Letter to shareholder from new Chairman & CEO Rob McEwen (September 23, 2005)
Dear Investor,
Thank you for being a US Gold owner! As an investor
in this company I wanted to write you for a number of
reasons. First, to introduce myself as the new Chairman
and CEO of US Gold and secondly, I wanted to discuss
the plans I have for the company.
On July 29, 2005 it was announced that I had purchased
33% of the shares of the company, becoming the largest
shareholder of US Gold. Shortly thereafter, I assumed
the position of Chairman and CEO. I feel it's important
for any CEO of a publicly traded company to have a large
vested interest and to have his or her interest directly
aligned with the shareholders. My interest is the same
as yours: Increasing shareholder value!
Before assuming my recent position with the company
I was Chairman and CEO of Goldcorp Inc. (NYSE: GG TSX:
G
). Prior to my stepping down as Goldcorp's CEO,
Goldcorp merged with Wheaton River Minerals in what
I believe was one of the most successful combinations
in the gold sector. During the past 18 years, Goldcorp's
market capitalization has increased from $50 million
to over $6.8 billion. Today Goldcorp is the lowest cost,
million ounce gold producer in the world and I remain
the largest individual shareholder of that company.
If you wish to find out more about me, I encourage you
to visit my website at www.robmcewen.com
When I looked at US Gold I saw a very unique and interesting
opportunity! A small company with one of the largest
land packages, in the Cortez Trend. If you look at our
property on the map provided, it is surrounded by opportunity.
Just to the north sits Placer Dome's Cortez Hills
discovery, which has been reported to contain 5.6 million
ounces of gold and was recently approved for production.
This discovery changed the outlook for the Cortez Trend,
because it suggests the same style of deposit is present,
which resides in the Carlin Trend.
The Carlin Trend is adjacent and parallel to the Cortez
Trend. To date the Carlin Trend has mined over 60 million
ounces of gold. Within the Carlin Trend, gold deposits
seem to be strung together in clusters, almost running
into each other. Early indications suggest a similar
pattern may exist on the Cortez Trend.
Our Tonkin Springs property has undergone several exploration
programs throughout the past 20 years. However, most
of the drilling centered on few select areas, leaving
the large majority of the property untested. In addition,
the drilling was close to surface. So why is this important?
It indicates that exploration was not focused on finding
a Carlin style deposit similar to Cortez Hills, which
is found deeper in the ground, located in what is referred
to as the Lower Plate. This Lower Plate has never been
hit on our property. Nevada Pacific Gold, which holds
small blocks of land within Tonkin Springs, announced
the discovery of Lower Plate rock on its property. This
is a very intriguing development in our quest for the
next Cortez Hills.
The next steps for US Gold will be to seek a listing
on a major American exchange, continue building the
management team, along with the board of directors and,
lastly, start aggressive drilling on the property!
When I stepped down from Goldcorp earlier this year
I felt my skills would be better aligned with the needs
of a smaller company. I enjoy leading and investing
in small exploration companies because a discovery can
transform the outlook for an organization overnight.
I view exploration as our research and development and
to achieve our goals we are going to have to think differently
than our competition. To lead the pack we are going
to have to take an innovative approach and speed up
the game!
On a final note I wanted to tell you about the new
US Gold website at www.usgold.com
where you can signup to receive the latest news on the company.
Remember US Gold - Right Time, Right Place, Right
Trend!
Robert R. McEwen
Chairman & Chief Executive Officer
For Further Information, please contact:
U.S. Gold Corp.
William F. Pass
Tel: 303-238-1438
Fax: 303-238-1724
or
Robert R. McEwen
Tel: 416-865-0326
Fax: 416-361-5741
Cautionary Statement
This letter contains "forward-looking statements"
(including within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended,
that are intended to be covered by the safe harbor created
by
such sections). Such forward-looking statements include,
without limitation, (i) estimates of future gold discoveries
and deposits; and (ii) statements regarding future asset
development. Where the undersigned or the Company expresses
or implies an expectation or belief as to future events
or results, such expectation or belief is expressed
in good faith and believed to have a reasonable basis.
However, forward-looking statements are subject to risks,
uncertainties and other factors, which could cause actual
results to differ materially from future results expressed,
projected or implied by such forward-looking statements.
Such risks include, but are not limited to, the unavailability
of gold deposits, gold and other metals price volatility,
currency fluctuations, increased production costs and
variances in ore grade or recovery rates from those
assumed in mining plans, the risks set forth in the
Company's most recent SB-2 registration statement
as file
d with the SEC, and governmental regulation and
judicial outcomes. Neither the Company nor the undersigned
undertakes any obligation to release publicly revisions
to any "forward-looking statement," to reflect
events or circumstances after the date of this letter,
or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities
laws.
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