Fifteen new drill holes at US Gold’s (UXG-T, UXG-X) El Gallo silver project in Mexico have extended mineralization to the south of the main zone by up to 50 metres with the best drill hole encountering two separate zones and returning 576.9 grams silver per tonne over 24 metres and 142.3 grams silver over 12.8 metres.
The latest drilling was designed to boost the number of ounces beyond the National Instrument 43- 101 resource estimate released in July at the low-sulphidation, epithermal silver deposit, about 240 km south of Pan American Silver’s (PAA-T, PAAS-Q) Alamo Dorado silver mine.
Highlights of the latest drilling include hole 186, which cut 112.9 grams silver over 15.2 metres and hole 188, which returned 122.2 grams silver over 10.4 metres. Hole 199 returned 187.8 grams over 2.8 metres.
Three additional holes have encountered near-surface oxide mineralization. Hole 176 returned 32.3 grams silver over 22.4 metres, hole 182 returned 26.1 grams silver over 13.5 metres and hole 196 returned 57.9 grams silver over 9.4 metres.
During the second half of the year, US Gold says it aims to identify more near-surface areas containing lower grade mineralization that may be amenable to heap-leach recovery. Five additional holes have been completed about 50 metres east of the current limits of the resource and assay results will be released in August.
According to El Gallo’s initial resource estimate, the deposit has measured and indicated resources of 7.4 million tonnes grading 106 grams silver and 0.09 gram gold per tonne for contained silver of 25.1 million oz. and contained gold of 21,165 oz. Inferred resources add 4.5 million tonnes of 84 grams silver and 0.06 gram gold for 12.2 million oz. silver and 9,346 oz. gold.
Importantly, about 93% of the resource is less than 100 metres below the surface.
Drilling has also has returned “encouraging results” at a prospect 14 km from El Gallo in the Sierra Madre Occidental range called Las Milpas, where three of four core holes cut shallow silver mineralization. Another six holes will be drilled over the coming weeks.
In Toronto, US Gold’s share price was $4.90 at presstime, trading within a 52-week range of $2.16- 5.63. It has 116.3 million shares outstanding.
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