|
TORONTO,
ONTARIO--(Marketwire - March 8, 2011) - US GOLD CORPORATION
(NYSE:UXG)(TSX:UXG) is pleased to announce continued exploration
success at and surrounding the company's El Gallo project in Sinaloa
State, Mexico (Fig. 1). Drilling continues to expand the size of the
silver-gold resources and further delineate the mineralization
associated with the recently discovered veins. In addition, exploration
has intersected near surface, bulk tonnage mineralization in a new
area.
EXPLORATION HIGHLIGHTS
1) El Gallo Developments:
-- Main Zone extended 60 meters east and 50 meters to the southeast (Fig. 2). Intersections include: 233.3 gpt silver over 12.4 meters, 515.6 gpt silver over 3.2 meters and 77.9 gpt silver over 17.2 meters. -- Infill drilling, designed to upgrade inferred mineralization to measured and indicated categories returns: 1,204.8 gpt silver over 1.1 meters, 76.9 gpt silver over 21.8 meters and 116.3 gpt silver over 13.0 meters. -- El Gallo feasibility study and mine permit submittal remain on track for year-end.
2) New Veins Deliver
Continued Success:
-- Alamo high grade gold extended at depth: 27.2 gpt gold over 1.0 meter and 5.9 gpt gold over 6.0 meters, including 13.7 gpt gold over 1.5 meters. -- Chapotillio near surface mineralization extended east and north, returning: 114.9 gpt silver, 1.4 gpt gold over 5.9 meters and 72.2 gpt silver, 0.8 gpt gold over 9.5 meters. Intersections starting at or near surface.
3) New Bulk Tonnage
Discovery
-- Haciendita new near surface, bulk tonnage discovery: 2.1 gpt gold, 31.1 gpt silver over 16.4 meters and 1.0 gpt gold and 16.4 silver over 34.1 meters.
EL GALLO AND DISTRICT
EXPLORATION
US Gold's exploration at and around El Gallo is focused on: 1)
increasing the size of the silver-gold resources, 2) upgrading inferred
mineralization to the measured and indicated categories, 3) delineation
of new veins around El Gallo in order to include them in the updated
resource estimate, and 4) discovering El Gallo style mineralization
within hauling distance of the proposed process facilities. Nine drills
are operating at the project and four more are scheduled to arrive in
the coming weeks. US Gold has budgeted $15 million for drilling in
Mexico during 2011.
El Gallo Mineralization Expanded in Multiple Directions (Fig. 1 and 2)
Drilling at El Gallo is focused on growing the size of the resource and
infilling select areas of the deposit. The expansion holes successfully
extended the known mineralization 60 meters east and 50 meters to the
southeast. The potential to further extend the mineralization in each
of these directions looks encouraging. Follow up drilling is in
progress.
The infill drilling, which continues to meet expectations, was designed
to upgrade inferred mineralization to the measured and indicated
categories for feasibility study purposes.
---------------------------------------------------------------------------- Hole # Silver Length From Silver Length From ---------------------------------------------------------------------------- (gpt) (meters) (meters) (opt) (feet) (feet) ---------------------------------------------------------------------------- Expansion ---------------------------------------------------------------------------- GAX-269 86.1 13.0 102.2 2.5 42.7 335.3 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX-274 65.9 13.7 0.0 1.9 44.9 0.0 Including 113.6 4.1 0.0 3.3 13.5 0.0 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX-282 61.8 10.9 30.7 1.8 35.8 100.7 And 233.3 12.4 123.4 6.8 40.7 404.9 including 509.6 3.5 127.3 14.9 11.5 417.7 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX-285 515.6 3.2 42.6 15.0 10.5 139.8 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX-290 77.9 17.2 130.8 2.3 56.4 429.1 Including 456.0 1.2 130.8 13.3 3.9 429.1 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Infill ---------------------------------------------------------------------------- GAX-270 108.6 6.2 14.3 3.2 20.3 46.9 And 292.2 2.3 43.5 8.5 7.5 142.7 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX-271 76.9 21.8 45.7 2.2 71.5 149.9 Including 140.2 8.5 52.6 4.1 27.9 172.6 And 116.3 13.0 109.0 3.4 42.7 357.6 Including 801.1 1.2 117.5 23.4 3.9 385.5 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX-284 1,204.8 1.1 78.5 35.1 3.6 257.5 ----------------------------------------------------------------------------
Alamo Vein - High Grade Gold
Encountered at Depth (Fig. 1 and 3)
Alamo is one of several new veins that were discovered late in 2010.
