And the "hits just keep on coming", south of the border for UXG..
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US Gold Corporation: El Gallo Continues to Grow Regional Drilling Encounters Early Success
UXG 4.95 +0.22
Press Release Source: US Gold Corporation On Tuesday July 27, 2010, 8:30 am EDT
TORONTO, ONTARIO--(Marketwire - 07/27/10) - US GOLD CORPORATION (AMEX:UXG - News) (TSX:UXG - News) is pleased to announce assay results for 15 new drill holes at the El Gallo project that were designed to increase the total number of ounces beyond the initial NI 43-101 resource estimate released on July 6th. The best drill hole, which encountered two separate zones, returned 16.8 ounces of silver per ton (opt) over 78.6 feet (ft) ((576.9 grams per tonne (gpt) over 24.0 meters (m)) and 4.2 opt silver over 42.0 ft (142.3 gpt over 12.8 m).
Main Zone - Drilling Encounters New Mineralization
To date, the majority of the silver mineralization at El Gallo is hosted in the Main Zone. This is the company's primary target for discovering additional ounces. Recent drilling was designed to expand the mineralization laterally to the south (Fig. 1, 3). Drill holes GAX-188 and GAX-196 extended the mineralization by 65 ft (20 m) and 165 ft (50 m), respectively. These two holes were drilled at opposite ends of the Main Zone, intersecting good silver values, which demonstrates potential for further expansion.
Delineation drilling in the east part of the Main Zone, designed to increase the total resource and the confidence level associated with the mineralization, intersected better than anticipated grades and widths. GAX-185 encountered two significant zones of mineralization, returning 16.8 opt over 78.6 ft (576.9 gpt over 24.0 m) and 4.2 opt silver over 42.0 ft (142.3 gpt over 12.8 m) (Fig. 1, 4). US Gold geologists believe there is potential to find additional ounces by better defining areas where mineralized structures intersect. Highlights are shown below:
----------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To------ ------ ------ ---- -- ------ ------ ---- -- (opt) (ft) (ft) (ft) (gpt) (m) (m) (m)--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-185 16.8 78.6 180.8 259.4 576.9 24.0 55.1 79.1Including 227.2 3.8 205.2 209.0 7,790.0 1.2 62.6 63.7And 4.2 42.0 357.6 399.6 142.3 12.8 109.0 121.8Including 83.1 1.0 389.3 390.3 2,850.0 0.3 118.7 119.0--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-186 3.3 49.7 403.1 452.8 112.9 15.2 122.9 138.0Including 14.8 3.3 433.9 437.2 509.0 1.0 132.3 133.3--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-188 3.6 34.1 296.9 331.0 122.2 10.4 90.5 100.9Including 11.4 3.3 300.2 303.5 390.0 1.0 91.5 92.5--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-196 5.5 9.2 90.9 100.1 187.8 2.8 27.7 30.5----------------------------------------------------------------------------And 19.7 5.6 361.9 367.5 673.9 1.7 110.3 112.0--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-199 3.2 46.8 4.9 51.7 109.2 14.3 1.5 15.8----------------------------------------------------------------------------
Infill Drilling - North Zone
One new hole was completed in the North Zone in order to better define the mineralization (Fig. 1). The hole successfully met expectations. Highlights are shown below. Five additional holes have been completed approximately 165 ft (50 m) east of the current limits of the resource in order to further expand the mineralization. These holes will be released in August.
----------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To------ ------ ------ ---- -- ------ ------ ---- -- (opt) (ft) (ft) (ft) (gpt) (m) (m) (m)--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-175 12.2 4.6 78.7 83.3 414.0 1.4 24.0 25.4And 3.0 19.7 124.7 144.4 104.3 6.0 38.0 44.0----------------------------------------------------------------------------
Near Surface Low Grade Oxide Mineralization
During the second half of the year, US Gold will look to identify additional near surface areas containing lower grade mineralization that may be amenable to heap leach recovery. Three additional holes have encountered near surface oxide mineralization. Results are shown below. Metallurgical test work (column leach tests) on lower grade sulfide mineralization is on-going. Should these tests prove positive this mineralization will be incorporated into the year-end resource estimate.
----------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To------ ------ ------ ---- -- ------ ------ ---- -- (opt) (ft) (ft) (ft) (gpt) (m) (m) (m)--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-176 0.9 73.5 34.8 108.3 32.3 22.4 10.6 33.0--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-182 0.8 44.3 0.0 44.3 26.1 13.5 0.0 13.5--------------------------------------------------------------------------------------------------------------------------------------------------------GAX-196 1.7 30.7 32.8 63.5 57.9 9.4 10.0 19.4----------------------------------------------------------------------------
Regional Exploration Update
Las Milpas Prospect
US Gold's regional exploration objective is to identify mineralized areas that could be mined and hauled to an El Gallo process facility. US Gold controls approximately 540,000 acres of mineral rights surrounding El Gallo. Regional core drilling started in late spring and in addition to the new Southwest Zone at Palmarito, drilling has returned encouraging results at a prospect known as Las Milpas.
Las Milpas is located between Magistral and Palmarito and 9 miles (14 km) from El Gallo (Fig. 5). Four core holes were drilled with three of them intersecting shallow silver mineralization. Initial interpretations suggest the orientation of the mineralization is steeply dipping. Holes were spaced approximately 165 ft (50 m) apart. Three of the holes were drilled along strike and one was drilled to extend the mineralization at depth. Another 6 core holes will be drilled over the next two weeks. Highlights are shown below.
Imperial Measurement
----------------------------------------------------------------------------Hole # Silver Zinc Lead Gold Length From To------ ------ ---- ---- ---- ------ ---- -- (opt) (%) (%) (opt) (ft) (ft) (ft)--------------------------------------------------------------------------------------------------------------------------------------------------------RVX001 2.6 1.7 0.6 0.01 31.8 38.2 70.0----------------------------------------------------------------------------Including 5.0 3.2 1.3 0.01 5.7 41.2 46.9--------------------------------------------------------------------------------------------------------------------------------------------------------RVX002 4.1 1.0 1.2 - 4.4 315.0 319.4--------------------------------------------------------------------------------------------------------------------------------------------------------RVX003 2.4 0.8 0.7 - 39.7 63.6 103.3----------------------------------------------------------------------------
Metric Measurement
----------------------------------------------------------------------------Hole # Silver Zinc Lead Gold Length From To------ ------ ---- ---- ---- ------ ---- -- (gpt) (%) (%) (gpt) (m) (m) (m)--------------------------------------------------------------------------------------------------------------------------------------------------------RVX001 90.5 1.7 0.6 0.2 9.7 11.7 21.4----------------------------------------------------------------------------Including 173.0 3.2 1.3 0.3 1.8 12.6 14.3--------------------------------------------------------------------------------------------------------------------------------------------------------RVX002 138.9 1.0 1.2 0.1 1.4 96.0 97.4--------------------------------------------------------------------------------------------------------------------------------------------------------RVX003 83.0 0.8 0.7 0.1 12.1 19.4 31.5----------------------------------------------------------------------------
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 15 new core holes from El Gallo, please click here. To view all 192 core holes drilled at El Gallo, please click: usgold.com.
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