US Gold Corporation
TSX : UXG
NYSE Amex : UXG

US Gold Corporation

March 01, 2010 08:01 ET

US Gold Corporation: El Gallo: Thick Intersections of Good Grade Continue

283.4 GPT SILVER OVER 39.3 METERS, 104.4 GPT SILVER OVER 53.9 METERS & 868.9 GPT SILVER OVER 7.1 METERS

TORONTO, ONTARIO--(Marketwire - March 1, 2010) - US GOLD CORPORATION (NYSE Amex:UXG) (TSX:UXG) is pleased to announce additional core drilling results from the El Gallo Project in Sinaloa State, Mexico. The three best holes from the fifteen assayed since our last update are: 8.3 ounces of silver per ton (opt) over 128.8 ft (feet) (283.4 grams per tonne (gpt) over 39.3 meters (m)), 3.0 opt silver over 176.8 ft (104.4 gpt silver over 53.9 m) and 25.3 opt silver over 23.3 ft (868.9 gpt silver over 7.1 m). These results are part of the 330,000 ft (100,000 m) of drilling planned for El Gallo and surrounding targets this year.

"Drilling at El Gallo continues to return thick intersections of good grade that start at or near surface. To date, 95% of the holes drilled have encountered significant mineralization! We are extremely pleased with these results. Going forward we will continue with our large exploration program, publish an initial resource estimate during the second quarter and look to complete an preliminary economic analysis by year-end. Also, on March 15th and 16th US Gold will be taking a number of mining analysts to El Gallo in order to highlight what we feel is one of the best silver projects owned by an junior," stated Rob McEwen, Chairman and CEO.

Eastern Area: Thick Intersections of Good Grade

8.3 opt silver over 128.8 ft (283.4 gpt over 39.3 m)

Since exploration resumed in January, US Gold's drilling has encountered thick intersections of good grade in the Eastern Area. Based on these results the Eastern Area has become one of our top priorities. Three new core holes have been completed with assays, providing further confirmation of El Gallo's potential for growth. Drill hole GAX-082 expanded the mineralization by approximately 115 ft (35 m) laterally (Figure 1) and encountered five separate zones of mineralization from surface to 528 ft (161 m) down hole. Three of these zones were especially noteworthy: 3.0 opt silver over 176.8 ft (104.4 gpt silver over 53.9 m), 6.1 opt silver over 79.6 ft (209.9 gpt silver over 24.3 m) and 2.9 opt silver over 96.8 ft (98.0 gpt silver over 29.5 m).

GAX-057 is the eastern most hole drilled to date (Figure 1) and was designed to extend the mineralization vertically. Mineralization was expanded by approximately 165 ft (50 m) (Figure 2.). Results from the eastern area are shown below:

Hole # Silver Length From To Hole # Silver Length From To
  (opt) (ft) (ft) (ft)   (gpt) (m) (m) (m)
                   
GAX-059 1.7 167.0 0.3 167.3 GAX-059 59.0 51.0 0.0 51.0
                   
GAX-057 8.3 128.8 319.7 448.5 GAX-057 283.4 39.3 97.5 136.7
Including 15.9 46.4 390.4 436.8 Including 544.0 14.2 119.0 133.2
Including 128.0 0.5 408.1 408.6 Including 4,390.0 0.2 124.4 124.6
Including 56.9 1.8 421.6 423.4 Including 1,950.0 0.6 128.5 129.1
Hole # Silver Length From To Hole # Silver Length From To
  (opt) (ft) (ft) (ft)   (gpt) (m) (m) (m)
                   
GAX-082 3.0 176.8 14.8 191.6 GAX-082 104.4 53.9 4.5 58.4
And 6.1 79.6 229.0 308.6 And 209.9 24.3 69.8 94.1
Including 15.3 19.7 232.3 252.0 Including 525.7 6.0 70.8 76.8
And 2.9 96.8 330.1 426.8 And 98.0 29.5 100.6 130.1
Including 17.8 2.3 353.3 355.6 Including 609.0 0.7 107.7 108.4
Including 16.3 2.6 421.9 424.5 Including 560.0 0.8 128.6 129.4
And 5.4 4.1 484.3 488.4 And 186.0 1.3 147.6 148.9
And 13.1 2.1 520.3 522.3 And 449.0 0.7 158.6 159.3
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 less than 0.73 opt Ag (25 gpt Ag)
Numbers may not add due to rounding
True widths are unknown

