US GOLD EXPLORATION UPDATE ENCOURAGING RESULTS; BEST GRADE: 0.73 opt over 5 ft. (April 10, 2007)
Denver, Colorado (April 10, 2007) - US GOLD CORPORATION (AMEX:UXG - TSX: UXG) is pleased to announce encouraging exploration results, including 0.73 ounces per ton (opt) over 5 feet within a larger intercept of 0.097 opt over 59.5 feet, from its Tonkin gold project. This high-grade occurrence is located in a flat lying northeast oriented structure, which is a prominent feature of major gold discoveries on the Cortez and Carlin Trends. Drilling also encountered mineralization of 0.093 opt over 14 feet in a vertical structure, which was the first such occurrence encountered on the property.
US Gold is now merging the land positions and geologic data acquired in the recent takeovers of White Knight Resources, Nevada Pacific Gold, and Tone Resources, in order to advance exploration on what US Gold believes are highly prospective properties.
“US Gold has reached a significant milestone. Our consolidation of four companies into one creates a strategic land position that rivals Barrick’s Cortez Joint Venture, where past production, current reserves and mineralized material of 33 million ounces of gold have been discovered,” stated Rob McEwen, Chairman and CEO. “I am excited about US Gold’s prospects and the potential for discovering another large gold deposit in the Cortez Trend.”
EXPLORATION RESULTS
Exploration drilling has been focused around known mineralization and past producing areas to better understand the geology, and to test for new mineralization. We refer to these areas as Middle, Southern, and Rooster as shown on Figure 1. Complete assay results since the last exploration update are available in the attached Table 1.
Middle Area
High-Grade Gold – 0.73 opt over 5 feet
The best result of 0.73 opt over 5 feet was encountered 75 feet northeast of a historic high-grade intercept. It is contained in a northeast and flat-lying structure which is a prominent and common feature of major gold discoveries on both the Cortez and Carlin Trends. In addition, it expands the known area of high-grade mineralization. The significant results are summarized below:
In addition, drilling in the Middle Area encountered the first vertical feature, and further drilling is underway to determine its potential. A vertical feature is significant because it could represent a deep feeder structure. The most significant results obtained are:
Southern Area
Deep Drilling, Extending Mineralization to Depth
Drilling targeted a new area east and southeast of favorable results obtained last fall. The highlights are summarized below:
Significant mineralization was encountered between two known gold resources. Future drilling will look to connect these areas of known mineralization. The highlights from these holes are shown below:
Hole 59 0.056 gold opt over 38 feet (1.908 gold gpt over 11.58 m)
Including 0.126 gold opt over 10 feet (4.308 gold gpt over 3.05 m)
Hole 66 0.098 gold opt over 20 feet (3.369 gold gpt over 6.10 m)
Including 0.150 gold opt over 10 feet (5.147 gold gpt over 3.05 m)
Hole 68 0.056 gold opt over 10 feet (1.898 gold gpt over 3.05 m)
Including 0.100 gold opt over 5 feet (3.420 gold gpt over 1.52 m)
Rooster Area
Results from drilling in and around the large resource at Rooster confirmed the known mineralization, however drilling met with limited success expanding the resource laterally and to depth. Results below are important because they confirm the existing resource:
Hole 27 0.039 gold opt over 40 feet (1.334 gold gpt over 12.20 m)
Including 0.059 gold opt over 20 feet (2.018 gold gpt over 6.10 m)
0.053 gold opt over 50 feet (1.813 gold gpt over 15.24 m)
0.040 gold opt over 40 feet (1.368 gold gpt over 12.20 m)
Hole 29 0.044 gold opt over 54.3 feet (1.505 gold gpt over 16.55 m)
Including 0.062 gold opt over 30 feet (2.123 gold gpt over 9.15 m)
Hole 61 0.042 gold opt over 32 feet (1.444 gold gpt over 9.76 m)
Including 0.151 gold opt over 5.5 feet (5.164 gold gpt over 1.68 m)
0.039 gold opt over 42.5 feet (1.325 gold gpt over 12.96 m)
Exploration will continue in the mine corridor and expand into new areas throughout the coming year.
