The Keystone Project Encounters Its Strongest Gold Mineralization 

ELKO, NV - U.S. Gold Corp. Ken Coleman, Project Geologist reported, “Extensive ongoing analysis has brought us to this point to continue to test Keystone's significant potential. Encountering the strongest, thickest gold mineralization we are aware of at Keystone in 2019, in the Nina Skarn target, has demonstrated the presence of a strong, gold bearing Eocene magmatic system at Keystone. We look forward to assessing these Keystone targets in 2020 upon securing sufficient funding. The work we completed between 2016 and 2019 led to drilling the best hole to date at Keystone that we are aware of in 2019 Key19-05rc, in the Nina Skarn target area. Planned drilling in 2020 is expected to follow up on the gold mineralization encountered at Nina Skarn, as well as at Sophia and Tip Top. Additionally, several previously untested, gold-bearing skarn occurrences are expected to be drill tested, as are Carlin-type targets in the Greenstone Gulch target area. Our entire team is very much looking forward to the commencement of the 2020 Keystone drilling season, pending financing, re-opening of Nevada and BLM approval of cultural surveys. All of us were encouraged with our 2019 drilling results and feel strongly additional exploration efforts are warranted in the select target areas described above." 

The completion of the proposed 2020 drilling exploration program at its 20 square mile Keystone project, located in Nevada's Cortez Trend will potentially test several drill targets in areas previously untested and is intended to follow up on encouraging results from previous drilling. Upon commencement, drilling is planned to pursue Carlin-type and gold-silver skarn deposits in a variety of settings within the broader Keystone land package. Drilling is intended to commence once appropriate funding is secured. For the 2020 planned exploration program, up to 22 angled and vertical drill holes are proposed within five high-potential target areas of Keystone. Planned drilling is expected to be composed of a mix of reverse circulation (RC) and core, especially within the Sophia target area, where the most encouraging drill results are associated with extensive void development in Lower Plate rocks. These areas include Nina Skarn, Sophia, Tip Top, Greenstone Gulch and Keystone Skarn. Details for each target area are provided below, in order of priority. For those targets with two or more holes proposed, one hole is expected to be drilled and then drilling is planned to progress to the next target in priority, to allow time for results to be returned and analysed. Target concept cross sections are also provided for several of the targets. 

Nina Skarn: Up to nine holes are planned in this target area to follow up on strong gold mineralization encountered in 2019 drilling, within hole Key19-05rc. Key19-05rc encountered two thick intervals of oxidized, cyanide soluble, gold-bearing skarn mineralization, including 67.06m of 0.194 gpt Au and 76.2m of 0.224 gpt Au, starting from surface. The 76.2m interval also contained an interval of 25.91m of 0.408 gpt Au. Lower Valmy and Comus pyroxene skarn and hornfels are present at surface, coincident with a +2,000-foot-long gold-in-soil anomaly with up to 200 ppb samples and associated coincident anomalous Te-Bi-Zn-Ag. This anomalous skarn zone is parallel to and appears confined to the east of a major NNW trending structural zone, which confines strong Carlin-style alteration to the south in the Sophia Target, and a strong NE trending structural zone at the north. The proposed 2020 drilling will expand upon Key19-05rc to the north and southeast, along the Walti Pluton contact and structures trending southeast toward the Mud Springs intrusion, respectively. As-Bi-Te-Au in soil anomalies located along the western contact of the Mud Springs intrusion are expected to be drill tested as well. Drilling is expected to test for both oxidized and reduced skarn style mineralization along and near the contacts of both intrusions. 

Sophia: Up to four holes are proposed to be drilled to follow up on previous drilling in the target area, especially holes Key18-09rc and Key18-03rc. Hole Key18-09rc encountered over 350 feet of continuous oxidized breccia at the bottom, where it was lost at 1600 ft in a 20-foot-wide open void. The oxidized breccia was located below a thick section of Comus skarn and hornfels, which yielded a 20-foot intercept of 1g+ gold in garnet-magnetite skarn. The breccia at depth displays strongly anomalous gold, arsenic, thallium, mercury, antimony and many other elements, including thallium over 380 ppm. Key18-03rc was lost in voids in the Wenban Unit 6, with associated silicified, gold-bearing and quartz-calcite-stibnite veined limestone. Extending from Key18-09rc and south-eastward, a strongly altered porphyritic dike set is present, along which the strongest Au and As surface rock and soil anomalies at Sophia are located. Drilling is expected to be RC pre-collars with core tails to get through the extensive voids developed at the Horse Canyon-Wenban contact and down to the targeted Wenban Unit 5 host rocks, where the altered intermediate dikes are projected to intersect Unit 5. The Sophia target area represents the largest As-Tl soil anomaly within the entire Keystone project. 

