US Gold Announces 26% Increase in Measured and Indicated Resources at Its Gold Bar Project, Nevada
Press Release Source: US Gold Corporation On Wednesday March 31, 2010, 4:10 pm EDT
TORONTO, ONTARIO--(Marketwire - 03/31/10) - US GOLD CORPORATION (AMEX:UXG - News)(TSX:UXG - News) is pleased to announce an improvement in the estimated mineral resource for its 100% owned Gold Bar Project in Nevada. Measured and Indicated (M&I) resources increased 26% to 974,875 oz gold within 36.9 million tons of material with an average grade of 0.026 ounces gold per ton (opt) (0.905 grams gold per tonne (gpt)), from 772,600 oz gold within 25.1 million tons of material with an average grade of 0.031 opt (1.053 gpt). The change represents both the upgrade of mineralization from the Inferred category to M&I, and the variation resulting from new drill information and detailed re- modeling. US Gold's current estimate incorporates over 100 new holes drilled in 2009 at the Gold Bar Project. The resource was prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards pursuant to National Instrument 43-101 ("NI 43-101") by Telesto Nevada Inc. of Reno, Nevada.
Table 1 - Gold Bar Project Resources (Imperial Units) March 2010 New Estimate(1)------------------------------------------------ Cutoff Avg. Resource Grade Tonnage Gold Grade Category (opt) (MM tons) Ounces (opt)Gold Pick/RidgeMeasured 0.012 31.2 850,127 0.027Indicated 0.012 2.1 33,348 0.016 ------------------Measured + Indicated 0.012 33.3 883,475 0.027Inferred 0.012 1.2 18,929 0.016Cabin CreekIndicated 0.012 3.2 76,700 0.024Inferred 0.012 0.1 940 0.015HunterIndicated 0.012 0.5 14,700 0.031Inferred 0.012 0.1 2,000 0.015TOTALMeasured 0.012 31.2 850,127 0.027Indicated 0.012 5.7 124,748 0.022 ------------------Measured + Indicated 0.012 36.9 974,875 0.026Inferred 0.012 1.4 21,869 0.016 Table 1 - Gold Bar Project Resources (Imperial Units) May 2009 Estimate(2) Change 2009-2010---------------------------------------------------------------------------- Cutoff Avg. Resource Grade Tonnage Gold Grade Tonnage Gold Gold Category (opt) (MM tons) Ounces (opt) (MM tons) Ounces Ounces %Gold Pick/RidgeMeasured 0.012 17.9 616,600 0.034 - - -Indicated 0.012 3.5 64,600 0.018 - - - ------------------Measured + Indicated 0.012 21.5 681,200 0.032 11.8 202,275 30%Inferred 0.012 8.7 186,000 0.021 -7.5 -167,071 -90%Cabin CreekIndicated 0.012 3.2 76,700 0.024 - - -Inferred 0.012 0.1 940 0.015 - - -HunterIndicated 0.012 0.5 14,700 0.031 - - -Inferred 0.012 0.1 2,000 0.015 - - -TOTALMeasured 0.012 17.9 616,600 0.034 - - -Indicated 0.012 7.2 156,000 0.022 - - - ------------------Measured + Indicated 0.012 25.1 772,600 0.031 11.8 202,275 26%Inferred 0.012 8.9 188,940 0.021 -7.5 -167,071 -88%
Table 2 - Gold Bar Project Resources (Metric Units) March 2010 New Estimate(1)------------------------------------------------ Cutoff Tonnage Gold Avg. Resource Grade (MM Grams Grade Category (gpt) tonnes) (000s) (gpt)Gold Pick/RidgeMeasured 0.411 28.3 26,422 0.935Indicated 0.411 1.9 1,037 0.544 ------------------Measured + Indicated 0.411 30.2 27,459 0.901Inferred 0.411 1.1 588 0.540Cabin CreekIndicated 0.411 2.9 2,387 0.829Inferred 0.411 0.1 29 0.511HunterIndicated 0.411 0.4 456 1.079Inferred 0.411 0.1 63 0.521TOTALMeasured 0.411 28.3 26,422 0.935Indicated 0.411 5.2 3,880 0.745 ------------------Measured + Indicated 0.411 33.5 30,302 0.905Inferred 0.411 1.3 680 0.537 Table 2 - Gold Bar Project Resources (Metric Units) May 2009 Estimate(2) Change 2009-2010---------------------------------------------------------------------------- Cutoff Tonnage Gold Avg. Tonnage Gold Gold Resource Grade (MM Grams Grade (MM Grams Grams as Category (gpt) tonnes) (000s) (gpt) tonnes) (000s) %Gold Pick/RidgeMeasured 0.411 16.3 19,144 1.176 - - -Indicated 0.411 3.2 2,003 0.624 - - - ------------------Measured + Indicated 0.411 19.5 21,147 1.085 10.7 6,312 30%Inferred 0.411 7.9 5,782 0.734 -6.8 -5,194 -90%Cabin CreekIndicated 0.411 2.9 2,387 0.829 - - -Inferred 0.411 0.1 29 0.511 - - -HunterIndicated 0.411 0.4 456 1.079 - - -Inferred 0.411 0.1 63 0.521 - - -TOTALMeasured 0.411 16.3 19,144 1.176 - - -Indicated 0.411 6.5 4,846 0.743 - - - ------------------Measured + Indicated 0.411 22.8 23,990 1.053 10.7 6,312 26%Inferred 0.411 8.1 5,874 0.729 -6.8 -5,194 -88%
(1) A NI 43-101 compliant technical report containing the "March 2010 New Estimate" will be filed on SEDAR and posted on US Gold's website (http://www.usgold.com/) within 45 days. The resource estimate with an effective date of March 31, 2010 was completed by Jonathan M. Brown, CPG, MBA, (Telesto Nevada Inc.) a "Qualified Person" and "Independent" of US Gold within the meaning of NI 43-101. The resource model was created using MicroModel mining software, with the Cutoff grade of 0.012 opt Au (0.411 gpt) as selected by Telesto Nevada Inc. The total number of drill holes used in the March 2010 New Estimate numbers over 1764. Figures may not add due to rounding.