ABOUT US GOLD
US Gold is a United States based gold exploration company aggressively exploring Nevada’s Cortez Trend. US Gold’s Tonkin project is 44 square miles and centered in the middle of the Cortez Trend. Shares of the Company are traded on the AMEX and TSX under the symbol UXG. Visit www.usgold.com for more information.
QUALIFIED PERSON
This news release has been prepared under the guidance of Steve Brown, Senior Geologist and Project Manager, 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 Tonkin Springs property. All samples were analyzed by ALS Chemex of Winnemucca, Nevada.
All assays are uncut, with analysis conducted by ALS Chemex utilizing a 30 gram fire assay change with an AA finish. Sample length is by geologic boundary with a maximum 5 foot length and core recovery averages 95-98%. Quality assurance/quality control is assured by inserting standards and blanks every 40th sample and check assays sent to second lab every 20th sample.
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-KSB for the fiscal year ended December 31, 2006 and those set forth in the registration statements referenced above, under the caption "Risk Factors" and other filings with the SEC. 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.
For further information contact:
William F. Pass
Vice President and Chief Financial Officer
Tel: (303) 238-1438
Fax: (303 238-1724
bill@usgold.com
165 South Union, Suite 565
Lakewood, CO 80228
Ana Aguirre
Investor Relations
Tel: (647) 258-0395
Toll Free: (866) 441-0690
Fax: (647) 258-0408
info@usgold.com
99 George Street, 3rd Floor
Toronto, ON M5A 2N4
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US Gold is now merging the land positions and geologic data acquired in the recent takeovers of White Knight Resources, Nevada Pacific Gold, and Tone Resources, in order to advance exploration on what US Gold believes are highly prospective properties.
“US Gold has reached a significant milestone. Our consolidation of four companies into one creates a strategic land position that rivals Barrick’s Cortez Joint Venture, where past production, current reserves and mineralized material of 33 million ounces of gold have been discovered,” stated Rob McEwen, Chairman and CEO. “I am excited about US Gold’s prospects and the potential for discovering another large gold deposit in the Cortez Trend.”
EXPLORATION RESULTS
Exploration drilling has been focused around known mineralization and past producing areas to better understand the geology, and to test for new mineralization. We refer to these areas as Middle, Southern, and Rooster as shown on Figure 1. Complete assay results since the last exploration update are available in the attached Table 1.
Middle Area
High-Grade Gold – 0.73 opt over 5 feet
The best result of 0.73 opt over 5 feet was encountered 75 feet northeast of a historic high-grade intercept. It is contained in a northeast and flat-lying structure which is a prominent and common feature of major gold discoveries on both the Cortez and Carlin Trends. In addition, it expands the known area of high-grade mineralization. The significant results are summarized below:
Hole 44 0.097 gold opt over 59.5 feet (3.306 gold gpt over 18.14 m)
Including 0.730 gold opt over 5.0 feet (25.00 gold gpt over 1.52 m)
Hole 34 0.044 gold opt over 84 feet (1.500 gold gpt over 25.61 m)
Including 0.125 gold opt over 16.5 feet (4.274 gold gpt over 5.03 m)
Including 0.730 gold opt over 5.0 feet (25.00 gold gpt over 1.52 m)
Hole 34 0.044 gold opt over 84 feet (1.500 gold gpt over 25.61 m)
Including 0.125 gold opt over 16.5 feet (4.274 gold gpt over 5.03 m)
In addition, drilling in the Middle Area encountered the first vertical feature, and further drilling is underway to determine its potential. A vertical feature is significant because it could represent a deep feeder structure. The most significant results obtained are:
Hole 54 0.037 gold opt over 10 feet (1.265 gold gpt over 3.05 m)
0.040 gold opt over 15 feet (1.379 gold gpt over 4.57 m)
