US Gold (UXG-T, UXG-N) has upped measured and indicated resources at its Gold Bar project in Nevada by 64% after drilling 20 holes in 2008 and incorporating two other deposits with historic drilling.
Measured and indicated resources now stand at 25.8 million tons (22.8 million tonnes) grading 1.05 grams gold per tonne for 772,600 oz. gold.
Gold ounces classified as inferred doubled to 8.9 million tons (8.1 million tonnes) grading 0.73 gram gold per tonne for 189,000 oz. per tonne.
The Gold Bar project includes the Gold Pick, Gold Ridge North, Cabin Creek and Hunter deposits. They are located on a 440-sq-km property about 16 km south of The company’s Tonkin deposit on Nevada’s Cortez trend.
The largest deposit is the Gold Pick/Gold Ridge deposit with 681,000 oz.
The company plans to continue exploring Gold Bar and Tonkin this year with the goal of discovering new areas and expanding existing resources.
Tonkin has a measured and indicated resource of 35.6 million tons grading 0.04 oz. per tonne for 1.45 million oz. gold, plus another 310,000 oz. under the inferred category.
The company plans to evaluate the mining and processing methods, metallurgical recoveries, environmental impacts, capital and operating costs and rates of return for the Gold Bar project. Once it completes its next resource update, US Gold will use that information in a preliminary economic assessment for putting Gold Bar into production
US Gold also plans to continue exploring its El Gallo silver-gold project in Sinaloa state, Mexico, called El Gallo. The project is 5 km north of the Magistral mine and 11 km northeast of the Palmarito deposit.
US Gold announced a stock offering today in which it plans to offer up to 20 million shares, but the price was not given. The money will be used to fund its exploration projects in both Nevada and Mexico.
The company also said it planned to file its first quarter results on May 8. New Gold is expecting to report a loss of 5-6¢ per share. As of March 31, the company had a cash balance of $6.6 million and working capital of $11.1 million.
US Gold shares dropped 15¢ today to $2.41 apiece on a trading volume of 34,000 shares.
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