US Gold Corporation
TSX : UXG
NYSE Amex : UXG

US Gold Corporation

April 06, 2010 12:53 ET

US Gold Corporation: El Gallo Continues to Grow Rapidly More Thick Intercepts & Good Grade

125.6 GPT OVER 81.4 METERS, 273.8 GPT SILVER OVER 23.1 METERS & 725.1 GPT SILVER OVER 8.1 METERS

TORONTO, ONTARIO--(Marketwire - April 6, 2010) - US GOLD CORPORATION (NYSE Amex:UXG) (TSX:UXG) is pleased to announce additional core drilling results that have expanded the mineralization (Fig. 1) at the El Gallo Project in Sinaloa State, Mexico. The three best holes of the eight assayed since the last update on March 24, 2010 are: 3.7 ounces of silver per ton (opt) over 266.9 ft (feet) (125.6 grams per tonne silver over 81.4 meters (m), 8.0 opt silver over 75.6 ft (273.8 gpt silver over 23.1 m) and 21.1 opt silver over 26.6 ft (725.1 gpt silver over 8.1 m).

Main Zone – Thick Intersections of Good Grade Continue
Mineralization Open in Several Directions

Drilling in the Main Zone successfully extended the mineralization in several directions (Fig. 1, 3). Core hole GAX100, which intersected three thick zones, successfully extended the mineralization encountered in GAX055 (11.4 opt silver over 368.8 ft (390.3 gpt over 117.9 m - Released Feb 11, 2010) by approximately 130 ft (40 m) to the north (Fig. 3).

Core hole GAX122 was drilled to extend the mineralization beyond hole GAX057 (8.3 opt silver over 128.8 ft (283.4 gpt over 39.3 m - Released March 1, 2010), which is the furthest hole drilled along strike to the southeast. This hole was drilled from the same collar location as GAX057 and successfully widened the zone by approximately 80 ft (25 m). US Gold's geologists believe the potential to find additional mineralization is excellent since the zone remains open in several directions. Highlights from this drilling are shown below.

Hole # Silver Length From To Hole # Silver Length From To
  (opt) (ft) (ft) (ft)   (gpt) (m) (m) (m)
 
GAX100 3.7 42.0 64.3 106.3 GAX100 127.2 12.8 19.6 32.4
Including 16.6 6.2 93.7 99.9 Including 570.0 1.9 28.6 30.5
And 8.0 75.6 138.1 213.7 And 273.8 23.1 42.1 65.2
Including 13.6 20.0 183.7 203.7 Including 466.4 6.1 56.0 62.1
And 5.1 72.7 322.8 395.5 And 174.2 22.2 98.4 120.6
Including 26.6 5.6 355.3 360.9 Including 911.0 1.7 108.3 110.0
 
GAX121 2.8 70.2 46.3 116.5 GAX121 97.6 21.4 14.1 35.5
Including 28.6 1.6 90.9 92.5 Including 980.0 0.5 27.7 28.2
And 9.0 12.5 145.0 157.5 And 309.4 3.8 44.2 48.0
And 3.1 27.9 355.6 383.5 And 107.4 8.5 108.4 116.9
Including 14.3 3.3 355.6 358.9 Including 489.0 1.0 108.4 109.4
 
 
 
Hole # Silver Length From To Hole # Silver Length From To
  (opt) (ft) (ft) (ft)   (gpt) (m) (m) (m)
 
GAX122 3.7 266.9 249.0 515.9 GAX122 125.6 81.4 75.9 157.3
Including 49.3 9.2 290.4 299.5 Including 1,691.1 2.8 88.5 91.3
Including 33.0 4.4 374.5 378.9 Including 1,130.0 1.4 114.2 115.5
 
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

Possible Parallel Zone: High Grades Encountered at Surface and at Depth

Hole GAX103 encountered two intersections of mineralization (Fig. 4). The first intersection, starting at approximately 280 ft (85 m) below surface, is believed to be the continuation of the Main Zone at depth. The second intersection, starting from surface, appears to be a separate mineralized structure that parallels the Main Zone. Ongoing drilling will look to expand the mineralization in both areas. Highlights from drilling in this area are shown below.

Hole # Silver Length From To Hole # Silver Length From To
  (opt) (ft) (ft) (ft)   (gpt) (m) (m) (m)
 
GAX102 1.4 138.0 79.4 217.4 GAX102 47.7 42.1 24.2 66.3
Including 24.0 2.5 184.4 186.8 Including 822.0 0.8 56.2 57.0
And 7.2 14.8 364.8 379.6 And 248.0 4.5 111.2 115.7
 
GAX103 21.1 26.6 0.0 26.6 GAX103 725.1 8.1 0.0 8.1
Including 74.7 3.1 11.3 14.4 Including 2,560.0 1.0 3.5 4.4
And 47.3 5.4 399.8 405.2 And 1,620.2 1.7 121.9 123.5
 
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

Continuity of Near Surface Mineralization Confirmed
Increasing the Confidence Level

Ongoing delineation drilling continues to encounter good grade starting near surface. Near surface mineralization at El Gallo is common throughout the project area.

