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

US Gold Corporation

March 18, 2009 09:01 ET

US Gold Corporation: El Gallo Returns Deepest High-Grade Intercept 20.8 opt Silver Over 14.3 ft

TORONTO, ONTARIO--(Marketwire - March 18, 2009) - US GOLD CORPORATION (TSX:UXG)(NYSE Alternext US:UXG)(FRANKFURT:US8) is pleased to announce that core drilling at the El Gallo project in Sinaloa State, Mexico, has returned the deepest high-grade silver intersection to date. Testing below the previous limits of the mineralization returned: 20.8 ounces of silver per ton (opt) (713.1 grams per tonne (gpt)) over 14.3 feet (ft) (4.4 meters (m)).

Hole GAX012 intersected two separate zones of high-grade silver mineralization, with the deepest being at a vertical depth of 380.0 ft (115.0 m). The deepest intersection was the most significant with an average grade of 20.8 opt silver (713.1 gpt) over 14.3 ft (4.4 m), including 73.8 opt silver (2,530.0 gpt) over 2.5 ft (0.8 m). This intersection extended mineralization vertically by 65.0 ft (20.0 m).

The second shallower high-grade intersection returned 16.8 opt silver (574.4 gpt) over 13.0 ft (4.0 m) at 150.0 ft (46.0 m) and is believed to be part of a separate parallel vein (Figure 1) situated south of the deeper intersection.

The remaining four core holes were drilled primarily to delineate and extend the mineralization that was initially indentified in the upper portion of the veins through conventional rotary drilling. These core holes will help form the basis of an initial NI 43-101 resource estimate. On-going core drilling is designed to intersect possible cross structures and new parallel veins to the north.



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Hole # Silver Length From To Hole # Silver Length From To
------ ------ ------ ---- -- ------ ------ ------ ---- --
(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)
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GAX007 9.4 55.8 4.6 60.4 GAX007 320.7 17.0 1.4 18.4
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Includ-
ing 30.0 4.1 15.6 19.7 Including 1,030.0 1.3 4.8 6.0
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Includ-
ing 33.3 5.1 42.5 47.6 Including 1,140.0 1.6 13.0 14.5
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And 4.8 10.7 158.3 169.0 And 163.8 3.3 48.3 51.5
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And 4.6 17.7 183.1 200.8 And 157.3 5.4 55.8 61.2
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GAX009 10.9 2.5 180.0 182.4 GAX009 373.0 0.8 54.9 55.6
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GAX011 7.3 6.9 175.2 182.1 GAX011 250.3 2.1 53.4 55.5
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And 5.8 2.6 216.0 218.7 And 198.0 0.8 65.9 66.7
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And 11.1 2.8 346.9 349.7 And 380.0 0.9 105.8 106.6
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GAX012 16.8 13.0 167.8 180.8 GAX012 574.4 4.0 51.2 55.1
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Includ-
ing 44.0 3.6 167.8 171.4 Including 1,510.0 1.1 51.2 52.3
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And 20.8 14.3 431.4 445.7 And 713.1 4.4 131.5 135.9
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Includ-
ing 73.8 2.5 437.3 439.8 Including 2,530.0 0.8 133.3 134.1
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GAX013 10.0 35.9 9.8 45.8 GAX013 341.6 11.0 3.0 14.0
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And 6.2 3.9 61.0 65.0 And 212.0 1.2 18.6 19.8
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And 8.3 2.8 241.5 244.3 And 286.0 0.9 73.6 74.5
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And 11.1 3.9 305.8 309.7 And 381.0 1.2 93.2 94.4
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(1)Numbers may not balance due to rounding


Since January US Gold has completed a total of 13 core holes at El Gallo (for a list of all hole locations and reported intersections see Figure 2 and Appendix 1) with core and conventional rotary drilling returning high-grade along a strike length of 1,475.0 ft (450.0 m) and to a depth of 380.0 ft (115.0 m). Mineralization remains open to further expansion and the presence of parallel veins containing high-grade silver intercepts is encouraging.

ABOUT US GOLD

US Gold Corporation is a United States based gold exploration company exploring in northeastern Nevada and north-west Mexico. US Gold's shares trade on the NYSE Alternext 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 prep 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.

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. For the purposes of this news release "high-grade" is defined as 14.6 opt silver (500.0 gpt) or greater.

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 Figure 1, please visit the following link: http://media3.marketwire.com/docs/fig1_cross1.pdf

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/fig2_plan1.pdf

To view Appendix 1, please visit the following link: http://media3.marketwire.com/docs/App_1.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
    Email: info@usgold.com