US Gold Corporation-El Gallo: Two New High-Grade Areas Discovered
Best Result: 34.6 opt Silver, 0.51 opt Gold over 30 ftIncluding: 81.1 opt Silver, 2.1 opt Gold over 5 ft
- Press Release
- Source: US Gold Corporation
- On 9:00 am EST, Tuesday January 6, 2009
TORONTO, ONTARIO--(MARKET WIRE)--Jan 6, 2009 -- US GOLD CORPORATION (Toronto:UXG.TO - News)(NYSE ALTERNEXT US: UXG)(Frankfurt:US8.F - News) announces more exciting results from its El Gallo project in Sinaloa, Mexico. High-grade mineralization has been encountered at four separate locations.
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El GALLO EXPLORATION HIGHLIGHTS
- Drilling expands original discovery, El Gallo Zone 1 (G1), with the highest silver grades to date from this zone: 37.9 opt silver (1300.0 gpt silver) over 5.0 ft (1.5 m), within 21.3 opt silver (730.5 gpt silver) over 10.0 ft (3.0 m).
- The second area discovered, El Gallo Zone 2 (G2), expands with significant high-grade: 13.0 opt silver (446.9 gpt silver), 0.2 opt gold (6.9 gpt gold) over 45.0 ft (13.7 m), including 47.4 opt silver (1625.0 gpt silver), 0.86 opt gold (29.4 gpt gold) over 5.0 ft (1.5 m)
- Additional results from G2: 32.7 opt silver (1121.5 gpt silver) over 20.0 ft (6.1 m), including 55.4 opt silver (1900.0 gpt silver) over 10 ft (3.0 m).
- Two additional discoveries, El Gallo Zone 3 (G3) and El Gallo Zone 4 (G4), with the best intersection returning 34.6 opt silver (1187.3 gpt silver), 0.51 opt gold (17.6 gpt gold) over 30.0 ft (9.1 m), including 81.1 opt silver (2780.0 gpt silver), 2.1 opt gold (72.4 gpt gold) over 5.0 ft (1.5 m).
"Our exploration at El Gallo is getting much more exciting because: 1) significant high grade gold and silver assay values are being found over good widths; 2) these values have been found close to surface and to-date all of our drilling has been shallow, only testing to 150.0 ft (45.7 m) below surface; and 3) favorable gold and silver grades in soil samples (internal assay lab) are prompting us to rapidly expand the area and scope of our drilling," stated Rob McEwen, Chairman and CEO of US Gold.
CONTINUING EXPLORATION SUCCESS!
Two New Areas Deliver High-Grade Results
As a result of an ongoing rock and geochemical soil sampling program, US Gold geologists successfully identified two new areas (Figure 2). G3 is located along the eastern edge of the project and it's believed to be part of the same mineral structure that controls the initial discoveries. The G4 area, located to the southeast, is interpreted to be a separate zone. These exciting results demonstrate the effectiveness of our initial testing utilizing inexpensive conventional rotary drilling and the potential to expand the identified mineralization. Highlights are below:
Hole # Silver Gold Silver Eq.(i) Length From To
----- ------ ---- ------------ ------ ---- --
(Imperial) (opt) (opt) (opt) (ft) (ft) (ft)
G3 Area
GABHA08-119 12.7 - 12.7 90.0 60.0 150.0
Including 39.5 - 39.5 10.0 85.0 95.0
GABHA08-120 8.1 less than 0.01 8.4 50.0 70.0 120.0
Including 27.6 0.01 28.2 5.0 75.0 80.0
And 3.8 0.01 4.1 10.0 130.0 140.0
G4 Area
GABHAR08-070 34.6 0.51 62.4 30.0 0.0 30.0
Including 81.1 2.1 195.1 5.0 10.0 15.0
GABHA08-071 19.8 0.21 30.9 30.0 10.0 40.0
Including 33.8 0.38 54.3 15.0 15.0 30.0
Including 43.0 0.56 73.0 5.0 15.0 20.0
GABHA08-072 8.2 0.11 14.0 20.0 30.0 50.0
Including 19.5 0.31 36.3 5.0 45.0 50.0
GABHA08-076 11.0 0.15 18.9 15.0 0.0 15.0
Including 17.4 0.28 32.7 5.0 5.0 10.0
GABHA08-077 33.1 0.53 61.9 40.0 10.0 50.0
Including 67.1 1.2 132.8 15.0 15.0 30.0
Including 77.9 1.8 177.3 5.0 15.0 20.0
Hole # Silver Gold Silver Eq.(i) Length From To
----- ------ ---- ------------ ------ ---- --
(Metric) (gpt) (gpt) (gpt) (m) (m) (m)
G3 Area
GABHA08-119 434.1 - 434.1 27.4 18.3 45.7
Including 1355.0 - 1355.0 3.0 25.9 29.0
GABHA08-120 277.7 0.16 286.4 15.2 21.3 36.6
Including 946.0 0.39 966.8 1.5 22.9 24.4
And 129.5 0.19 140.0 3.0 39.6 42.7
G4 Area
GABHAR08-070 1187.3 17.6 2138.6 9.1 0.0 9.1
Including 2780.0 72.4 6689.6 1.5 3.0 4.6
GABHA08-071 678.5 7.0 1059.1 9.1 3.0 12.2
Including 1160.0 13.0 1860.6 4.6 4.6 9.1
Including 1475.0 19.1 2503.7 1.5 4.6 6.1
GABHA08-072 281.1 3.7 479.6 6.1 9.1 15.2
Including 668.0 10.7 1245.8 1.5 13.7 15.2
GABHA08-076 375.7 5.1 648.7 4.6 0.0 4.6
Including 597.0 9.7 1119.7 1.5 1.5 3.0
GABHA08-077 1133.6 18.3 2121.2 12.2 3.0 15.2
Including 2300.0 41.7 4551.8 4.6 4.6 9.1
Including 2670.0 63.1 6077.4 1.5 4.6 6.1
(i) Gold:Silver Ratio 3 year average (1:54); Cut-off grade 2.9 opt silver
(100 gpt silver)
Metallurgical Recoveries and Net Smelter Returns are based on 100%
Numbers may not balance due to roundingSingle Mineral Zone Emerging?
