Positive Drilling At Palmarito Project

DENVER, CO - US Gold Corporation reported a positive conclusion to phase one drilling at the Palmarito Project. Drilling intersected 4.07 ounces per ton (opt) silver over 80 ft., including 6.38 opt silver over 30 ft.
Palmarito is located 7.5 miles southwest of US Gold's Magistral Mine and is accessible by well maintained roads. Palmarito was one of Sinaloa State's most significant silver producers with total production of approximately 18 million silver equivalent ounces when mining by third parties ceased in 1950.
The goal of the exploration program was to test the potential below the previously defined mineralization and to follow up on results reported in March that returned 9.32 opt silver over 44.9 ft.
Reverse circulation drilling successfully extended the vertical depth of the mineralization by approximately 40%. These results show that the mineralization extends down 580.0 ft below surface and over a strike length of approximately 2,625 ft. The mineralization at Palmarito is structurally controlled and dips to the northeast.
An initial resource estimate (Canadian National Instrument 43-101) for Palmarito is now being prepared by US Gold geologists and Pincock Allen and Holt of Denver, Colorado. The completed study is expected by the end of the third quarter and will look to build upon the Magistral Mine's current resource. The resource estimate will include approximately 100 drill holes totaling 28,425 ft. completed by US Gold and previous owners.
US Gold has begun the second phase of reverse circulation drilling that will consist of a minimum of 9,850 ft.
The company's address is 165 So. Union Blvd., Suite 565, Lakewood, CO 80228, email: [email protected].