US Gold Corporation
TSX : UXG
FRANKFURT : US8
NYSE Alternext US : UXG

US Gold Corporation

April 24, 2009 09:00 ET

US Gold Corporation-El Gallo: Longer, Deeper & Rich

12.3 OPT SILVER OVER 34.4 FT, WITHIN 3.9 OPT SILVER OVER 316.6 FT

TORONTO, ONTARIO--(Marketwire - April 24, 2009) - US GOLD CORPORATION (TSX:UXG)(NYSE Alternext US:UXG)(NYSE Amex:UXG.A)(FRANKFURT:US8) is pleased to announce that core drill results from the El Gallo project in Sinaloa State, Mexico have returned the widest intersection to date and extended the mineralization at depth: 12.3 ounces of silver per ton (opt) (423.3 grams per tonne (gpt)) over 34.4 feet (ft) (10.5 meters (m)), including 33.8 opt silver (1,160.0 gpt) over 2.8 ft (0.9 m). This interval was inside of a wider zone that averaged 3.9 opt silver (135.4 gpt) over 316.6 ft (96.5 m). Another high-grade intercept was: 64.5 opt silver (2,210.0 gpt) over 1.3 ft (0.4 m).

"Each of the 18 core holes drilled at El Gallo (Appendix 1 & US Gold website) has encountered encouraging mineralization, including some exceptional high-grade intercepts (305.1 opt silver (10,461.0 gpt)) and the potential to add to this discovery looks promising! As our regional prospecting moves north, we seeing exciting new areas that US Gold geologists believe have similar characteristics to El Gallo," stated Rob McEwen, Chairman and CEO, US Gold.

Significant mineralization was encountered throughout core hole GAX017, which intersected multiple zones, including 12.3 opt silver (423.3 gpt) over 34.4 ft (10.5 m). This interval was inside of a much wider zone of mineralization that totaled 316.6 ft (96.5 m) at an average grade of 3.9 opt silver (135.4 gpt). Mineralization started at 65.0 ft (20.0 m) and ended at 295.0 ft (90.0 m) below surface (Figure 1 & 2). The hole was drilled 80 ft (25 m) east of GAX007 that returned 9.4 opt silver (320.7 gpt) over 55.8 ft (17.0 m), including 33.3 opt silver (1,140.0 gpt) over 5.1 ft (1.6 m) (news release March 18, 2009). Two additional core holes are in progress, which are designed to test for mineralization up and down dip.

Holes GAX015, GAX016 and GAX018 were drilled to both delineate and extend the mineralization that was identified close to surface through conventional rotary drilling. In addition to achieving these goals, GAX016 encountered very high-grade mineralization at a depth of 345.0 ft (105.0 m). This intersection returned 64.5 opt silver (2,210.0 gpt) over 1.3 ft (0.4 m). Ongoing drilling will test for deeper high-grade.



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Hole # Silver Length From To Hole # Silver Length From To
------ ------ ------ ---- --- ------ ------ ------ ---- ---
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(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)
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GAX015 5.2 5.1 16.9 22.0 GAX015 178.5 1.6 5.2 6.7
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And 5.7 15.3 35.9 51.2 And 195.0 4.7 11.0 15.6
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And 7.8 16.9 93.5 110.4 And 268.4 5.2 28.5 33.7
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And 8.5 9.2 354.0 363.2 And 290.6 2.8 107.9 110.7
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GAX016 10.1 15.9 95.6 111.5 GAX016 347.4 4.9 29.2 34.0
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And 5.7 21.8 129.6 151.4 And 195.1 6.7 39.5 46.2
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And 64.5 1.3 347.9 349.2 And 2,210.0 0.4 106.1 106.5
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GAX017
(3) 3.9 316.6 101.7 418.3 GAX017 135.4 96.5 31.0 127.5
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Includ- Includ-
ing 5.5 14.0 202.5 216.5 ing 188.3 4.3 61.7 66.0
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Includ- Includ-
ing 12.3 34.4 226.4 260.8 ing 423.3 10.5 69.0 79.5
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Includ- Includ-
ing 33.8 2.8 226.4 229.2 ing 1,160.0 0.9 69.0 69.9
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Includ- Includ-
ing 5.9 27.9 282.2 310.0 ing 202.8 8.5 86.0 94.5
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Includ- Includ-
ing 12.6 6.6 282.2 288.7 ing 433.5 2.0 86.0 88.0
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Includ- Includ-
ing 6.8 18.0 357.6 375.7 ing 234.2 5.5 109.0 114.5
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GAX018 9.8 3.9 135.7 140.0 GAX018 337.0 1.2 41.4 42.6
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And 5.5 12.0 383.5 395.5 And 188.7 3.7 116.9 120.6
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(1)Numbers may not balance due to rounding
(2)GAX017 cumulative interval averaged without minimum cutoff
(3)GAX017 core photo Figure 7
(4)True width of mineralization unknown


