US Gold Corporation
TSX : UXG
NYSE Amex : UXG

US Gold Corporation

June 11, 2009 09:01 ET

US Gold Exploration News Release: El Gallo Drilling Continues to Return Exceptional Results!

TORONTO, ONTARIO--(Marketwire - June 11, 2009) - US GOLD CORPORATION (TSX:UXG) (NYSE Amex:UXG) is pleased to announce that new core drilling from the El Gallo project in Sinaloa State, Mexico continues to deliver exceptional results. Since drilling began in November this discovery has grown dramatically and covers an area totaling 1,475 ft (450 m) long x 1,300 ft (400 m) wide and to a depth of 380 ft (115 m). The results to date suggest there is good potential for further growth. Nine new core holes were drilled since our last news release. All of the holes were designed to test for extensions of the mineralization: Four on the west end, two on the east end, one on a possible cross cutting feature and two testing for depth in the middle of the zone. Full results are listed in Appendix 1.

ON THE WEST - EXPANDING MINERALIZATION TO THE NORTH

19.8 opt Silver (677.3 gpt) over 50.9 ft (15.5 m)

High grade over wide intersections has extended the mineralization 165 ft (50.0 m) to the north with a second zone appearing at depth. One of several significant intersections from this drilling returned 19.8 opt silver (677.3 gpt) over 50.9 ft (15.5 m). The goal was to extend the mineralization previously encountered in hole GAX010 (March 2, 2009) that returned 31.6 opt silver (1,082.4 gpt silver) over 104.0 ft (31.7 m), including 176.3 opt silver (6,046.1 gpt silver) over 14.9 ft (4.6 m) (Figure 1 & Figure 2). Highlights are below:



----------------------------------------------------------------------------
Hole # Silver Length From To Hole # Silver Length From To
------ ------ ------ ---- -- ------ ------ ------ ---- --
----------------------------------------------------------------------------
(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)
----------------------------------------------------------------------------

----------------------------------------------------------------------------
GAX021 10.3 143.4 72.2 215.6 GAX021 352.7 43.7 22.0 65.7
----------------------------------------------------------------------------
Including 154.3 4.9 85.0 89.9 Including 5290.0 1.5 25.9 27.4
----------------------------------------------------------------------------
Including 32.1 4.1 155.0 159.1 Including 1100.0 1.3 47.3 48.5
----------------------------------------------------------------------------
And 45.5 1.4 297.4 298.8 And 1560.0 0.4 90.7 91.1
----------------------------------------------------------------------------

----------------------------------------------------------------------------
GAX026 4.1 9.8 4.9 14.8 GAX026 140.0 3.0 1.5 4.5
----------------------------------------------------------------------------
And 8.5 37.6 70.7 108.3 And 291.3 11.5 21.6 33.0
----------------------------------------------------------------------------
And 7.9 4.9 142.7 147.6 And 271.0 1.5 43.5 45.0
----------------------------------------------------------------------------
And 6.4 9.8 184.9 194.7 And 218.0 3.0 56.4 59.4
----------------------------------------------------------------------------
And 26.4 2.3 242.0 244.3 And 903.6 0.7 73.8 74.5
----------------------------------------------------------------------------

----------------------------------------------------------------------------
GAX027 5.7 14.8 4.9 19.7 GAX027 195.3 4.5 1.5 6.0
----------------------------------------------------------------------------
And 19.8 50.9 39.4 90.2 And 677.3 15.5 12.0 27.5
----------------------------------------------------------------------------
Including 55.9 12.3 39.4 51.7 Including 1918.0 3.8 12.0 15.8
----------------------------------------------------------------------------
And 4.1 5.2 128.9 134.2 And 141.0 1.6 39.3 40.9
----------------------------------------------------------------------------
And 5.7 5.6 159.1 164.7 And 194.0 1.7 48.5 50.2
----------------------------------------------------------------------------
And 7.7 9.8 184.5 194.4 And 265.3 3.0 56.3 59.3
----------------------------------------------------------------------------
And 14.4 6.5 223.2 229.7 And 493.3 2.0 68.0 70.0
----------------------------------------------------------------------------
And 14.3 2.5 266.1 268.5 And 491.0 0.8 81.1 81.9
----------------------------------------------------------------------------
And 11.5 2.0 288.7 290.7 And 393.0 0.6 88.0 88.6
----------------------------------------------------------------------------


ON THE EAST - EXPANDING MINERALIZATION TO THE SOUTH

14.5 opt Silver (497.2 gpt) over 32.8 FT (10.0 m)

Core drilling on the east end of the zone was designed to extend the mineralization beyond the previously released hole GAX017 (April 24, 2009) that returned 12.3 opt silver (423.3 gpt) over 34.4 ft (10.5 m), which was inside of a broad zone that totaled 3.9 opt silver (135.4 gpt ) over 316.6 ft (96.5 m). Drilling encountered similar grades as observed in GAX017, expanding the southerly trending mineralization by 295 ft (90 m). These results indicate that the mineralized zone is becoming wider along strike to the east (Figure 3).



