US Gold: Exploration Continues to Deliver Growth at El Gallo & Surrounding Areas
TORONTO, ONTARIO -- (Marketwire) -- 05/17/11 -- 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 Los Mautos, located in Sinaloa State, Mexico. These results demonstrate the excellent potential to grow the size of the project through aggressive exploration. A total of 15 drills are operating and 3 more are scheduled to arrive in the next two weeks.
Drill Assay Highlights
(gpt = grams per tonne)
1. El Gallo
-- Drilling along the eastern limit of the proposed pit has returned
significant intercepts of silver mineralization, demonstrating the
projects strong growth potential: 191.4 gpt silver over 17.7 meters and
126.3 gpt silver over 21.4 meters.
-- Infill drilling within the Main Zone continues to meet expectations:
71.0 gpt silver over 17.6 meters, 437.1 gpt silver over 3.2 meters and
164.6 gpt silver over 11.0 meters.
2. Palmarito
-- Expansion drilling along the southwest limit of the planned pit
continues to intersect strong mineralization, starting from surface:
208.0 gpt silver over 9.3 meters.
-- Drilling to fill gaps in the resource, where no inferred mineralization
exists, has returned 140.0 gpt silver, 0.4 gpt gold over 14.0 meters.
-- Infilling drilling continues to confirm the presence of inferred
mineralization, returning significantly higher grades than the resource
model: 458.3 gpt silver over 8.4 meters.
3. Los Mautos
-- This recent discovery has been successfully extended: 86.1 gpt silver
over 21.7 meters, 110.2 gpt silver over 6.7 meters and 587.0 gpt silver
over 1.6 meters.
El Gallo Drilling Returns Significant Results (Fig. 1, 2 and 3)
Thick intervals of silver mineralization have been encountered in holes GAX-280, GAX-300 and GAX-301, located along the eastern limit of the planned pit design at El Gallo. The strong continuation of the El Gallo Main Zone in these holes is a very encouraging development since they should help increase the resource and enlarge the size of the planned pit. In addition, GAX-298 successfully infilled the Main Zone, helping to convert inferred mineralization to the measured and indicated categories. Highlights from this drilling are shown below.
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Hole # Silver Length From Silver Length From
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(gpt(i)) (meters) (meters) (opt(i)) (feet) (feet)
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GAX-280 126.3 21.4 23.6 3.7 70.2 77.4
Including 710.0 1.4 42.4 20.7 4.6 139.1
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GAX-298 71.0 17.6 0.0 2.1 57.7 0.0
And 437.1 3.2 48.9 12.7 10.5 160.4
Including 1,250.0 1.0 49.9 36.5 3.3 163.7
And 164.6 11.0 87.1 4.8 36.1 285.8
Including 327.1 4.3 91.9 9.5 14.1 301.5
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GAX-300 191.4 17.7 76.8 5.6 58.1 252.0
Including 414.5 2.5 76.8 12.1 8.2 252.0
Including 396.0 3.1 88.9 11.6 10.2 291.7
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GAX-301 90.2 6.8 65.2 2.6 22.3 213.9
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GAX-313 108.4 5.9 15.0 3.2 19.4 49.2
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(i)Grams per tonne
(ii) Ounces per tone
Exploration Drives Growth at Palmarito (Fig. 1, 4 & 5)
Exploration at Palmarito continues to focus on three goals: 1) Expanding the limits of the mineralization, 2) Infilling gaps in the resource, where no inferred mineralization has been assigned and 3) Upgrading inferred mineralization to the measured and indicated categories in order to increase the confidence associated with this mineralization. Drilling is focused on near surface, open pit mineralization.
1) Expansion Drilling
Hole PMX-078 was drilled along the southwest limit of the proposed pit design, extending the zone by 30 meters (100 feet) laterally. This hole returned 208.0 gpt silver over 9.3 meters, with the mineralization starting from surface. The continued expansion of near surface mineralization demonstrates the potential for Palmarito to become a significant source of feed for the proposed mill at El Gallo. Follow up drilling is underway, with results scheduled to be released in the coming weeks.
2) Infilling Gaps in the Resource
Previous drilling at Palmarito was often completed on widely spaced centers, including some of the higher grade areas of the deposit. Although drilling showed continuity, in some instances no inferred resource was assigned to the mineralization due to the distance between holes. PMX-084 is the most recent result designed to fill in these gaps, returning 140.0 gpt silver, 0.4 gpt gold over 14.0 meters. This on-going drill program presents an excellent opportunity to increase the size of Palmarito as it has been successfully connecting the resource in two separate areas. Also encouraging is the depth of the mineralization, which starts just 25 meters (80 ft) below surface.
3) Upgrading Inferred Mineralization
In order to upgrade the inferred mineralization to the measured and indicated categories for the feasibility study, an ongoing infill program is underway. PMX-079 is the most recent result to be completed from this program. This hole successfully infilled the target area, encountering grades approximately three times higher than was modeled. One-third of the planned drilling at Palmarito will be focused on infill drilling.
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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-073 83.3 0.4 5.0 30.1 2.4 0.01 16.4 98.8
Including 218.0 2.2 0.7 31.7 6.4 0.06 2.3 104.0
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PMX-078 208.0 0.1 9.3 0.0 6.1 - 30.5 0.0
Including 631.0 - 1.0 4.1 18.4 - 3.3 13.5
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PMX-079 458.2 0.1 8.4 28.6 13.4 - 27.6 93.8
Including 1,009.7 0.1 2.3 29.0 29.4 - 7.5 95.1
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PMX-084 140.0 0.4 14.0 29.1 4.8 0.01 45.9 95.5
Including 384.0 0.1 1.2 35.8 11.2 - 3.9 117.5
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Los Mautos - New Discovery (Fig. 1)
Los Mautos is a new discovery that was announced on January 13, 2011. It is located 10 kilometers (6 miles) north of El Gallo. The best hole from the initial four drilled returned 273.6 gpt silver, 0.8 gpt gold over 10.5 meters. Follow up drilling has extended the mineralization, with the most significant hole returning 86.1 gpt silver, 0.2 gpt gold over 21.7 meters. A 20 hole program is underway at Los Mautos to determine the extent of the mineralization. Although early, the results from Los Mautos demonstrate the upside potential of US Gold's large land package around El Gallo.
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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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LMX-005 110.2 - 6.7 1.3 3.2 - 22.0 4.3
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LMX-011 72.9 0.4 6.0 9.2 2.1 0.01 19.7 30.2
And 86.1 0.2 21.7 28.4 2.5 0.01 71.2 93.2
Including 404.0 0.8 1.4 48.7 11.8 0.02 4.6 159.8
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LMX-015 91.5 0.2 11.0 64.1 2.7 0.01 36.1 210.3
Including 172.4 0.4 2.8 70.2 5.0 0.01 9.2 230.3
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LMX-016 587.0 3.9 1.6 72.4 17.1 0.11 5.2 237.5
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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 $108 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 to one half of the split drill core is 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/Table%201.docx
To view 'Figure 1', please visit the following link:
http://media3.marketwire.com/docs/figure1.docx
To view 'Figure 2', please visit the following link:
http://media3.marketwire.com/docs/figure2.docx
To view 'Figure 3', please visit the following link:
http://media3.marketwire.com/docs/figure3.docx
To view 'Figure 4', please visit the following link:
http://media3.marketwire.com/docs/figure4.docx
To view 'Figure 5', please visit the following link:
http://media3.marketwire.com/docs/figure5.docx
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