.US Gold Corporation: El Gallo Drilling Expands Silver Mineralization 100 Meters to the East..
Best Expansion Hole: 149 GPT Silver Over 23 Meters
Best Delineation Hole: 410 GPT Silver Over 40 Meters
Press Release Source: US Gold Corporation On Tuesday May 18, 2010, 9:07 am
TORONTO, ONTARIO--(Marketwire - 05/18/10) - US GOLD CORPORATION (TSX:UXG - News) (AMEX:UXG - News) is pleased to announce results from twenty-five new core holes (Fig. 1, Table 1) at the El Gallo Project in Sinaloa State, Mexico. The three best results since April 26, 2010 are: 12.0 ounces of silver per ton (opt) over 131.1 feet (ft) (410.2 grams of silver per tonne over 40.0 meters (m), 4.3 opt silver over 75.5 ft (149.0 gpt silver over 23.0 m) and 3.3 opt silver over 119.8 ft (114.6 gpt silver over 36.5 m).
Exploration Highlights
-- Main Zone extended by an additional 330 ft (100 m) to the east withintersections returning: 4.3 opt silver over 75.5 ft (149.0 gpt silverover 23.0 m). The strike of the Main Zone now measures 2,000 ft (610 m)in length.-- Delineation drilling in the Main Zone, designed to expand themineralization and increase the level of confidence, continues toconfirm wide intersections of good grade: 12.0 opt silver over 131.1 ft(410.2 gpt silver over 40.0 m) and 3.3 opt silver over 119.8 ft (114.6gpt silver over 36.5 m).-- North Zone continues to grow in size: 3.2 opt silver over 82.0 ft (108.4gpt silver over 25.0 m). Mineralization starts at surface.-- Recently discovered Southwest Zone returns: 3.5 opt silver over 35.4 ft(120.8 gpt silver over 10.4 m) starting from surface.-- Distance between the Main and North Zone continues to close: 17.1 optsilver over 14.4 ft (587.7 gpt silver over 4.4 m) and 2.8 opt silverover 160.8 ft (97.3 gpt silver over 49.0 m).
Main Zone Extended 330 ft (100 m) to the East - (Fig. 1, 3, 5)
4.3 opt silver over 75.5 ft (149.0 gpt silver over 23.0 m)
Six new holes were drilled in the Main Zone in order to expand the mineralization to the east. These holes successfully extended the mineralization by 330 ft (100 m) and increased the strike length to 2,000 ft (610 m) (Fig. 1, 3). US Gold's geologists believe this is an important development since it demonstrates that the mineralization continues beyond the soil geochemical signature (Fig. 5). Therefore, the potential to find additional mineralization looks promising. Highlights from these holes are listed below:
----------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)----------------------------------------------------------------------------GAX-126 2.4 58.6 156.3 214.9 80.9 17.9 47.7 65.5Including 17.4 3.9 211.0 214.9 595.0 1.2 64.3 65.5--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-128 3.0 53.5 436.0 489.5 104.3 16.3 132.9 149.2Including 20.7 3.1 476.0 479.2 711.0 1.0 145.1 146.1--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-129 3.8 24.9 148.0 172.9 130.8 7.6 45.1 52.7Including 15.6 1.3 171.6 172.9 534.0 0.4 52.3 52.7And 2.4 42.7 360.9 403.5 81.5 13.0 110.0 123.0Including 10.3 3.8 370.7 374.5 354.0 1.2 113.0 114.2--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-137 4.3 75.5 105.3 180.8 149.0 23.0 32.1 55.1Including 11.8 10.8 160.1 170.9 404.3 3.3 48.8 52.1--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-138 4.4 20.3 252.6 273.0 149.9 6.2 77.0 83.2Including 19.8 2.6 252.6 255.2 678.0 0.8 77.0 77.8And 3.6 20.3 303.8 324.1 124.0 6.2 92.6 98.8----------------------------------------------------------------------------All depths indicated in table are down hole0.73 opt Ag (25 gpt Ag) cutoffAllowable waste interval was 19.7 ft (6 m) of less than 0.73 opt Ag (25 gptAg)Numbers may not add due to roundingTrue widths are unknown
Successful Delineation Drilling Continues (Fig. 1)
12.0 opt silver over 131.1 ft (410.2 gpt silver over 40.0 m)
