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Message: Two New High-Grade Areas Discovered

Two New High-Grade Areas Discovered

posted on Jan 06, 2009 04:09AM
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

Including: 81.1 opt Silver, 2.1 opt Gold over 5 ft

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
Single Mineral Zone Emerging?

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
Drilling at G2 successfully expanded the mineralization to the north (150.0 ft) (45.0 m), east (100.0 ft) (30.0 m) and west (100.0 ft) (30.0 m). Drilling in the south, to the 150.0 ft (45.0 m) depth capability of our conventional rotary drills, did not encounter any significant mineralization.

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
Q1 Exploration Program

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.
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