US Gold: Encouraging Drill Results Continue from El Gallo & Surrounding Discoveries 15 Drills Now Operating
15 Drills Now Operating
TORONTO, ONTARIO -- (Marketwire) -- 04/26/11 -- US GOLD CORPORATION (NYSE: UXG)(TSX: UXG) is pleased to provide an exploration update on the El Gallo Project and two nearby discoveries, Palmarito and Haciendita, all located in Sinaloa State, Mexico. A total of 15 drills are now operating at the project, with $30 million budgeted for exploration in Mexico during 2011-2012.
Drill Assay Highlights
1. El Gallo
-- Infill drilling continues to meet its objective of upgrading inferred
mineralization to the measured and indicated categories: 149.0 gpt
silver over 7.2 m, 118.8 gpt silver over 12.6 m and 410.3 gpt silver
over 3.0 m.
-- Exploration drilling 300 m (985 ft) southeast of the El Gallo resource,
has returned the deepest intersection of silver mineralization to date.
Starting 240 m (790 ft) below surface, the hole returned: 131.2 gpt
silver over 8.1 m, including 484.0 gpt silver over 1.0 m. This
mineralization is believed to be the down-dip extension of the El Gallo
deposit and opens up the possibility of additional resources at depth.
2. Palmarito
-- Drilling to expand and infill large gaps in the resource, where no
inferred mineralization exists, has returned encouraging intersections:
184.6 gpt silver, 0.3 gpt gold over 25.9 m and 123.7 gpt silver, 0.6 gpt
gold over 11.5 m. Mineralization from both holes starts less than 30 m
(100 ft) below surface.
3. Haciendita
-- New lower grade, near surface discovery shows additional growth: 1.1 gpt
gold, 30.3 gpt silver over 28.3 m, 1.8 gpt gold, 33.9 gpt silver over
17.9 m and 1.1 gpt gold, 13.5 gpt silver over 21.8 m. The discovery has
now been traced over an area 125 m (410 ft) x 175 m (575 ft).
El Gallo Continuing Exploration Success
(Fig. 1, 2 and 3)
Recent drilling at El Gallo focused on upgrading inferred mineralization to the measured and indicated categories for the feasibility study due at year-end. Hole GAX-296, which intersected two encouraging zones, was completed in the east area of the deposit, where all the mineralization is classified as inferred. Since the last resource update (November 2010), exploration has been very successful at increasing the level of confidence associated with this mineralization. Results from the ongoing infill program will be incorporated into a new resource estimate. Additional expansion holes will be released in the coming weeks. Drill highlights are shown below:
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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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GAX-291 90.3 7.2 14.1 2.6 23.6 46.3
And 271.3 2.9 41.5 7.9 9.5 136.2
Including 1,410.0 0.5 43.9 41.1 1.6 144.0
And 410.3 3.0 65.6 12.0 9.8 215.2
Including 692.0 1.7 65.6 20.2 5.6 215.2
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GAX-292 106.2 5.8 27.5 3.1 19.0 90.2
And 507.0 0.9 43.9 14.8 3.0 144.0
And 83.8 4.4 76.3 2.4 14.4 250.3
Including 453.0 0.5 77.1 13.2 1.6 253.0
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GAX-296 149.0 7.2 27.3 4.3 23.6 89.6
Including 297.0 3.1 30.5 8.7 10.2 100.1
And 118.8 12.6 100.0 3.5 41.3 328.1
Including 441.8 2.3 101.8 12.9 7.5 334.0
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Drilling Returns Deep Mineralization at El Gallo
(Fig. 1, 2 and 3)
Drilling 300 m (985 ft) southeast of the El Gallo resource has intersected the deepest occurrence of silver mineralization to date. Starting 240 m (790 ft) below surface, this mineralization is believed to be the continuation of the El Gallo deposit. This result is encouraging because it demonstrates the host rock is thickening to the east and southeast and that there is good potential to find additional resources below the currently planned pit design.
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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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GZX-007 131.2 8.1 237.9 3.8 26.6 780.5
Including 484.0 1.0 244.0 14.1 3.3 800.5
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Exploration Builds on Palmarito Resource
(Fig. 1, 4, 5 and 6)
US Gold is currently carrying out an extensive drill program at Palmarito, consisting of 70 core holes. The purpose is to 1) expand the known mineralization, including the new Southwest Zone and, 2) infill large gaps in the resource, where no inferred mineralization exists. All of the current drilling is focused on near surface, open pit mineralization.
