Tuesday 27th September 2016

Resource Clips



US Gold Senior VP Ian Ball on Mexico assays of 7.7 g/t gold over 4.8 m

“Once we put out the updated resource for El Gallo on November 18 we decided to deploy more of our drilling to regional prospects to see what we could find. We had identified a number of veins that were quite interesting at surface but that didn’t have any subsurface information. The veins that were released today were the first three—in addition to Chapotillo—that we had tested that looked interesting to us. As we mentioned in the release there are a number of other veins that have been identified beyond these three that we’re now drilling on. We’re just trying to establish which ones are the best to move forward.

“The Gold Zone vein—which is very near El Gallo itself—was consistent with what we were expecting. The Alamo vein was better than what we were expecting; what surprised us is that the strike is longer than what we anticipated. It’s a 450-metre long strike and it is open at both ends. We’re quite pleased with that, as are we with the downdip continuity of the vein thus far. The vein looks pretty consistent. Unless something changes, if we continue to drill down dip there is potential to find more there. There appears to be something there of a more serious nature than what we were initially anticipating. The Oro vein was slightly disappointing. The sampling we’d done there was quite a bit higher. We anticipated it being narrow, but I was hoping it would widen at depth. Thus far it hasn’t. It appears to be consistent at one metre. But it is open in every direction, at depth and laterally, so we’re going to go back in there and drill. It was below expectation, but the other two veins either met expectation or were above it.

“Right now we’re drilling a number of other veins that we describe in the release, and we’re going to wait for the results to come back for those over Christmas. Follow-up drilling has already been initiated on the Gold Zone vein as well as the Alomo veins, and we’re going to keep going at these prospects quite aggressively. In addition to that we’re going to keep drilling at El Gallo to try and expand the resource. Over the next 6 months we will keep the same level of drill activity, and if we find that we can keep up some of these results then we will have to start looking at a resource. But this requires more drilling and we’re only at about half of what we’d need for a rough calculation.”

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