US Gold (UXG-T, UXG-X) has upped measured and indicated resources at its Gold Bar project in Nevada by 64% after drilling 20 holes in 2008 and incorporating two other deposits with historic drill data.
Measured and indicated resources now stand at 25.8 million tons (22.8 million tonnes) grading 1.05 grams gold per tonne for 772,600 oz. gold.
Inferred gold ounces doubled to 189,000 oz. in 8.9 million tons (8.1 million tonnes) grading 0.73 gram gold.
The Gold Bar project includes the Gold Pick, Gold Ridge North, Cabin Creek and Hunter deposits. They are located on a 440-sq.-km property about 16 km south of the company’s Tonkin deposit on Nevada’s Cortez trend.
The company plans to continue exploring Gold Bar and Tonkin this year with the goal of discovering new areas and expanding existing resources.
Tonkin has a measured and indicated resource of 35.6 million tons grading 0.04 oz. per ton for 1.45 million oz. gold, plus another 310,000 oz. under the inferred category.
The company now plans to evaluate the mining and processing methods, metallurgical recoveries, environmental impacts, capital and operating costs and rates of return for Gold Bar. It will use the data from its next resource update to complete a scoping study on the project.
US Gold also plans to continue exploring its El Gallo silver-gold project in Sinaloa state, Mexico. The project is 5 km north of the company’s Magistral mine and 11 km northeast of its Palmarito deposit.
US Gold announced a stock offering on April 29 of up to 20 million shares, but did not specify a price. The money will be used to fund its exploration projects in both Nevada and Mexico.
As of March 31, the company had a cash balance of $6.6 million and working capital of $11.1 million.
US Gold shares recently traded at $2.52 apiece in a 52-week window of 50¢-$3.73.
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