Hole # Silver Length From To Hole # Silver Length From To
  (opt) (ft) (ft) (ft)   (gpt) (m) (m) (m)
 
GAX105 4.8 13.8 26.9 40.7 GAX105 165.1 4.2 8.2 12.4
Including 10.4 3.8 26.9 30.7 Including 358.0 1.2 8.2 9.4
And 31.8 5.2 78.3 83.5 And 1,090.8 1.6 23.9 25.5
Including 152.8 1.0 79.6 80.4 Including 5,240.0 0.3 24.2 24.5
And 2.5 15.7 240.6 256.4 And 86.3 4.8 73.4 78.2
 
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

Geological Technical Description of El Gallo

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 Cretaceous to Tertiary magmatic arc with volcanic and associated sedimentary rocks that extends for hundreds of miles through northwestern Mexico. Cretaceous-Tertiary volcanic and volcaniclastic rocks rest upon a basement of Paleozoic and Mesozoic sedimentary and metamorphic rocks. Intrusives of Late Cretaceous and Tertiary age cut these rocks locally. Regionally, these intrusives are dominated by the granitic Sinaloa Batholith. El Gallo project is located near the margin of the Sinaloa Batholith. Other shallow-level porphyritic intrusives also occur within the project area. Silver mineralization is hosted in breccia and stockwork zones that occur primarily in the andesitic volcanic and intrusive rocks and to a lesser extent in quartz monzonite porphyry intrusive rocks. The shape of the mineralization has not yet been fully defined.

To view the 8 new core holes from this news release see Table 1. To view all 105 core holes drilled at El Gallo, please click: http://www.usgold.com/news/pdf/20090805_uxg_elgalloallholes.pdf

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 goal is to qualify for inclusion in the S&P 500 within 5 years. 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 1.0 million shares daily, and is included in S&P/TSX and Russell indices.

QUALIFIED PERSON

This news release has been viewed and approved by John Read, 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 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 angle 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, 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.

El Gallo Silver Project: Core Holes Assays  Table 1
                April 6, 2010
                 
  Silver Length From Silver Length From Azimuth Dip Easting Northing
                     
Hole # (opt) (ft) (ft) (gpt) (m) (m)        
                     
                     
GAX100 3.7 42.0 64.3 127.2 12.8 19.6 170° -70° 212276 2843306
                     
Including 16.6 6.2 93.7 570.0 1.9 28.6        
                     
And 8.0 75.6 138.1 273.8 23.1 42.1        
                     
Including 13.6 20.0 183.7 466.4 6.1 56.0        
                     
And 5.1 72.7 322.8 174.2 22.2 98.4        
                     
Including 26.6 5.6 355.3 911.0 1.7 108.3        
                     
                     
GAX102 1.4 138.0 79.4 47.7 42.1 24.2 350° -55° 212137 2843116
                     
Including 24.0 2.5 184.4 822.0 0.8 56.2        
                     
And 7.2 14.8 364.8 248.0 4.5 111.2        
                     
                     
GAX103 21.1 26.6 0.0 725.1 8.1 0.0 350° -60° 212166 2843109
                     
Including 74.7 3.1 11.3 2,560.0 1.0 3.5        
                     
And 47.3 5.4 399.8 1,620.2 1.7 121.9        
                     
                     
GAX105 4.8 13.8 26.9 165.1 4.2 8.2 350° -70° 212022 2843229
                     
Including 10.4 3.8 26.9 358.0 1.2 8.2        
                     
And 31.8 5.2 78.3 1,090.8 1.6 23.9        
                     
Including 152.8 1.0 79.6 5,240.0 0.3 24.2        
                     
And 2.5 15.7 240.6 86.3 4.8 73.4        
                     
                     
GAX106 1.1 23.6 14.4 39.0 7.2 4.4 55°  -60°  212029  2843228 
                     
And 1.0 27.9 95.1 33.2 8.5 29.0        
                     
Including 4.3 3.3 119.8 147.0 1.0 36.5        
                     
And 1.9 12.5 417.7 66.3 3.8 127.3        
                     
Including 6.4 2.3 423.2 218.0 0.7 129.0        
                     
                     
GAX111 2.7 19.4 35.4 92.4 5.9 10.8 170°   -70°   212282  2843215  

 

     Silver Length From Silver Length From Azimuth Dip Easting Northing
 
Hole # (opt) (ft) (ft) (gpt) (m) (m)        
                     
                     
GAX121 2.8 70.2 46.3 97.6 21.4 14.1 350° -60° 212289 2843247
                     
Including 28.6 1.6 90.9 980.0 0.5 27.7        
                     
And 9.0 12.5 145.0 309.4 3.8 44.2        
                     
And 3.1 27.9 355.6 107.4 8.5 108.4        
                     
Including 14.3 3.3 355.6 489.0 1.0 108.4        
                     
                     
GAX122 3.7 266.9 249.0 125.6 81.4 75.9 350° -45° 212315 2843178
                     
Including 49.3 9.2 290.4 1,691.1 2.8 88.5        
                     
Including 33.0 4.4 374.5 1,130.0 1.4 114.2        
                     
 
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
NSV = No Significant Values

To view the Figure 1 map, please visit the following link: http://media3.marketwire.com/docs/uxg406FIG1.pdf

To view the Figure 2 map, please visit the following link: http://media3.marketwire.com/docs/uxg406FIG2.pdf

To view the Figure 3 map, please visit the following link: http://media3.marketwire.com/docs/uxg406FIG3.pdf

To view the Figure 4 map, please visit the following link: http://media3.marketwire.com/docs/uxg406FIG4.pdf

Contact Information

  • US Gold Corporation
    Ian J. Ball
    VP, Mexico
    (647) 258-0395 or Toll Free: (866) 441-0690
    (647) 258-0408 (FAX)
    or
    Mailing Address
    US Gold Corporation
    99 George Street, 3rd Floor
    Toronto, ON M5A 2N4
    info@usgold.com
    www.usgold.com