Argentina - Mexico - Nevada
A high growth, low cost mid-tier silver and gold producer in the Americas
Message: January 19, 2012
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| December 13, 2011 | |
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El Gallo Complex Regional Drill Results Gearing Up for the Next Phase of Growth in Mexico
Near Surface: 3.2 gpt Gold Over 14.0 Meters & 1.8 gpt Gold Over 19.4 Meters |
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TORONTO, ONTARIO--(Marketwire - Dec. 13, 2011) - US GOLD CORPORATION (NYSE:UXG)(TSX:UXG) is pleased to announce results from regional drilling at the El Gallo Complex, in Sinaloa, Mexico. Results contained in this release are focused on the Mina Grande area (Fig. 1), where earlier in 2011 drilling discovered several zones of encouraging near-surface gold and silver mineralization. New drill highlights include: 3.2 grams per tonne (gpt) gold over 14.0 meters (m), 1.8 gpt gold over 19.4 m and 7.7 gpt gold, 2070 gpt silver over 1.0 meter. "Mina Grande is just one of several targets we have been exploring since infill drilling at El Gallo and Palmarito was completed. Recent drilling has intersected several zones of encouraging mineralization. Although early, these results, combined with our recently announced San Dimas discovery (new release October 27, 2011) are setting the foundation for our next phase of growth in Mexico," stated Rob McEwen, Chairman and CEO. Mina Grande - New Prospect with Potential to Grow The Mina Grande area is located approximately 10 km north of the proposed mill site and 15 km north of the heap leach facility that is currently under construction (Fig. 1). US Gold made the decision to explore Mina Grande based on 1) the historical mining that occurred in the area and 2) the belief that a discovery could be transported to one of the central processing facilities under development. Drill highlights from earlier in 2011 included: 2.1 gpt gold over 28.9 m (starting 8 m below surface) and 1.2 gpt gold over 19.7 meters (starting 8 m below surface). The Mina Grande area is comprised of several parallel, northeast-dipping mineralized zones. Recent drilling focused on three zones (Fig. 2). One of these is a bulk tonnage target that is shallow dipping and near surface. Ten holes were completed in this area. Five holes targeted the other two zones, encountering narrower widths of mineralization but with encouraging gold and silver values. Highlights from each of these three zones are listed below. Mina Grande - Zone 1
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Hole # Gold Length From Gold Length From
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(gpt) (meters) (meters) (opt) (feet) (feet)
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Zone 1
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MGX-031 3.2 14.0 18.1 0.09 45.9 59.2
Including 7.1 5.8 23.0 0.21 19.0 75.5
Including 19.9 1.8 27.0 0.58 5.9 88.6
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MGX-032 1.0 13.2 0.0 0.03 43.3 0.0
And 8.1 1.5 125.1 0.24 4.9 410.3
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MGX-033 1.0 18.7 16.6 0.03 61.4 54.5
Including 3.5 4.0 22.1 0.10 13.1 72.5
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MGX-036 1.2 30.0 0.0 0.03 98.4 0.0
Including 6.5 1.3 3.5 0.19 4.3 11.5
Including 8.4 1.1 23.4 0.24 3.4 76.6
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MGX-042 1.8 19.4 0.0 0.05 63.5 0.0
Including 3.5 8.2 0.0 0.10 26.9 0.0
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Mina Grande - Zone 2 & 3
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Hole # Silver Gold Length From Silver Gold Length From
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(gpt) (gpt) (meters) (meters) (opt) (opt) (feet) (feet)
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Zone 2
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HCX-043 278.0 0.5 4.5 0.0 8.1 0.02 14.6 0.0
Including 788.0 0.8 0.8 1.5 23.0 0.02 2.6 4.9
And 138.1 1.4 2.6 12.2 4.0 0.04 8.5 40.0
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Zone 3
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MGX-041 335.0 1.6 0.6 47.1 9.8 0.05 1.8 154.5
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MGX-042 2070.0 7.7 1.0 89.0 60.4 0.22 3.1 292.0
And 240.0 4.8 1.1 117.1 7.0 0.14 3.4 384.2
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MGX-043 531.0 3.3 1.2 43.4 15.5 0.1 3.9 142.4
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PHASE 1 MINING SCHEDULED FOR MID-2012 Phase 1 mining at the El Gallo Complex is expected to commence during the second quarter 2012. The El Gallo Complex includes the El Gallo and Palmarito silver deposits and the Magistral gold deposits, which are all located within a 13 km (8 mile) radius. Phase 1 will focus on the permitted gold deposits and is expected to produce 30,000 ounces of gold per year after initial ramp up. Capital costs have been estimated at $15 million and the projected cash flow will help fund Phase 2, which is forecast to produce an additional 5 million ounces of silver per year, beginning in 2014. Readers should note that mineral resources that are not classified as mineral reserves do not have demonstrated economic viability. ABOUT US GOLD (www.usgold.com) US Gold's objective is to qualify for inclusion in the S&P 500 by 2015. US Gold explores for gold and silver in the Americas and is advancing its El Gallo Project in Mexico and its Gold Bar Project in Nevada towards production. US Gold's shares are listed on the NYSE and the TSX under the symbol UXG, trading 2.6 million shares daily during the past twelve months. US Gold's shares are included in S&P/TSX and Russell indices and Van Eck's Junior Gold Miners ETF. Rob McEwen, Chairman and CEO, owns 20% of the shares of US Gold. On June 14, 2011 the Company announced that Mr. McEwen proposed to combine the Company with Minera Andes to create a high growth, low-cost, mid-tier silver producer operating in the Americas. Each Minera Andes shareholder would receive 0.45 of a US Gold share for every Minera Andes share held. A Special Meeting will be held on January 19th, 2012 in order to vote on the proposed combination. Technical Information This news release has been viewed and approved by John Read, CPG, US Gold's consulting geologist, who is a Qualified Person as defined by National Instrument 43-101 and is responsible for program design and quality control of exploration undertaken by the Company at its Mexican exploration properties. Samples from the core drilling were split on-site at the Company's El Gallo Complex. One quarter to one half of the split drill core is shipped to ALS Chemex for sample preparation and analysis by 4-acid digestion with ICP determination for silver and fire assay for gold. Samples returning greater than 1500 ppm silver or 10 ppm gold were re-analyzed using gravimetric fire assay. Standards and blanks were inserted every 20 samples. All holes were drilled with HQ bits and reduced to NTW where required. Samples were taken based on lithologic and/or mineralized intervals and vary in length. The true width of the mineral zone has not been determined. For additional information about the El Gallo Complex see the "Preliminary Economic Assessment for the El Gallo District, Sinaloa State Mexico" dated February 11, 2011 and prepared by Paul Gates, PE, Richard Addison, PE, Aaron McMahon, PG of Pincock Allen & Holt of Denver, Colorado ("El Gallo PEA"). All three individuals are Qualified Persons as defined by NI 43-101 and are independent of US Gold Corporation as defined in Section 1.4 of NI 43-101 and Section 3.5 of Companion Policy 43-101CP. Mr. McMahon verified the mineral resource data contained in the El Gallo PEA by conducting a site visit, which included verifying drill hole locations and survey data, reviewing sampling handling, data collection procedures, partial audit of the assay database, review of the QA/QC data and analysis of core recovery and drill logs and their relations to assay values. The El Gallo PEA is available on SEDAR (www.sedar.com). |
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