Holes PMX-064, PMX-066, PMX-067 and PMX-070 focused on growing the size of the new Southwest Zone. These holes were successful, extending the mineralization to the south by 30 m (100 ft) and at depth by 30 m (100 ft). Holes PMX-069 and PMX-071 were drilled to infill gaps in the resource, with both encountering good intersections of mineralization. These holes should help grow the size of the resource and further reduce the low strip ratio (1:1.2) that was outlined in the Preliminary Economic Assessment. US Gold's geologists believe there are promising extensional targets at Palmarito where additional near surface mineralization can be discovered.
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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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PMX-063 171.2 0.3 3.0 27.1 5.0 0.01 9.8 88.9
Including 587.0 0.7 0.5 29.0 17.1 0.02 1.6 95.1
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PMX-064 75.9 - 5.4 61.8 2.2 - 17.7 202.8
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PMX-066 91.4 0.1 5.2 63.3 2.7 0.003 17.1 207.7
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PMX-067 283.0 0.5 4.4 59.9 8.3 0.01 14.4 196.5
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PMX-069 123.7 0.6 11.5 30.0 3.6 0.02 37.7 98.4
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PMX-070 328.0 - 1.3 44.4 9.6 - 4.3 145.7
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PMX-071(i) 184.6 0.3 25.9 0.0 5.4 0.01 85.0 0.0
Including 959.0 0.4 1.8 0.0 28.0 0.01 5.9 0.0
Including 948.0 1.6 1.2 16.6 27.7 0.05 3.9 54.5
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(i)Sample 0.0 m-1.8 m was collared in historical stockpiled material that is
included in the resource. This sample returned grades 450% higher than was
modeled, possibly increasing the grade associated with this material.
Haciendita - New Discovery Showing Early Potential
(Fig. 1)
Haciendita is a new discovery that was announced on March 8, 2011. The two best holes from the initial ten returned 2.1 gpt gold, 31.1 gpt silver over 16.4 m and 1.0 gpt gold, 16.4 gpt silver over 34.1 m. Follow up exploration has successfully extended the discovery to the northeast by 60 m (200 ft), where drilling continues to encounter wide intersections of mineralization. The discovery has now been traced over an area 125 m (410 ft) x 175 m (575 ft). The mineralization discovered to date is shallow, starting an average 30 m (100 ft) below surface. An additional 10 holes have been completed with assays pending.
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Hole # Gold Silver Length From Gold Silver Length From
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(gpt) (gpt) (meters) (meters) (opt) (opt) (feet) (feet)
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HCX-014 1.1 13.5 21.8 70.4 0.03 0.4 71.5 231.0
Including 4.0 43.0 2.8 72.0 0.12 1.3 9.2 236.2
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HCX-015 1.8 33.9 17.8 62.2 0.05 1.0 58.4 204.1
Including 1.6 109.7 2.7 66.6 0.05 3.2 8.9 218.5
Including 5.6 18.3 2.0 75.3 0.16 0.5 6.6 247.0
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HCX-016 1.1 30.3 28.3 27.8 0.03 0.9 92.8 91.2
Including 3.4 24.7 3.1 27.8 0.10 0.7 10.2 91.2
Including 2.6 104.6 4.1 52.0 0.08 3.1 13.5 170.6
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ABOUT US GOLD (www.usgold.com)
US Gold's objective 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 $115 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 1500 ppm silver or 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. El Gallo District Drill Results: Core Holes Assays, please visit the following link:
http://media3.marketwire.com/docs/691764table1.pdf
To view 'Figure 1', please visit the following link:
http://media3.marketwire.com/docs/usg_fg1_425.jpg
To view 'Figure 2', please visit the following link:
http://media3.marketwire.com/docs/usg_fg2_425.jpg
To view 'Figure 3', please visit the following link:
http://media3.marketwire.com/docs/usg_fg3_425.jpg
To view 'Figure 4', please visit the following link:
http://media3.marketwire.com/docs/usg_fg4_425.jpg
To view 'Figure 5', please visit the following link:
http://media3.marketwire.com/docs/usg_fg5A_425.jpg
To view 'Figure 6', please visit the following link:
http://media3.marketwire.com/docs/usg_fg6_425.jpg
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