US Gold Corporation
TSX : UXG
AMEX : UXG

US Gold Corporation

April 10, 2007 08:01 ET

US Gold Exploration Update-Encouraging Results; Best Grade: 0.73 Opt Over 5 Ft.

DENVER, COLORADO--(CCNMatthews - April 10, 2007) - US GOLD CORPORATION (TSX:UXG)(AMEX:UXG) is pleased to announce encouraging exploration results, including 0.73 ounces per ton (opt) over 5 feet within a larger intercept of 0.097 opt over 59.5 feet, from its Tonkin gold project. This high-grade occurrence is located in a flat lying northeast oriented structure, which is a prominent feature of major gold discoveries on the Cortez and Carlin Trends. Drilling also encountered mineralization of 0.096 opt over 14 feet in a vertical structure, which was the first such occurrence encountered on the property.

US Gold is now merging the land positions and geologic data acquired in the recent takeovers of White Knight Resources, Nevada Pacific Gold, and Tone Resources, in order to advance exploration on what US Gold believes are highly prospective properties.

"US Gold has reached a significant milestone. Our consolidation of four companies into one creates a strategic land position that rivals Barrick's Cortez Joint Venture, where past production, current reserves and mineralized material of 33 million ounces of gold have been discovered," stated Rob McEwen, Chairman and CEO. "I am excited about US Gold's prospects and the potential for discovering another large gold deposit in the Cortez Trend."

EXPLORATION RESULTS

Exploration drilling has been focused around known mineralization and past producing areas to better understand the geology, and to test for new mineralization. We refer to these areas as Middle, Southern, and Rooster as shown on Figure 1. Complete assay results since the last exploration update are available in the attached Table 1.

Middle Area

High-Grade Gold -- 0.73 opt over 5 feet

The best result of 0.73 opt over 5 feet was encountered 75 feet northeast of a historic high-grade intercept. It is contained in a northeast and flat-lying structure which is a prominent and common feature of major gold discoveries on both the Cortez and Carlin Trends. In addition, it expands the known area of high-grade mineralization. The significant results are summarized below:



Hole 44 0.097 gold opt over 59.5 feet (3.301 gold gpt over 18.1 m)
Including 0.730 gold opt over 5 feet (25.00 gold gpt over 3.05 m)
Hole 34 0.044 gold opt over 84 feet (1.500 gold gpt over 25.6 m)
Including 0.125 gold opt over 16.5 feet (4.285 gold gpt over 5.03 m)


In addition, drilling in the Middle Area encountered the first vertical feature, and further drilling is underway to determine its potential. A vertical feature is significant because it could represent a deep feeder structure. The most significant results obtained are:



Hole 54 0.037 gold opt over 10 feet (1.265 gold gpt over 3.05 m)
0.040 gold opt over 15 feet (1.379 gold gpt over 4.57 m)

Hole 57 0.093 gold opt over 14 feet (3.186 gold gpt over 4.27 m)


Southern Area

Deep Drilling, Extending Mineralization to Depth

Drilling targeted a new area east and southeast of favorable results obtained last fall. The highlights are summarized below:



Hole 51 0.138 gold opt over 24 feet (4.713 gold gpt over 7.32 m)
Including 0.250 gold opt over 3 feet (8.570 gold gpt over 0.91 m)
0.193 gold opt over 15 feet (6.603 gold gpt over 4.57 m)
Including 0.235 gold opt over 10.5 feet (8.026 gold gpt over 3.20 m)


Significant mineralization was encountered between two known gold resources. Future drilling will look to connect these areas of known mineralization. The highlights from these holes are shown below:



Hole 59 0.056 gold opt over 38 feet (1.243 gold gpt over 11.6 m)
Including 0.126 gold opt over 10 feet (4.308 gold gpt over 3.05 m)

Hole 66 0.098 gold opt over 20 feet (3.369 gold gpt over 6.1 m)
Including 0.150 gold opt over 10 feet (5.147 gold gpt over 3.05 m)

Hole 68 0.056 gold opt over 10 feet (1.898 gold gpt over 3.05 m)
Including 0.100 gold opt over 5 feet (3.420 gold gpt over 1.52 m)


