SOURCE: USA Uranium Corp.

USA Uranium Corp.

January 28, 2010 05:57 ET

USA Uranium Appoints John Perez as New President and Releases Highlights of the Occidental/Pasadena Mine

PALM DESERT, CA--(Marketwire - January 28, 2010) - USA Uranium Corp. (PINKSHEETS: USAU) (http://usauranium.com) -- Ken Berscht, Chairman and CEO of USA Uranium is pleased to announce John Perez as new President of USA Uranium. Mr. Perez the former Director of Communications has now assumed the role of President of USA Uranium. "Mr. Perez brings his experience in helping bring USA Uranium to the next level of developing an emerging exploration mining company which has focused on 'Going where Gold is' and was responsible for bringing Ken Berscht to the team as CEO of USA Uranium.

Mr. Perez will be responsible for all aspects of the Company's growth and development with the focus on advancing historic producers and the newly acquired Occidental/Pasadena Mine in Imperial County just 29 miles from the largest open pit goldmine in California, "The Mesquite Mine" operated by New Gold Inc.

Mr. Perez working with Dr. Earl Abbott, PhD. will also be responsible for advancing historic producer La Dama De Oro near Victorville, CA where environmental permitting has begun on the property. Both properties are being prepared to clear the way for new geological updates to prepare NI 43-101 compliant technical reports and reviewing work programs to bring these historic producers closer to production.

Mr. Perez is a precious metals trading specialist in the gold and silver bullion and equities market. Mr. Perez is a former account executive and precious metals trader at Monex Gold and Silver Inc., managing a multimillion dollar gold and silver portfolio trading in the spot markets. Mr. Perez manages and consults with private equity clients in the precious metals and oil sector raising private capital and for gold and silver exploration and mining companies. Mr. Perez is a consultant to Comstock Royalty LLC., a royalty and mining finance firm and is also Director of Communications for Beeston Enterprises ltd.

Highlights of the Occidental/Pasadena Mine

The Occidental /Pasadena Mining Project is located in Southeastern California, 29 miles from the Mesquite Mine owned and operated by New Gold Inc., which became fully operational in 2008 as the largest cyanide heap leach operation in California. Prior to New Gold Inc., Newmont Mining operated and extracted 3 million ounces of gold from the mid-1980s through 2002. It is an operational, fully permitted low-grade open pit mine with cyanide heap-leach processing on site, and a life of mine estimated at 10 years. They currently produce roughly 160,000 ounces of Gold annually.

Historical Data from Previous Owners and Operators.


--  The Occidental/Pasadena mine consists of 9 Patented Claims plus 3
    unpatented claims. This means as much as 180 acres patented with another 60
    unpatented.
--  Cargo Muchacho mining district -- Total production values near the $7
    million range (and that is when gold was between $21 and $34 per ounce).
    Today that would be $350,000,000.00 in past gold production
--  Expert reports from the 1920s and 1940s give encouraging indications,
    and mention that the ore is free-milling (making it easier and more cost
    effective to process).
--  At least 3 of the 9 claims have previous workings on them -- shallow
    shafts and tunnels (150-250 deep), with several thousand feet of
    underground workings with much of these working are in ore.
--  Past geology of this claim group is very similar to that of the other
    claims in vicinity, some substantial producers. The various claims contain
    multiple vein structures, generally narrow (2-10 feet in width) and well
    defined, averaging .25 to.5 opt gold.
--  Between the Pasadena claim and the Tip Top claim, it is estimated
    that there is roughly 100,000 tons in sight, with a roughly estimated
    average grade of about 1/3 ounce per ton gold. The Occidental claim itself
    has a fair amount more, though exact numbers are not clear, but it is
    thought that at least half of that 100K tons is over an average of .4 opt.
--  Easy access and 21 miles from the Arizona border, 4 miles of a main
    Union Pacific Railroad line, shallow workings (250-300 feet max), bigger
    past-producer mines in the area followed the vein down over 1000 feet.
--  In 1925, Mr. A D Koppea examined several of the claims. He concludes
    his report with the following statement: "This is one of the best prospects
    I've examined -- a first class free milling proposition. The material is
    there and the neighbors all around have produced many millions." He also
    stated:"Very pronounced signs of good silver values are visible and this
    ore should be tested for silver."
--  A 1940 report by Mr. Morgan Lesher (Mining Engineer), 2 years before
    shut down by the War Production Board Order L-208, was positive as well
    regarding 2 claims, the Tip Top and the Pasadena (the 1925 report included
    details on the Tip Top and Occidental). Mr. Lesher says the following: "I
    can without reservation recommend this property for immediate development,
    and I consider its main asset, at present, to be the known fact that all of
    the mining work will be in ore, and that there is now available for
    extraction a considerable quantity of ore such as has been shipped during
    the present period of operation."
--  Bulk assays from these reports on bulk sample/production from these
    claims -- these assays showed an average grade of .4 opt gold and 1.41 opt
    silver, with good recovery through several methods of extraction.
--  Regarding the work, Lesher states: "A production of about 1000 tons
    of ore averaging $15.00 gold per ton {at that time, gold was $34 per
    ounce}, was made by the present operator over a period of ten months,
    working an average of less than three men daily, all the work being done by
    hand." He includes settlement sheets from this work, as well as assays.
--  Mining friendly jurisdiction -- Imperial County works with many
    mining operations -- primarily sand and gravel, but precious metals as
    well. They are open to cyanide processing on site, and seem reasonable to
    work with.
    

Karl Harz, now serving as Vice-President of Business Development at USA Uranium, said, "Our latest acquisition of the Occidental/Pasadena Mine Project fits our 'Gold is Where You Find It' model. Gold has continued to move up in the market and our resource acquisition team continues to seek more strategically located historic producers with long term value. The Occidental/Pasadena meets the criteria we needed in order to get to our goals of 'Going Where Gold Is.' With the La Dama D Oro and now the Occidental/Pasadena we have created an excellent base of projects to move forward in 2010."

John Perez, President of USA Uranium, said: "The Occidental/Pasadena mine lies in an area with a rich, well documented history of the production of gold. The Occidental/Pasadena Mining project is strategically located near the Arizona border and is within reach of other active mining projects with operating mines potential partners for USA Uranium. I am looking forward to working with our team to develop work programs and updated geologic reports in order to progress forward with the prospect of taking the Occidental/Pasadena to the next level. The gold markets continue to be strong with quantitative easing creating a weaker dollar as well as China now the number one producer and consumer of gold. US Gold Corp. CEO Rob McEwen is on record saying that gold will climb to $2,000 an ounce by the end of this year, and recently predicted the price will climb to an amazing $5,000 an ounce by 2012. I am working with the Goldman-Sachs target price of $1350.00 per oz and JP Morgan has given price target of $1450.00 per oz. for gold. US investors still have not picked up entirely where precious metals are heading. The Occidental/Pasadena fits our plan of 'Going Where Gold Is' and we anticipate continued strength in precious metals."

Contact Information

  • Contact:
    John Perez
    USA Uranium Corp.
    President
    949-280-4323 office
    888-845-4869 fax
    USAUPM@gmail.com