Western Area: Potential High Grade Zone Emerging

25.3 opt silver over 23.3 ft (868.9 gpt over 7.1 m)

Exploration in the Western Area was designed to extend the high grade mineralization encountered in drill hole GAX-039 (30.0 opt silver over 2.5 ft (1,030 gpt over 0.8 m) and 27.6 opt silver over 3.4 ft (946.2 gpt over 1.1m)) (Released August 5, 2009). Drill hole GAX-061, located approximately 115 ft (35 m) to the southwest, successfully accomplished this objective intersecting additional high-grade over a greater thickness: 25.3 opt silver over 23.3 ft (868.9 gpt over 7.1 m). This high grade mineralization is believed to be an extension of the Main Zone. Results from this drilling are shown below:

Hole # Silver Length From To Hole # Silver Length From To
  (opt) (ft) (ft) (ft)   (gpt) (m) (m) (m)
                   
GAX-061 2.4 36.6 18.5 55.1 GAX-061 81.2 11.2 5.7 16.8
And 25.3 23.3 112.9 136.2 And 868.9 7.1 34.4 41.5
Including 115.6 4.4 119.8 124.2 Including 3,964.8 1.4 36.5 37.9
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 less than 0.73 opt Ag (25 gpt Ag)
Numbers may not add due to rounding
True widths are unknown

Connecting the Main and North Zones

4.8 opt Silver over 102.2 ft (166.3 gpt over 31.2 m)

A total of five holes have been drilled to test if the Main and North Zones connect. Assays for the first two holes (Figure 1) have been completed, with near surface mineralization intersected over good widths. Highlights from the first two holes are below:

Hole # Silver Length From To Hole # Silver Length From To
  (opt) (ft) (ft) (ft)   (gpt) (m) (m) (m)
                   
GAX065 5.1 76.6 13.9 90.6 GAX065 174.9 23.4 4.3 27.6
Including 23.5 3.4 13.9 17.4 Including 805.0 1.1 4.3 5.3
Including 26.4 3.0 52.7 55.6 Including 906.0 0.9 16.1 17.0
                   
GAX-069 4.8 102.2 0.0 102.2 GAX-069 166.3 31.2 0.0 31.2
Including 36.7 5.4 44.1 49.5 Including 1,256.7 1.7 13.5 15.1
Including 33.8 3.3 61.4 64.6 Including 1,160.0 1.0 18.7 19.7
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 less than 0.73 opt Ag (25 gpt Ag)
Numbers may not add due to rounding
True widths are unknown

North Zone

3.0 opt Silver over 69.4 ft (101.2 gpt over 21.2 m)

Drilling resumed in the North Zone where three core holes were completed in 2009 with the objective of extending the mineralization in several different directions and providing continuity between holes for the upcoming resource estimate. Drilling in the North Zone covers an area totaling 650 ft (200 m) by 650 ft (200 m), with mineralization being encountered to a depth of 215 ft (65 m). Results from the first 6 holes are shown below.

Hole # Silver Length From To Hole # Silver Length From To
  (opt) (ft) (ft) (ft)   (gpt) (m) (m) (m)
                   
GAX-066 37.6 1.0 128.3 129.3 GAX-066 1,290.0 0.3 39.1 39.4
And 26.0 3.0 202.6 205.5 And 891.0 0.9 61.8 62.7
And 5.9 3.9 263.0 266.9 And 202.0 1.2 80.2 81.4
And 4.3 3.3 416.7 419.9 And 147.0 1.0 127.0 128.0
                   
GAX-071 2.2 59.4 0.0 59.4 GAX-071 75.9 18.1 0.0 18.1
Including 4.0 16.4 0.0 16.4 Including 136.8 5.0 0.0 5.0
Including 7.5 4.3 33.1 37.4 Including 257.5 1.3 10.1 11.4
And 6.0 3.1 90.4 93.5 And 207.0 1.0 27.6 28.5
And 26.8 2.3 177.2 179.5 And 920.0 0.7 54.0 54.7
And 9.6 3.8 309.5 313.3 And 330.0 1.2 94.4 95.5
                   