Greenstone Gulch: Two holes are planned in this area, which has seen no previous drilling. Upper Plate Cambrian-Ordovician Comus Formation calcareous siltstones, limestones and greenstones are exposed at surface and are variably altered along NW and NE trending, partly dacitic dike filled structural zones. Lower Plate Devonian rocks are expected at shallow depths below surface. Surface soil and rock geochemistry shows a strong pathfinder element anomaly coincident with the NW structural zones. Gold mineralization encountered in the Nina Skarn target area suggests the Greenstone Gulch area may be prospective for Carlin-type gold mineralization, in a similar geologic and structural setting as the Cove-McCoy mining district in Lander county, Nevada, another gold-polymetallic mineral rich, Eocene magmatic center. Comus at Keystone is lithologically similar to the Hales Formation, the primary host rock of Carlin-type gold mineralization at the Tonkin Springs mine, five miles east of Keystone. Targeting collapse breccias and bedding replacements developed in lower Comus, Devonian Horse Canyon-Wenban contact, and Wenban Unit 5. 

Keystone and Sophia Skarn: Three holes are planned at the Keystone Skarn target area, and three holes are planned at the Sophia Skarn targets, within the broader Sophia target area. Holes at Keystone Skarn are expected be shallow, angled RC holes to test steeply dipping, high-grade gold bearing (27 gpt+ in rock chips), oxidized skarn developed along dikes emanating from the Walti pluton. Previous drilling in the area tested the base metal rich skarn mineralization of the historic Keystone mine. The high-grade gold occurrence is located east of the Keystone mine and has never been drill tested. Holes at Sophia Skarn will test several coincident Au-Bi-Te soil and rock chip anomalies located between the Nina Skarn and Sophia Carlin-type target areas, using angled and vertical RC holes. One hole is expected to follow up on the historic drill hole MP89-2/90-1, which encountered 51.8m of 0.253 gpt Au, including 3m of 2.2 gpt Au. 

Tip Top: One hole is planned to follow up on previous drilling in the target area, that encountered encouraging gold and Carlin-style alteration and pathfinder geochemistry. The target is located at the intersection of a major NNW trending structural zone with several NNE and NE trending fault zones that down-drop Upper Plate rocks against Lower Plate rocks. The NNW structural zone is identified as a district scale mineralized conduit at Keystone. Surface soil and rock geochemistry shows a strong pathfinder and gold anomaly coincident with a large gravity low and chargeability high in the immediate target area. Previous drilling has shown gold, Carlin-style alteration and oxidation are increased along the NNW structural zone. In addition, a long strike length, NW striking-shallow dipping structure was identified in previous drilling, with associated gold and dolomitization. Targeting a Goldrush-style breccia deposit developed at the intersection of the broad NNW trending structural zone with the NW striking, shallow dipping structure, and collapse breccias developed in Wenban Unit 5 in the hanging-wall of the major NNW structural zone. The company also reported that it has received a proposal to upgrade the Copper King Preliminary Economic Assessment (PEA) to a Pre-Feasibility Study (PFS) with the objective of completing the PFS by the end of 2020. 

Copper King, located in the Silver Crown mining district of southeast Wyoming and approximately 20 miles west of Cheyenne, is a project of merit based on the December 2017 PEA that, in a preliminary analysis, shows a robust resource. 

President and CEO Mr. Edward Karr said, "We are pleased with the progress of the Copper King project in 2020 and have made several trips to the property last year to advance the project from a permitting, development, and community outreach standpoint. We are looking forward to working with Marc Levier and Mark Jorgensen to advance the Copper King deposit to the PFS level. This PFS is expected to be a major milestone in moving Copper King towards production. We have some of the leading consultants working with us for resource modeling and metallurgical testing. The existence of silver in the Copper King deposit could give further upside to the overall economics and will be analyzed thoroughly in the PFS. We have a very experienced Board assisting in moving the project forward." 

In 2017 and 2018, U.S. Gold Corp. conducted geophysical studies at Copper King and drilled additional exploration holes. Several of these holes hit additional mineralization, and it has been shown the deposit has increased to the west. In addition, the Datamine analysis conducted in early 2019 shows the presence of economic grade silver not previously accounted for the in the PEA economics. The Datamine model shows the deposit is open at depth, appears to be open laterally to the southeast, and has poorly defined margins. Extending the deposit along strike to the southeast will be the focus of future exploration efforts. U.S. Gold Corp. has received a formal proposal to advance Copper King to the Pre-Feasibility Study.