EX-99.1 2 a09-18363_1ex99d1.htm EX-99.1

Exhibit 99.1

 

GRAPHICJULY 15, 2009

 

US GOLD BOOSTS RESOURCES WITH

LIMO PROJECT ESTIMATE (NEVADA, USA)

 

TORONTO, ONTARIO (JULY15, 2009)US GOLD CORPORATION (NYSE Amex:UXG) (TSX:UXG) announces details of an initial resource estimate for its Limousine Butte Project (“Limo”) (100% owned) in Nevada, USA. The resource estimate was prepared by Telesto Nevada Inc. of Reno, Nevada in accordance with Canadian National Instrument 43-101 standards.

 

LIMO RESOURCE HIGHLIGHTS

 

·                  Measured + Indicated resource totals 241,080 ounces gold within 10.6 million tons of material with an average grade of 0.023 opt (0.784gpt) gold.

 

·                  Inferred resource totals 50,700 ounces gold within 2.5 million tons averaging 0.020 opt (0.699gpt).

 

·                  Preliminary metallurgical tests deliver good average gold recovery of 92.9%.

 

·                  Good potential exists to increase the size of the resource with infill and expansion drilling.

 

·                  Total US Gold (Nevada + Mexico) gold resource: Measured + Indicated 3 million ounces and Inferred 0.7 million ounces.

 

Limo Project: Nevada, USA

 

Limo, located 75 miles (120 km) east of US Gold’s properties in the Cortez Trend, is a large 44 sq. mile (114 sq. km) property that produced 91,000 ounces of gold between 1989 and 1990. Gold has been identified along the 15-mile (24 km) length of the Limo property in numerous mineralized areas indicating that there is good potential for additional discoveries (Figure 1).

 

US Gold acquired Limo when it purchased Nevada Pacific Gold in 2007. US Gold’s drilling at Limo was designed to, 1) Expand the known mineralization, 2) Establish continuity between mineralized areas, and 3) Test for higher grade mineralization using core drilling.  Some of the previously released results from US Gold’s drilling include:

 

Table 1 - Selected Drill Results

 

 

 

Imperial

 

Metric

 

 

 

Gold

 

Length

 

Gold

 

Length

 

Hole #

 

(opt)

 

(ft)

 

(gpt)

 

(m)

 

 

 

 

 

 

 

 

 

 

 

LB-23

 

0.16

 

50

 

5.5

 

16.8

 

Including

 

0.24

 

15

 

8

 

4.6

 

Including

 

0.28

 

15

 

9.5

 

4.6

 

 

 

 

 

 

 

 

 

 

 

LB-03

 

0.17

 

26

 

5.7

 

7.9

 

 

 

 

 

 

 

 

 

 

 

LB-10

 

0.05

 

184.5

 

1.8

 

56.2

 

Including

 

0.13

 

21

 

4.3

 

6.4

 

 

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US Gold geologists believe there is good potential to expand the size of the existing resource by testing areas beyond the currently defined mineralization and by completing infill holes where drilling was too widely spaced to be classified as a resource under NI 43-101 (Figure 1).  One reverse circulation (RC) drill rig will be active at Limo in July and August to test target with high-grade gold rock samples in the south area of the project.

 

Limo Resource Estimate

 

The resource estimates contained in this press release have been prepared in accordance with standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian National Instrument 43-101 (NI 43-101).  These standards are different from the standards generally permitted in reports filed with the SEC.  Under NI 43-101, US Gold reports measured, indicated and inferred resources, measurements which are generally not permitted in filings made with the SEC. The estimation of measured resources and indicated resources involve greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves.  U.S. investors are cautioned not to assume that any part of measured or indicated resources will ever be converted into economically mineable reserves.  The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources.

 

Canadian regulations permit the disclosure of resources in terms of “contained ounces”; however, the SEC only permits issuers to report “mineralized material” in tonnage and grade without reference to contained ounces. Under U.S. regulations the tonnage and grade described below in the “measured”and “indicated” categories would be characterized as mineralized material. The following disclosure is being made by US Gold to provide a means of comparing its project to those of other companies in the mining industry, many of which are Canadian and report pursuant to NI 43-101, and to comply with applicable disclosure requirements.

