US Gold Corporation
TSX : UXG
NYSE Amex : UXG

US Gold Corporation

February 11, 2010 08:01 ET

US Gold Corporation: El Gallo Best Drill Results to Date

LONG INTERSECTIONS of HIGH GRADE and NEAR SURFACE

11.4 OPT SILVER OVER 386.8 FT and 19.2 OPT SILVER OVER 95.5 FT

TORONTO, ONTARIO--(Marketwire - Feb. 11, 2010) - US GOLD CORPORATION (NYSE Amex:UXG)(TSX:UXG) is pleased to announce the most significant results to date from its El Gallo Project in Sinaloa State, Mexico. Exploration was focused on expansion drilling in several areas of the property. The two best results from the eleven holes assayed since our last update are: 11.4 ounces of silver per ton (opt) over 386.8 ft (feet) (390.3 grams per tonne (gpt) over 117.9 m (meters)) and 19.2 opt silver over 95.5 ft (659.0 gpt silver over 29.1 m).

Eastern Area: Best Hole Drilled To Date

11.4 opt silver over 386.8 ft (390.3 gpt over 117.9 m)

On January 28th, 2010, US Gold announced that hole GAX-045 encountered a thick zone of good grade in the Eastern Area that returned 4.4 opt silver over 239.2 ft (150.9 gpt over 72.9 m). Drilling further to the east successfully extended the mineralization approximately 100 ft (30 m). This expansion included hole GAX-055 (Figure 1 & 2), which encountered another wide intercept of even higher grade mineralization and is the most significant hole drilled to date at El Gallo: 11.4 opt silver over 386.8 ft (390.3 gpt over 117.9 m). Prospective areas further to the east are virtually untested. US Gold intends to continue testing the Eastern Area. Drilling highlights are shown below: 

Hole # Silver Length From To   Hole # Silver Length From To
  (opt) (ft) (ft) (ft)     (gpt) (m) (m) (m)
                     
GAX-049 6.5 11.5 236.2 247.7   GAX-049 221.8 3.5 72.0 75.5
Including 25.3 2.3 240.5 242.8   Including 866.0 0.7 73.3 74.0
                     
GAX-051 11.5 41.8 0.0 41.8   GAX-051 394.3 12.8 0.0 12.8
And 7.4 13.1 183.7 196.9   And 255.0 4.0 56.0 60.0
Including 13.2 6.6 183.7 190.3   Including 451.0 2.0 56.0 58.0
And 2.0 56.1 262.5 318.6   And 69.8 17.1 80.0 97.1
                     
GAX-055 3.7 9.8 68.9 78.7   GAX-055 128.0 3.0 21.0 24.0
And 11.4 386.8 105.0 491.8   And 390.3 117.9 32.0 149.9
Including 144.4 1.1 311.2 312.3   Including 4,950.0 0.4 94.9 95.2
Including 64.9 47.2 369.4 416.7   Including 2,225.1 14.4 112.6 127.0
Including 48.2 4.3 454.6 458.8   Including 1,652.7 1.3 138.6 139.9
And 3.0 10.7 524.1 534.8   And 104.2 3.3 159.8 163.0
 All depths indicated in table are down hole
 0.73 opt Ag (25 gpt Ag) cutoff
 Allowable waste interval was 19.7 ft (6 m) of < 0.73 opt Ag (25 gpt Ag) 
 Numbers may not add due to rounding
 True widths are unknown

Our 2010 drilling has encountered significant mineralization in both the eastern and western strike extensions of the Main Zone (Figure 1) where the mineralization remains open. This highlights the prospective nature of this area. 

Central Area: Expanding Mineralization to the South  

19.2 opt silver over 95.5 ft (659.0 gpt over 29.1 m)

The focus of our exploration in the Central Area was to expand the mineralization laterally (Figure 1). Extremely encouraging intersections were encountered. These results have expanded the silver mineralization by approximately 110 ft (35 m) to the east. Two thick intersections were encountered in hole GAX-056. The upper intersection, which starts from surface, returned 2.8 opt silver over 166.8 ft (96.0 gpt over 50.9 m). The lower intersection starting at approximately 130 ft (40 m) returned an impressive 19.2 opt silver over 95.5 ft (659.0 gpt over 29.1 m). Highlights from the Central Area are below:

