New Zone Discovered At The Copper King Deposit

ELKO, NV - U.S. Gold Corp. reported the discovery of a new zone of base and precious metals mineralization west of the existing Copper King deposit. In late November and early December 2017, a four-hole, reverse circulation drilling program (3,945 feet/1,202 meters total) was completed, and assays from Bureau Veritas Minerals (BV Labs), Reno, Nevada, have just been obtained. Hole number CK17-01rc encountered a composite of almost 700 feet of base and precious metal mineralization beginning almost at the surface.  

The fall 2017 Copper King four-hole drilling program was designed to provide a first-pass drill test of anomalies obtained from a ground magnetics survey conducted in June combined with an induced polarization (IP) survey conducted by Zonge Geosciences Inc. in October 2017. Both geophysics programs were more detailed and comprehensive than previous surveys conducted on the project.  Objectives of the IP survey were to 1.) delineate sulfide concentrations via the chargeability and 2.) discriminate lithologies via the resistivity.  Rock magnetic expressions were delineated with the earlier ground magnetics survey. Gold mineralization at Copper King is known to be commonly, but not necessarily exclusively, associated with magnetite.  The association of copper sulfide mineralization with gold mineralization in the historic mining area suggested that IP would be the more appropriate technique for detection of similarly mineralized material. The Copper King project is largely located on State of Wyoming managed lands.  Permitting and bonding for drilling at Copper King through a "Notification of Intent to Explore for Noncoal Minerals" was readily and quickly facilitated and approved by the State of Wyoming Department of Environmental Quality based in Cheyenne, Wyoming.

Assay results and interval thicknesses obtained in CK17-01rc are similar in value and character to assay intervals encountered in the Copper King deposit "main zone."  Assay results and characteristics of mineralization in this hole indicate the presence of a heretofore previously undiscovered zone of significant mineralization on the Copper King project.  The chargeability anomaly, drilled by hole CK17-01rc, exhibited on the attached Figure 10 from the Wright Geophysics Nov. 5, 2017, report, is the strongest anomaly obtained by the IP survey on the property, and it is an anomaly that had not previously been specifically tested by drilling.     

Dave Mathewson, Vice President of Exploration for U.S. Gold Corp., said, "This is an exciting turn of events for the Copper King project.  Copper King has had a long history of several exploration programs conducted by numerous companies.  This zone of mineralization, identified in hole CK17-01rc, apparently escaped all previous detection and, just as importantly, the bulk of this particular chargeability anomaly has not been drill-tested.  We look forward to the prospect of building a greater metal endowment on the Copper King property.  A follow-up drill program is currently being planned."

Edward Karr, President and CEO of U.S. Gold Corp., also commented, "We are very encouraged with this western step-out hole.  This new zone of mineralization is 200 meters away from the existing deposit.  This new discovery zone has shown consistent mineral grade from near the surface to the bottom of the hole.  Mine Development Associates updated our Copper King Preliminary Economic Assessment technical report in December 2017.  The current known deposit shows a Net Present Value of $178.5 million at $1,275 gold and $2.80 copper.  An infill drilling program is being planned and designed to connect this new discovery zone back to the existing deposit.  In addition, the best part of the IP anomaly is further west from this step-out hole.  We believe this new discovery zone could extend further west and add additional potential upside to the known deposit. The presence of silver and zinc could also increase the overall future Copper King value."