Hole 57 0.093 gold opt over 14 feet (3.185 gold gpt over 4.27 m)
0.040 gold opt over 15 feet (1.379 gold gpt over 4.57 m)
Hole 57 0.093 gold opt over 14 feet (3.185 gold gpt over 4.27 m)
Southern Area
Deep Drilling, Extending Mineralization to Depth
Drilling targeted a new area east and southeast of favorable results obtained last fall. The highlights are summarized below:
Hole 51 0.138 gold opt over 24 feet (4.713 gold gpt over 7.32 m)
Including 0.250 gold opt over 3 feet (8.570 gold gpt over 0.91 m)
0.193 gold opt over 15 feet (6.603 gold gpt over 4.57 m)
Including 0.235 gold opt over 10.5 feet (8.026 gold gpt over 3.20 m)
Including 0.250 gold opt over 3 feet (8.570 gold gpt over 0.91 m)
0.193 gold opt over 15 feet (6.603 gold gpt over 4.57 m)
Including 0.235 gold opt over 10.5 feet (8.026 gold gpt over 3.20 m)
Significant mineralization was encountered between two known gold resources. Future drilling will look to connect these areas of known mineralization. The highlights from these holes are shown below:
Hole 59 0.056 gold opt over 38 feet (1.908 gold gpt over 11.58 m)
Including 0.126 gold opt over 10 feet (4.308 gold gpt over 3.05 m)
Hole 66 0.098 gold opt over 20 feet (3.369 gold gpt over 6.10 m)
Including 0.150 gold opt over 10 feet (5.147 gold gpt over 3.05 m)
Hole 68 0.056 gold opt over 10 feet (1.898 gold gpt over 3.05 m)
Including 0.100 gold opt over 5 feet (3.420 gold gpt over 1.52 m)
Rooster Area
Results from drilling in and around the large resource at Rooster confirmed the known mineralization, however drilling met with limited success expanding the resource laterally and to depth. Results below are important because they confirm the existing resource:
Hole 27 0.039 gold opt over 40 feet (1.334 gold gpt over 12.20 m)
Including 0.059 gold opt over 20 feet (2.018 gold gpt over 6.10 m)
0.053 gold opt over 50 feet (1.813 gold gpt over 15.24 m)
0.040 gold opt over 40 feet (1.368 gold gpt over 12.20 m)
Hole 29 0.044 gold opt over 54.3 feet (1.505 gold gpt over 16.55 m)
Including 0.062 gold opt over 30 feet (2.123 gold gpt over 9.15 m)
Hole 61 0.042 gold opt over 32 feet (1.444 gold gpt over 9.76 m)
Including 0.151 gold opt over 5.5 feet (5.164 gold gpt over 1.68 m)
0.039 gold opt over 42.5 feet (1.325 gold gpt over 12.96 m)
Exploration will continue in the mine corridor and expand into new areas throughout the coming year.
ABOUT US GOLD
US Gold is a United States based gold exploration company aggressively exploring Nevada’s Cortez Trend. US Gold’s Tonkin project is 44 square miles and centered in the middle of the Cortez Trend. Shares of the Company are traded on the AMEX and TSX under the symbol UXG. Visit www.usgold.com for more information.
QUALIFIED PERSON
This news release has been prepared under the guidance of Steve Brown, Senior Geologist and Project Manager, 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 Tonkin Springs property. All samples were analyzed by ALS Chemex of Winnemucca, Nevada.
All assays are uncut, with analysis conducted by ALS Chemex utilizing a 30 gram fire assay change with an AA finish. Sample length is by geologic boundary with a maximum 5 foot length and core recovery averages 95-98%. Quality assurance/quality control is assured by inserting standards and blanks every 40th sample and check assays sent to second lab every 20th sample.
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-KSB for the fiscal year ended December 31, 2006 and those set forth in the registration statements referenced above, under the caption "Risk Factors" and other filings with the SEC. 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.
For further information contact:
William F. Pass
Vice President and Chief Financial Officer
Tel: (303) 238-1438
Fax: (303 238-1724
bill@usgold.com
165 South Union, Suite 565
Lakewood, CO 80228
Ana Aguirre
Investor Relations
Tel: (647) 258-0395
Toll Free: (866) 441-0690
Fax: (647) 258-0408
info@usgold.com
99 George Street, 3rd Floor
Toronto, ON M5A 2N4
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