----------------------------------------------------------------------------
Hole # Silver Length From To Hole # Silver Length From To
------ ------ ------ ---- -- ------ ------ ------ ---- --
----------------------------------------------------------------------------
(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)
----------------------------------------------------------------------------

----------------------------------------------------------------------------
GAX023 6.3 46.5 157.2 203.7 GAX023 215.8 14.2 47.9 62.1
----------------------------------------------------------------------------
And 13.9 23.0 378.4 401.4 And 476.8 7.0 115.4 122.4
----------------------------------------------------------------------------
Including 36.3 4.9 378.4 383.3 Including 1245.0 1.5 115.4 116.8
----------------------------------------------------------------------------

----------------------------------------------------------------------------
GAX025 14.5 32.8 77.1 109.9 GAX025 497.2 10.0 23.5 33.5
----------------------------------------------------------------------------
Including 22.9 16.4 90.2 106.6 Including 785.4 5.0 27.5 32.5
----------------------------------------------------------------------------
And 5.5 7.2 124.7 131.9 And 187.0 2.2 38.0 40.2
----------------------------------------------------------------------------
And 7.1 13.1 139.4 152.6 And 242.0 4.0 42.5 46.5
----------------------------------------------------------------------------
And 5.0 4.9 172.2 177.2 And 170.0 1.5 52.5 54.0
----------------------------------------------------------------------------
And 15.9 2.8 371.2 374.0 And 545.0 0.85 113.2 114.0
----------------------------------------------------------------------------
And 5.8 6.6 388.8 395.3 And 199.5 2.0 118.5 120.5
----------------------------------------------------------------------------


POTENTIAL NEW CROSS CUTTING STRUCTURE

As a result of geological mapping of the El Gallo area, US Gold geologists interpreted a possible north-south mineralized trend. This new trend crosses the area where most of the current drilling has been focused to date. The first core hole to test this area returned (previously released April 24, 2009) 5.6 opt silver (192.2 gpt) over 7.2 ft (2.2 m). A second core hole located approximately 200 ft (60 meters) to the southwest (Figure 1) has returned significantly higher grade, but over a narrower width. This is a positive development because it has the potential to build additional ounces in the immediate area.



----------------------------------------------------------------------------
Hole # Silver Length From To Hole # Silver Length From To
------ ------ ------ ---- -- ------ ------ ------ ---- --
----------------------------------------------------------------------------
(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)
----------------------------------------------------------------------------

----------------------------------------------------------------------------
GAX020 50.3 3.6 98.4 102.0 GAX020 1725.0 1.1 30.0 31.1
----------------------------------------------------------------------------


EL TULE - NAYARIT STATE

In May, US Gold began prospecting at its El Tule property in Nayarit State, which is situated south of Sinaloa where the El Gallo Project is located. This property was acquired in 2007 when US Gold purchased Nevada Pacific Gold. El Tule is part of US Gold's large land package in Nayarit that totals approximately 242,000 acres and has a history of small scale mining.

A total of ten surface samples were taken over a distance 900 ft (275 m). Gold values ranged from 0.01 opt (0.2 gpt) to 1.1 opt (37.0 gpt) and averaged 0.26 opt (8.9 gpt). Drilling is scheduled to occur during the third quarter.

METALLURGICAL TESTING

US Gold has engaged SGS Mineral Services in Durango, Mexico to perform independent metallurgical test work. Internal testing has demonstrated good recoveries. This will help establish the most appropriate mining process.

NEVADA EXPLORATION & RESOURCE UPDATE

Drilling in Nevada resumed during the last week of May with the goal of expanding the recently published resource estimate at the Gold Bar Project located within the Cortez Trend. A second drill is scheduled to arrive during the coming weeks that will test targets away from the Gold Bar resource and most importantly explore for Cortez Hills style mineralization at the north end of the Tonkin Project.

An initial resource estimate for the Limo Project, located 20 miles (32 km) west of Barrick Gold's Bald Mountain Mine will be published during the third quarter. A total of 876 holes (31 drilled by US Gold) over an area of 44 miles has been completed at Limo.

ABOUT US GOLD

US Gold Corporation is a Colorado incorporated gold and silver exploration company. It has a strong treasury, no debt and significant land holdings in Nevada next to Barrick's large Cortez Hills deposit along with a high grade silver/gold discovery in north-western 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 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.

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.

GAX026 assays were obtained from pulps prepared at US Gold's Magistral Mine lab.

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 GAX001-27, click here: http://media3.marketwire.com/docs/uxg0611table.pdf.

To view Figure 1, click here: http://media3.marketwire.com/docs/uxg0611fig1.pdf.

To view Figure 2, click here: http://media3.marketwire.com/docs/uxg0611fig2.pdf.

To view Figure 3, click here: http://media3.marketwire.com/docs/uxg0611fig3.pdf.

To view Figure 4, click here: http://media3.marketwire.com/docs/uxg0611fig4.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