US Gold gains Mexican base metal property

Denver — After concentrating for years on the Tonkin Springs gold project in Nevada, U.S. Gold (USGL-O) is shifting its focus to a silver-lead-zinc property in Mexico.

The company leased the 47-ha Zimapan property in Hidalgo state through Gold Resource, in which it owns a 36% interest (the remainder being privately held).

U.S. Gold is managing all activities, with funding arranged by Gold Resource.

Early indications are that the geology is similar to neighboring operations run by Mexican-based Industrias Peoles (IPOSF-O), which has been active in the district for more than 50 years.

Mineralization in the district consists of skarns, mantos and chimneys. Some chimneys have been measured over a vertical extent of 800 metres.

“Our focus is on achieving production and cash flow from Zimapan at the earliest practical date,” says U.S. Gold President William Reid.

The company also holds a 40% stake in the Tonkin Springs joint venture, with the remainder held by Subdury Contact Mines (SUD-T).