Mr. Ian Ball reports
NEW VEINS DISCOVERED NORTH OF EL GALLO & SUCCESSFUL EXPANSION OF SEVERAL KNOWN ZONES THROUGHOUT DISTRICT
U.S. Gold Corp. has received very encouraging drill results from several different areas at and surrounding the company's El Gallo project in Sinaloa state, Mexico. Drilling has discovered a series of new veins six miles (10 kilometres) north of the main resource and has also extended many of the known zones throughout the district.
These results will not be included in the El Gallo preliminary economic assessment due to be released in early February.
Exploration highlights:
-
Several new silver-gold veins, located six miles (10 kilometres) north of the El
Gallo resource, have been discovered with intersections of 1,325.1 grams
per tonne (g/t) silver and 2.1 g/t gold over 1.2 metres, 235.0 g/t
silver and 18.3 g/t gold over 0.7 metre, and 273.6 g/t silver and 0.7
g/t gold over 10.5 metres.
- Near-surface expansion and delineation drilling at Palmarito has intersected
135.1 g/t silver and 0.3 g/t gold over 21.1 metres, 121.4 g/t silver and
0.6 g/t gold over 12.2 metres, and 70.6 g/t silver and 0.6 g/t gold over
26.4 metres, all starting from surface.
- The first follow-up holes at the El Gallo gold zone have returned more high-grade
results, with 16.9 g/t gold over 2.0 metres, 7.0 g/t gold over 1.1 metres and 5.2 g/t
gold over 2.0 metres.
- Near-surface mineralization at Chapotillo extended to the southeast,
returning 218.3 g/t silver and 1.6 g/t gold over 4.6 metres, and 110.0 g/t
silver and 16.2 g/t gold over 0.5 metre.
- Drilling at El Gallo designed to increase the size of the resource
has encountered more encouraging results with 75.3 g/t silver over 22.2 metres.
- The preliminary economic assessment for El Gallo is due to be released in early
February.
El Gallo and district exploration
U.S. Gold controls over 500,000 acres of land around El Gallo, with many areas having been mined historically on a small scale. Since many of these areas have not been subject to modern exploration, U.S. Gold's management feels the district holds a lot of growth potential. Continued drilling at El Gallo will focus on expanding the total size of the resource as well as upgrading the inferred resource to the measured and indicated categories. Drilling on the new veins will focus on delineating the mineralization in order for them to be incorporated in an updated resource estimate. U.S. Gold anticipates spending $15-million on exploration in Mexico during 2011, in addition to moving the project through to feasibility.
New veins discovered north of El Gallo resource
A new series of veins has been discovered six miles (10 kilometres) north of the El Gallo resource. Fourteen core holes were completed on two of the veins known as Mina Grande and Los Mautos, which are separated by 1,300 metres. Drilling at Mina Grande occurred over a strike length of 550 metres. The best results were intersected along the northwest section of the vein, where there is good potential to expand the mineralization laterally and at depth. Drilling on the Los Mautos vein occurred over a strike length of 120 metres. The mineralization at Los Mautos is hosted in siliceous breccia bodies that outcrop at surface. This is important because this is the same type of occurrence that hosts silver mineralization at El Gallo. Highlights are shown in the table entitled, "Mina Grande and Los Mautos highlights."
MINA GRANDE AND LOS MAUTOS HIGHLIGHTS
Hole Silver Gold Length From Silver Gold Length From
No. (g/t) (g/t) (metres) (metres) (opt) (opt) (feet) (feet)
MGX-001 209.6 1.7 2.0 50.0 6.1 0.05 6.6 164.0
and 1,325.1 2.1 1.2 58.3 38.6 0.06 3.9 191.3
MGX-004 273.0 0.8 0.4 34.6 8.0 0.02 1.3 113.5
MGX-006 236.0 2.5 0.6 20.0 6.9 0.07 2.0 65.6
MGX-007 235.0 18.3 0.7 63.8 6.9 0.53 2.3 209.3
LMX-004 273.6 0.7 10.5 32.2 8.0 0.02 34.4 105.6
including 847.2 2.0 1.0 34.7 24.7 0.06 3.3 113.8
including 562.8 1.4 2.1 39.7 16.4 0.04 6.9 130.2
Palmarito -- good grades and thickness discovered at surface
The discovery of the Southwest zone, which was announced in 2010, has opened up multiple areas for expansion at Palmarito. Since the discovery was announced, six additional core holes have been completed. The objective of these holes was to begin connecting the Southwest zone to the main Palmarito resource located 250 metres to the north. Five of the six holes encountered encouraging grades and thicknesses starting at or near surface.
The results from these holes are important because:
- The silver grades encountered are approximately 75 per cent higher than the current in situ resource at Palmarito.
- The mineralization in each of the holes starts at or near surface.
- The holes fill in the large gap that previously existed between the two zones.
- It appears there are multiple areas where the mineralization can be further expanded.
Based on these results, a larger drill program is being designed for Palmarito and will commence in the coming weeks.
