Three Gold Veins Discovered Near US Gold's El Gallo Project
7.7 gpt Gold over 4.8 m, Including 22.2 gpt Gold over 1.1 m
Symbol Price Change
UXG 7.65 +0.43
Press Release Source: US Gold Corporation On Wednesday December 8, 2010, 8:30 am EST
TORONTO, ONTARIO--(Marketwire - 12/08/10) - US GOLD CORPORATION (NYSE:UXG - News)(TSX:UXG - News) is pleased to announce the discovery of three gold-bearing veins near the company's El Gallo Project in Sinaloa state, Mexico (Fig. 1). The three veins, which to date have been defined by a total of 17 core holes, are all located within hauling distance of El Gallo. These new veins will not be included in the upcoming Preliminary Economic Assessment.
"The discovery of these veins illustrates the exploration potential of US Gold's large land package around El Gallo. Follow-up drilling has commenced with the objective of further extending the mineralization. Seven drills are currently operating at the project and we expect this pace to continue throughout 2011," stated Rob McEwen, Chairman and CEO.
Drill Assay Highlights
The drill assay results shown below are selected assays from the three new veins. Complete results are listed in Table 1. Vein locations are shown in Figure 1.
Gold Zone Vein (2 core holes drilled - 500 meters SE of El Gallo)Current Known Strike Length 50 m (Fig. 2)-- GZX-002: 7.7 gpt gold over 4.8 meters, including 22.2 gpt gold over 1.1 meters-- GZX-001: 6.4 gpt gold over 3.1 meters, including 10.8 gpt gold over 1.2 metersAlamo Vein (10 core holes drilled - 7 km North El Gallo)Current Known Strike Length 450 m (Fig. 3)-- SJX-002: 9.3 gpt gold over 1.7 meters-- SJX-008: 7.8 gpt gold over 0.8 meters-- SJX-009: 7.6 gpt gold over 1.7 meters-- SJX-010: 4.2 gpt gold over 6.0 meters, including 7.9 gpt gold over 1.4 metersOro Vein (5 core holes drilled - 32 km NE of El Gallo)Current Known Strike Length 90 m-- POX-002: 7.4 gpt gold over 0.9 meters-- POX-003: 5.9 gpt gold over 0.9 meters
The Alamo and Oro veins were historically mined underground on a limited scale. Mining targeted the upper portion of the vein that appears at the surface. Underground sampling on the veins produced encouraging values for gold and was followed-up with the drilling described above.
The El Gallo Gold Zone vein was initially discovered by a US Gold prospector in late 2008, but delays in permitting didn't allow the area to be drill tested until recently. Similar to the El Gallo silver discovery located 500 m to the northwest (Fig 1, 2), no previous mining is evident in the area.
Each of the three gold veins appears to have the potential to extend at depth and laterally. In addition, several other gold and silver veins have been discovered through prospecting and geological mapping. Drilling has commenced on these new veins as well.
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