US Gold Corporation: New Discovery at Limo Project Delivers Significant Results
1.29 Grams Per Tonne Gold Over 94.5 Meters and 1.15 Grams Per Tonne Gold Over 38.1 Meters
Symbol Price Change
UXG 7.68 0.00
Press Release Source: US Gold Corporation On Tuesday January 11, 2011, 9:00 am EST
TORONTO, ONTARIO--(Marketwire - 01/11/11) - US GOLD CORPORATION (NYSE:UXG - News)(TSX:UXG - News) is pleased to announce exciting drill results from its Limo Project in Nevada. Four reverse circulation holes have been drilled on the Cadillac target since the discovery of a new zone was announced on December 6th. The best new hole intersected 1.29 grams per tonne (gpt) gold over 94.5 meters (m) and ended in mineralization.
US Gold geologists are excited by the recent results because: 1) thick sections of continuous mineralization are present, 2) the grade appears to be improving at depth, 3) the mineralization is open laterally and at depth, and 4) historic drilling in the area was not deep enough to encounter this new target.
The recent holes were designed to expand the gold mineralization found earlier in hole LB71, which intercepted 1.48 gpt gold over 48.4 meters, by drilling a series of 30 meter (100 foot) step-outs. Gold was intersected in all four of the recent holes, the best of which encountered 1.29 gpt gold over 94.5 meters, and was terminated in gold mineralization due to drilling difficulties. True width of the mineralization is not known.
The significant thickness of the intercept in LB80 is hosted by a large jasperoid body (silicification sometimes associated with gold deposits in Nevada) below alluvial cover as seen on the cross section in Figure 1. With eight vertical and angle holes drilled so far, an area of mineralization measuring 150 x 80 meters (490 x 260 feet) has been identified. This zone is open to the south, east, north and at depth where further drilling is planned to begin in February.
Intercepts from the four holes drilled are summarized below:
----------------------------------------------------------------------------HOLE# Gold From Length Gold From Length opt(i) feet feet gpt(i) meters meters----------------------------------------------------------------------------LB77 0.034 415 125 1.15 126 38.1 Incl 0.054 420 20 1.86 128 6.1 Incl 0.058 485 35 2.00 148 10.7LB78 0.014 395 160 0.49 120 48.8 Incl 0.040 400 15 1.36 122 4.6LB79 0.092 470 10 3.16 143 3.0LB80 0.019 425 60 0.64 130 18.3 And 0.038 595 310 1.29 181 94.5 Incl 0.144 875 15 4.93 267 4.6----------------------------------------------------------------------------(i)(opt = Troy ounces per short ton, gpt = Grams per metric tonne. True widths of the intercepts are unknown.)
The Limo Project is located 75 miles (120 km) east of Gold Bar, and consists of 44 sq. miles (114 sq. km) of mineral rights. The property produced 91,000 ounces of gold between 1989 and 1990. In July 2009, US Gold released an initial Canadian NI 43-101 compliant resource estimate for the project, outlining 241,000 ounces of gold within the Measured and Indicated categories and 50,700 ounces of gold in the Inferred. US Gold's recent drilling focused on two new areas separate from the mineralization that make up the resource: 1) The Cadillac discovery (described above), and 2) the Continental high-grade silver/gold vein where recent drilling encountered 856 gpt silver and 1.77 gpt gold over 6.4 meters.
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