(2) For further information about the Gold Bar Project, including details of the "May 2009 Estimate", please refer to the NI 43-101 compliant technical report entitled "NI 43-101 Technical Report for the Gold Pick Project, Expanded to Include the Cabin Creek and Hunter Resources, Eureka County, Nevada" prepared for US Gold Corporation, dated and with an effective date of May 5, 2009, by Jonathan M. Brown CPG, MBA, (Telesto Nevada Inc.) a "Qualified Person" and "Independent" of US Gold Corporation within the meaning of NI 43-101. This report is available on SEDAR (http://www.sedar.com/) and on the US Gold website (http://www.usgold.com/). The resource model was created using MicroModel mining software, with the Cutoff grade of 0.012 opt Au (0.411 gpt) as selected by Telesto Nevada Inc. The total number of drill holes used in the May 2009 Estimate was 1647. Figures may not add due to rounding.
PRELIMINARY ECONOMIC ASSESSMENT
US Gold and Telesto are currently finalizing the Preliminary Economic Assessment ("PEA") for the Gold Bar Project, and anticipate completion no later that April 16th, 2010. The PEA estimates the quantity of economically mineable gold, the costs to develop the project, and the financial returns associated with production. A news release announcing the publication of the PEA will be issued in conjunction with its filing on SEDAR (http://www.sedar.com/) and on the US Gold website (http://www.usgold.com/).
IN ADDITION, NEW RESOURCE ESTIMATE AT NEW PASS PROJECT, NEVADA
US Gold is also pleased to announce details of a new resource estimate for its New Pass Project (50% owned) in Nevada. The new estimate was completed to incorporate approximately 60 new drill holes completed in 2007-2008. The current resource was prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards pursuant to NI 43-101 by Telesto Nevada Inc. of Reno, Nevada. The following resources are reported on a 100% basis, US Gold's interest is 50%.
Table 3 - New Pass Gold/Silver Resources(3) Imperial Metric----------------------------------------------------------------------------Resource Tonnage Category Tonnage Gold Avg. Grade (MM Gold GramsAvg. GradeGOLD (MM tons) Ounces (opt) tonnes) (000s) (gpt)----------------------------------------------------------------------------Measured 11.0 311,000 0.028 9.9 9,677 0.972Indicated 0.2 2,900 0.017 0.2 90 0.590 -------------------- --------------------Measured + Indicated 11.1 313,900 0.028 10.1 9,767 0.966Resource Tonnage SilverCategory Tonnage Silver Avg. Grade (MM Grams Avg. GradeSILVER (MM tons) Ounces (opt) tonnes) (000s) (gpt)----------------------------------------------------------------------------Measured 5.5 1,319,500 0.240 9.9 82,096 8.250Indicated 0.1 6,700 0.080 0.2 418 2.730 -------------------- --------------------Measured + Indicated 5.6 1,326,200 0.240 10.1 82,514 8.160
(3) For further information about the New Pass Project, please refer to the NI 43-101 compliant technical report entitled "NI 43-101 TECHNICAL REPORT FOR THE NEW PASS PROJECT, CHURCHILL COUNTY, NEVADA" (the "New Pass Report") prepared for US Gold Corporation with an effective date of December 23, 2009, by Jonathan M. Brown CPG, MBA, (Telesto Nevada Inc.), a "Qualified Person" and "Independent" of US Gold Corporation within the meaning of NI 43-101. This report will be filed by April 1, 2010 on SEDAR (http://www.sedar.com/) and on the US Gold website (http://www.usgold.com/). The resource model was created using MicroModel mining software, with the Cutoff grade of 0.012 opt Au (0.411 gpt) as selected by Telesto Nevada Inc. The total number of drill holes used in the New Pass Report was 263. Figures may not add due to rounding.
The New Pass Project, which encompasses approximately 3.5 square miles of mineral rights, is located on the western flank of the New Pass Range in Churchill County, Nevada. The project is currently subject to an option agreement between a US Gold subsidiary and Bonaventure Enterprises Inc. Should the option be exercised, a 50-50 joint venture company will be created, with Bonaventure as operator. Mineralization at New Pass is sediment-hosted with disseminated gold and silver contained in both sulphides and oxides, similar to Carlin-type deposits.
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