Two New High-Grade Areas Discovered
posted on
Jan 06, 2009 04:09AM
A high growth, low cost mid-tier silver and gold producer in the Americas
January 6, 2009 | |||
US Gold Corporation-El Gallo: Two New High-Grade Areas Discovered
Best Result: 34.6 opt Silver, 0.51 opt Gold over 30 ft |
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TORONTO, ONTARIO--(Marketwire - Jan. 6, 2009) - US GOLD CORPORATION (TSX:UXG)(NYSE ALTERNEXT US:UXG)(FRANKFURT:US8) announces more exciting results from its El Gallo project in Sinaloa, Mexico. High-grade mineralization has been encountered at four separate locations. El GALLO EXPLORATION HIGHLIGHTS - Drilling expands original discovery, El Gallo Zone 1 (G1), with the highest silver grades to date from this zone: 37.9 opt silver (1300.0 gpt silver) over 5.0 ft (1.5 m), within 21.3 opt silver (730.5 gpt silver) over 10.0 ft (3.0 m). - The second area discovered, El Gallo Zone 2 (G2), expands with significant high-grade: 13.0 opt silver (446.9 gpt silver), 0.2 opt gold (6.9 gpt gold) over 45.0 ft (13.7 m), including 47.4 opt silver (1625.0 gpt silver), 0.86 opt gold (29.4 gpt gold) over 5.0 ft (1.5 m) - Additional results from G2: 32.7 opt silver (1121.5 gpt silver) over 20.0 ft (6.1 m), including 55.4 opt silver (1900.0 gpt silver) over 10 ft (3.0 m). - Two additional discoveries, El Gallo Zone 3 (G3) and El Gallo Zone 4 (G4), with the best intersection returning 34.6 opt silver (1187.3 gpt silver), 0.51 opt gold (17.6 gpt gold) over 30.0 ft (9.1 m), including 81.1 opt silver (2780.0 gpt silver), 2.1 opt gold (72.4 gpt gold) over 5.0 ft (1.5 m). "Our exploration at El Gallo is getting much more exciting because: 1) significant high grade gold and silver assay values are being found over good widths; 2) these values have been found close to surface and to-date all of our drilling has been shallow, only testing to 150.0 ft (45.7 m) below surface; and 3) favorable gold and silver grades in soil samples (internal assay lab) are prompting us to rapidly expand the area and scope of our drilling," stated Rob McEwen, Chairman and CEO of US Gold. CONTINUING EXPLORATION SUCCESS! Two New Areas Deliver High-Grade Results As a result of an ongoing rock and geochemical soil sampling program, US Gold geologists successfully identified two new areas (Figure 2). G3 is located along the eastern edge of the project and it's believed to be part of the same mineral structure that controls the initial discoveries. The G4 area, located to the southeast, is interpreted to be a separate zone. These exciting results demonstrate the effectiveness of our initial testing utilizing inexpensive conventional rotary drilling and the potential to expand the identified mineralization. Highlights are below: Hole # Silver Gold Silver Eq.(i) Length From To ----- ------ ---- ------------ ------ ---- -- (Imperial) (opt) (opt) (opt) (ft) (ft) (ft) G3 Area GABHA08-119 12.7 - 12.7 90.0 60.0 150.0 Including 39.5 - 39.5 10.0 85.0 95.0 GABHA08-120 8.1 less than 0.01 8.4 50.0 70.0 120.0 Including 27.6 0.01 28.2 5.0 75.0 80.0 And 3.8 0.01 4.1 10.0 130.0 140.0 G4 Area GABHAR08-070 34.6 0.51 62.4 30.0 0.0 30.0 Including 81.1 2.1 195.1 5.0 10.0 15.0 GABHA08-071 19.8 0.21 30.9 30.0 10.0 40.0 Including 33.8 0.38 54.3 15.0 15.0 30.0 Including 43.0 0.56 73.0 5.0 15.0 20.0 GABHA08-072 8.2 0.11 14.0 20.0 30.0 50.0 Including 19.5 0.31 36.3 5.0 45.0 50.0 GABHA08-076 11.0 0.15 18.9 15.0 0.0 15.0 Including 17.4 0.28 32.7 5.0 5.0 10.0 GABHA08-077 33.1 0.53 61.9 40.0 10.0 50.0 Including 67.1 1.2 132.8 15.0 15.0 30.0 Including 77.9 1.8 177.3 5.0 15.0 20.0 Hole # Silver Gold Silver Eq.