Drilling at El Gallo began just three months ago and has outlined four mineralized areas (labeled G1, G2, G3 and G4) containing good grades of gold and silver. These four mineralized areas are contained in a larger area measuring approximately 800.0 ft (245.0 m) long and 600.0 ft (180.0 m) wide. The objective of our recent conventional rotary drilling around G1 and G2 was to 1) expand the area of high-grade mineralization, and 2) test to see if these areas connect. Although more work is required to connect these two areas, the high-grade mineralization was successfully extended.
Drilling at G1 expanded the strike length of the mineralization by 65.0 ft (19.8 m) to 490.0 ft (150.0 m). In addition, the highest silver grades yet encountered from this zone were returned, indicating more favorable grades might be located west of our current drilling. Significant intercepts are stated below:
Hole # Silver Gold Silver Eq.(i) Length From To ------ ------ ---- ------------ ------ ---- -- (Imperial) (opt) (opt) (opt) (ft) (ft) (ft) G1 Area GABHA08-057 11.5 0.01 12.0 25.0 30.0 55.0 And 3.5 - 3.5 15.0 105.0 120.0 GABHA08-060 3.8 0.07 7.7 5.0 5.0 10.0 And 21.3 - 21.3 10.0 25.0 35.0 Including 37.9 - 37.9 5.0 25.0 30.0 And 5.7 - 5.7 30.0 70.0 100.0 And 3.6 - 3.6 5.0 140.0 145.0 Hole # Silver Gold Silver Eq.(i) Length From To ------ ------ ---- ------------ ------ ---- -- (Metric) (gpt) (gpt) (gpt) (m) (m) (m) G1 Area GABHA08-057 395.0 0.3 413.1 7.6 9.1 16.8 And 120.2 - 120.2 4.6 32.0 36.6 GABHA08-060 131.0 2.5 263.8 1.5 1.5 3.0 And 730.5 - 730.5 3.0 7.6 10.7 Including 1300.0 - 1300.0 1.5 7.6 9.1 And 194.8 - 194.8 9.1 21.3 30.5 And 125.0 - 125.0 1.5 42.7 44.2
Drilling at G2 successfully expanded the mineralization to the north (150.0 ft) (45.0 m), east (100.0 ft) (30.0 m) and west (100.0 ft) (30.0 m). Drilling in the south, to the 150.0 ft (45.0 m) depth capability of our conventional rotary drills, did not encounter any significant mineralization.
Results to date show that some of the best intersections are at the edge of our drilling, indicating that the high-grade has excellent potential to expand further (Figure 4).