PALMARITO HIGHLIGHTS
Hole Silver Gold Length From Silver Gold Length From
No. (g/t) (g/t) (metres) (metres) (opt) (opt) (feet) (feet)
PMX-054 121.4 0.6 12.2 0.0 3.5 0.02 40.0 0.0
PMX-055 70.6 0.6 26.4 0.0 2.1 0.02 86.6 0.0
PMX-056 135.1 0.3 21.1 0.0 3.9 0.01 69.2 0.0
PMX-057 78.4 0.5 3.0 5.5 2.3 0.01 9.8 18.0
PMX-059 167.9 0.5 6.2 1.2 4.9 0.01 20.3 3.9
El Gallo gold zone -- early success continues
U.S. Gold first announced the discovery of the gold zone in Stockwatch on Dec. 8, 2010, with the first two core holes returning 7.7 g/t gold over 4.8 metres and 6.4 g/t gold over 3.1 metres. The vein is located 300 metres southeast of the El Gallo silver resource. However, unlike El Gallo, this new zone is predominately gold. Results from the first two follow-up holes have been received. The holes were drilled in order to test the down-dip potential and to establish the orientation of the vein, which appears to be trending east to west. Grades continue to be encouraging. It is also important to note that the basement rock, which underlies the El Gallo silver resource and acts as a floor to the mineralization, occurs much deeper at the gold zone. This is an encouraging development because it indicates potential for mineralization at increasing depths.
EL GALLO GOLD ZONE HIGHLIGHTS
Hole Gold Length From Gold Length From
No. (g/t) (metres) (metres) (opt) (feet) (feet)
GZX-003 16.9 2.0 10.0 0.49 6.6 32.8
including 29.3 1.0 10.0 0.85 3.3 32.8
GZX-004 4.2 4.9 132.2 0.12 16.1 433.7
including 7.0 1.1 132.2 0.20 3.6 433.7
and 5.2 2.0 173.9 0.15 6.6 570.5
Chapotillo -- near-surface mineralization expanded
The primary focus of U.S. Gold's drilling at Chapotillo is to define the areas of near-surface potential. Since the discovery hole was announced in Stockwatch on Oct. 27, 2010, returning 236.2 g/t silver and 1.6 g/t gold over 18.6 metres, results have been received for three additional holes. Each of the holes successfully intersected the zone at or near surface, expanding the mineralization by approximately 60 metres to the southeast. Drilling at Chapotillo is continuing.
CHAPOTILLO HIGHLIGHTS
Hole Silver Gold Length From Silver Gold Length From
No. (g/t) (g/t) (metres) (metres) (opt) (opt) (feet) (feet)
CHX-010 308.0 4.2 0.5 6.5 9.0 0.12 1.6 21.3
and 110.0 16.2 0.5 17.3 3.2 0.47 1.6 56.8
CHX-012 78.0 1.0 4.4 26.2 2.3 0.03 14.4 86.0
including 198.0 2.8 0.7 29.9 5.8 0.08 2.3 98.1
CHX-013 218.3 1.6 4.6 0.0 6.4 0.05 15.1 0.0
and 71.9 0.6 4.2 19.5 2.1 0.02 13.8 64.0
El Gallo -- expansion and infill drilling continues to encounter success
Recent exploration at El Gallo has been focused on two goals:
- Exploring for extensions of known zones in order to increase the size of the resource;
- Upgrading inferred resources to the measured and indicated categories.
Drilling to expand the mineralization has focused on the southern extension of the Main zone. A total of seven holes intersected the zone, expanding the mineralization by 150 metres. The primary objective of U.S. Gold's drilling at El Gallo is to expand the mineralization to the south and the east.
MAIN ZONE HIGHLIGHTS
Hole Silver Length From Silver Length From
No. (g/t) (metres) (metres) (opt) (feet) (feet)
GAX-247 75.3 22.2 69.0 2.2 72.8 226.4
GAX-250 61.8 9.8 122.6 1.8 32.2 402.2
GAX-255 58.7 7.2 77.6 1.7 23.6 254.6
including 196.0 1.4 83.5 5.7 4.6 274.0
GAX-260 75.9 4.5 152.3 2.2 14.8 499.7
GAX-264 150.0 4.6 0.0 4.4 15.1 0.0
including 410.0 1.6 3.1 12.0 5.2 10.2
GAX-266 76.0 7.5 100.4 2.2 24.6 329.4
Drilling to upgrade mineralization into the measured and indicated categories focused on the area between the Main and North zones. The results from these holes successfully met expectations. Continuing infill drilling will occur throughout 2011 as U.S. Gold moves toward the feasibility stage. Highlights from the recent infill holes are shown in the table entitled, "Highlights from recent infill holes."
HIGHLIGHTS FROM RECENT INFILL HOLES
Hole Silver Length From Silver Length From
No. (g/t) (metres) (metres) (opt) (feet) (feet)
GAX-248 91.3 1.0 47.0 2.7 3.3 154.2
and 358.0 0.9 68.5 10.4 3.0 224.7
and 76.2 1.1 89.0 2.2 3.6 292.0
and 98.0 2.0 110.8 2.9 6.6 363.5
GAX-252 70.7 4.6 0.0 2.1 15.1 0.0
including 121.0 2.3 0.0 3.5 7.5 0.0
and 109.0 1.2 21.4 3.2 3.9 70.2
and 159.0 1.1 35.5 4.6 3.6 116.5
and 188.1 1.0 48.1 5.5 3.3 157.8
Preliminary economic assessment update
The preliminary economic assessment for El Gallo is scheduled to be released in early February. This study will analyze potential production rates, capital expenditures and rates of return for the project, and is expected to become the foundation for the El Gallo feasibility study.
This news release has been viewed and approved by John Read, CPG, U.S. Gold's consulting geologist, who is a qualified person as defined by National Instrument 43-101. He is responsible for program design and quality control of exploration undertaken by the company at its Mexican exploration properties.
We seek Safe Harbor.
© 2025 Canjex Publishing Ltd. All rights reserved.