(i) Length From To ----- ------ ---- ------------ ------ ---- -- (Metric) (gpt) (gpt) (gpt) (m) (m) (m) G3 Area GABHA08-119 434.1 - 434.1 27.4 18.3 45.7 Including 1355.0 - 1355.0 3.0 25.9 29.0 GABHA08-120 277.7 0.16 286.4 15.2 21.3 36.6 Including 946.0 0.39 966.8 1.5 22.9 24.4 And 129.5 0.19 140.0 3.0 39.6 42.7 G4 Area GABHAR08-070 1187.3 17.6 2138.6 9.1 0.0 9.1 Including 2780.0 72.4 6689.6 1.5 3.0 4.6 GABHA08-071 678.5 7.0 1059.1 9.1 3.0 12.2 Including 1160.0 13.0 1860.6 4.6 4.6 9.1 Including 1475.0 19.1 2503.7 1.5 4.6 6.1 GABHA08-072 281.1 3.7 479.6 6.1 9.1 15.2 Including 668.0 10.7 1245.8 1.5 13.7 15.2 GABHA08-076 375.7 5.1 648.7 4.6 0.0 4.6 Including 597.0 9.7 1119.7 1.5 1.5 3.0 GABHA08-077 1133.6 18.3 2121.2 12.2 3.0 15.2 Including 2300.0 41.7 4551.8 4.6 4.6 9.1 Including 2670.0 63.1 6077.4 1.5 4.6 6.1 (i) Gold:Silver Ratio 3 year average (1:54); Cut-off grade 2.9 opt silver (100 gpt silver) Metallurgical Recoveries and Net Smelter Returns are based on 100% Numbers may not balance due to rounding Drilling at El Gallo began just three months ago and has outlined four mineralized areas (labeled G1, G2, G3 and G4) containing good grades of gold and silver. These four mineralized areas are contained in a larger area measuring approximately 800.0 ft (245.0 m) long and 600.0 ft (180.0 m) wide. The objective of our recent conventional rotary drilling around G1 and G2 was to 1) expand the area of high-grade mineralization, and 2) test to see if these areas connect. Although more work is required to connect these two areas, the high-grade mineralization was successfully extended. Drilling at G1 expanded the strike length of the mineralization by 65.0 ft (19.8 m) to 490.0 ft (150.0 m). In addition, the highest silver grades yet encountered from this zone were returned, indicating more favorable grades might be located west of our current drilling. Significant intercepts are stated below: Hole # Silver Gold Silver Eq.(i) Length From To ------ ------ ---- ------------ ------ ---- -- (Imperial) (opt) (opt) (opt) (ft) (ft) (ft) G1 Area GABHA08-057 11.5 0.01 12.0 25.0 30.0 55.0 And 3.5 - 3.5 15.0 105.0 120.0 GABHA08-060 3.8 0.07 7.7 5.0 5.0 10.0 And 21.3 - 21.3 10.0 25.0 35.0 Including 37.9 - 37.9 5.0 25.0 30.0 And 5.7 - 5.7 30.0 70.0 100.0 And 3.6 - 3.6 5.0 140.0 145.0 Hole # Silver Gold Silver Eq.(i) Length From To ------ ------ ---- ------------ ------ ---- -- (Metric) (gpt) (gpt) (gpt) (m) (m) (m) G1 Area GABHA08-057 395.0 0.3 413.1 7.6 9.1 16.8 And 120.2 - 120.2 4.6 32.0 36.6 GABHA08-060 131.0 2.5 263.8 1.5 1.5 3.0 And 730.5 - 730.5 3.0 7.6 10.7 Including 1300.0 - 1300.0 1.5 7.6 9.1 And 194.8 - 194.8 9.1 21.3 30.5 And 125.0 - 125.0 1.5 42.7 44.2 Results to date show that some of the best intersections are at the edge of our drilling, indicating that the high-grade has excellent potential to expand further (Figure 4). Hole # Silver Gold Silver Eq.