"US GOLD CORPORATION (NYSE:UXG)(TSX:UXG) is pleased to announce the discovery of three gold-bearing veins near the company's El Gallo Project in Sinaloa state, Mexico (Fig. 1). The three veins, which to date have been defined by a total of 17 core holes, are all located within hauling distance of El Gallo. These new veins will not be included in the upcoming Preliminary Economic Assessment.
"The discovery of these veins illustrates the exploration potential of US Gold's large land package around El Gallo. Follow-up drilling has commenced with the objective of further extending the mineralization. Seven drills are currently operating at the project and we expect this pace to continue throughout 2011," stated Rob McEwen, Chairman and CEO.
Drill Assay Highlights
The drill assay results shown below are selected assays from the three new veins. Complete results are listed in Table 1. Vein locations are shown in Figure 1.
Gold Zone Vein (2 core holes drilled – 500 meters SE of El Gallo)
Current Known Strike Length 50 m (Fig. 2)
GZX-002: 7.7 gpt gold over 4.8 meters, including 22.2 gpt gold over 1.1 meters
GZX-001: 6.4 gpt gold over 3.1 meters, including 10.8 gpt gold over 1.2 meters
Alamo Vein (10 core holes drilled – 7 km North El Gallo)
Current Known Strike Length 450 m (Fig. 3)
SJX-002: 9.3 gpt gold over 1.7 meters
SJX-008: 7.8 gpt gold over 0.8 meters
SJX-009: 7.6 gpt gold over 1.7 meters
SJX-010: 4.2 gpt gold over 6.0 meters, including 7.9 gpt gold over 1.4 meters
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