SOURCE: USA Uranium Corp.

October 23, 2009 11:48 ET

USA Uranium Explores Comstock Royalty Plan and Pursues Additional Gold Properties

LAS VEGAS, NV--(Marketwire - October 23, 2009) - USA Uranium Corp. (PINKSHEETS: USAU) (http://usauranium.com) CEO Ken Berscht is pleased to announce, "Our recent trip to visit the Comstock Lode in Nevada opens new areas of focus for USA Uranium as we expand our former gold producer and the Net Smelter Royalty (NSR) royalty acquisition model with strategic and early stage gold development projects which fit our business model of exploration and royalty development projects. The Comstock Lode Mining District in Nevada provides huge opportunity with early and strategic projects in the gold NSR royalty arena. The history and lore of the Comstock lives today and USA Uranium is stepping out to expand into this historic gold production area."

USAU also announces that following the Company's policy that "gold is where you find it" it is proceeding with final negotiations to acquire two former producing properties located in southern California. In the early 1900s, throughout this area, numerous mining operations were actively conducting both underground and surface mining projects that produced tremendous amount of gold. These properties were prolific producers and were mined actively until WWII shut down production and then sporadically after that. These properties produced in excess of $300,000,000 of gold at today's prices. The Company plans to utilize a consistent exploration program to attempt to identify additional gold reserves in former California gold producers.

According to Ms. L. Skaer, Executive Director of the California Northwest Mining Assn., a trade group that works with California mining companies, "The advent of $900 [now well over $1060/oz] gold, current economic conditions and printing of US dollars will make formerly producing California gold mines one of the most attractive gold mining opportunities in the world." Additionally, gold "has been consolidating for the past 10 days," wrote Dennis Gartman, an economist and editor of the US-based Gartman Letter. "Next is advancement again and the weak and weaker US dollar shall be the eventual catalyst for that to happen."

Karl Harz, President, said: "USA Uranium engages in the evaluation, acquisition, and development of precious metals exploration and royalty projects in Nevada and California gold mining districts. Our Management team is working to identify opportunities to improve the value of the company through review of exploration and royalty projects in and around the Comstock Lode Mining District as well as development of our California gold projects."

John Perez, Director of Communications, said: "USA Uranium's growth-focused exploration and new NSR royalty business model creates significant shareholder value by providing considerable leverage while mitigating the downside risks faced by traditional mining companies. The royalty model was a natural expansion of a good plan with gold reaching new highs and expected to reach $1,200.00 per oz in the near term. Ken Berscht provides leadership as well as vision to USA Uranium with this new step in the Comstock Lode Mining District which expands our footprint in Nevada and California gold projects. Our visit to the historic Comstock Lode in Nevada provided excellent opportunities to view some of the richest mines ever discovered in the United States while we move to create a footprint in the Comstock Lode."

Contact Information

  • Contact:
    John Perez
    USA Uranium Corp.
    Director of Communications
    949 280 4323 office
    310-802-3871 e-fax
    usaupm@gmail.com