GAX-072 4.6 15.3 12.6 27.9 GAX-072 156.0 4.7 3.9 8.5
And 3.6 11.5 129.6 141.1 And 122.0 3.5 39.5 43.0
                   
GAX-074 2.9 22.0 25.3 47.2 GAX-074 98.3 6.7 7.7 14.4
Including 26.5 1.5 29.4 30.8 Including 907.0 0.5 9.0 9.4
And 5.2 2.3 181.8 184.1 And 179.0 0.7 55.4 56.1
                   
GAX-075 4.8 7.7 58.4 66.1 GAX-075 164.0 2.4 17.8 20.2
                   
GAX-076 3.0 69.4 0.0 69.4 GAX-076 101.2 21.2 0.0 21.2
Including 16.7 4.9 3.9 8.9 Including 574.0 1.5 1.2 2.7
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 less than 0.73 opt Ag (25 gpt Ag)
Numbers may not add due to rounding
True widths are unknown

Delineation Drilling Confirms Continuity of Near Surface Mineralization

3.4 opt Silver over 68.2 ft (117.1 gpt over 20.8 m)

Drilling conducted in the central area of the Main Zone was successful in establishing continuity of near surface mineralization. Results from these holes are highlighted below.

Hole # Silver Length From To Hole # Silver Length From To
  (opt) (ft) (ft) (ft)   (gpt) (m) (m) (m)
                   
GAX-063 1.6 101.7 34.4 136.2 GAX-063 56.5 31.0 10.5 41.5
Including 4.9 22.8 98.1 120.9 Including 166.3 7.0 29.9 36.9
And 2.2 78.2 165.5 243.8 And 75.1 23.9 50.5 74.3
Including 5.5 19.5 183.6 203.1 Including 189.2 6.0 56.0 61.9
                   
GAX-064 3.4 68.2 0.0 68.2 GAX-064 117.1 20.8 0.0 20.8

 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 late Jurassic to middle Cretaceous volcanic-arc with volcanic and associated sedimentary rocks that extends for hundreds of miles through northwestern Mexico. Cretaceous-Tertiary volcanic and volcano-sedimentary 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 Sinaloa Batholith of granitic composition. The El Gallo project is situated near the margin of an exposure of Sinaloa Batholith and other shallow-level porphyritic intrusives occur within the project area. Silver mineralization is hosted in breccia bodies and stockwork zones that occur dominantly in the andesitic volcanic rocks and to a lesser extent in quartz monzonite porphyry intrusive. The shape of the mineralization has not yet been defined.

To view the 15 new core holes from this news release see Table 1. To view all 73 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-057 and GAX-082, please click: http://www.usgold.com/news/pdf/20100301/GAX057.xls

http://www.usgold.com/news/pdf/20100301/GAX082.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.

 March 1, 2010

  Silver Gold Length From Silver Gold Length From Azimuth Dip Easting Northing
Hole # (opt) (opt) (ft) (ft) (gpt) (gpt) (m) (m)        
                         
GAX-
057
8.3   128.8 319.7 283.4   39.5 97.3 350 deg- rees -55 deg- rees 212316 2843179
Including 15.9   46.4 390.4 544.0   14.2 119.0        
Including 128.0   0.5 408.1 4,390.0   0.2 124.4        
Including 56.9   1.8 421.6 1,950.0   0.6 128.5        
                         
GAX-
059
1.7   167.3 0.0 59.0   51.0 0.0 350 deg- rees -55 deg- rees 212191 2843252
                         
GAX-
061
2.4   36.6 18.5 81.2   11.2 5.7 170 deg- rees -65 deg- rees 211943 2843334
And 25.3   23.3 112.9 868.9   7.1 34.4        
Including 115.6   4.4 119.8 3,964.8   1.4 36.5        
                         
GAX-
062
1.4   55.8 0.0 47.9   17.0 0.0 170 deg- rees -55 deg- rees 211988 2843337
                         