The purpose of the delineation drilling was to expand and better define the distribution and grade within the Main Zone. Hole GAX143 expanded the mineralization up-dip with a significant intersection that returned 12.0 opt silver over 131.1 ft (410.2 gpt silver over 40.0 m). GAX130 was a successful down-dip hole that expanded the zone and better defined the orientation of the mineralization. The remaining holes were designed to infill separate areas in order to establish greater continuity. These holes successfully intersected wide intervals of good grade that met expectations. Highlights from these holes are shown below:
----------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-127 3.0 80.1 98.9 179.0 102.2 24.4 30.2 54.6Including 13.7 5.1 98.9 104.0 469.0 1.6 30.2 31.7Including 10.1 2.8 116.1 118.9 345.0 0.9 35.4 36.3And 2.2 27.2 304.1 331.4 75.8 8.3 92.7 101.0--------------------------------------------------------------------------------------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-130 1.9 66.9 107.0 173.9 66.3 20.4 32.6 53.0Including 10.9 3.1 131.2 134.4 374.0 1.0 40.0 41.0And 7.1 20.5 294.5 315.0 243.0 6.3 89.8 96.0Including 101.5 1.3 313.6 315.0 3,480.0 0.4 95.6 96.0--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-134 3.3 119.8 0.0 119.8 114.6 36.5 0.0 36.5Including 12.5 9.2 61.5 70.7 428.8 2.8 18.8 21.6--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-142 1.4 143.7 7.9 151.6 49.6 43.8 2.4 46.2--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-143 12.0 131.1 52.8 183.9 410.2 40.0 16.1 56.1Including 278.3 2.8 52.8 55.6 9,540.0 0.9 16.1 17.0Including 49.1 4.3 102.2 106.5 1,685.0 1.3 31.2 32.5Including 33.3 1.1 157.8 159.1 1,140.0 0.4 48.1 48.5----------------------------------------------------------------------------
All depths indicated in table are down hole0.73 opt Ag (25 gpt Ag) cutoffAllowable waste interval was 19.7 ft (6 m) of less than 0.73 opt Ag (25 gptAg)Numbers may not add due to roundingTrue widths are unknown
Gap Continues to Close Between Main and North Zone - (Fig. 1, 4, 6)
One of the ongoing objectives of the 2010 drilling program is to establish continuity between the Main and North Zones. The results highlighted below are the most recent from this area (seven holes have been previously released) and demonstrate that the distance between the Main and North Zones continues to close (Fig. 1, 4, 6). If additional drilling is successful the area could conceivably be mined as one large open pit as opposed to two smaller pits. Highlights are shown below:
----------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)----------------------------------------------------------------------------GAX-113 1.9 30.7 278.5 309.2 66.1 9.4 84.9 94.3--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-114 2.8 160.8 45.3 206.0 97.3 49.0 13.8 62.8Including 13.1 6.2 176.2 182.4 449.1 1.9 53.7 55.6Including 14.8 4.6 201.4 206.0 507.0 1.4 61.4 62.8--------------------------------------------------------------------------------------------------------------------------------------------------------GAX119 3.0 89.9 28.5 118.4 101.7 27.4 8.7 36.1Including 9.9 16.1 69.6 85.6 338.8 4.9 21.2 26.1--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-136 17.1 14.4 102.0 116.5 587.7 4.4 31.1 35.5Including 26.0 7.1 106.1 113.2 891.0 2.2 32.4 34.5--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-140 6.0 40.0 81.4 121.4 205.5 12.2 24.8 37.0----------------------------------------------------------------------------All depths indicated in table are down hole0.73 opt Ag (25 gpt Ag) cutoffAllowable waste interval was 19.7 ft (6 m) of less than 0.73 opt Ag (25 gptAg)Numbers may not add due to roundingTrue widths are unknown
North Zone Continues to Grow in Size - (Fig. 1, 6)
3.2 opt silver over 82.0 ft (108.4 gpt silver over 25.0 m)
One new hole was completed in the North Zone. It intersected a wide interval of good grade starting from surface. The results from this hole expanded the mineralization 75 ft (23 m) laterally.