Rooster Area

Results from drilling in and around the large resource at Rooster confirmed the known mineralization, however drilling met with limited success expanding the resource laterally and to depth. Results below are important because they confirm the existing resource:



Hole 27 0.039 gold opt over 40 feet (1.334 gold gpt over 12.2 m)
Including 0.059 gold opt over 20 feet (2.018 gold gpt over 6.1 m)
0.053 gold opt over 50 feet (1.813 gold gpt over 15.2 m)
0.040 gold opt over 40 feet (1.368 gold gpt over 12.2 m)

Hole 29 0.044 gold opt over 54.3 feet (1.505 gold gpt over 16.6 m)
Including 0.062 gold opt over 30 feet (2.120 gold gpt over 9.1 m)

Hole 61 0.042 gold opt over 32 feet (1.444 gold gpt over 9.76 m)
Including 0.151 gold opt over 5.5 feet (5.164 gold gpt over 1.68 m)
0.039 gold opt over 42.5 feet (1.325 gold gpt over 12.96 m)


Exploration will continue in the mine corridor and expand into new areas throughout the coming year.

ABOUT US GOLD

US Gold is a United States based gold exploration company aggressively exploring Nevada's Cortez Trend. US Gold's Tonkin project is 44 square miles and centered in the middle of the Cortez Trend. Shares of the Company are traded on the AMEX and TSX under the symbol UXG. Visit www.usgold.com for more information.

QUALIFIED PERSON

This news release has been prepared under the guidance of Steve Brown, Senior Geologist and Project Manager, 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 Tonkin Springs property. All samples were analyzed by ALS Chemex of Winnemucca, Nevada.

All assays are uncut, with analysis conducted by ALS Chemex utilizing a 30 gram fire assay change with an AA finish. Sample length is by geologic boundary with a maximum 5 foot length and core recovery averages 95-98%. Quality assurance/quality control is assured by inserting standards and blanks every 40th sample and check assays sent to second lab every 20th sample.

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-KSB for the fiscal year ended December 31, 2006 and those set forth in the registration statements referenced above, under the caption "Risk Factors" and other filings with the SEC. 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.



