US Gold Corporation UXG:CA announced assay results from its El Gallo discovery in Sinaloa State, Mexico. Highlights include 70.8 g/t silver over 18 metres (including 309 g/t over 1.1 metres), 117.3 g/t silver over 14.8 metres, 90.7 g/t silver over 23.8 metres (including 549 g/t over 1.1 metres), 86.2 g/t silver over 22.7 metres (including 703 g/t over 1.4 metres), 2,986 g/t silver over 1.1 metres, 236 g/t silver and 1.6 g/t gold over 18.6 metres, 104.4 g/t silver and 1.8 g/t gold over 2.7 metres.
Senior Vice President Ian Ball told ResourceClips.com, “El Gallo was a discovery that we made at the end of 2008, beginning of 2009. Since then we’ve been drilling it pretty aggressively; there are five to seven drills on the project right now. We put out an initial resource in July of this year, and these most recent drill results have been looking to extend the mineralization beyond that.
“We’ve completed 60 holes since the first resource, and this was the last set of results before the new resource, which is coming out in a couple of weeks. Essentially what we’re seeing here is that the mineralization is staying consistent in terms of grade and in terms of its proximity to surface. When you look at some of the companies that are in the junior space that have a silver discovery, a few of them will quote hundreds of millions of ounces of silver. But what you have to look at is how many of those are ever going to be in production. Either they’re really deep, or very low grade and therefore not recoverable. Whereas at El Gallo 95% of the resource is within 100 metres of the surface. Which is a pretty unique characteristic. We’re looking at all open-pit.
“So we’re quite excited by the opportunities there, and we’re looking for more of the same,” Ball concluded. “It’s all near-surface, it’s good grade, and it’s really just a small area of a large land package. Our land holdings in that part of Mexico are just under 600,000 acres—and El Gallo only makes up about a couple of hundred acres of that.”
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Ian J. Ball
by Ted Niles