US Gold Corporation: El Gallo Drilling Expands Mineralization In Several Directions
Main Zone: 88.2 gpt Silver Over 63.0 Meters
North Zone: 596.2 gpt Silver Over 10.5 Meters
Updated Resource Due in October
UXG 4.78 +0.12
Press Release Source: US Gold Corporation On Monday August 16, 2010, 8:30 am EDT
TORONTO, ONTARIO--(Marketwire - 08/16/10) - US GOLD CORPORATION (AMEX:UXG - News)(TSX:UXG - News) is pleased to announce assay results for 10 new drill holes at the El Gallo project in Sinaloa State, Mexico. Drilling focused on expanding the Main and North Zones. The three best holes from these respective areas returned 2.6 ounces of silver per ton (opt) over 206.7 feet (ft) ((88.2 grams per tonne (gpt) over 63.0 meters (m)), 3.5 opt silver over 93.2 ft (121.5 gpt over 28.4 m), and 17.4 opt silver over 34.4 ft (596.2 gpt over 10.5 m).
"Results from El Gallo continue to highlight the excellent potential to expand the resource beyond the initial estimate. Our plan is to deliver an updated resource by late October and then again in January in order to help quantify for investors the amount of silver we are finding. A fourth drill has just been added and a fifth will be arriving in September in order to advance our pace," stated Rob McEwen, Chairman and CEO.
Main Zone - Drilling Encounters More Wide Intersections (Fig. 1, 3, 4)
2.6 opt silver over 206.7 ft (88.2 gpt over 63.0 m)
Drilling in areas where mineral structures intersect continues to return some of the widest intersections to date from El Gallo. Hole GAX-202, drilled on the north edge of the Main Zone is the most recent example returning 2.6 opt silver over 206.7 ft (88.2 gpt over 63.0 m), starting approximately 140 ft (40 m) below surface. These structural intersections are becoming an important setting for finding additional silver. The structure found in GAX-202 remains open to the north and south.
Another important hole drilled in the Main Zone is GAX-201, which expanded the mineralization to the south by 115 ft (35 m). This hole demonstrates that the zone remains open and that the potential to further expand the mineralization looks promising. GAX-200 was drilled as an infill hole in order to increase the confidence level associated with the mineralization. Highlights from the Main Zone drilling are shown below:
---------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To------ ------- ------ ---- ---- ------ ------ ---- --- (opt) (ft) (ft) (ft) (gpt) (m) (m) (m)------------------------------------------------------------------------------------------------------------------------------------------------------GAX-200 2.3 64.0 132.9 196.9 78.7 19.5 40.5 60.0------------------------------------------------------------------------------------------------------------------------------------------------------GAX-201 3.5 93.2 216.9 310.0 121.5 28.4 66.1 94.5Including 24.0 3.4 258.5 262.0 822.0 1.1 78.8 79.9------------------------------------------------------------------------------------------------------------------------------------------------------GAX-202 2.6 206.7 131.2 337.8 88.2 63.0 40.0 103.0Including 16.5 3.3 181.2 185.2 566.0 1.0 55.5 56.5Including 25.0 3.6 290.8 294.5 856.0 1.1 88.7 89.8---------------------------------------------------------------------------
North Zone - Expanded By 325 ft (100 m) (Fig. 1)
17.4 opt silver over 34.4 ft (596.2 gpt over 10.5 m)
Drilling to the northeast of the resource has discovered an important extension to the North Zone. These results extended the length of the zone by approximately 50% or 325 ft (100 m). The mineralization is flat-lying and near surface. The zone remains open to the northeast and east. Hole GAX-179 was of particular interest, intersecting some of the highest silver grades recorded in this area of the project. Highlights from this drilling are shown below.
---------------------------------------------------------------------------Hole # Silver Length From To Silver Length From To------ ------- ------ ---- ---- ------ ------ ---- --- (opt) (ft) (ft) (ft) (gpt) (m) (m) (m)------------------------------------------------------------------------------------------------------------------------------------------------------GAX-178 3.3 19.5 138.0 157.5 114.8 6.0 42.1 48.0Including 12.3 3.0 138.0 140.9 421.0 0.9 42.1 43.0------------------------------------------------------------------------------------------------------------------------------------------------------GAX-179 17.4 34.4 50.0 84.5 596.2 10.5 15.3 25.8Including 221.4 2.0 76.0 77.9 7,590.0 0.6 23.2 23.8And 5.1 3.1 116.5 119.6 174.0 1.0 35.5 36.5---------------------------------------------------------------------------
Updated El Gallo Resource Estimate Due in October
Since El Gallo's initial resource estimate was released on July 6, 2010, US Gold has published assays for 26 additional holes. Another 15 holes have been completed and 25 more are planned between now and late September. Originally El Gallo's updated resource estimate was scheduled to be released in December. However, based on the company's current rate of progress management believes an additional update in October is warranted in order to quantify El Gallo's growth for investor. Therefore, there will be two updated resources for El Gallo during the next four months.
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 10 new core holes from this news release, please click here: media3.marketwire.com. To view all 202 core holes drilled at El Gallo, please click: usgold.com.
ABOUT US GOLD (www.usgold.com)
finance.yahoo.com |
