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Press release from Marketwire

US Gold Corporation: El Gallo Continues to Impress

Monday, April 26, 2010

US Gold Corporation: El Gallo Continues to Impress08:32 EDT Monday, April 26, 2010TORONTO, ONTARIO--(Marketwire - April 26, 2010) - US GOLD CORPORATION (NYSE Amex:UXG)(TSX:UXG) is pleased to announce expansion and in-fill core drill results (Fig. 1) at the El Gallo Project in Sinaloa State, Mexico. The three best results of the twelve holes assayed since April 6, 2010 are: 7.2 ounces of silver per ton (opt) over 100.9 ft (feet) (247.1 grams per tonne silver over 30.8 meters (m), 5.7 opt silver over 110.7 ft (195.2 gpt silver over 33.8 m) and 4.5 opt silver over 100.4 ft (154.5 gpt silver over 30.6 m). 1) Mineralization Extended Along Strike 7.2 opt silver over 100.9 ft (247.1 gpt silver over 30.8 m)Hole GAX124 intersected an impressive zone that returned 7.2 opt silver over 100.9 ft (247.1 gpt silver over 30.8 m) at a vertical depth of approximately 255 ft (80 m). This result is important because it's the furthest core hole drilled along strike to the east and extends the mineralized zone by approximately 65 ft (20 m) (Fig 1). The strike of Main Zone now totals 1,600 ft (490 m) and remains open for possible expansion. Hole GAX123 extended the mineralization at depth. Highlights from these two holes are shown below: ---------------------------------------------------------------------------- Hole # Silver Length From To Hole # Silver Length From To (opt) (ft) (ft) (ft) (gpt) (m) (m) (m) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX123 5.7 110.7 308.6 419.3 GAX123 195.2 33.8 94.1 127.8 ---------------------------------------------------------------------------- Including 36.6 7.1 397.6 404.7 Including 1,254.9 2.2 121.2 123.4 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX124 7.2 100.9 423.6 524.4 GAX124 247.1 30.8 129.1 159.9 ---------------------------------------------------------------------------- Including 45.0 7.5 466.5 474.1 Including 1,543.0 2.3 142.2 144.5 ---------------------------------------------------------------------------- All depths indicated in table are down hole 0.73 opt Ag (25 gpt Ag) cutoff Allowable waste interval was 19.7 ft (6 m) of less than 0.73 opt Ag (25 gpt Ag) Numbers may not add due to rounding True widths are unknown 2) Mineralization Extended to the South4.5 opt silver over 100.4 ft (154.5 gpt silver over 30.6 m)Drilling in the central portion of the Main Zone was designed to extend the mineralization encountered in core hole GAX082 (released March 1, 2010 and shown in the table below) to the south (Fig. 1, 3). Hole GAX115 successfully achieved this objective intersecting two thick zones of mineralization. The mineralization was extended laterally by approximately 100 ft (30 m) and remains open. In addition, hole GAX117, which successfully confirmed an area of known mineralization, encountered a second unanticipated zone of high-grade that dips northeast (Fig 1, 4). Although narrow, this intercept includes the highest silver value ever recorded at El Gallo returning 532.4 opt silver over 0.5 ft (18,244.5 gpt silver over 0.2 m) inside of a wider interval that returned 31.2 opt silver over 9.5 ft (1,071.1 gpt silver over 2.9 m). Highlights are shown below: ---------------------------------------------------------------------------- Hole # Silver Length From To Hole # Silver Length From To (opt) (ft) (ft) (ft) (gpt) (m) (m) (m) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX082 3.0 176.8 14.8 191.6 GAX082 104.4 53.9 4.5 58.4 ---------------------------------------------------------------------------- And 6.1 79.6 229.0 308.6 And 209.9 24.3 69.8 94.1 ---------------------------------------------------------------------------- Including 15.3 19.7 232.3 252.0 Including 525.7 6.0 70.8 76.8 ---------------------------------------------------------------------------- And 2.9 96.8 330.1 426.8 And 98.0 29.5 100.6 130.1 ---------------------------------------------------------------------------- Including 17.8 2.3 353.3 355.6 Including 609.0 0.7 107.7 108.4 ---------------------------------------------------------------------------- Including 16.3 2.6 421.9 424.5 Including 560.0 