US Gold (UXG-T, UXG-X) has released yet more positive drill results from its silver exploration property in Mexico.
Nine new core holes were designed to test for extensions to mineralization at its El Gallo project in Sinaloa state. Four of the holes were drilled on the west end, two on the east end, one on a possible crosscutting feature, and two to test for depth in the middle of the zone.
On the west, the goal was to extend mineralization previously found in hole GAX010 in early March, which cut 1,082.4 grams silver per tonne over 31.7 metres. The latest results indicate the existence of high-grade over wide intersections, which have extended the mineralization 50 metres to the north, with a second zone appearing at depth, the company says.
Highlights from the west end include hole 21, which returned 352.7 grams silver per tonne over 43.7 metres; hole 26, which cut 140 grams silver over 3 metres; and hole 27, which intersected 195.3 grams silver over 4.5 metres.
On the east end, drilling expanded the southerly trending mineralization by 90 metres, suggesting that the zone is becoming wider along strike to the east.
Highlights from the east side in- clude hole 23, which cut 215.8 grams silver over 14.2 metres and hole 25, which returned 497.2 grams silver over 10 metres.
As for a potential new crosscutting structure, the drill hole returned higher grade but over a narrower width compared with the previous hole. Hole 20, 60 metres southwest, cut 1,725 grams silver over 1.1 metres. (The first core hole testing the crosscutting structure by contrast returned 192.2 grams silver over 2.2 metres.)
US Gold started exploring El Gallo last November. Today, the discovery covers an area totalling 450 metres long, 400 metres wide and 115 metres deep.
At presstime, US Gold was trading at $2.47 per share — in the midrange of its 52-week trading range of 50¢-$3.73 per share. The company has 10.45 million shares outstanding.
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