 

Table 2 - Limo Project Gold Resources

 

 

 

Imperial Units

 

Metric Units

 

Resource Category

 

Cutoff
Grade
(opt)

 

Tonnage
(MM tons)

 

Gold
Ounces

 

Avg.
Grade
(opt)

 

Cutoff
Grade
(gpt)

 

Tonnage
(MM
tonnes)

 

Gold
Grams
(000s)

 

Avg.
Grade
(gpt)

 

Resurrection Ridge / Golden Butte Valley

 

 

 

 

 

 

 

 

 

 

 

Measured

 

0.012

 

6.5

 

168,350

 

0.026

 

0.411

 

5.9

 

5,236

 

0.891

 

Indicated

 

0.012

 

2.5

 

34,730

 

0.014

 

0.411

 

2.3

 

1,080

 

0.477

 

Measured + Indicated

 

0.012

 

9.0

 

203,080

 

0.023

 

0.411

 

8.1

 

6,316

 

0.776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cadillac Valley

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indicated

 

0.012

 

1.6

 

38,000

 

0.024

 

0.411

 

1.4

 

1,192

 

0.827

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coffee Mug

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inferred

 

0.012

 

2.5

 

50,700

 

0.020

 

0.411

 

2.3

 

1,577

 

0.699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Measured

 

0.012

 

6.5

 

168,350

 

0.026

 

0.411

 

5.9

 

5,236

 

0.891

 

Indicated

 

0.012

 

4.1

 

72,730

 

0.018

 

0.411

 

3.7

 

2,272

 

0.613

 

Measured + Indicated

 

0.012

 

10.6

 

241,080

 

0.023

 

0.411

 

9.6

 

7,508

 

0.784

 

Inferred

 

0.012

 

2.5

 

50,700

 

0.020

 

0.411

 

2.3

 

1,577

 

0.699

 

 

Footnotes for July 2009 Resource:

(1)          Canadian Institute of Mining (CIM) Definitions Standards have been followed for classifications of mineral resources.

(2)          The author of this NI 43-101-compliant Technical Report was Jonathan M. Brown, CPG, MBA.

 

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(3)          The resources at Resurrection Ridge / Golden Butte and Cadillac Valley were calculated using the inverse distance squared method. The resource at Coffee Mug was calculated using the polygonal method.

(4)          Cutoff grade was selected by Telesto and is not based on economic assumptions specific to this project.

(5)          The total number of drill holes used in the current model was 680.

(6)          Figures may not add due to rounding.

 

The full NI 43-101 Technical Report will be published on www.sedar.com and onwww.usgold.com within 45 days.

 

Limo Metallurgical and Process Testing

 

Preliminary metallurgical studies consisted of a series of bottle roll tests that achieved an average gold recovery of 92.9%. Samples were crushed to -150 mesh (0.105 mm) with tests being performed over a 96-hour period. McCelland Labs, located in Sparks, Nevada, performed the testwork. Test results are detailed in Table 3 below:

 

Table 3 - 2008 Bottle Roll Tests

 

 

 

Gold Recovery

 

Calculated Head

 

Extracted

 

NaCN Consumption

 

Lime Consumption

 

Test No.

 

(%)

 

Grade (gpt)

 

(gpt)

 

(kg/tonne)

 

(kg/tonne)

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

92.8

 

6.84

 

6.35

 

0.38

 

3.0

 

2

 

94.7

 

5.86

 

5.55

 

0.45

 

4.2

 

3

 

91.2

 

2.17

 

1.98

 

0.75

 

2.4

 

 

US Gold Company Resource Estimates

 

In 2006, US Gold was refocused as an aggressive exploration company. Since then the Company has successfully grown its gold resources every year. Measured and Indicated resources have grown from 1.3 million to 3 million gold ounces. Inferred mineralization has grown from 0.2 million to 0.7 million gold ounces(Figure 2).  Two additional resource estimates are due later this year: 1) Updated Gold Bar Resource — Nevada (Gold), and 2) Initial El Gallo Resource — Mexico (Silver-Gold). Table 4 details US Gold’s global resource below:

 

(Table 4 Appears on the next page)

 

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Table 4 - US Gold Resource Summary*

 

 

 

Imperial Units

 

Metric Units

 

Resource Category

 

Tonnage
(MM tons)

 

Gold
Ounces

 

Avg. Grade
(opt)

 

Tonnage
(MM tonnes)

 

Gold Grams
(000s)

 

Avg. Grade
(gpt)

 

Tonkin, Nevada (May 2008)

 

 

 

 

 

 

 

 

 

 

 

 

 

Measured

 

19.3

 

820,000

 

0.042

 

17.5

 

25,505

 

1.440

 

Indicated

 

16.3

 

627,000

 

0.039

 

14.7

 

19,502

 

1.337

 

Measured + Indicated

 

35.6

 

1,447,000

 

0.041

 

32.3

 

45,007

 

1.406

 

Inferred

 

9.3

 

311,000

 

0.033

 

8.4

 

9,673

 

1.131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gold Bar, Nevada (Apr 2009)

 

 

 

 

 

 

 

 

 

 

 

 

 

Measured

 

17.9

 

616,600

 

0.034

 

16.3

 

19,144

 

1.176

 

Indicated

 

7.2

 

156,000

 

0.022

 

6.5

 

4,846

 

0.743

 

Measured + Indicated

 

25.1

 

772,600

 

0.031

 

22.8

 

23,990

 

1.053

 

Inferred

 

8.9

 

188,940

 

0.021

 

8.1

 

5,874

 

0.729

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Limo Project, Nevada (July 2009)

 

 

 

 

 

 

 

 

 

 

 

 

 

