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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.
ABOUT US GOLD (www.usgold.com)
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:
http://media3.marketwire.com/docs/usgold_811_table_1.pdf
To view Figure 1: El Gallo District - Location of Veins, please visit
the following link:
http://media3.marketwire.com/docs/usgold_811_fig_1.pdf
To view Figure 2: El Gallo Mineralization: Plan (Aerial View), please
visit the following link:
http://media3.marketwire.com/docs/usgold_811_fig_2.pdf
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