Table 1 -- Assay Results

---------------------------------------------------------------------------
---------------------------------------------------------------------------
Hole Target Hole Assay Interval Gold Assay Gold Assay Purpose &
No. Area Length Ounces Grams Results
(feet) From To Length per Length per
(Angle) (feet) (feet) (feet) ton (meters) tonne
---------------------------------------------------------------------------
SOUTHERN AREA
---------------------------------------------------------------------------
28 Southern 1762 577 588 11 0.010 3.35 0.342 Testing
(-50 target
degrees) area
---------------------------------------------------------------------------
32 Southern 1727 No signi-
(-50 ficant
degrees) gold
---------------------------------------------------------------------------
35 Southern 300 No signi-
(-90 ficant
degrees) gold
---------------------------------------------------------------------------
36 Southern 100 50 60 10 0.013 3.05 0.445 Gold in
(-90 tertiary
degrees) volcanics
---------------------------------------------------------------------------
42 Southern 895 215 230 15 0.071 4.57 2.428 Confirmed
(-90 resource,
degrees) 485 495 10 0.025 3.05 0.855 tested
deeper
---------------------------------------------------------------------------
51 Southern 947.5 210 224 14.0 0.012 3.20 0.425 Confirmed
(-90 resource
degrees) 275 299 24 0.138 7.32 4.713 and
includ- extended
ing 293 296 3 0.250 0.91 8.570 deeper
311 328.5 15 0.193 4.57 6.603 mineral-
includ- 318 328.5 10.5 0.235 3.20 8.026 ization
ing 520 528 8 0.043 2.44 1.475
620 626 6 0.096 1.83 3.283
663 675 12 0.021 3.66 0.717
includ-
ing 663 668 5 0.043 1.52 1.471
---------------------------------------------------------------------------
52 Southern 884.5 143.5 156 12.5 0.019 3.81 0.640 Confirmed
(-90 resource
degrees) 334 344 10 0.076 3.05 2.616 and
extended
339 344 5 0.105 1.52 3.591 deeper
mineral-
512 524.5 12.5 0.059 3.81 2.001 ization
516 520 4 0.118 1.22 4.036
---------------------------------------------------------------------------
53 Southern 1000 30 40 10 0.014 3.05 0.479 Confirmed
(-50 resource,
degrees) 80 105 25 0.042 7.62 1.438 tested
including 90 95 5 0.104 1.52 3.562 west
560 570 10 0.010 3.05 0.342 limit of
deeper
mineral-
ization
---------------------------------------------------------------------------
55 Southern 1060 125 135 10 0.010 3.05 0.359 Confirmed
(-55 resource,
degrees) 375 385 10 0.040 3.05 1.368 tested
675 685 10 0.014 3.05 0.479 west
limit of
deeper
mineral-
ization
---------------------------------------------------------------------------
59 Southern 1421 302 340 38 0.056 11.58 1.908 Inter-
includ- sected
ing 317 327 10 0.126 3.05 4.308 signi-
(-50 ficant
degrees) mineral-
ization in
undrilled
area
between
resources
---------------------------------------------------------------------------
63 Southern 935 75 85 10 0.065 3.05 2.223 Inter-
(-90 sected
degrees) 280 290 10 0.011 3.05 0.376 deeper
310 340 30 0.050 9.15 1.710 mineral-
490 500 10 0.010 3.05 0.342 ization
740 750 10 0.013 3.05 0.428 beneath
previous
drilling
and in
between
resources
---------------------------------------------------------------------------
65 Southern 755 220 235 15 0.026 4.57 0.901 Confirmed
(-90 resource,
degrees) 305 310 5 0.031 1.52 1.060 defined
410 430 20 0.012 6.10 0.402 NW limit
420 430 10 0.013 3.05 0.445 of deeper
mineral-
ization
---------------------------------------------------------------------------
66 Southern 912 115 135 20 0.098 6.10 3.369 Inter-
includ- sected
ing 125 135 10 0.150 3.05 5.147 mineral-
(-90 ization
degrees) 215 245 30 0.022 9.15 0.753 between
resources