The initial holes released in December returned encouraging results
such as 9.3 gpt gold over 1.7 meters and 7.6 gpt gold over 1.7 meters.
Follow-up drilling has successfully extended the higher grades by 30
meters at depth. The zone has been extended from surface to 125 meters
and indentified over a strike length measuring 550 meters. Highlights
from the drilling are shown below.
---------------------------------------------------------------------------- Hole # Gold Length From Gold Length From ---------------------------------------------------------------------------- (gpt) (meters) (meters) (opt) (feet) (feet) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- SJX-014 27.2 1.0 54.9 0.79 3.3 180.1 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- SJX-015 5.9 6.0 85.0 0.17 19.7 278.9 Including 13.7 1.5 89.5 0.40 4.9 293.6 ----------------------------------------------------------------------------
Chapotillo - Near Surface
Mineralization Expanded (Fig. 1)
Since returning positive drill results in 2010, exploration has been
focused on extending the near surface mineralization. Drilling 50
meters east and up-dip of the known mineralization continues to show
the zone is expanding in size. Mineralization encountered in the most
recent holes remains near surface and there appears to be good
expansion potential. On-going drilling will continue to test for
possible extensions. US Gold plans to incorporate Chapotillo in the
next updated resource.
In addition, hole GAX-023 successfully tested
a geochemical anomaly 700 meters to the southeast. This result
highlights further upside potential at Chapotillo.
---------------------------------------------------------------------------- Silver Hole # Silver Gold Eq.(i) Length From ---------------------------------------------------------------------------- (gpt) (gpt) (gpt) (meters) (meters) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- CHX-016 114.9 1.4 169.7 5.9 0.6 Including 278.0 3.9 434.8 1.6 2.5 And 72.2 0.8 105.1 9.5 14.0 Including 219.4 3.2 347.6 2.1 21.4 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- CHX-017 75.7 1.8 147.0 8.9 34.9 Including 192.6 6.5 452.4 2.0 34.9 And 85.4 0.8 116.0 5.6 53.0 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- CHX-023 84.5 0.4 101.6 4.2 8.9 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Silver Hole # Silver Gold Eq.(i) Length From ---------------------------------------------------------------------------- (opt) (opt) (opt) (feet) (feet) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- CHX-016 3.4 0.04 4.9 19.4 2.0 Including 8.1 0.11 12.7 5.2 8.2 And 2.1 0.02 3.1 31.2 45.9 Including 6.4 0.09 10.1 6.9 70.2 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- CHX-017 2.2 0.05 4.3 29.2 114.5 Including 5.6 0.19 13.2 6.6 114.5 And 2.5 0.02 3.4 18.4 173.9 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- CHX-023 2.5 0.01 3.0 13.8 29.2 ---------------------------------------------------------------------------- (i)Silver:Gold Ratio (40:1)
Haciendita - New Discovery
Showing Bulk Tonnage Potential
Drilling 10 km north of El Gallo has returned wide intersections of
lower grade on a new prospect called Haciendita. A total of 10 holes
were completed over an area 100 meters x 150 meters. The average grade
weighted average of these holes was 0.9 gpt gold and 17.4 gpt silver
over 15.7 meters, occurring approximately 25 meters below surface. US
Gold believes Haciendita has good potential: 1) the mineralization is
near surface and shallow dipping, 2) the zone is open and appears to be
thickening to the east, and 3) the area could potentially be mined by
open pit and transported to the planned heap leach facility at El
Gallo.