----------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-120 3.2 82.0 0.0 82.0 108.4 25.0 0.0 25.0Including 18.7 4.9 70.5 75.5 642.0 1.5 21.5 23.0----------------------------------------------------------------------------All depths indicated in table are down hole0.73 opt Ag (25 gpt Ag) cutoffAllowable waste interval was 19.7 ft (6 m) of less than 0.73 opt Ag (25 gptAg)Numbers may not add due to roundingTrue widths are unknown
Southwest Zone - Early Success Continues - (Fig. 1)
The initial discovery hole (GAX131) in the Southwest Zone was released on April 26, 2010 and returned 22.9 opt silver over 34.1 ft (785.7gpt silver over 10.4 m). Two additional holes have since been completed. GAX133 encountered near-surface mineralization 625 ft (190 m) northeast of GAX131 and 460 ft (140 m) southwest of the nearest drilling in the Main Zone. GAX132, an offset to GAX131 experienced poor core recoveries and did not encounter any silver. US Gold is planning to re-drill this hole. Results from GAX133 are listed below:
----------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-133 3.5 35.4 0.0 35.4 120.8 10.8 0.0 10.8----------------------------------------------------------------------------All depths indicated in table are down hole0.73 opt Ag (25 gpt Ag) cutoffAllowable waste interval was 19.7 ft (6 m) of less than 0.73 opt Ag (25 gptAg)Numbers may not add due to roundingTrue widths are unknown
Possible Parallel Zone Continues To Emerge - (Fig. 1)
On April 6th 2010, US Gold announced that two holes intersected what appears to be a separate zone that parallels the Main Zone. One new hole has been drilled to expand this mineralization along strike to the east. This hole successfully encountered a narrow zone of good grade starting near surface. Additional drilling is ongoing in order to expand the mineralization and better understand the size potential.
----------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-101 5.8 5.6 36.1 41.7 200.0 1.7 11.0 12.7----------------------------------------------------------------------------All depths indicated in table are down hole0.73 opt Ag (25 gpt Ag) cutoffAllowable waste interval was 19.7 ft (6 m) of less than 0.73 opt Ag (25 gptAg)Numbers may not add due to roundingTrue widths are unknown
Geological Technical Description of El Gallo
El Gallo is a low-sulfidation, epithermal silver deposit located within the Pie de la Sierra physiographic province of the Sierra Madre Occidental Range which is part of a Cretaceous to Tertiary magmatic arc with volcanic and associated sedimentary rocks that extends for hundreds of miles through northwestern Mexico. Cretaceous-Tertiary volcanic and volcaniclastic rocks rest upon a basement of Paleozoic and Mesozoic sedimentary and metamorphic rocks. Intrusives of Late Cretaceous and Tertiary age cut these rocks locally. Regionally, these intrusives are dominated by the granitic Sinaloa Batholith. El Gallo project is located near the margin of the Sinaloa Batholith. Other shallow-level porphyritic intrusives also occur within the project area. Silver mineralization is hosted in breccia and stockwork zones that occur primarily in the andesitic volcanic and intrusive rocks and to a lesser extent in quartz monzonite porphyry intrusive rocks. The shape of the mineralization has not yet been fully defined.
To view the 25 new core holes from this news release see Table 1.
To view all 143 core holes drilled at El Gallo, please click: usgold.com
To view assays intervals from core holes GAX137 and GAX147, please click:
GAX137: usgold.com
GAX147: usgold.com
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