---------------------------------------------------------------------------
68 Southern 1143 325 335 10 0.056 3.05 1.898 Inter-
includ- sected
ing 325 330 5 0.100 1.52 3.420 mineral-
(-60 ization
degrees) between
resources
---------------------------------------------------------------------------
70 Southern 1424 802.5 813.5 11 0.013 3.53 0.445 Tested
(-50 for
degrees) feeder
beneath
resource
---------------------------------------------------------------------------
71 Southern 996 98 111.5 13.5 0.015 4.12 0.502 Test
(-90 undrilled
degrees) area
between
resources
---------------------------------------------------------------------------
73 Southern 919 350 365 15 0.014 4.57 0.490 Test
(-90 undrilled
degrees) area
between
resources
---------------------------------------------------------------------------



---------------------------------------------------------------------------
---------------------------------------------------------------------------
Hole Target Hole Assay Interval Gold Assay Gold Assay Purpose &
No. Area Length Ounces Grams Results
(feet) From To Length per Length per
(Angle) (feet) (feet) (feet) ton (meters) tonne
---------------------------------------------------------------------------
MIDDLE AREA
---------------------------------------------------------------------------
25 Middle 2032 No
(-70 signi-
degrees) ficant
gold
---------------------------------------------------------------------------
31 Middle 2032 No
(-50 signi-
degrees) ficant
gold
---------------------------------------------------------------------------
34 Middle 1708 83 89 6 0.069 1.83 2.363 Confirmed
(-50 grade
degrees) 118 202 84 0.044 25.61 1.500 and
151.5 168 16.5 0.125 5.03 4.274 lateral
depth
extens-
ions of
known
resource
---------------------------------------------------------------------------
41 Middle 1339 No
(-50 signi-
degrees) ficant
gold
---------------------------------------------------------------------------
44 Middle 1884 152.5 212 59.5 0.097 18.14 3.306 Extended
includ- historic
ing 163 168 5 0.730 1.52 25.00 0.6 opt
(-90 mineral-
degrees) ization
---------------------------------------------------------------------------
47 Middle 1921.5 830 840 10 0.016 3.05 0.555 Testing
(-50 target
degrees) area
---------------------------------------------------------------------------
54 Middle 1160 170 180 10 0.013 3.05 0.445 Extended
(-60 resource
degrees) 190 200 10 0.037 3.05 1.265 250 feet
270 285 15 0.040 4.57 1.379 southeast
335 345 10 0.010 3.05 0.359
---------------------------------------------------------------------------
56 Middle 1468 83 90 7 0.015 2.13 0.523 Confirmed
(-50 resource
degrees) 210 225 15 0.044 4.57 1.518
---------------------------------------------------------------------------
57 Middle 1894 313 323 10 0.011 3.05 0.376 Deeper
(-50 mineral-
degrees) 619 633 14 0.093 4.27 3.185 ization
905 918 13 0.015 3.96 0.513 +400
feet
below
resource,
indicates
possible
feeder
---------------------------------------------------------------------------
60 Middle 920 265 270 5 0.010 1.52 0.330 Inter-
(-50 sected
degrees) gold in
tertiary
volcanics
above
sedi-
mentary
contact
---------------------------------------------------------------------------
64 Middle 430 No
(-90 signi-
degrees) ficant
gold
---------------------------------------------------------------------------
76 Middle 1191 67 79 12.30 0.011 3.75 0.377 Tested
(-90 for
degrees) 257 268 11.00 0.011 3.35 0.379 feeder
292 307 15.00 0.012 4.57 0.399 beneath
342 357 15.00 0.014 4.57 0.467 resource,
confirmed
resource
---------------------------------------------------------------------------
---------------------------------------------------------------------------