0.8 128.6 129.4 ---------------------------------------------------------------------------- And 5.4 4.1 484.3 488.4 And 186.0 1.3 147.6 148.9 ---------------------------------------------------------------------------- And 13.1 2.1 520.3 522.3 And 449.0 0.7 158.6 159.3 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX115 1.7 25.6 13.5 39.0 GAX115 57.9 7.8 4.1 11.9 ---------------------------------------------------------------------------- And 1.4 114.8 59.4 174.2 And 49.2 35.0 18.1 53.1 ---------------------------------------------------------------------------- And 4.5 100.4 235.7 336.0 And 154.5 30.6 71.8 102.4 ---------------------------------------------------------------------------- Including 61.3 1.6 275.6 277.2 Including 2,100.0 0.5 84.0 84.5 ---------------------------------------------------------------------------- Including 30.3 3.8 323.7 327.4 Including 1,040.0 1.2 98.7 99.8 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX117 1.5 37.9 0.0 37.9 GAX117 51.1 11.6 0.0 11.6 ---------------------------------------------------------------------------- And 31.2 9.5 163.9 173.4 And 1,071.1 2.9 50.0 52.9 ---------------------------------------------------------------------------- Including 532.4 0.5 166.7 167.2 Including 18,244.5 0.2 50.8 51.0 ---------------------------------------------------------------------------- All depths indicated in table are down hole 0.73 opt Ag (25 gpt Ag) cutoff Allowable waste interval was 19.7 ft (6 m) of less than 0.73 opt Ag (25 gpt Ag) Numbers may not add due to rounding True widths are unknown 3) Mineralization Extended to the Northwest Hole GAX116 successfully expanded the Main Zone's mineralization laterally by 72 ft (22 m) (Fig 1, 5) to the northwest. In addition, this hole demonstrates good continuity of near surface mineralization. Highlights from this hole are shown below: ---------------------------------------------------------------------------- Hole # Silver Length From To Hole # Silver Length From To (opt) (ft) (ft) (ft) (gpt) (m) (m) (m) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX116 4.2 37.2 0.0 37.2 GAX116 145.4 11.4 0.0 11.4 ---------------------------------------------------------------------------- Including 17.1 6.2 27.9 34.1 Including 587.9 1.9 8.5 10.4 ---------------------------------------------------------------------------- All depths indicated in table are down hole 0.73 opt Ag (25 gpt Ag) cutoff Allowable waste interval was 19.7 ft (6 m) of less than 0.73 opt Ag (25 gpt Ag) Numbers may not add due to rounding True widths are unknown 4) Connecting the Main and North ZoneGap Continues to Close One of the objectives of the 2010 drilling program has been to establish continuity between the Main and North Zones. Holes GAX108, GAX109 and GAX112 are the most recent holes from this area (four prior holes have been previously released). Current drill results between the Main and North Zones show that the gap continues to close (Fig 1, 6). If additional drilling is successful the area could conceivably be mined as one large open pit as opposed to two smaller pits. Highlights are shown below: ---------------------------------------------------------------------------- Hole # Silver Length From To Hole # Silver Length From To (opt) (ft) (ft) (ft) (gpt) (m) (m) (m) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX108 2.7 15.4 50.2 65.6 GAX108 91.6 4.7 15.3 20.0 ---------------------------------------------------------------------------- And 43.5 9.2 247.4 256.6 And 1,491.3 2.8 75.4 78.2 ---------------------------------------------------------------------------- Including 93.0 3.3 250.0 253.3 Including 3,190.0 1.0 76.2 77.2 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX109 2.2 49.2 77.8 127.0 GAX109 76.2 15.0 23.7 38.7 ---------------------------------------------------------------------------- Including 12.2 1.6 77.8 79.4 Including 417.0 0.5 23.7 24.2 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX112 3.4 65.9 8.2 74.1 GAX112 117.0 20.1 2.5 22.6 ---------------------------------------------------------------------------- Including 34.3 4.6 26.2 30.8 Including 1,175.0 1.4 8.0 9.4 ---------------------------------------------------------------------------- And 4.6 22.5 372.9 395.4 And 