US Gold Corporation
TSX : UXG
NYSE Amex : UXG

US Gold Corporation

July 07, 2009 09:01 ET

US Gold's El Gallo Project Continues to Expand 7.9 opt Silver Over 179 Feet Including 23.3 opt Silver Over 30 Feet!

MINERALIZATION STARTS CLOSE TO SURFACE

TORONTO, ONTARIO--(Marketwire - July 7, 2009) - US GOLD CORPORATION (NYSE Amex:UXG)(TSX:UXG) is pleased to announce results from six additional core holes (Table 1 & Figure 1) at the El Gallo project in Sinaloa State, Mexico. This core drilling has expanded the mineralization in two principal directions: 245 feet (ft) (75 meters (m)) to the northwest and 85 ft (25 m) to the southeast. The mineralization remains completely open and has grown to 1600 ft (485 meters) along strike. The most significant hole returned: 7.9 ounces of silver per ton (opt) (269.2 grams per tonne (gpt)) over 178.8 ft (54.5 m) including 23.3 opt Silver (800.1 gpt) over 30.2 ft (9.2 m).

A total of 33 core holes has been completed to date at El Gallo with 70% successfully intersecting silver grades greater than +14.5 opt (+500 gpt). Every hole drilled has encountered economically significant mineralization. We believe this is a strong validation of the high quality of the El Gallo discovery. In addition, recent drilling has returned wide zones of near surface mineralization that appears to be amenable to bulk tonnage mining.

Expanding the Mineralization to the East-Southeast

7.9 opt Silver (269.2 gpt) over 178.8 ft (54.5 m) including 23.3 opt Silver (800.1) over 30.2 ft (9.2 m)

Drilling east and southeast of previously released core holes has successfully intersected significant mineralization. Hole GAX032, which was drilled 65 ft (20 m) east of the previously released core holes returned 7.9 opt Silver (269.2 gpt) over 178.8 ft (54.5 m) including 23.3 opt Silver (800.1 gpt) over 30.2 ft (9.2 m). The excellent grades and widths returned from this hole helps demonstrate the potential to further expand the mineralization in this direction. This hole also extended the mineralization 85 ft (25 m) to the southeast. Highlights from this drilling are shown below.



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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)
----------------------------------------------------------------------------

----------------------------------------------------------------------------
GAX032
(ii) 7.9 178.8 14.8 193.6 GAX032 269.2 54.5 4.5 59.0
----------------------------------------------------------------------------
Includ-
ing 13.8 44.3 14.8 59.1 Including 474.1 13.5 4.5 18.0
----------------------------------------------------------------------------
Includ-
ing 39.4 5.2 39.0 44.3 Including 1,350.0 1.6 11.9 13.5
----------------------------------------------------------------------------
Includ-
ing 23.3 30.2 153.5 183.7 Including 800.1 9.2 46.8 56.0
----------------------------------------------------------------------------
Includ-
ing 52.1 5.1 175.4 180.4 Including 1,785.0 1.6 53.5 55.0
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And 10.7 14.8 326.0 340.7 And 368.3 4.5 99.4 103.9
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And 8.5 4.1 350.2 354.3 And 291.0 1.3 106.8 108.0
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And 14.8 3.3 421.6 424.9 And 508.0 1.0 128.5 129.5
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GAX031 16.0 3.3 318.2 321.5 GAX031 549.0 1.0 97.0 98.0
----------------------------------------------------------------------------
And 4.3 5.7 340.1 345.8 And 148.3 1.8 103.7 105.4
----------------------------------------------------------------------------
(i)Numbers may not add due to rounding
(ii)No cutoff grade used for sample interval


Expanding the Mineralization to the Northwest

22.1 opt Silver (757.9 gpt) over 28.4 ft (8.7 m)

Two core holes were drilled with the objective of extending mineralization further to the northwest. These holes successfully expanded the mineralization by a total 245 ft (75 m), returning excellent grades and widths. The zone remains open and future drilling will test for lateral and depth extensions. The results from these two holes are highlighted below:



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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)
----------------------------------------------------------------------------

----------------------------------------------------------------------------
GAX028 22.1 28.4 59.7 88.1 GAX028 757.9 8.7 18.2 26.9
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Includ-
ing 121.3 2.0 76.3 78.2 Including 4,160.0 0.6 23.3 23.9
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And 34.7 1.6 132.1 133.7 And 1,190.0 0.5 40.3 40.8
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GAX029 11.4 20.5 26.2 46.8 GAX029 392.4 6.3 8.0 14.3
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Includ-
ing 48.7 2.0 39.4 41.3 Including 1,670.0 0.6 12.0 12.6
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And 8.4 4.9 55.8 60.7 And 289.0 1.5 17.0 18.5
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And 4.3 3.8 152.6 156.3 And 149.0 1.2 46.5 47.7
----------------------------------------------------------------------------