GAX-
063
1.6   101.7 34.4 56.5   31.0 10.5 170 deg- rees -50 deg- rees 211998 2843306
Including 4.9   22.8 98.1 166.3   7.0 29.9        
And 2.2   78.2 165.5 75.1   23.9 50.5        
Including 5.5   19.5 183.6 189.2   6.0 56.0        
                         
GAX-
064
3.4   68.2 0.0 117.1   20.8 0.0 40 deg- rees -50 deg- rees 212007 2843243
                         
GAX-
065
5.1   76.6 13.9 174.9   23.4 4.3 170 deg- rees -75 deg- rees 212071 2843330
Including 23.5   3.4 13.9 805.0   1.1 4.3        
Including 26.4   3.0 52.7 906.0   0.9 16.1        
                         
GAX-
066
37.6   1.0 128.3 1,290.0   0.3 39.1 350 deg- rees -45 deg- rees 212031 2843325
And 26.0   3.0 202.6 891.0   0.9 61.8        
And 5.9   3.9 263.0 202.0   1.2 80.2        
And 4.3   3.3 416.7 147.0   1.0 127.0        
                         

El Gallo Silver Project: Core Holes Assays Table 1 (cont.)
 March 1, 2010

  Silver Gold Length From Silver Gold Length From Azimuth Dip Easting Northing
Hole # (opt) (opt) (ft) (ft) (gpt) (gpt) (m) (m)        
                         
GAX069 4.8   102.2 0.0 166.3   31.2 0.0 0 degrees -90 degrees 212071 2843291
Including 36.7   5.4 44.1 1,256.7   1.7 13.5        
Including 33.8   3.3 61.4 1,160.0   1.0 18.7        
                         
GAX071 2.2   59.4 0.0 75.9   18.1 0.0 350 degrees -50 degrees 212035 2843450
Including 4.0   16.4 .0.0 136.8   5.0 0.0        
Including 7.5   4.3 33.1 257.5   1.3 10.1        
And 6.0   3.1 90.4 207.0   1.0 27.6        
And 26.8   2.3 177.2 920.0   0.7 54.0        
And 9.6   3.8 309.5 330.0   1.2 94.4        
                         
GAX072 4.6   15.3 12.6 156.0   4.7 3.9 350 degrees -70 degrees 212040 2843505
And 3.6   11.5 129.6 122.0   3.5 39.5        
                         
GAX074 2.9   22.0 25.3 98.3   6.7 7.7 350 degrees -50 degrees 212069 2843439
Including 26.5   1.5 29.4 907.0   0.5 9.0        
And 5.2   2.3 181.8 179.0   0.7 55.4        
                         
GAX075 4.8   7.7 58.4 164.0   2.4 17.8 350 degrees -60 degrees 212176 2843472
                         
GAX076 3.0   69.4 0.0 101.2   21.2 0.0 350 degrees -50 degrees 212158 2843464
Including 16.7   4.9 3.9 574.0   1.5 1.2        
And 1.3   24.6 110.6 45.2   7.5 33.7        
                         

El Gallo Silver Project: Core Holes Assays Table 1 (cont.)
 March 1, 2010

  Silver Gold Length From Silver Gold Length From Azimuth Dip Easting Northing
Hole # (opt) (opt) (ft) (ft) (gpt) (gpt) (m) (m)        
                         
GAX082 3.0   176.8 14.8 104.4   53.9 4.5 350 degrees -50 degrees 212256 2843188
And 6.1   79.6 229.0 209.9   24.3 69.8        
Including 15.3   19.7 232.3 525.7   6.0 70.8        
And 2.9   96.8 330.1 98.0   29.5 100.6        
Including 17.8   2.3 353.3 609.0   0.7 107.7        
Including 16.3   2.6 421.9 560.8   0.8 128.6        
And 5.4   4.1 484.3 186.0   1.3 147.6        
And 13.1   2.1 520.3 449.0   0.7 158.6        
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 less than 0.73 opt Ag (25 gpt Ag)
Numbers may not add due to rounding
NSV = No Significant Values 

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/UGX301fig1.pdf

To view Figure 2, please visit the following link:http://media3.marketwire.com/docs/UGX301fig2.pdf

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/UGX301fig3.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
    99 George Street, 3rd Floor
    Toronto, ON M5A 2N4
    info@usgold.com
    www.usgold.com