Mexican silver grades lift US Gold

Strong silver grades from its El Gallo project in Mexico gave US Gold (UXG-T, UXG-X) a boost on the market on Wednesday.

Highlights include: 713.1 grams per tonne silver over 4.4 metres from hole GAX012, 341.6 grams silver over 11 metres from hole GAX013 and 320.7 over 17 metres from hole GAX007

The holes were testing below the previous limits of the mineralization returned the deepest high-grade silver intersection to date.

The company says hole GAX012 intersected two separate zones of high-grade silver mineralization, with the deepest being at a vertical depth of 115 metres.

While the deeper intersection was the higher grade listed above the second shallower intersection was still impressive returning 574.4 grams silver over 4 metres at the 46 metre mark. US Gold believes the shallower structure is part of a separate parallel vein that lies south of the deeper intersection.

Four other holes were drilled to delineate and extend the mineralization that was indentified earlier in the upper portion of the veins in a rotary drill program.

US Gold says the results will be used in its upcoming NI 43-101 compliant resource estimate.

Since January it has finished 13 core holes at El Gallo.

In Toronto on March 18 the company’s shares were up 12% or 11¢ to $2.38 on 33,000 shares traded. It has 80.4 million shares outstanding and its share price has moved between $3.73 and 50¢ over the last 52-weeks.