Measured

 

6.5

 

168,350

 

0.026

 

5.9

 

5,236

 

0.891

 

Indicated

 

4.1

 

72,730

 

0.018

 

3.7

 

2,272

 

0.613

 

Measured + Indicated

 

10.6

 

241,080

 

0.023

 

9.6

 

7,508

 

0.784

 

Inferred

 

2.5

 

50,700

 

0.020

 

2.3

 

1,577

 

0.699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Pass 50%, Nevada (Apr 2006)

 

 

 

 

 

 

 

 

 

 

 

 

 

Inferred

 

6.2

 

135,950

 

0.022

 

5.6

 

4,229

 

0.754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Magistral, Mexico (June 2009)

 

 

 

 

 

 

 

 

 

 

 

 

 

Measured

 

7.7

 

354,887

 

0.046

 

7.0

 

11,038

 

1.590

 

Indicated

 

3.8

 

147,580

 

0.039

 

3.4

 

4,590

 

1.340

 

Measured + Indicated

 

11.5

 

502,466

 

0.044

 

10.4

 

15,628

 

1.500

 

Inferred

 

0.2

 

8,167

 

0.033

 

0.2

 

254

 

1.140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL Gold Resources

 

 

 

 

 

 

 

 

 

 

 

 

 

Measured + Indicated

 

 

 

2,963,146

 

 

 

 

 

92,133

 

 

 

Inferred

 

 

 

694,757

 

 

 

 

 

21,607

 

 

 

 

Silver Resources

 

Tonnage
(MM tons)

 

Silver
Ounces

 

Avg. Grade
(opt)

 

Tonnage
(MM tonnes)

 

Silver Grams
(000s)

 

Avg. Grade
(gpt)

 

Palmarito, Mexico (Dec 2008)

 

 

 

 

 

 

 

 

 

 

 

 

 

Measured

 

2.9

 

5,991,521

 

2.05

 

2.7

 

186,366

 

70.2

 

Indicated

 

1.2

 

2,480,527

 

2.04

 

1.1

 

77,157

 

70.0

 

Measured + Indicated

 

4.1

 

8,472,048

 

2.04

 

3.8

 

263,523

 

70.1

 

Inferred

 

1.8

 

3,349,242

 

1.91

 

1.6

 

104,178

 

65.5

 

 

Footnotes:

*Figures may not add due to rounding.

 

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ABOUT US GOLD

 

US Gold Corporation is a United States-based gold and silver exploration company exploring in northeastern Nevada and northwestern Mexico. US Gold’s shares trade on the NYSE Amex and Toronto Stock Exchanges under the symbol UXG and on the Frankfurt Exchange under the symbol US8.

 

QUALIFIED PERSON

 

The news release has been reviewed and approved by Steve Brown, Chief Geologist, who is designated as a Qualified Person with the ability and authority to verify the authenticity and validity of this data. The resource estimation has been prepared by Jonathan Brown ofTelesto Nevada Inc., a geological consulting firm based in Reno, Nevada.

 

Drill holes previously released were mistakenly identified with only an “L” designation. The correct designation should have been as reported as “LB”. If referring to previous releases on this information, please equate the “L” designation to the correct “LB” designation.

 

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 applicable securities laws. 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, resource estimates, 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-K for the fiscal year ended December 31, 2008 and other filings with the United States Securities and Exchange Commission, under the caption “Risk Factors”. 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.

 

Cautionary Note to U.S. Investors — All mineral resources have been estimated and disclosed in accordance with the definition standards on mineral resources and mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian Securities AdministratorsNational Instrument 43-101 (NI 43-101), which requires disclosure of resources. Disclosure of “contained ounces” is only permitted if the quantity and grade of contained metal or mineral is included in the disclosure. U.S. reporting requirements for disclosure of mineral properties are governed by the United States Securities and Exchange Commission “SEC” Industry Guide 7. Canadian and Guide 7 standards are substantially different.

 

The SEC permits mining companies, in their filings with the SEC, to disclose only those mineral deposits defined as probable or proven reserves that a company can economically and legally extract or produce. Certain terms in this news release, such as”measured,” “indicated,” and “inferred resources,” that the SEC guidelines strictly prohibit from including in filings with the United States SEC. Investors are urged to consider closely the disclosure in our annual report on Form 10-K, including the risk factors contained therein. You can review and obtain copies of this filing from the SEC’s website at http://www.sec.gov/edgar.shtml.

 

U.S. Investors should be aware that the issuer has no “reserves” as defined by Guide 7 and are cautioned not to assume that any part or all of mineral resources will ever be confirmed or converted into Guide 7 compliant “reserves.”

 

For further information contact:

 

 

 

Stefan M. Spears

VP, Projects

 

Tel: (647) 258-0395

Toll Free: (866) 441-0690

Fax: (647) 258-0408

Mailing Address

99 George Street, 3rd Floor

Toronto, ON M5A 2N4

E-mail: info@usgold.com

 

 

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