---------------------------------------------------------------------------
---------------------------------------------------------------------------
Hole Target Hole Assay Interval Gold Assay Gold Assay Purpose &
No. Area Length Ounces Grams Results
(feet) From To Length per Length per
(Angle) (feet) feet) (feet) ton (meters) tonne
---------------------------------------------------------------------------
ROOSTER AREA
---------------------------------------------------------------------------
27 Rooster 1000 10 25 15 0.011 4.57 0.376 Confirmed
(-50 resource,
degrees) 55 95 40 0.039 12.20 1.334 infilled
includ- with
ing 70 90 20 0.059 6.10 2.018 angle
135 200 65 0.020 19.82 0.684 hole
includ-
ing 190 195 5 0.046 1.52 1.573
270 320 50 0.053 15.24 1.813
includ-
ing 270 315 45 0.058 13.72 1.983
360 370 10 0.021 3.05 0.718
415 455 40 0.040 12.20 1.368
includ-
ing 430 455 25 0.049 7.62 1.676
465 475 10 0.025 3.05 0.855
495 515 20 0.019 6.10 0.650
---------------------------------------------------------------------------
29 Rooster 1873 290.7 345 54.3 0.044 16.55 1.505 Confirmed
includ- resource,
ing 306 336 30 0.062 9.15 2.123 infilled
(-55 with
degrees) 371 382 11 0.012 3.35 0.410 angle
446 458 12 0.015 3.66 0.513 hole
461 505 44 0.016 13.41 0.547
506 514 8 0.024 2.44 0.821
561 583 22 0.033 6.71 0.992
---------------------------------------------------------------------------
33 Rooster 1764 No signi-
(-50 ficant
degrees) gold
---------------------------------------------------------------------------
38 Rooster 840 40 80 40 0.017 12.20 0.581 Confirmed
(-60 resource,
degrees) 150 175 25 0.026 7.62 0.896 infilled
205 220 15 0.017 4.57 0.582 angle
265 290 25 0.017 7.62 0.582 hole
295 310 15 0.019 4.57 0.661
475 485 10 0.012 3.05 0.411
490 500 10 0.055 3.05 1.884
525 535 10 0.024 3.05 0.822
645 660 15 0.018 4.57 0.616
800 810 10 0.010 3.05 0.342
---------------------------------------------------------------------------
39 Rooster 1422 No signi-
(-70 ficant
degrees) gold
---------------------------------------------------------------------------
40 Rooster 1846 61.8 85 23.2 0.043 7.07 1.471 Confirmed
includ- resource
ing 67 73.1 6.1 0.113 1.86 3.881
---------------------------------------------------------------------------
43 Rooster 1127 32 42 10 0.012 3.05 0.409 Confirmed
(-60 52 77 25 0.026 7.62 0.722 resource
degrees) 356 367 11 0.016 3.35 0.548
includ-
ing 359.5 360 0.5 0.119 0.15 4.075
---------------------------------------------------------------------------
45 Rooster 1071.5 No signi-
(-55 ficant
degrees) gold
---------------------------------------------------------------------------
46 Rooster 1050 35 45 10 0.027 3.05 0.940 Confirmed
(-60 resource,
degrees) 55 65 10 0.010 3.05 0.359 infilled
80 90 10 0.015 3.05 0.513 with
100 120 20 0.014 6.10 0.487 angle
165 185 20 0.024 6.10 0.821 hole
365 380 15 0.018 4.57 0.604
460 470 10 0.010 3.05 0.359
520 530 10 0.010 3.05 0.359
---------------------------------------------------------------------------
48 Rooster 1415 41 60 19 0.025 5.79 0.870 Confirms
includ- resource,
ing 56 60 4 0.065 1.22 2.230 infilled
(-80 with
degrees) 115 130 15 0.014 4.57 0.479 angle
hole
---------------------------------------------------------------------------
49 Rooster 1740.5 275 295 20 0.013 6.10 0.460 Test
(-45 western
degrees) 420 432 12 0.013 3.66 0.450 horst
margin
---------------------------------------------------------------------------
50 Rooster 1415 30 57 27 0.028 8.23 0.954 Inters-
includ- ected
ing 41 44 3 0.060 0.91 2.050 signi-
includ- ficant
ing 44 47 3 0.046 0.91 1.585 shallow
(-80 mineral-
degrees) 203 214 11 0.012 3.35 0.411 ization
in
undrilled
area
between
resources
---------------------------------------------------------------------------
61 Rooster 1294 347 379 32 0.042 9.76 1.444 Confirmed
(-75 resource
degrees) 352.5 358 5.5 0.151 1.68 5.164 and
404 446.5 42.5 0.039 12.96 1.325 extended
455 462 7 0.044 2.13 1.495 minerali-
472.5 481.5 9 0.011 2.74 0.382 zation
513.5 539 25.5 0.016 7.77 0.548 400 feet
to depth
and NE 390
feet
---------------------------------------------------------------------------
67 Rooster 1180 195 205 10 0.025 3.05 0.855 Confirmed
(-90 resource
degrees) 245 260 15 0.021 4.57 0.718
275 285 10 0.040 3.05 1.351
325 340 15 0.016 4.57 0.547
415 425 10 0.010 3.05 0.342
445 465 20 0.015 6.10 0.504
490 500 10 0.019 3.05 0.633
585 595 10 0.015 3.05 0.530
---------------------------------------------------------------------------
69 Rooster 916 10 20 10 0.032 3.05 1.111 Tested
(-50 for
degrees) 165 190 25 0.027 7.62 0.923 feeders
at depth,
confirmed
resource
---------------------------------------------------------------------------
72 Rooster 500 0 10 10 0.022 3.05 0.752 Tested
(-50 new target
degrees)
---------------------------------------------------------------------------
74 Rooster 439 No signi-
(-45 ficant
degrees) gold
---------------------------------------------------------------------------
75 Rooster 964 39 64 25 0.025 7.62 0.845 New
(-50 target
degrees) 41 54 13 0.039 3.96 1.336 from
114 119 5 0.021 1.52 0.718 soil
414.5 429 14.5 0.080 4.42 2.722 geochem
425 429 4 0.215 1.22 7.353
---------------------------------------------------------------------------
---------------------------------------------------------------------------


A diagram illustrating the Southern, Middle and Rooster areas has been uploaded to the CCNMatthews website. To view, please visit the following link: http://www.ccnmatthews.com/docs/UXGMAP0410.pdf

Contact Information

  • US GOLD CORPORATION
    William F. Pass
    Vice President and Chief Financial Officer
    (303) 238-1438
    (303) 238-1724 (FAX)
    Email: bill@usgold.com
    or
    US GOLD CORPORATION
    Ana Aguirre
    Investor Relations
    (647) 258-0395 Toll Free: 1-866-441-0690
    (647) 258-0408 (FAX)
    Email: info@usgold.com
    Website: www.usgold.com