TORONTO, ONTARIO--(Marketwire - Dec. 8, 2010) - US GOLD CORPORATION
(NYSE:UXG)(TSX:UXG) is pleased to announce the discovery of three
gold-bearing veins near the company's El Gallo Project in Sinaloa
state, Mexico (Fig. 1). The three veins, which to date have been
defined by a total of 17 core holes, are all located within hauling
distance of El Gallo. These new veins will not be included in the
upcoming Preliminary Economic Assessment.
"The discovery of these veins illustrates the exploration
potential of US Gold's large land package around El Gallo. Follow-up
drilling has commenced with the objective of further extending the
mineralization. Seven drills are currently operating at the project and
we expect this pace to continue throughout 2011," stated Rob
McEwen, Chairman and CEO.
Drill Assay Highlights
The drill assay results shown below are selected assays from the three
new veins. Complete results are listed in Table 1. Vein locations are
shown in Figure 1.
Gold Zone Vein (2 core holes drilled - 500 meters SE of El Gallo) Current Known Strike Length 50 m (Fig. 2) -- GZX-002: 7.7 gpt gold over 4.8 meters, including 22.2 gpt gold over 1.1 meters -- GZX-001: 6.4 gpt gold over 3.1 meters, including 10.8 gpt gold over 1.2 meters Alamo Vein (10 core holes drilled - 7 km North El Gallo) Current Known Strike Length 450 m (Fig. 3) -- SJX-002: 9.3 gpt gold over 1.7 meters -- SJX-008: 7.8 gpt gold over 0.8 meters -- SJX-009: 7.6 gpt gold over 1.7 meters -- SJX-010: 4.2 gpt gold over 6.0 meters, including 7.9 gpt gold over 1.4 meters Oro Vein (5 core holes drilled - 32 km NE of El Gallo) Current Known Strike Length 90 m -- POX-002: 7.4 gpt gold over 0.9 meters -- POX-003: 5.9 gpt gold over 0.9 meters
The Alamo and Oro veins were historically
mined underground on a limited scale. Mining targeted the upper portion
of the vein that appears at the surface. Underground sampling on the
veins produced encouraging values for gold and was followed-up with the
drilling described above.
The El Gallo Gold Zone vein was initially discovered by a US Gold
prospector in late 2008, but delays in permitting didn't allow the area
to be drill tested until recently. Similar to the El Gallo silver
discovery located 500 m to the northwest (Fig 1, 2), no previous mining
is evident in the area.
Each of the three gold veins appears to have the potential to extend at
depth and laterally. In addition, several other gold and silver veins
have been discovered through prospecting and geological mapping.
Drilling has commenced on these new veins as well.
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
has a strong treasury and is debt free. The company's shares are listed
on the NYSE and the Toronto Stock Exchange under the symbol UXG,
trading 1.2 million shares daily. US Gold's shares are also included in
S&P/TSX and Russell indices.
QUALIFIED PERSON
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 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 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 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, 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 Table 1. "El Gallo District Drill Results: Core Holes
Assays", please visit the following link: http://media3.marketwire.com/docs/US_table.pdf.
To view Figure 1. "El Gallo District - Location of Known
Veins", please visit the following link: http://media3.marketwire.com/docs/US_figure1.pdf.
To view Figure 2. "El Gallo Resource Outline + Planned
Drilling", please visit the following link: http://media3.marketwire.com/docs/US_figure2.pdf.
To view Figure 3. "San Jose del Alamo Cross Section", please
visit the following link: http://media3.marketwire.com/docs/US_figure3.pdf.
|