US Gold Corporation: El Gallo Drilling Continues to Deliver Impressive Results..
Initial Resource Estimate Due in 4 Weeks
US Gold CorporationUS GOLD CORPORATION.
Symbol Price Change
UXG 4.03 0.00
Press Release Source: US Gold Corporation On Wednesday June 9, 2010, 8:30 am
TORONTO, ONTARIO--(Marketwire - 06/09/10) - US GOLD CORPORATION (AMEX:UXG - News)(TSX:UXG - News) is pleased to announce results from eighteen new core holes (Fig. 1, Table 1) at the El Gallo Project in Sinaloa State, Mexico. The three best results since May 18, 2010 are: 4.6 ounces of silver per ton (opt) over 125.0 feet (ft) (158.1 grams per tonne (gpt) over 38.1 meters (m), 8.3 opt silver over 60.7 ft (285.7 gpt over 18.5 m) and 3.0 opt silver over 91.5 ft (104.1 gpt over 27.9 m). In addition, El Gallo's initial resource estimate is scheduled to be released in approximately four weeks.
MAIN ZONE - EXPANDED IN MULTIPLE AREAS
Recent drilling in the Main Zone had three objectives: 1) test for near surface mineralization, 2) identify mineralization at depth and, 3) extend zone to the east. Each objective was successfully achieved.
1) Drilling For Near Surface Mineralization (Fig. 1, 3)4.6 opt silver over 125.0 ft (158.1 gpt over 38.1 m)
The first objective was to extend the near surface mineralization (Fig. 1). These holes were focused in the eastern part of the Main Zone. Hole GAX-155 is important because the mineralization starts near surface and it is one of multiple holes to have now encountered good grade over a wide intersections at El Gallo (Fig. 3). The potential for similar results in this area looks promising. Highlights are shown below:
----------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To------------------------------------------ --------------------------------(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-147 7.2 25.1 44.1 69.2 245.2 7.7 13.5 21.1Including 21.6 4.1 60.9 65.0 739.0 1.3 18.6 19.8--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-154 3.3 37.9 201.8 239.7 111.7 11.6 61.5 73.1Including 21.5 3.3 223.1 226.4 738.0 1.0 68.0 69.0And 1.6 70.5 479.8 550.4 53.8 21.5 146.3 167.8--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-155 4.6 125.0 122.4 247.4 158.1 38.1 37.3 75.4Including 21.0 2.8 185.4 188.2 721.6 0.9 56.5 57.4Including 27.9 3.8 211.6 215.4 956.5 1.2 64.5 65.7Including 14.1 7.9 223.1 231.0 484.5 2.4 68.0 70.4----------------------------------------------------------------------------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 unknown2) Identifying Mineralization at Depth (Fig. 4)8.3 opt silver over 60.7 ft (285.7 gpt over 18.5 m)
Recent drilling targeted mineralization at depth. Hole GAX-148 encountered one of the deepest intersections of silver mineralization to date, occurring 440 ft (135 m) below surface (Fig 4). GAX-146 encountered a wide interval of good grade, broadening the Main Zone at depth. GAX-152 was located in the eastern area of the Main Zone where minimal drilling has occurred, helping to provide continuity between holes.
----------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To------------------------------------------ --------------------------------(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-146 3.0 91.5 321.7 413.2 104.1 27.9 98.1 126.0Including 23.6 4.6 395.0 399.6 809.0 1.4 120.4 121.8--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-148 2.8 28.5 592.8 621.4 97.4 8.7 180.7 189.4--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-152 1.6 86.9 257.9 344.8 56.5 26.5 78.6 105.1And 8.3 60.7 431.4 492.1 285.7 18.5 131.5 150.0Including 64.5 3.3 446.2 449.5 2,210.0 1.0 136.0 137.0----------------------------------------------------------------------------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 unknown3) Extending Zone To The East (Fig. 1)Strike Length Extended 230 ft (70 m)
In the Main Zone the exploration objective was to extend the mineralization along strike to the east (Fig. 1). GAX163 and GAX164 successfully extended the strike length by 230 ft (70 m). The strike of the Main Zone now totals 2,150 ft (655 m). Results from these two holes are listed below.
----------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To------------------------------------------ --------------------------------(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-163 2.7 11.0 70.0 81.0 93.4 3.4 21.4 24.7Including 6.3 3.6 72.5 76.1 217.0 1.1 22.1 23.2And 1.4 32.3 105.6 138.0 47.9 9.9 32.2 42.1And 2.8 15.7 464.9 480.6 96.6 4.8 141.7 146.5--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-164 1.9 71.5 83.3 154.9 66.5 21.8 25.4 47.2Including 7.8 6.2 83.3 89.6 267.0 1.9 25.4 27.3----------------------------------------------------------------------------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)
One of the goals for 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 and demonstrate that the distance between the Main and North Zones continues to close (Fig. 1). 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-151 3.0 58.4 60.7 119.1 102.5 17.8 18.5 36.3Including 13.7 4.9 106.6 111.5 470.5 1.5 32.5 34.0--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-161 5.5 18.4 62.3 80.7 189.0 5.6 19.0 24.6----------------------------------------------------------------------------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
Parallel Zone Continues to Emerge (Fig. 1)
A fourth core hole has now successfully encountered what US Gold's geologists believe is a new zone that parallel's the Main Zone. GAX-156 was drilled 165 ft (50 m) east of our previous hole GAX-101 (5.8 opt silver over 5.6 ft (200.0 gpt silver over 1.7 m)). The known strike length of the parallel zone totals 360 ft (110 m). Results for GAX-156 are listed below.
----------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To------------------------------------------ --------------------------------(opt) (ft) (ft) (ft) (gpt) (m) (m) (m)--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-156 7.0 12.5 17.7 30.2 238.9 3.8 5.4 9.2----------------------------------------------------------------------------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
US Gold - Up Coming News from Mexico
US Gold's drill program is one of the largest currently underway in Mexico and the company is anticipating a number of exciting developments over the coming months. First, an additional twenty core holes from El Gallo will be released in approximately two weeks. Second, El Gallo's initial resource estimate will be published in four weeks. Third, additional drill results from regional exploration will be announced mid July. Work is also well underway on El Gallo's Preliminary Economic Assessment (scoping study), which will be released by year-end. This is a very exciting time for US Gold's shareholders.
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. The 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 18 new core holes from this news release click here: media3.marketwire.com. To view all 161 core holes drilled at El Gallo, please click: usgold.com
To view assays intervals from core holes GAX-155, please click: usgold.com
To view Figure 1 El Gallo Drill Hole Locations - Plan (Aerial) View, please visit the following link: media3.marketwire.com
To view Figure 2 El Gallo Cross Section Locations - Plan (Aerial) View, please visit the following link: media3.marketwire.com
To view Figure 3 El Gallo Cross Section - Looking East (Section Number: NWSE South 24), please visit the following link: media3.marketwire.com
To view Figure 4 El Gallo Cross Section - Looking East (Section Number: NWSE South 17), please visit the following link: media3.marketwire.com
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