US Gold Corporation
TSX : UXG
NYSE Amex : UXG

US Gold Corporation

September 09, 2009 09:27 ET

US Gold Nevada Cortez Trend Drilling Intersects New Zone

NEVADA CORTEZ TREND DRILLING INTERSECTS NEW ZONE: 0.085 OPT GOLD OVER 150 FT. INCLUDING 0.251 OPT OVER 25 FT. STEP-OUT DRILLING INTERSECTS: 0.07 OPT GOLD OVER 105 FT.

TORONTO, ONTARIO--(Marketwire - Sept. 9, 2009) - US GOLD CORPORATION (NYSE Amex:UXG)(TSX:UXG) announces that drilling at the Gold Bar Project in Nevada's Cortez Trend has intersected a new mineralized zone and returned one of the best holes ever drilled at the property: 0.085 ounces per ton (opt) gold over 150 feet (ft) (2.9 grams per tonne (gpt) gold over 45.7 meters (m)), including 0.251 opt gold over 25 ft (8.6 gpt gold over 7.6 m) and including 0.125 opt gold over 35 ft (4.27 gpt gold over 10.7 m).

Drilling took place between Gold Pick and Gold Ridge, previously identified NI 43-101 compliant resources (see Figure 1) comprising the Company's Gold Bar Project. Based on the success to-date with extensional drilling in the gap between Gold Pick and Gold Ridge it appears that these two resources could be connected. In addition, step-out drilling on the east side of Gold Pick intersected: 0.070 opt gold over 105 ft (2.39 gpt gold over 32.0 m), including 0.195 opt gold over 15 ft (6.67 gpt gold over 4.6 m).

US Gold believes that with these positive results it will be able to expand the known gold resource beyond the current 616,600 oz Measured (17.9 million tons at 0.034 opt gold), 156,000 Indicated (7.2 million tons at 0.022 opt gold) and 188,940 oz Inferred (8.9 million tons at 0.021 opt gold).

"US Gold is off to a good start in Nevada with these encouraging results from our exploration in the Gold Bar area. Most encouraging is our ability to find higher grades and widths more consistently than in our previous campaigns. Our current program is designed to expand the existing resource to a size of greater economic significance to the Company. We are well financed to advance our projects in Nevada and Mexico, and we plan to continue to explore aggressively in both jurisdictions," said Rob McEwen, Chairman and CEO.

GOLD BAR PROJECT EXPLORATION UPDATE

During the recent resource modeling process US Gold geologists identified several underexplored mineralized trends, which represent good targets for resource expansion. Forty-nine reverse circulation drill holes designed to test these trends and follow-up on good intersections have been completed. This release highlights twenty-one of the more significant holes, which were primarily drilled in three areas: 1) West Gold Pick, 2) East Gold Ridge, and 3) East Gold Pick as illustrated in Figure 1 (See Table 1 for complete assay results. The true widths of the intercepts are unknown.)

WEST GOLD PICK

Drilling to extend the Gold Pick resource westward toward the Gold Ridge resource has intersected 0.085 opt gold (2.9 gpt) over 150 ft (45.7 m) in hole GB48, starting at a depth of 150 ft (45 m) below surface. This mineralization occurs approximately 160 ft (50 m) outside the existing resource, and is among the top 3% best holes ever drilled at Gold Pick (Grade x Thickness)(see Figure 1). Subsequently, US Gold drilled holes GB57, GB59, GB62, GB64 and GB69 adjacent to GB48 to infill the mineralization and step-out further to the west. Further drilling in this area is currently in progress to expand this mineralization and bring it into the resource. Highlights of drilling at West Gold Pick are below:



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HOLE# Gold From To Length Au From To Length
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opt ft ft ft gpt m m m
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GB48 0.085 150 300 150 2.90 45.7 91.4 45.7
Including 0.251 190 215 25 8.60 57.9 65.5 7.6
Including 0.125 225 260 35 4.27 68.6 79.2 10.7

GB57 0.040 370 455 85 1.38 112.8 138.7 25.9
Including 0.114 370 380 10 3.91 112.8 115.8 3.0

GB59 0.079 435 485 50 2.71 132.6 147.8 15.2
Including 0.110 445 455 10 3.78 135.6 138.6 3.0
Including 0.135 465 475 10 4.62 141.7 144.7 3.0

GB62 0.038 220 275 55 1.31 67.1 83.8 16.8
Including 0.137 230 240 10 4.70 70.1 73.1 3.0

GB64 0.047 205 265 60 1.60 62.5 80.8 18.3
Including 0.169 210 220 10 5.81 64.0 67.0 3.0

GB69 0.034 355 450 95 1.18 108.2 137.2 29.0
Including 0.092 420 430 10 3.17 128.0 131.1 3.0
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(opt equals Troy ounces per imperial ton, gpt equals grams per metric tonne)


Hole GB18 was completed in 2008 and is located approximately 230 ft (70 m) north of GB48, it was included in the recently published resource estimate and is significant because it extended the outer boundary of the resource by over 325 ft (100 m) to the west. It is expected that the drilling detailed above will also extend the resource significantly when an updated estimate is completed in early 2010. Highlights from GB18 are shown below:



