Exploration: Magistral Mine

The Magistral Mine is a former open pit, heap leach gold operation located in Sinaloa, Mexico. The mine produced approximately 70,000 ounces of gold between 2002-2005 and currently serves as our exploration base in Mexico. The last reported resource estimate was completed in June 2009 and contained a Measured and Indicated resource of 502,466 ounces of gold with an average grade of 0.04 opt (11.5 mt). The resource contains an Inferred resource of 8,167 ounces of gold with an average grade of 0.03 opt (0.2 mt). (Please click here for Technical Report)

La Prieta High-Grade Zone

Drilling by US Gold in 2008 was designed to initially confirm and then identify the extension of the La Prieta Zone along strike and down dip, which is highest grade area on the property. Significant widths of the La Prieta Zone were intercepted during this drilling.

Magistral 2010 Exploration

Drilling will be designed to identify high-grade mineralization similar to the La Prieta Zone, where significant widths of mineralization occur. La Prieta is considered the most important mineral zone at the Magistral Mine and the potential to find a second zone would have the potential to substantially improve the economic returns associated with mining this area. Exploration will also focus on extending the mineralization at the Sagrado Corazon deposit. 

Preliminary Economic Analysis 

In conjunction with the Preliminary Economic Analysis (PEA) at El Gallo, US Gold will study the feasibility of mining the high-grade areas at Magistral. An underground mine plan is now being prepared by Pincock Allen & Holt. The additional capital expenditures associated with mining Magistral are believed to be limited since the property is fully permitted. The PEA would look at sending the ore from Magistral to an El Gallo mill.