McEwen Mining

Published : August 11th, 2011

oration: El Gallo Infill Drill Results & High Grade Mineralization Disco

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US Gold Corporation: El Gallo Infill Drill Results & High Grade Mineralization Discovered South of Resource

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2011) - US GOLD CORPORATION (NYSE:UXG)(TSX:UXG) is pleased to announce assay results from several different areas at the El Gallo Project, located in Sinaloa State, Mexico, including: 1) infill drilling to the east, 2) an emerging high-grade zone to the southwest and 3) the Gold Zone.

1) El Gallo Infill Drill Results

Recent drilling at El Gallo has been focused on the eastern limits of the deposit (Fig. 2). The objective was to increase the confidence associated with the inferred mineralization, which is expected to upgrade this portion of the resource to the measured and indicated categories and help establish a reserve for preparation of the ongoing feasibility study.

Four holes, shown in the table below, were drilled inside the proposed pit design. Holes GAX-349 and GAX-351 successfully confirmed the presence of the inferred mineralization and help demonstrate the impressive grades and thicknesses associated with the Main Zone.

Holes GAX-318 and GAX-333 were drilled with the objective of converting lower grade inferred mineralization. These holes encountered higher grades than anticipated. The original production study contemplated sending this mineralization to the heap leach pad, but with the increased grade, the mineralization would likely be processed at the mill, where higher silver recoveries and enhanced margins are expected.

             Silver   Length     From    Silver Length    From
Hole #        (gpt) (meters) (meters)     (opt) (feet)  (feet)
-------------------------------------   ----------------------
GAX-349       180.4     72.4      0.0       5.3  237.5     0.0
Including     955.2     10.1     17.5      27.9   33.1    57.4
Including   2,382.1      2.6     23.4      69.5    8.5    76.8
-------------------------------------   ----------------------
-------------------------------------   ----------------------
GAX-351       168.1     36.6      0.0       4.9  120.1     0.0
Including     289.3     11.7     20.4       8.4   38.4    66.9
Including     735.0      0.8     24.4      21.4    2.6    80.1
And            88.7     27.4     44.5       2.6   89.9   146.0
Including     205.8      9.9     57.3       6.0   32.5   188.0
-------------------------------------   ----------------------
-------------------------------------   ----------------------
GAX-318       165.0     11.6     24.7       4.8   38.1    81.0
Including     443.0      2.0     32.4      12.9    6.6   106.3
And            79.2      7.4     85.5       2.3   24.3   280.5
-------------------------------------   ----------------------
-------------------------------------   ----------------------
GAX-333        89.8     26.7      4.6       2.6   87.6    15.1
Including     382.5      4.0     27.2      11.2   13.1    89.2
And           616.0      0.5     65.1      18.0    1.6   213.6
And            71.8      4.0     88.9       2.1   13.1   291.7


The six holes listed in the table below were drilled to intersect inferred mineralization either adjacent to or below the proposed pit. Although this inferred mineralization was deemed to be uneconomic in the Preliminary Economic Assessment (PEA), the area was tested because 1) US Gold's geologists believed there was an opportunity to increase the grade and 2) higher silver prices since the release of the PEA could make this mineralization profitable to mine. Overall the holes achieved their objectives.

            Silver   Length     From    Silver Length    From
Hole #       (gpt) (meters) (meters)     (opt) (feet)  (feet)
------------------------------------   ----------------------
GAX-317      210.4      3.4     57.2       6.1   11.2   187.7
Including    435.0      1.0     59.6      12.7    3.3   195.5
------------------------------------   ----------------------
------------------------------------   ----------------------
GAX-321       72.4     16.7      6.8       2.1   54.9    22.3
Including    351.0      1.0      8.2      10.2    3.3    26.9
Including    497.0      0.9     22.6      14.5    3.0    74.1
------------------------------------   ----------------------
------------------------------------   ----------------------
GAX-322       71.0     22.0     87.6       2.1   72.2   287.4
------------------------------------   ----------------------
------------------------------------   ----------------------
GAX-328       60.8     18.6     31.2       1.8   61.0   102.4
Including    656.0      0.5     49.3      19.1    1.6   161.7
------------------------------------   ----------------------
------------------------------------   ----------------------
GAX-338       65.3     20.8     86.8       1.9   68.2   284.8
Including    126.7      1.7     86.8       3.7    5.6   284.8
Including    122.5      3.0     98.5       3.6    9.8   323.2
------------------------------------   ----------------------
------------------------------------   ----------------------
GAX-335      162.7      5.2     47.4       4.7   17.1   155.5
Including    489.0      1.0     51.6      14.3    3.3   169.3


As drilling continues along the eastern limits of the deposit, a lower zone continues to be defined. This zone, which was initially discovered in 2010, is flat-lying and occurs 100 m (325 ft) below surface. Two recent holes have intersected this zone, helping to grow its size to the east and north. With limited drilling prior to the PEA, the eastern portion of this zone was excluded from the production study. Further drilling will help determine its ultimate size and economics.