Eight additional holes are currently being drilled. Should the results
meet expectations, US Gold will begin a series of column tests to
determine the ores leachability. Gold deposits in Mexico of similar
grade and depth have proven to be low cost operations (Goldcorp's Los
Filos Mine - 0.6 gpt gold and Capital Gold's
El Chanate Mine - 0.7 gpt gold).
---------------------------------------------------------------------------- Hole # Gold Silver Length From Gold Silver Length From ---------------------------------------------------------------------------- (gpt) (gpt) (meters) (meters) (opt) (opt) (feet) (feet) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HCX-001 1.1 33.7 7.0 42.3 0.03 1.0 23.0 138.8 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HCX-002 0.7 8.9 21.0 40.0 0.02 0.3 68.9 131.2 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HCX-003 0.5 6.7 27.8 35.1 0.01 0.2 91.2 115.2 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HCX-004 0.8 105.1 4.1 14.5 0.02 3.1 13.5 47.6 And 0.7 6.4 16.3 48.3 0.02 0.2 53.5 158.5 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HCX-005 0.8 7.1 21.7 52.6 0.02 0.2 71.2 172.6 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HCX-006 2.1 31.1 16.4 6.9 0.06 0.9 53.8 22.6 Including 6.3 42.3 2.9 9.2 0.18 1.2 9.5 30.2 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HCX-008 2.7 27.9 3.3 0.0 0.08 0.8 10.8 0.0 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HCX-009 1.0 16.4 34.1 28.6 0.03 0.5 111.9 93.8 Including 5.7 28.5 2.8 37.5 0.17 0.8 9.2 123.0 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HCX-010 0.7 28.7 15.3 21.4 0.02 0.8 50.2 70.2 ----------------------------------------------------------------------------
Feasibility Study and
Permitting Update
Since releasing the El Gallo Preliminary Economic Assessment on
February 7th, US Gold has advanced work related to the projects feasibility
study and mine permitting.
a. Feasibility Study -- Ausenco Solutions Canada Inc. from Vancouver have been contracted to assist with developing the El Gallo feasibility study. Ausenco personnel who will be involved in the feasibility have worked on other notable projects such as Andean's Cerro Negro project in Argentina and Ivanhoe Mines' Oyu Tolgoi project in Mongolia. -- SRK Consulting and Itasca Consulting Group Inc. have been retained to perform studies to determine pit slope stability that will help determine the project's strip ratio and also the location of the proposed process facilities. Approximately half of the required work has been completed. -- An expanded infill drill program is underway at both El Gallo and Palmarito to upgrade inferred mineralization to the measured and indicated categories. -- Half of the proposed grinding tests for the mill and heap leach have been completed by SGS Mineral Services in Durango, Mexico. -- On-going bottle roll testing is being carried out on the different mineral zones in order to better quantify the expected mill recoveries. Two additional column tests are in progress to help determine heap leach recoveries. Column tests are completed or in progress on seven composites, and an additional three composite tests are planned. SGS Mineral Services is also performing these tests. -- Feasibility is expected to be completed by year-end. b. Mine Permitting -- Heuristica Ambiental, environmental consultants of Sonora, Mexico has been engaged to complete the required environmental studies to mine and process ore at El Gallo. Heuristica Ambiental's previous work included the successful permitting of Coeur d'Alene's Palmarejo silver-gold mine in Chihuahua State, Mexico. Baseline environmental studies commenced last December. -- Permit application is expected to be completed in conjunction with the feasibility study.
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
$105 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 1.4 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 yet 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, 2009 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/uxg0308table1.pdf.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/uxg0308fig1.pdf.
To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/uxg0308fig2.pdf.
To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/uxg0308fig3.pdf.
|