Hole # Silver Length From To   Hole # Silver Length From To
  (opt) (ft) (ft) (ft)     (gpt) (m) (m) (m)
                     
GAX-056 2.8 166.8 0.0 166.8   GAX-056 96.0 50.9 0.0 50.9
And 19.2 95.5 211.6 307.1   And 659.0 29.1 64.5 93.6
Including 74.2 22.0 211.6 233.6   Including 2,543.7 6.7 64.5 71.2
And 9.7 2.0 341.5 343.5   And 332.0 0.6 104.1 104.7
                     
GAX-058 4.0 18.2 87.1 105.3   GAX-058 137.7 5.6 26.6 32.1
Including 16.3 2.1 92.7 94.8   Including 559.0 0.7 28.3 28.9
And 16.4 26.2 277.1 303.3   And 562.5 8.0 84.5 92.5
Including 44.9 6.6 283.6 290.2   Including 1,540.0 2.0 86.5 88.5
 All depths indicated in table are down hole
 0.73 opt Ag (25 gpt Ag) cutoff 
 Allowable waste interval was 19.7 ft (6 m) of < 0.73 opt Ag (25 gpt Ag) 
 Numbers may not add due to rounding
 True widths are unknown

 Near Surface Exploration Targets

US Gold's geologists have identified a number of targets that are considered attractive due to the potential for near surface mineralization. Drilling in these areas has so far proven successful. Highlights include:

Hole # Silver Length From To   Hole # Silver Length From To
  (opt) (ft) (ft) (ft)     (gpt) (m) (m) (m)
                     
GAX-048 1.9 42.5 0.0 42.5   GAX-048 66.6 13.0 0.0 13.0
                     
GAX-052 3.6 27.2 54.3 81.5   GAX-052 121.9 8.3 16.6 24.9
Including 22.5 2.1 56.1 58.2   Including 773.0 0.7 17.1 17.8
                     
GAX-060 3.3 115.5 0.0 115.5   GAX-060 112.9 35.2 0.0 35.2
Including 15.9 12.5 44.0 56.4   Including 544.5 3.8 13.4 17.2
Including 12.5 3.3 89.6 92.8   Including 427.0 1.0 27.3 28.3
Including 9.8 3.3 105.8 109.1   Including 336.0 1.0 32.3 33.3
And 4.3 4.6 219.2 223.8   And 147.0 1.4 66.8 68.2
 All depths indicated in table are down hole
 0.73 opt Ag (25 gpt Ag) cutoff 
 Allowable waste interval was 19.7 ft (6 m) of < 0.73 opt Ag (25 gpt Ag) 
 Numbers may not add due to rounding
 True widths are unknown

El Gallo is a low -sulfidation, epithermal silver deposit located within the Pie de la Sierra physiographic province of the Sierra Madre Occidental Range, which is part of a late Jurassic to middle Cretaceous volcanic-arc. The oldest rocks in the region are andesite porphyries that occur widely throughout the area. These are cut by intrusions of late Cretaceous-early Tertiary (Laramide) age, ranging from tonalite to granodiorite in composition. These rocks are discordantly overlain by early Tertiary andesites, andesite tuffs, and andesite porphyries which are the principal host rocks to the mineralized structures that occur commonly throughout the project area.

To view the 11 new core holes from this news release see Table 1. To view all 60 core holes drilled at El Gallo, please click: http://www.usgold.com/news/pdf/20090805_uxg_elgalloallholes.pdf

To view assays intervals from core holes GAX-055 and GAX-056, please click:
http://www.usgold.com/news/pdf/20100211/gax055.xls

http://www.usgold.com/news/pdf/20100211/gax056.xls

ABOUT US GOLD (www.usgold.com)

US Gold Corporation is a Colorado incorporated gold and silver exploration company with a strong treasury, no debt and two significant land holdings, one in Nevada next to Barrick Gold's multi-million ounce Cortez project, and the other in Mexico where an exciting high-grade silver discovery has been made. US Gold's shares trade on the NYSE Amex and the Toronto Stock Exchange under the symbol UXG. US Gold has good market liquidity, trading 1.1 million shares daily, and is included in S&P/TSX and Russell indices.

QUALIFIED PERSON

This news release has been viewed and approved by Steve Brown, US Gold's Chief 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 in Hermosillo 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 utilizing a CS-1500 truck-mounted core drill. 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, 2008 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.

