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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (59574)	5/21/2008 9:14:50 AM
From: John Vosilla	Respond to of 78431

US Gold's Tonkin Resource Estimate Increases to 1.76 Million Oz Gold Tuesday May 20, 4:01 pm ET SIGNIFICANT POTENTIAL FOR FUTURE GROWTH PRELIMINARY STUDIES SHOW GOOD GOLD RECOVERIES DENVER, COLORADO--(MARKET WIRE)--May 20, 2008 -- US GOLD CORPORATION (Toronto:UXG.TO - News)(AMEX:UXG - News)(Frankfurt:US8.F - News) is pleased to announce details of the updated resource estimate for its Tonkin property, audited by the independent firm Ore Reserve Engineering of Denver, Colorado in accordance with Canadian National Instrument 43-101 standards. The resource estimate is calculated based on a gold price of US$575 per ounce. Highlights are listed below: 2008 TONKIN RESOURCE HIGHLIGHTS - Total resource estimate increased 24% to 1,758,000 ounces of gold at a grade of 0.039 opt (ounces per ton) (1.35 gpt (grams per tonne)) from 1,419,000 ounces of gold at a grade of 0.043 opt (1.47 gpt) - Measured and Indicated resource estimate increased to 1,447,000 ounces of gold at a grade of 0.041 opt (1.40 gpt) from 1,266,000 ounces of gold at a grade of 0.043 opt (1.47 gpt) - Inferred resource estimate increased to 311,000 ounces of gold at a grade of 0.033 opt gold (1.13 gpt) from 153,000 ounces of gold at a grade of 0.044 opt (1.51 gpt) - New geological understandings and resource modeling have outlined important areas where the current resource has significant potential to grow in size - Preliminary metallurgical studies using Newmont Mining's N2TEC patented technology have demonstrated encouraging gold recoveries, significantly enhancing the project's potential. Tonkin Project Cortez Trend, Nevada USA The Tonkin Project is located in Nevada's Cortez Trend and 10 miles (16 km) south of Barrick Gold's large Cortez Hills discovery. Since last reported in 2006, the total estimated mineral resource has increased by 24% to 44.9 million tons at a grade of 0.039 opt (1.35 gpt) for a total gold content of 1.76 million ounces (Table 1) (Figure 1). The cutoff grade used for both estimates was 0.018 opt gold (0.6 gpt gold). The mineral resource estimate is comprised of three separate deposits referred to as North, Central and South. US Gold's drilling has successfully expanded the size of each deposit and our work indicates there remains significant potential for additional growth (Figure 2). In addition to increasing the size of the estimated resource and outlining expansion areas, exploration has successfully increased the confidence level in grade and continuity of mineralization. This is highlighted by a 366% increase (820,000 gold ounces versus 176,000 gold ounces) in the total ounces within the measured category. This information is important because US Gold's additional drilling underscores the consistency of grade and predictability of mineralization and will help aid future exploration and possible mine planning scenarios. Tonkin 2008 Exploration During the winter season US Gold's geological team worked with Ore Reserve Engineering, the author of the new NI 43-101 resource estimate. The team also worked with Diagnos Inc., a leader in artificial intelligence, with the goal of indentifying areas where there is potential to make a new discovery similar in size and grade to Barrick's Cortez Hills gold deposit and also to expand the lateral and vertical extension of known mineralization (Figure 2). Based on this work and new geological modeling, US Gold believes there is significant potential to further increase the size of the current 1.76 million ounce gold resource. With the heavy snow now melted in Nevada, US Gold is preparing to resume its exploration drilling activities at Tonkin, Gold Bar and Limo. US Gold Company-Wide Resource Estimate 2.4 Million Gold Ounces US Gold's global estimated resources in Nevada and Mexico has subsequently increased to 2.4 million ounces of gold from the previously disclosed 2.1 million ounces (Table 2). There is great potential to increase this estimate further with immediate expansion opportunities at Tonkin in addition to the initial resource estimate being prepared for Gold Bar (Nevada - Gold), Limo (Nevada - Gold) and the exploration currently taking place at the Magistral Mine (Mexico - Gold). Early Metallurgical Studies Positive Results Tonkin previously produced approximately 30,000 ounces of gold from 1985-1989. Production ceased due to poor gold recovery from ore mined in the "Upper Zone". As a result of detailed geological studies performed on the Tonkin Project by US Gold, three distinctive zones of gold mineralization have been identified. The level of sulphidation present in each of the zones varies considerably, thus requiring various processing techniques. During the winter season, SGS Lakefield Research performed preliminary metallurgical test work in order to help determine the applicable gold recovery rates using alternative processes. The "Upper Zone" underwent several tests with Newmont Mining's N2TEC patented technology showing the best gold recoveries. The initial results were significantly higher than those experienced using traditional floatation methods and US Gold is encouraged about the potential economic impact. Due to the preliminary nature of the tests, additional work will be undertaken in an effort to validate and further enhance the results. The complete NI 43-101 Technical Report, including methodologies and resource descriptions and discussions can be found on www.usgold.com or on SEDAR www.sedar.com. ABOUT US GOLD US Gold Corporation is a United States based gold exploration company exploring throughout northeastern Nevada and has recently begun exploration in Mexico. The Company has large land holdings and a strong treasury. US Gold's shares trade on the American and Toronto Stock Exchanges under the symbol UXG. biz.yahoo.com