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TORONTO,
ONTARIO--(Marketwire - May 3, 2010) - US GOLD CORPORATION (NYSE
Amex:UXG) (TSX:UXG) is pleased to report the results of a significant
new core hole (Fig 1) at the El Gallo Project in Sinaloa State, Mexico.
This hole intersected 22.9 ounces of silver per ton (opt) over 34.1
feet (ft) (785.7 grams per tonne silver (gpt) over 10.4 meters (m). The
intersection occurs 1,150 ft (350 m) southwest of all previous core
drilling in a new area named the "Southwest Zone" and starts
just 29.5 ft (9.0 m) below surface.
---------------------------------------------------------------------- Hole # Silver Length From To Silver Length From To ---------------------------------------------------------------------- (opt) (ft) (ft) (ft) (gpt) (m) (m) (m) ---------------------------------------------------------------------- ---------------------------------------------------------------------- GAX131 22.9 34.1 25.3 59.4 785.7 10.4 7.7 18.1 ---------------------------------------------------------------------- Including 67.4 6.1 30.0 36.1 2,310.0 1.9 9.2 11.0 ---------------------------------------------------------------------- All depths indicated in table are down hole 0.73 opt Ag (25 gpt Ag) cutoff Allowable waste interval was 3.3 ft (1 m) of less than 0.73 opt Ag (25 gpt Ag) Numbers may not add due to rounding True widths are unknown
"This
is a fantastic hole and it opens up a completely new area for
exploration! Additional drilling will look to connect this
mineralization to the Main Zone and try to extend it further to the
southwest, which is untested. US Gold is now establishing what I feel
is an excellent platform for growth: a significant silver discovery at
El Gallo in Mexico, an advanced stage gold project at Gold Bar in
Nevada, large prospective land holdings and a large treasury with no
debt," stated Rob McEwen, Chairman and CEO.
Description of Southwest Zone
The Southwest Zone was originally identified through a soil geochemical
survey (Fig 2). Further rock sampling in the area confirmed the
presence of highly anomalous silver values. Hole GAX131 is the first
core hole drilled in this part of the project. Assays for two other
holes will be completed in approximately two weeks (Fig 3). Early
interpretations suggest the Southwest Zone may be an extension of the Main
Zone. Additional drilling is planned to test this concept.
Geological Technical Description of El Gallo
El Gallo is a low-sulfidation, epithermal silver deposit located within
the Pie de la Sierra physiographic province of the Sierra Madre
Occidental Range which is part of a Cretaceous to Tertiary age magmatic
arc with volcanic and associated sedimentary rocks that extends for
hundreds of miles through northwestern Mexico. Cretaceous-Tertiary
volcanic and volcaniclastic rocks rest upon a basement of Paleozoic and
Mesozoic age sedimentary and metamorphic rocks. Intrusives of Late
Cretaceous and Tertiary age cut these rocks locally. Regionally, these
intrusives are dominated by the granitic Sinaloa Batholith. El Gallo
project is located near the margin of the Sinaloa Batholith. Other
shallow-level porphyritic intrusives also occur within the project
area. Silver mineralization is hosted in breccia and stockwork zones
that occur primarily in the andesitic volcanic and intrusive rocks and
to a lesser extent in quartz monzonite porphyry intrusive rocks. The
shape of the mineralization has not yet been fully defined.
To view all 118 core holes drilled at El Gallo, please click:
http://www.usgold.com/news/pdf/20090805_uxg_elgalloallholes.pdf
To view assays intervals from core holes GAX131, please click:
http://www.usgold.com/news/pdf/20100503/gax131.xls
ABOUT US GOLD (www.usgold.com)
US Gold Corporation is a Colorado incorporated gold and silver
exploration company with a strong treasury, no debt and two significant
land holdings, one in Nevada next to Barrick Gold's multi-million ounce
Cortez project, and the other in Mexico where an exciting high-grade
silver discovery has been made. US Gold's goal is to qualify for
inclusion in the S&P 500 within 5 years. US Gold's shares trade on
the NYSE Amex and the Toronto Stock Exchange under the symbol UXG. US
Gold has good market liquidity, trading 1.0 million shares daily, and
is included in S&P/TSX and Russell indices.
QUALIFIED PERSON
This news release has been viewed and approved by John Read, US Gold's
consulting 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 Company's
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 were inserted
every 20 samples.
All holes were drilled with HQ bits. 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 shown on Figure 3 were analyzed by US Gold's
internal lab, located at the Magistral Mine, 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, 2009 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 Figure 1 map, please visit the following link:
http://media3.marketwire.com/docs/El_Gallo1.pdf
To view the Figure 2 map, please visit the following link:
http://media3.marketwire.com/docs/El_Gallo2.pdf
To view the Figure 3 map, please visit the following link:
http://media3.marketwire.com/docs/El_Gallo3.pdf
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