El Gallo Silver Project: Core Holes Assays                                                                                                                                Table 1.
                                                                                                                                                                                   February 11, 2010
  Silver Length From Silver Length From Azimuth Dip Easting Northing
Hole # (opt) (ft) (ft) (gpt) (m) (m) (degrees) (degrees)    
                     
GAX048 1.9 42.5 0.0 66.6 13.0 0.0 220 -50 211877.7 2843282
                     
GAX049 0.8 41.3 56.9 26.7 12.6 17.4 350 -70 212313.8 2843246
And 6.5 11.5 236.2 221.8 3.5 72.0        
Including 25.3 2.3 240.5 866.0 0.7 73.3        
And 2.8 27.1 356.1 96.4 8.3 108.6        
                     
GAX050 NSV NSV NSV NSV NSV NSV 170 -50 211863.4 2843312
                     
GAX051 11.5 41.8 0.0 394.3 12.8 0.0 350 -60 212289.3 2843278
And 1.0 34.6 83.5 34.8 10.6 25.5        
And 7.4 13.1 183.7 255.0 4.0 56.0        
Including 13.2 6.6 183.7 451.0 2.0 56.0        
And 2.0 56.1 262.5 69.8 17.1 80.0        
And 1.0 80.4 344.5 35.6 24.5 105.0        
                     
GAX052 3.6 27.2 54.3 121.9 8.3 16.6 170 -60 211946.2 2843209
Including 22.5 2.1 56.1 773.0 0.7 17.1        
                     
GAX053 1.3 10.8 200.1 45.8 3.3 61.0 350 -45 212274.7 2843311
                     
GAX054 1.3 27.4 114.8 44.6 8.4 35.0 350 -75 211986.4 2843177
Including 4.1 4.4 137.8 141.0 1.4 42.0        
                     
GAX055 3.7 9.8 68.9 128.0 3.0 21.0 170 -50 212275.1 2843308
And 11.4 386.8 105.0 390.3 117.9 32.0        
Including 144.4 1.1 311.2 4,950.0 0.4 94.9        
Including 64.9 47.2 369.4 2,225.1 14.4 112.6        
Including 48.2 4.3 454.6 1,652.7 1.3 138.6        
And 3.0 10.7 524.1 104.2 3.3 159.8        
                     
GAX056 2.8 166.8 0.0 96.0 50.9 0.0 350 -50 212013.8 2843197
And 19.2 95.5 211.6 659.0 29.1 64.5        
Including 74.2 22.0 211.6 2,543.7 6.7 64.5        
And 9.7 2.0 341.5 332.0 0.6 104.1        
                     
GAX058 4.0 18.2 87.1 137.7 5.6 26.6 350 -60 212020.9 2843176
Including 16.3 2.1 92.7 559.0 0.7 28.3        
And 16.4 26.2 277.1 562.5 8.0 84.5        
Including 44.9 6.6 283.6 1,540.0 2.0 86.5        
                     
GAX060 3.3 115.5 0.0 112.9 35.2 0.0 170 -50 211970.9 2843332
Including 15.9 12.5 44.0 544.5 3.8 13.4        
Including 12.5 3.3 89.6 427.0 1.0 27.3        
Including 9.8 3.3 105.8 336.0 1.0 32.3        
And 4.3 4.6 219.2 147.0 1.4 66.8        
                     
 All depths indicated in table are down hole
 0.73 opt Ag (25 gpt Ag) cutoff 
 Allowable waste interval was 19.7 ft (6 m) of < 0.73 opt Ag (25 gpt Ag) 
 Numbers may not add due to rounding
 NSV = No Significant Values

Please note: Figures 1, 2, 3 and 4 are available at the following links:

Figure 1: http://media3.marketwire.com/docs/uxg0211figure1.pdf

Figure 2: http://media3.marketwire.com/docs/uxg0211figure2.pdf

Figure 3:  http://media3.marketwire.com/docs/uxg0211figure3.pdf

Figure 4:  http://media3.marketwire.com/docs/uxg0211figure4.pdf

Contact Information

  • US Gold Corporation
    Stefan Spears
    VP, Projects
    (647) 258-0395 or Toll Free: (866) 441-0690
    (647) 258-0408 (FAX)
    or
    Mailing Address
    99 George Street, 3rd Floor
    Toronto, ON M5A 2N4
    E-mail: info@usgold.com