(i) Length From To ----- ------ ---- ------------ ------ ---- -- (Imperial) (opt) (opt) (opt) (ft) (ft) (ft) G2 Area GABHA08-063 12.4 less than 0.01 12.6 110.0 40.0 150.0 Including 39.7 less than 0.01 39.9 5.0 45.0 50.0 GABHA08-065 8.0 - 8.0 110.0 10.0 120.0 Including 27.2 - 27.2 10.0 90.0 100.0 And 3.4 - 3.4 5.0 140.0 145.0 GABHA08-103 32.7 - 32.7 20.0 40.0 60.0 Including 55.4 - 55.4 10.0 45.0 55.0 GABHA08-108 13.2 - 13.2 55.0 30.0 85.0 Including 29.5 - 29.5 10.0 50.0 60.0 GABHA08-109 14.8 0.01 15.3 20.0 50.0 70.0 And 4.3 - 4.3 10.0 80.0 90.0 And 3.0 0.02 4.0 5.0 100.0 105.0 GABHA08-110 8.1 0.03 9.8 30.0 10.0 40.0 GABHA08-111 8.7 - 8.7 45.0 0.0 45.0 Including 22.2 0.01 22.6 5.0 5.0 10.0 And 6.8 - 6.8 5.0 85.0 90.0 GABHA08-121 15.5 - 15.5 45.0 60.0 105.0 GABHA08-122 13.7 - 13.7 45.0 65.0 110.0 Including 30.9 less than 0.01 31.1 5.0 80.0 85.0 And 4.7 - 4.7 5.0 125.0 130.0 GABHA08-125 13.0 0.20 23.9 45.0 10.0 55.0 Including 47.4 0.86 93.7 5.0 15.0 20.0 And 4.9 0.01 5.3 5.0 65.0 70.0 And 8.8 - 8.8 15.0 130.0 145.0 GABHA08-127 9.1 0.17 18.4 5.0 115.0 120.0 GABHA08-129 17.5 0.21 28.9 15.0 135.0 150.0 Hole # Silver Gold Silver Eq.(i) Length From To ----- ------ ---- ------------ ------ ---- -- (Metric) (gpt) (gpt) (gpt) (m) (m) (m) G2 Area GABHA08-063 426.2 0.1 433.0 33.5 12.2 45.7 Including 1360.0 0.1 1366.8 1.5 13.7 15.2 GABHA08-065 272.6 - 272.6 33.5 3.0 36.6 Including 931.5 - 931.5 3.0 27.4 30.5 And 118.0 - 118.0 1.5 42.7 44.2 GABHA08-103 1121.5 - 1121.5 6.1 12.2 18.3 Including 1900.0 - 1900.0 3.0 13.7 16.8 GABHA08-108 451.2 - 451.2 16.8 9.1 25.9 Including 1012.5 - 1012.5 3.0 15.2 18.3 GABHA08-109 507.3 0.3 525.3 6.1 15.2 21.3 And 146.0 - 146.0 3.0 24.4 27.4 And 104.0 0.6 135.6 1.5 30.5 32.0 GABHA08-110 276.3 1.1 335.9 9.1 3.0 12.2 GABHA08-111 297.3 0.1 302.7 13.7 0.0 13.7 Including 762.0 0.3 776.2 1.5 1.5 3.0 And 234.0 - 234.0 1.5 25.9 27.4 GABHA08-121 532.2 - 532.2 13.7 18.3 32.0 Including 1410.0 - 1410.0 1.5 21.3 22.9 GABHA08-122 471.1 - 471.1 13.7 19.8 33.5 Including 1060.0 0.1 1060.0 1.5 24.4 25.9 And 160.0 - 160.0 1.5 38.1 39.6 GABHA08-125 446.9 6.9 819.4 13.7 3.0 16.8 Including 1625.0 29.4 3212.6 1.5 4.6 6.1 And 167.0 0.3 181.1 1.5 19.8 21.3 And 301.0 - 301.0 4.6 39.6 44.2 GABHA08-127 312.0 5.9 632.2 1.5 35.1 36.6 GABHA08-129 601.7 7.2 992.2 4.6 41.1 45.7 (i) Gold:Silver Ratio 3 year average (1:54); Cut-off grade 2.9 opt silver (100 gpt silver) (ii) Angle Hole Metallurgical Recoveries and Net Smelter Returns are based on 100% Numbers may not balance due to rounding Mexico, Utah and Nevada With the recent exploration success in Mexico, US Gold is currently designing a diamond drill program for El Gallo and Palmarito's South West Zone. The objective will be to confirm our current work and establish a baseline for future resource estimates and to test for additional mineralization at depth. In November 2008 US Gold acquired the rights to explore key claims inside of its Bat Ridge property, which was acquired through the takeover of Nevada Pacific Gold in 2007. Historical exploration on the property returned very encouraging values. Reverse circulation drilling is scheduled to begin in the coming weeks. Drilling in Nevada is scheduled to resume in late spring and will look to build upon the resource estimates that were published in 2008. |