Exploration: El Gallo Project
In November 2008, US Gold announced the El Gallo silver/gold discovery. US Gold is currently drilling 330,000 ft (100,000 m) in 2010, which is believed to be the largest exploration program by any junior in Mexico.
The company’s ambition is to have El Gallo become one of the top 10 primary silver mines in the world. US Gold holds 530,000 acres of mineral rights around El Gallo. This underexplored area continues to show significant progress under US Gold’s aggressive exploration program.
THE EL GALLO PROJECT
The El Gallo silver/gold discovery is located in Sinaloa State, Mexico. It is surrounded by 530,000 acres of land, which is owned by US Gold. The company also has two other discoveries in the district 1) Magistral (gold) and 2) Palmarito (silver). These deposits are located 3 miles (5 km) and 7 miles (11 km) respectively from El Gallo. All three projects will be incorporated into a scoping study due at year-end. US Gold’s objective is for El Gallo to become one of the world’s largest primary silver mines.
EXPLORATION
Since core drilling began in January 2009, US Gold has completed 177 holes totaling 29,000 meters. The initial resource estimate was released on July 6, 2010 (click here for news release). US Gold is currently undertaking what is believed to be the largest drill program in Mexico by any junior totaling 330,000 ft (100,000 m). An updated resource estimate including a scoping study will be released by year-end. US Gold’s regional exploration objective is to identify mineralization that would be mined and subsequently shipped to an El Gallo process facility.
To download El Gallo drill holes, click here.
To download El Gallo cross sections, click here.
PRODUCTION
US Gold has set the objective of starting production in Mexico by 2013. US Gold ambition is to become one of the top 10 largest primary silver mines in the world. Currently, studies are underway analyzing the economic profitability of a central processing facility located at El Gallo. In-conjunction with El Gallo, US Gold’s engineering team is evaluating shipping ore from Palmarito and Magistral to an El Gallo mill.
FUTURE PRODUCTION GOALS
DISTRICT RESOURCE ESTIMATE SILVER
DISTRICT RESOURCE ESTIMATE GOLD
PROPERTY LOCATIONS
METALLURGICAL TESTING
Two types of metallurgical tests have been performed at El Gallo 1) bottle rolls tests to establish silver recoveries under a milling scenario, which is the primary process method being considered and 2) column leach tests, a secondary process that is being studied to treat low grade mineralization. The average recovery from the bottle rolls and column tests were 87% and 54%, respectively. These results will be incorporated into El Gallo's initial resource estimate and Preliminary Economic Assessment. Mill design work is currently on going.
TECHNICAL REPORTS
El Gallo Technical report 43-101 (Pending)
Magistral Technical Report 43-101 June 2009
Palmarito Technical Report 43-101 December 2009
Two types of metallurgical tests have been performed at El Gallo 1) bottle rolls tests to establish silver recoveries under a milling scenario, which is the primary process method being considered and 2) column leach tests, a secondary process that is being studied to treat low grade mineralization. The average recovery from the bottle rolls and column tests were 87% and 54%, respectively. These results will be incorporated into El Gallo's initial resource estimate and Preliminary Economic Assessment. Mill design work is currently on going.
TECHNICAL REPORTS
El Gallo Technical report 43-101 (Pending)
Magistral Technical Report 43-101 June 2009
Palmarito Technical Report 43-101 December 2009