158.5 6.9 113.7 120.5 ---------------------------------------------------------------------------- All depths indicated in table are down hole 0.73 opt Ag (25 gpt Ag) cutoff Allowable waste interval was 19.7 ft (6 m) of less than 0.73 opt Ag (25 gpt Ag) Numbers may not add due to rounding True widths are unknown 5) In Fill Drilling Confirms Near Surface Mineralization Increasing the Confidence Level Recent delineation drilling occurred in areas where the mineralization is interpreted to be at or near surface. Results from these holes met expectations. Highlights are shown below. ---------------------------------------------------------------------------- Hole # Silver Length From To Hole # Silver Length From To (opt) (ft) (ft) (ft) (gpt) (m) (m) (m) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX110 1.9 18.0 87.6 105.6 GAX110 66.7 5.5 26.7 32.2 ---------------------------------------------------------------------------- And 1.5 60.5 147.6 208.2 And 52.1 18.5 45.0 63.5 ---------------------------------------------------------------------------- Including 5.8 2.8 163.2 166.0 Including 200.0 0.9 49.8 50.6 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX141 1.6 140.7 0.0 140.7 GAX141 53.4 42.9 0.0 42.9 ---------------------------------------------------------------------------- All depths indicated in table are down hole 0.73 opt Ag (25 gpt Ag) cutoff Allowable waste interval was 19.7 ft (6 m) of less than 0.73 opt Ag (25 gpt Ag) Numbers may not add due to rounding True widths are unknown Geological Technical Description of El Gallo El Gallo is a low-sulfidation, epithermal silver deposit located within the Pie de la Sierra physiographic province of the Sierra Madre Occidental Range which is part of a Cretaceous to Tertiary magmatic arc with volcanic and associated sedimentary rocks that extends for hundreds of miles through northwestern Mexico. Cretaceous-Tertiary volcanic and volcaniclastic rocks rest upon a basement of Paleozoic and Mesozoic sedimentary and metamorphic rocks. Intrusives of Late Cretaceous and Tertiary age cut these rocks locally. Regionally, these intrusives are dominated by the granitic Sinaloa Batholith. El Gallo project is located near the margin of the Sinaloa Batholith. Other shallow-level porphyritic intrusives also occur within the project area. Silver mineralization is hosted in breccia and stockwork zones that occur primarily in the andesitic volcanic and intrusive rocks and to a lesser extent in quartz monzonite porphyry intrusive rocks. The shape of the mineralization has not yet been fully defined. To view the 12 new core holes from this news release see Table 1. To view all 117 core holes drilled at El Gallo, please click: http://www.usgold.com/news/pdf/20090805_uxg_elgalloallholes.pdf.To view assays intervals from core holes GAX124, please click:http://www.usgold.com/news/pdf/20100426/gax124.xls.ABOUT US GOLD (www.usgold.com)US Gold Corporation is a Colorado incorporated gold and silver exploration company with a strong treasury, no debt and two significant land holdings, one in Nevada next to Barrick Gold's multi-million ounce Cortez project, and the other in Mexico where an exciting high-grade silver discovery has been made. US Gold's goal is to qualify for inclusion in the S&P 500 within 5 years. US Gold's shares trade on the NYSE Amex and the Toronto Stock Exchange under the symbol UXG. US Gold has good market liquidity, trading 1.0 million shares daily, and is included in S&P/TSX and Russell indices.QUALIFIED PERSONThis news release has been viewed and approved by John Read, 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 Magistral Mine property. One quarter of the split drill core was shipped to ALS Chemex in Hermosillo 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 utilizing a CS-1500 truck-mounted core drill. Samples were taken based on lithologic and/or mineralized intervals and vary in length. The true width of the mineral zone has not yet been determined. Certain statements contained herein and subsequent oral statements made by and on behalf of the Company may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by words such as "intends," "anticipates," "believes," "expects" and "hopes" and include, without limitation, statements regarding the Company's results of exploration, plan of business operations, potential contractual arrangements, receipt of working capital, anticipated revenues and related expenditures. Factors that could cause actual results to differ materially include, among others, those set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and other filings with the Securities and Exchange Commission, under the caption "Risk Factors". Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking statements. Except as otherwise required by applicable securities statutes or regulations, the Company disclaims any intent or obligation to update publicly these forward looking statements, whether as a result of new information, future events or otherwise. El Gallo Silver Project: Core Holes Assays Table 1 April 26, 2010 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Azi- muth Dip Silver Length From Silver Length From deg- deg- East- North- Hole # (opt) (ft) (ft) (gpt) (m) (m) rees rees ing ing ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX104 1.9 9.4 59.9 66.3 2.9 18.3 350 -80 212020 2843174 And 0.9 92.5101.7 32.4 28.2 31.0 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX107 1.2 39.7 0.0 40.6 12.1 0.0 180 -55 212989 2843266 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX108 2.7 15.4 50.2 91.6 4.7 15.3 190 -45 212030 2843321 And 43.5 9.2247.4 1,491.3 2.8 75.4 Including 93.0 3.3250.0 3,190.0 1.0 76.2 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX109 2.2 49.2 77.8 76.2 15.0 23.7 185 -50 212055 2843372 Including 12.2 1.6 77.8 417.0 0.5 23.7 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX110 1.9 18.0 87.6 66.7 5.5 26.7 350 -50 211888 2843185 And 1.5 60.5147.6 52.1 18.5 45.0 Including 5.8 2.8163.2 200.0 0.9 49.8 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX112 3.4 65.9 8.2 117.0 20.1 2.5 350 -45 212244 2843281 Including 34.3 4.6 26.2 1,175.0 1.4 8.0 And 4.6 22.5372.9 158.5 6.9 113.7 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX115 1.7 25.6 13.5 57.9 7.8 4.1 350 -70 212256 2843186 And 1.4 114.8 59.4 49.2 35.0 18.1 And 4.5 100.4235.7 154.5 30.6 71.8 Including 61.3 1.6275.6 2,100.0 0.5 84.0 Including 30.3 3.8323.7 1,040.0 1.2 98.7 ---------------------------------------------------------------------------- GAX116 4.2 37.2 0.0 145.4 11.4 0.0 210 -70 211906 2823325 Including 17.1 6.2 27.9 587.9 1.9 8.5 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX117 1.5 37.9 0.0 51.1 11.6 0.0 -190 -65 211958 2843225 And 31.2 9.5163.9 1,071.1 2.9 50.0 Including 532.4 0.5166.7 18,244.5 0.2 50.8 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX123 5.7 110.7308.6 195.2 33.8 94.1 350 -60 212315 2843178 Including 36.6 7.1397.6 1,254.9 2.2 121.2 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX124 0.9 62.0 64.0 30.5 18.9 19.5 350 -50 212345 2843163 And 1.2 109.4220.1 39.9 33.4 67.1 Including 5.6 7.7304.5 193.2 2.4 92.8 And 7.2 100.9423.6 247.1 30.8 129.1 Including 45.0 7.5466.5 1,543.0 2.3 142.2 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GAX141 1.6 140.7 0.0 53.4 42.9 0.0 184 -65 211878 2843223 ---------------------------------------------------------------------------- All depths indicated in table are down hole 0.73 opt Ag (25 gpt Ag) cutoff Allowable waste interval was 19.7 ft (6 m) of less than 0.73 opt Ag (25 gpt Ag) Numbers may not add due to rounding NSV = No Significant Values To view the Figure 1 map, please visit the following link: http://media3.marketwire.com/docs/gallo1.pdf.To view the Figure 2 map, please visit the following link: http://media3.marketwire.com/docs/gallo2.pdf.To view the Figure 3 map, please visit the following link: http://media3.marketwire.com/docs/gallo3.pdf.To view the Figure 4 map, please visit the following link: http://media3.marketwire.com/docs/gallo4.pdf.To view the Figure 5 map, please visit the following link: http://media3.marketwire.com/docs/gallo5.pdf.To view the Figure 6 map, please visit the following link: http://media3.marketwire.com/docs/gallo6.pdf.FOR FURTHER INFORMATION PLEASE CONTACT: US Gold Corporation Stefan M. Spears VP, Projects (647) 258-0395 or Toll Free: (866) 441-0690 (647) 258-0408 (FAX) info@usgold.com or Mailing Address 99 George Street, 3rd Floor Toronto, ON M5A 2N4