US Gold Corp. (UXG-T, UXG-X) shares rose 6.8% to $2.97 apiece in early afternoon trading following 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 cross-cutting 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 GAX021, which returned 352.7 grams silver per tonne over 43.7 metres; GAX026, which cut 140 grams silver per tonne over 3 metres; and GAX027, which intersected 195.3 grams silver per tonne 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 include GAX023, which cut 215.8 grams silver per tonne over 14.2 metres and GAX025, which returned 497.2 grams silver per tonne over 10 metres.
As for a potential new cross-cutting structure, the drill hole returned higher grade but over a narrower width compared to the previous hole. Hole GAX020, 60 metres to the southwest, cut 1,725 grams silver per tonne over 1.1 metres. (The first core hole testing the cross-cutting structure by contrast returned 192.2 grams silver per tonne over 2.2 metres.)
“This is a positive development because it has the potential to build additional ounces in the immediate area,” the company said in a press release announcing the results.
US Gold started exploring El Gallo last November. Today the discovery covers an area totaling 450 metres in length, 400 metres in width and 115 metres in depth.
US Gold has a 52-week trading range of 50¢-$3.73 per share and has 10.45 million shares outstanding.
The company currently has no debt.
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