization over a narrow width. US Gold's geologists' drill tested this area based on a soil geochemical anomaly. To date, only one core hole has been completed. Two more are scheduled over the coming weeks, which will confirm if this mineralization can be extended at depth and along strike. The presence of an additional vein near El Gallo is very encouraging.
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Hole # Silver Gold Length From Silver Gold Length From
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(gpt) (gpt) (meters) (meters) (opt) (opt) (feet) (feet)
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GAXSW-001 2,400 39.3 0.6 47.6 70.0 1.1 2.0 156.2
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Alamo Vein - High Grade Gold Encountered South of Previous Drilling
(Located 7 km North of El Gallo)
Alamo is one of several veins that were discovered late in 2010. Previously released holes from Alamo have returned encouraging gold mineralization such as 27.2 gpt gold over 1.0 m, 13.7 gpt gold over 1.5 m and 9.3 gpt gold over 1.7 m, highlighting the areas upside potential. New drilling on the Alamo vein has successfully intersected additional high grade mineralization 150 m (500 ft) south of the previous drilling. Geologic mapping and rock chip sampling indicated the potential for extending the mineralization along strike. It is important to note that two high grade intercepts were encountered in this hole, suggesting the presence of parallel veins. This is the first time drilling at Alamo has encountered multiple zones. Results are highlighted below.
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Hole # Gold Length From Gold Length From
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(gpt) (meters) (meters) (opt) (feet) (feet)
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SJX-024 18.2 2.0 12.0 0.53 6.6 39.4
And 20.3 0.8 59.3 0.59 2.6 194.6
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ABOUT US GOLD (www.usgold.com)
US Gold's goal is to qualify for inclusion in the S&P 500 by 2015. US Gold explores for gold and silver in the Americas and is advancing its El Gallo Project in Mexico and its Gold Bar Project in Nevada towards production. US Gold has a strong treasury with approximately $100 million in cash and gold and silver bullion. The Company's shares are listed on the New York (NYSE) and the Toronto Stock Exchange (TSX) under the symbol UXG, trading 1.6 million shares daily during the past twelve months. US Gold's shares are included in S&P/TSX and Russell indices and Van Eck's Junior Gold Miners ETF.
This news release has been viewed and approved by John Read, CPG, US Gold's consulting geologist, who is a Qualified Person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by the Company at its Mexican exploration properties.
Samples from the core drilling were split on-site at the Company's Magistral Mine property. One quarter of the split drill core was shipped to ALS Chemex for sample preparation and analysis by 4-acid digestion with ICP determination for silver and fire assay for gold. Samples returning greater than 10 ppm gold were re-analyzed using gravimetric fire assay. Standards and blanks were inserted every 20 samples.
All holes were drilled with HQ bits and reduced to NTW where required. Samples were taken based on lithologic and/or mineralized intervals and vary in length. The true width of the mineral zone has not been determined.
Certain statements contained herein and subsequent oral statements made by and on behalf of the Company may contain 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by words such as 'intends,' 'anticipates,' 'believes,' 'expects' and 'hopes' and include, without limitation, statements regarding the Company's results of exploration, plan of business operations, potential contractual arrangements, receipt of working capital, anticipated revenues and related expenditures. Factors that could cause actual results to differ materially include, among others, those set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2010 and other filings with the Securities and Exchange Commission, under the caption 'Risk Factors'. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking statements. Except as otherwise required by applicable securities statutes or regulations, the Company disclaims any intent or obligation to update publicly these forward looking statements, whether as a result of new information, future events or otherwise.
To view Table 1, please visit the following link: http://media3.marketwire.com/docs/UXG-Table1.pdf
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/UXG-Figure1.pdf
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To view Figure 4, please visit the following link: http://media3.marketwire.com/docs/UXG-Figure4.pdf
To view Figure 5, please visit the following link: http://media3.marketwire.com/docs/UXG-Figure5.pdf
Contacts:
US Gold Corporation
Ian J. Ball
Senior Vice-President
(647) 258-0395 or Toll Free: (866) 441-0690
(647) 258-0408 (FAX)
US Gold Corporation
Mailing Address
99 George Street, 3rd Floor
Toronto, ON M5A 2N4
info@usgold.com
www.usgold.com