Hole # Silver Gold Silver Eq.(i) Length From To
----- ------ ---- ------------ ------ ---- --
(Imperial) (opt) (opt) (opt) (ft) (ft) (ft)
G2 Area
GABHA08-063 12.4 less than 0.01 12.6 110.0 40.0 150.0
Including 39.7 less than 0.01 39.9 5.0 45.0 50.0
GABHA08-065 8.0 - 8.0 110.0 10.0 120.0
Including 27.2 - 27.2 10.0 90.0 100.0
And 3.4 - 3.4 5.0 140.0 145.0
GABHA08-103 32.7 - 32.7 20.0 40.0 60.0
Including 55.4 - 55.4 10.0 45.0 55.0
GABHA08-108 13.2 - 13.2 55.0 30.0 85.0
Including 29.5 - 29.5 10.0 50.0 60.0
GABHA08-109 14.8 0.01 15.3 20.0 50.0 70.0
And 4.3 - 4.3 10.0 80.0 90.0
And 3.0 0.02 4.0 5.0 100.0 105.0
GABHA08-110 8.1 0.03 9.8 30.0 10.0 40.0
GABHA08-111 8.7 - 8.7 45.0 0.0 45.0
Including 22.2 0.01 22.6 5.0 5.0 10.0
And 6.8 - 6.8 5.0 85.0 90.0
GABHA08-121 15.5 - 15.5 45.0 60.0 105.0
GABHA08-122 13.7 - 13.7 45.0 65.0 110.0
Including 30.9 less than 0.01 31.1 5.0 80.0 85.0
And 4.7 - 4.7 5.0 125.0 130.0
GABHA08-125 13.0 0.20 23.9 45.0 10.0 55.0
Including 47.4 0.86 93.7 5.0 15.0 20.0
And 4.9 0.01 5.3 5.0 65.0 70.0
And 8.8 - 8.8 15.0 130.0 145.0
GABHA08-127 9.1 0.17 18.4 5.0 115.0 120.0
GABHA08-129 17.5 0.21 28.9 15.0 135.0 150.0
Hole # Silver Gold Silver Eq.(i) Length From To
----- ------ ---- ------------ ------ ---- --
(Metric) (gpt) (gpt) (gpt) (m) (m) (m)
G2 Area
GABHA08-063 426.2 0.1 433.0 33.5 12.2 45.7
Including 1360.0 0.1 1366.8 1.5 13.7 15.2
GABHA08-065 272.6 - 272.6 33.5 3.0 36.6
Including 931.5 - 931.5 3.0 27.4 30.5
And 118.0 - 118.0 1.5 42.7 44.2
GABHA08-103 1121.5 - 1121.5 6.1 12.2 18.3
Including 1900.0 - 1900.0 3.0 13.7 16.8
GABHA08-108 451.2 - 451.2 16.8 9.1 25.9
Including 1012.5 - 1012.5 3.0 15.2 18.3
GABHA08-109 507.3 0.3 525.3 6.1 15.2 21.3
And 146.0 - 146.0 3.0 24.4 27.4
And 104.0 0.6 135.6 1.5 30.5 32.0
GABHA08-110 276.3 1.1 335.9 9.1 3.0 12.2
GABHA08-111 297.3 0.1 302.7 13.7 0.0 13.7
Including 762.0 0.3 776.2 1.5 1.5 3.0
And 234.0 - 234.0 1.5 25.9 27.4
GABHA08-121 532.2 - 532.2 13.7 18.3 32.0
Including 1410.0 - 1410.0 1.5 21.3 22.9
GABHA08-122 471.1 - 471.1 13.7 19.8 33.5
Including 1060.0 0.1 1060.0 1.5 24.4 25.9
And 160.0 - 160.0 1.5 38.1 39.6
GABHA08-125 446.9 6.9 819.4 13.7 3.0 16.8
Including 1625.0 29.4 3212.6 1.5 4.6 6.1
And 167.0 0.3 181.1 1.5 19.8 21.3
And 301.0 - 301.0 4.6 39.6 44.2
GABHA08-127 312.0 5.9 632.2 1.5 35.1 36.6
GABHA08-129 601.7 7.2 992.2 4.6 41.1 45.7
(i) Gold:Silver Ratio 3 year average (1:54); Cut-off grade 2.9 opt silver
(100 gpt silver)
(ii) Angle Hole
Metallurgical Recoveries and Net Smelter Returns are based on 100%
Numbers may not balance due to roundingQ1 Exploration Program
Mexico, Utah and Nevada
With the recent exploration success in Mexico, US Gold is currently designing a diamond drill program for El Gallo and Palmarito's South West Zone. The objective will be to confirm our current work and establish a baseline for future resource estimates and to test for additional mineralization at depth.
In November 2008 US Gold acquired the rights to explore key claims inside of its Bat Ridge property, which was acquired through the takeover of Nevada Pacific Gold in 2007. Historical exploration on the property returned very encouraging values. Reverse circulation drilling is scheduled to begin in the coming weeks. Drilling in Nevada is scheduled to resume in late spring and will look to build upon the resource estimates that were published in 2008.
For a complete list of results from El Gallo please visit www.usgold.com.
ABOUT US GOLD
US Gold Corporation is a United States based gold exploration company exploring in northeastern Nevada and north-central 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, 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. Conventional rotary drill samples were analyzed by ALS Chemex utilizing a 4 acid digestion with ICP finish for silver and fire assay for gold. 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 conventional rotary drilling. Samples were taken every 5.0 ft (1.5 m). 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, 2007 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.
Mailing Address 99 George Street, 3rd Floor Toronto, ON M5A 2N4
Figure 1 is available at the following web link: http://media3.marketwire.com/docs/uxg0106fig1.pdf.
Figure 2 is available at the following web link: http://media3.marketwire.com/docs/uxg0106fig2.pdf.
Figure 3 is available at the following web link: http://media3.marketwire.com/docs/uxg0106fig3.pdf.
Figure 4 is available at the following web link: http://media3.marketwire.com/docs/uxg0106fig4.pdf.
Contact:
Contacts:
US Gold Corporation
Ian Ball
VP, Mexico
(647) 258-0395 or Toll Free: 1-866-441-0690
(647) 258-0408 (FAX)
Email: info@usgold.com
Website: http://www.usgold.com
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