Testing for Continuity

Two core holes were drilled to test for lateral continuity along the west-central portion of the mineral zone. Both holes intersected strong mineralization, indicating that continuity is present. These holes are important because they fill in areas where drilling was previously too widely spaced to be included in the initial El Gallo resource estimate. Results from these two holes are listed below:



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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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GAX030 5.0 15.7 41.3 57.1 GAX030 170.9 4.8 12.6 17.4
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And 7.2 33.3 72.8 106.1 And 245.7 10.2 22.2 32.4
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Includ-
ing 56.6 1.0 93.3 94.3 Including 1,940.0 0.3 28.5 28.8
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And 5.2 4.4 319.1 323.5 And 181.0 1.4 97.3 98.6
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GAX033 9.4 10.2 225.1 235.2 GAX033 321.1 3.1 68.6 71.7
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And 10.8 9.4 242.8 252.1 And 369.3 2.9 74.0 76.9
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El Gallo is unique among silver discoveries due to its high-grades, long intercepts and close proximity to the surface. The latest results continue to demonstrate that El Gallo is growing rapidly. US Gold geologists believe there is excellent potential for mineralization at El Gallo to increase in size, based on the large soil anomaly that has been only partially tested and the excellent correlation between this anomaly and significant drill intercepts (Figure 2). (See Figure 3 for photograph of recent high grade core sample)

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

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.



US Gold - El Gallo Core Holes GAX028-33 Table 1
News Release July 7, 2009

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Silver Length From Silver Length From Azimuth Dip
------ ------ ---- ------ ------ ---- ------- ---

Hole
Number (opt) (ft) (ft) (gpt) (m) (m)
------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
GAX028 22.1 28.4 59.7 757.9 8.7 18.2 220 degrees -75 degrees

Includ-
ing 121.3 2 76.3 4,160 0.6 23.3

And 34.7 1.6 132.1 1,190 0.5 40.3
----------------------------------------------------------------------------

----------------------------------------------------------------------------
GAX029 11.4 20.5 26.2 392.4 6.3 8 220 degrees -50 degrees

Includ-
ing 48.7 2.0 39.4 1,670 0.6 12

And 8.4 4.9 55.8 289 1.5 17

And 4.3 3.8 152.6 149.0 1.2 46.5
----------------------------------------------------------------------------

----------------------------------------------------------------------------
GAX030 5.0 15.7 41.3 170.9 4.8 12.6 360 degrees -45 degrees

And 7.2 33.3 72.8 245.7 10.2 22.2

Includ-
ing 56.6 1.0 93.3 1,940 0.3 28.5

And 5.2 4.4 319.1 181.0 1.4 97.3
----------------------------------------------------------------------------

----------------------------------------------------------------------------
GAX031 16.0 3.3 318.2 549.0 1.0 97.0 0 degrees -90 degrees

And 4.3 5.7 340.1 148.3 1.8 103.7
----------------------------------------------------------------------------

----------------------------------------------------------------------------
GAX032 7.9 178.8 14.8 269.2 54.5 4.5 170 degrees -45 degrees

Includ-
ing 13.8 44.3 14.8 474.1 13.5 4.5

Includ-
ing 39.4 5.2 39.0 1,350 1.6 11.9

Includ-
ing 23.3 30.2 153.5 800.1 9.2 46.8

Includ-
ing 52.1 5.1 175.4 1,785 1.6 53.5

And 10.7 14.8 326 368.3 4.5 99.4

And 8.5 4.1 350.2 291.0 1.3 106.8

And 14.8 3.3 421.6 508.0 1.0 128.5
----------------------------------------------------------------------------

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GAX033 9.4 10.2 225.1 321.1 3.1 68.6 220 degrees -45 degrees

And 10.8 9.4 242.8 369.3 2.9 74.0
----------------------------------------------------------------------------


To view Figure 1, please view the following link: http://media3.marketwire.com/docs/uxg0707fig1.pdf

To view Figure 2, please view the following link: http://media3.marketwire.com/docs/uxg0707fig2.pdf

To view Figure 3, please view the following link: http://media3.marketwire.com/docs/uxg0707fig3r.pdf

Contact Information

  • US Gold Corporation
    Ian Ball
    VP, Mexico
    (647) 258-0395 or Toll Free: (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