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HOLE# Gold From To Length Au From To Length
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opt ft ft ft gpt m m m
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GB18 0.023 335 455 120 0.80 102.1 138.7 36.6
including 0.065 375 390 15 2.24 114.3 118.9 4.6
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EAST GOLD RIDGE

The eastern Gold Ridge resource also contains mineralized trends open for expansion. Recent drilling has extended the mineralization to the east by 150 ft (45 m) toward the Gold Pick resource (see Figure 1). Based on the success to-date of extensional drilling in the gap between Gold Pick and Gold Ridge it appears that these two resources could be connected. Highlights from this drilling are shown below:



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HOLE# Gold From To Length Au From To Length
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opt ft ft ft gpt m m m
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GB37 0.027 245 315 70 0.94 74.7 96.0 21.3

GB41 0.041 310 340 30 1.41 94.5 103.6 9.1

GB45 0.028 270 280 10 0.95 82.3 85.3 3.0
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EAST GOLD PICK

Drilling to the east of Gold Pick intercepted 0.070 opt (2.39 gpt) gold over 105 ft (32.0 m) in hole GB68 starting at a depth of 403 ft (122.7 m) below surface. This intercepts is a 120 ft (23.6 m) step-out from the existing resource, and encountered significantly better grade than expected. Other holes east of Gold Pick intercepted grades in-line with the current resource estimate at depths between 335 ft (102 m) and 730 ft (223 m). Further drilling to follow-up on hole GB68 will be completed shortly. Highlights of the results from this area include:



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HOLE# Gold From To Length Au From To Length
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opt ft ft ft gpt m m m
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GB21 0.031 630 650 20 1.05 192 198.1 6.1
And 0.026 685 730 45 0.89 208.8 222.5 13.7

GB23 0.036 335 365 30 1.25 102.1 111.3 9.1
including 0.101 340 345 5 3.46 103.6 105.2 1.5

GB24 0.036 610 630 20 1.24 185.9 192 6.1

GB25 0.033 535 600 65 1.12 163.1 182.9 19.8
including 0.093 545 550 5 3.20 166.1 167.6 1.5

GB33 0.033 645 675 30 1.13 196.6 205.7 9.1

GB49 0.037 360 390 30 1.28 109.7 118.9 9.1
including 0.149 380 385 5 5.10 115.8 117.3 1.5

GB68 0.070 465 570 105 2.39 141.7 173.7 32.0
including 0.121 480 485 5 4.15 146.3 147.8 1.5
including 0.111 500 510 10 3.82 152.4 152.4 3.0
including 0.195 520 535 15 6.67 158.5 163.1 4.6
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Drilling to the north of Gold Pick intercepted low-grade mineralization at or near surface. Based on the results received for six holes it is not apparent that this area warrants further exploration. Results are shown below for four holes in this area:



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HOLE# Gold From To Length Au From To Length
opt ft ft ft gpt m m m
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GB32 0.015 0 20 20 0.5 0.0 6.1 6.1

GB34 0.011 0 20 20 0.39 0.0 6.1 6.1
And 0.019 355 360 5 0.65 108.2 109.7 1.5
And 0.015 355 435 80 0.5 108.2 132.6 24.4
including 0.018 355 415 60 0.6 108.2 126.5 18.3

GB51 0.016 70 115 45 0.56 21.3 35.1 13.7
And 0.026 200 240 40 0.88 61.0 73.2 12.2
And 0.03 345 365 20 1.03 105.2 111.3 6.1

GB52 0.037 55 90 35 1.28 16.8 27.4 10.7
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PRELIMINARY ECONOMIC ASSESSMENT

Work continues internally on a preliminary economic assessment to determine the potential for gold production at the Gold Bar Project. Results from continuing exploration will be incorporated into a new resource estimate by early 2010, which will contain information and conclusions about the economic viability of the project in the current gold market environment. US Gold has recently obtained valuable historic geologic and engineering information from the previous owner/operator of the project, which will help to advance the project and reduce costs.

ABOUT US GOLD

US Gold Corporation is a Colorado incorporated gold and silver exploration company with a strong treasury, no debt and significant land holdings in Nevada next to Barrick Gold's large Cortez Hills deposit, along with a high grade silver/gold discovery in northwestern Mexico. US Gold's shares trade on the NYSE Amex and Toronto Stock Exchanges under the symbol UXG.

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 Nevada exploration properties.

All assays are uncut, with analysis conducted by ALS Chemex utilizing a 30 gram fire assay charge with an AA finish. Drilling was performed with a standard reverse circulation (RC) rig, and samples are 5 feet in length. Quality assurance/quality control is assured by inserting standards and blanks every 40th sample and check assays sent to a second lab every 20th sample.

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.

To view Table 1, please visit the following link: http://media3.marketwire.com/docs/Table1UXG.pdf

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/Figure1UXG.pdf


Contact Information

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