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TORONTO, ONTARIO--(Marketwire - Jan. 11, 2011) - US GOLD CORPORATION
(NYSE:UXG)(TSX:UXG) is pleased to announce
exciting drill results from its Limo Project in Nevada. Four reverse
circulation holes have been drilled on the Cadillac target since the
discovery of a new zone was announced on December 6th. The best new
hole intersected 1.29 grams per tonne (gpt) gold over 94.5 meters (m)
and ended in mineralization.
US Gold geologists are excited by the recent results because: 1) thick
sections of continuous mineralization are present, 2) the grade appears
to be improving at depth, 3) the mineralization is open laterally and
at depth, and 4) historic drilling in the area was not deep enough to
encounter this new target.
The recent holes were designed to expand the gold mineralization found
earlier in hole LB71, which intercepted 1.48
gpt gold over 48.4 meters, by drilling a series of 30 meter (100 foot)
step-outs. Gold was intersected in all four of the recent holes, the best of which encountered 1.29 gpt gold over 94.5
meters, and was terminated in gold mineralization due to drilling
difficulties. True width of the mineralization is not known.
The significant thickness of the intercept in LB80 is hosted by a large
jasperoid body (silicification sometimes associated with gold deposits
in Nevada) below alluvial cover as seen on the cross section in Figure
1. With eight vertical and angle holes drilled so far, an area of
mineralization measuring 150 x 80 meters (490 x 260 feet) has been
identified. This zone is open to the south, east, north
and at depth where further drilling is planned to begin in February.
Intercepts from the four holes drilled are summarized below:
---------------------------------------------------------------------------- HOLE# Gold From Length Gold From Length opt(i) feet feet gpt(i) meters meters ---------------------------------------------------------------------------- LB77 0.034 415 125 1.15 126 38.1 Incl 0.054 420 20 1.86 128 6.1 Incl 0.058 485 35 2.00 148 10.7 LB78 0.014 395 160 0.49 120 48.8 Incl 0.040 400 15 1.36 122 4.6 LB79 0.092 470 10 3.16 143 3.0 LB80 0.019 425 60 0.64 130 18.3 And 0.038 595 310 1.29 181 94.5 Incl 0.144 875 15 4.93 267 4.6 ---------------------------------------------------------------------------- (i)(opt = Troy ounces per short ton, gpt = Grams per metric tonne. True widths of the intercepts are unknown.)
The Limo Project is located 75 miles (120 km)
east of Gold Bar, and consists of 44 sq. miles (114 sq. km) of mineral
rights. The property produced 91,000 ounces of gold between 1989 and
1990. In July 2009, US Gold released an initial Canadian NI 43-101 compliant
resource estimate for the project, outlining 241,000 ounces of gold
within the Measured and Indicated categories and 50,700 ounces of gold
in the Inferred. US Gold's recent drilling focused on two new areas
separate from the mineralization that make up the resource: 1) The
Cadillac discovery (described above), and 2) the Continental high-grade
silver/gold vein where recent drilling encountered 856 gpt silver and 1.77 gpt
gold over 6.4 meters.
ABOUT US GOLD (www.usgold.com)
US Gold's goal is to qualify for inclusion in the S&P 500 within
the next 5 years. US Gold explores for gold and silver in the Americas,
has an exciting silver discovery called El Gallo in Mexico, and is
advancing its Gold Bar Project in Nevada towards production. US Gold
also has an aggressive exploration program. The company's shares are
listed on the NYSE and the Toronto Stock Exchange under the symbol UXG,
trading 1.2 million shares daily for the last 12 months. US Gold's shares
are included in S&P/TSX and Russell indices.
QUALIFIED PERSON
Disclosure for Nevada projects: This news release has been prepared,
reviewed and approved by Robert L. Kastelic,
CPG, US Gold's Senior Consulting Geologist, who is a Qualified Person
as defined by National Instrument 43-101 and is responsible for program
design and quality control of mineral exploration undertaken by the
company at its Nevada exploration properties. Holes drilled by reverse
circulation were sampled on 5-ft intervals. All gold assays are uncut,
with analyses conducted by Inspectorate Laboratories, Reno, Nevada,
utilizing a 30-gram fire assay charge with an
AA finish. Quality assurance/quality control is assured by inserting
standards and blanks every 40th sample and check assays sent to a
second lab every 20th sample.
Certain statements contained herein and subsequent oral statements made
by and on behalf of the US Gold 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 US Gold'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 US Gold'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 US Gold. Investors are
cautioned not to put undue reliance on forward-looking statements.
Except as otherwise required by applicable securities statutes or
regulations, the US Gold's disclaims any intent or obligation to update
publicly these forward looking statements, whether as a result of new
information, future events or otherwise.
Cautionary Note: U.S. investors should be aware that US Gold has no
"reserves" as defined by SEC Guide 7 and are cautioned not to
assume that any part or all of the potential target mineral resources
will ever be confirmed or converted into SEC Guide 7 compliant
"reserves".
This press release also contains information about adjacent properties
on which we have no right to explore or mine. We advise U.S. investors
that the SEC's mining guidelines strictly prohibit information of this
type in documents filed with the SEC. U.S. investors are cautioned that
mineral deposits on adjacent properties are not indicative of mineral
deposits on our properties.
To view Figure 1. Cadillac - Cross Section Looking NE, please visit: http://media3.marketwire.com/docs/uxg_figure.pdf.
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