            Silver   Length     From    Silver Length    From
Hole #       (gpt) (meters) (meters)     (opt) (feet)  (feet)
------------------------------------   ----------------------
GAX-329       93.3     12.2    110.6       2.7   40.0   362.9
Including    564.0      0.7    121.0      16.4    2.3   397.0
GAX-332       93.6     11.2    110.8       2.7   36.7   363.5
Including    421.0      1.2    115.3      12.3    3.9   378.3


2) Emerging High-Grade Zone

On March 30th, US Gold announced that high-grade silver and gold mineralization had been intersected 400 m (1,300 ft) southwest of the resource. The initial hole retuned 2,400 gpt silver, 39.3 gpt gold over 0.6 m. Three additional holes have since been drilled. The first two holes, drilled to establish the orientation of the vein, intersected the zone but returned lower grades. The third hole, drilled to extend the mineralization to the east, returned additional high-grade as shown below (Fig. 2). Although more drilling is required, the results demonstrate the potential to develop a new high-grade zone at El Gallo.

             Silver   Gold   Length     From    Silver   Gold Length    From
Hole #        (gpt)  (gpt) (meters) (meters)     (opt)  (opt) (feet)  (feet)
--------------------------------------------   -----------------------------
GAXSW004      325.4    6.8      4.5     62.6       9.5   0.20   14.8   205.4
Including     675.0   13.9      1.5     62.6      19.7   0.41    4.9   205.4
Including     320.0    7.0      1.5     65.6       9.3   0.20    4.9   215.2


3) Gold Zone Returns Deep Intercept

The El Gallo Gold Zone is situated 200 m (655 ft) southeast of the resource (Fig. 2). The original interpretation was that the area was comprised of two mineral structures, with a near-surface gold-rich zone and a silver zone at depth. New drilling has intersected another gold occurrence below both of the previously known zones. The result is encouraging as it suggests there is potential for mineralization at depth, which has seen limited exploration. To date, ten holes have been completed in this area.

              Gold   Length     From         Gold Length     From
Hole #       (gpt) (meters) (meters)        (opt) (feet)   (feet)
------------------------------------   --------------------------
GZX010         9.3      3.1    324.0         0.27   10.2  1,063.0
Including     22.5      1.1    326.0         0.66    3.6  1,069.6


Exploration around El Gallo since the feasibility study was initiated has returned promising results, including areas that are currently proposed for future mine site facilities. Many of these areas have not been thoroughly tested due to the on-going infill drilling program. US Gold has decided to shift half of its drilling to pursue these targets with the goal of further enhancing the project.


US Gold's objective is to qualify for inclusion in the S&P 500 by 2015. US Gold explores for gold and silver in the Americas and is advancing its El Gallo Project in Mexico and its Gold Bar Project in Nevada towards production. US Gold's shares are listed on the NYSE and the TSX under the symbol UXG, trading 1.9 million shares daily during the past twelve months. US Gold's shares are included in S&P/TSX and Russell indices and Van Eck's Junior Gold Miners ETF. Rob McEwen, Chairman and CEO, owns 20% of the shares of US Gold. On June 14, 2011 the Company announced that Mr. McEwen proposed to combine the Company with Minera Andes to create a high growth, low-cost, mid-tier silver producer focused on the Americas.

This news release has been viewed and approved by John Read, CPG, 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 to one half of the split drill core is shipped to ALS Chemex 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 20 samples.

All holes were drilled with HQ bits and reduced to NTW where required. Samples were taken based on lithologic and/or mineralized intervals and vary in length. The true width of the mineral zone has not 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, 2010 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 Table 1. Drill Results: Core Holes Assays, please visit the following link:

To view Figure 1: El Gallo District - Location of Veins, please visit the following link:

To view Figure 2: El Gallo Mineralization: Plan (Aerial View), please visit the following link:



McEwen Mining

ISIN : US58039P1075
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McEwen Mining is a gold development stage company based in Canada.

McEwen Mining produces gold, silver in Argentina and in Mexico, develops gold and silver in Mexico, and holds various exploration projects in Mexico.

Its main assets in production are MAGISTRAL MINE in Mexico and SAN JOSE ARGENTINA in Argentina, its main asset in development is EL GALLO MEXICO in Mexico and its main exploration properties are PALMARITO, GOLD PICK AND GOLD RIDGE, TONKIN PROJECT and MAGISTRAL in Mexico and LOS AZULES ARGENTINA and LIMO in Argentina.

McEwen Mining is listed in Canada, in Germany and in United States of America. Its market capitalisation is US$ 276.4 millions as of today (€ 242.1 millions).

Its stock quote reached its highest recent level on April 08, 2011 at US$ 9.87, and its lowest recent point on March 20, 2020 at US$ 0.53.

McEwen Mining has 337 054 594 shares outstanding.

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