Hole GAX014 was drilled to test for new veins perpendicular to the main mineral zone. Two intercepts of moderate grade were encountered. Further drilling has been completed and assays are pending.



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Hole # Silver Length From To Hole # Silver Length From To
------ ------ ------ ---- --- ------ ------ ------ ---- ---
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(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)
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GAX014 3.7 7.7 39.4 47.1 GAX014 128.5 2.4 12.0 14.4
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And 5.6 7.2 138.5 145.7 And 192.2 2.2 42.2 44.4
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(1)Numbers may not balance due to rounding
(2)True width of the mineral intercept unknown


Geochemical Survey

Two New Areas of Potential

North of Current El Gallo Drilling

Since January 2009 US Gold has completed 18 core holes at El Gallo with an additional 6 holes in progress (Figure 1 & Appendix 1). To date, geochemical soil anomalies have been a good predicator of mineralization below surface. The Company's on-going geochemical soil survey has begun to outline a large anomaly that measures 2,950 ft (900 m) along strike, northwest of US Gold's current drilling (Figure 4). Core drilling to test this area will commence shortly.

Regional Prospect - El Chapotillo

Through regional prospecting, US Gold geologists have located a gold/silver bearing vein 5.5 miles (9 km) north of El Gallo called El Chapotillo (Figure 5). Samples taken over a 1,315 ft (400 m) strike length have returned good values. A detailed mapping program has been completed and drill targets selected. Core drilling is planned to commence shortly with the goal of making a similar El Gallo type discovery.

ABOUT US GOLD

US Gold Corporation is a Colorado incorporated gold and silver exploration company exploring next to Barrick's large Cortez Hills deposits in northeastern Nevada and a high-grade silver and gold discovery in north-western Mexico. US Gold's shares trade on the NYSE Amex and Toronto Stock Exchanges under the symbol UXG and on the Frankfurt Exchange under the symbol US8.

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 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 25 samples. Samples from the geochemical survey were analyzed by US Gold's internal lab, located at the Magistral Mine, Sinaloa Mexico, utilizing atomic absorption.

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.

To view the table detailing Core Holes GAX011-18, click here: http://media3.marketwire.com/docs/uxg0424table.pdf.

To view Figure 1, click here: http://media3.marketwire.com/docs/uxg0424fig1.pdf.

To view Figure 2, click here: http://media3.marketwire.com/docs/uxg0424fig2.pdf

To view Figure 3, click here: http://media3.marketwire.com/docs/uxg0424fig3.pdf.

To view Figure 4, click here: http://media3.marketwire.com/docs/uxg0424fig4.pdf.

To view Figure 5, click here: http://media3.marketwire.com/docs/uxg0424fig5.pdf.

To view Figure 6, click here: http://media3.marketwire.com/docs/uxg0424fig6.pdf.

Contact Information

  • US Gold Corporation
    Ian Ball
    VP, Mexico
    (647) 258-0395 or Toll Free: 1-866-441-0690
    (647) 258-0408 (FAX)
    or
    US Gold Corporation
    Mailing Address
    99 George Street
    3rd Floor
    Toronto, ON M5A 2N4
    info@usgold.com