Friends, great new from CBAG againU.S. Energy Corp. and Crested Corp. Announce Updated Drilling Results For Sutter GoldTuesday April 24, 1:46 pm ET
RIVERTON, Wyo., April 24 /PRNewswire-FirstCall/ -- U.S. Energy Corp. (Nasdaq: USEG - News) and Crested Corp. (OTC Bulletin Board: CBAG - News), natural resource exploration and development Companies, announce updated drilling and assay results for their subsidiary, Sutter Gold Mining Inc. (TSX VENTURE: SGM - News) from its surface and underground diamond drilling programs at the project site located in the historic Mother Lode District east of Sacramento, California. Holes 190 through 193, and hole KDH-24 have continued to discover gold mineralization in both the Lincoln and Keystone areas of the project.
Surface Drilling Program
Hole KDH-24 intersected 2.0 meters (6.4 ft) of gold mineralization grading 5.5 g/tonne (0.16 oz/ton) from 219.0 to 221.0 meters (718.5-724.9 ft) in the Keystone 5 Vein. Hole KDH-24 intersected the Keystone 5 Vein at the shallowest portion of the historic Inferred Resource. The K5 Vein was intersected approximately 60 meters southward along strike and at the same approximate elevation from hole KDH-22 (see Feb 21, 2007 news release) and demonstrates the geological and grade continuity through the historic mineral resource within the K5 Vein (455,000 tonnes @ 7.2 g/t; 500,000 tons @ 0.21 oz/t). Hole KDH-23 is the fourth surface core hole to further define a portion of the historic Inferred Mineral Resource within the K5 Vein, with the goal of upgrading it to a higher degree of confidence in the presence of mineral resources. The final hole of the surface drilling program (KDH-002
is nearing completion, having encountered 5.3 meters (17.5 ft) of strong mineralization showing coarse visible gold from 335 to 340 meters (1098-1115.5 ft). Approximately 2,410 meters (7,900 ft) of the planned 2,750 meter (8,100 ft) surface drill program has been completed. Assays for Hole KDH-26 through 28 are expected soon.
Underground Drilling Program
Core drilling from underground drill stations continues to demonstrate continuity of the vein structures and mineralization between the Comet and Lincoln Zones. Underground Holes 190 to 193 have added tonnage to the 5 Vein shoot, added significantly to the north extension of the new 10 Vein structure, and produced two solid intercepts in the 50 Vein shoot. Hole 190 veered from its projected course, narrowly missing its intended target, the high-grade 9 Vein, but successfully intersecting several vein structures, including the new 10 Vein. Hole 190 is the northernmost intercept in the 10 Vein, and a new resource will be estimated along a 600-foot strike length in that structure. Hole 193 veered off course and intersected the 50 Vein structure well below the projection of the shoot intersected in Hole 175 (see Oct 26, 2006 news release). The 2006 underground drilling has demonstrated continuity for several vein structures northward from the Lincoln into the Comet area, some of which were not previously included in the 2006 Sutter estimate of minerals in place. Assay results for Holes 195 will be released soon, once the assay results are received and evaluated by the Company's consulting geologist.
The underground drill program has been completed. Assays have now been received for thirty-one of the thirty-three underground holes representing 2,700 meters (8,800 ft) of the total 2,750 meters (9,000 ft). New mineral resources have been identified in several new structures parallel to, and in close proximity to existing announced resources in all three areas tested in the current drilling program. The drilling continues to validate Sutter Gold's structural and ore control models and to demonstrate continuity of the Comet veins southward into the Lincoln area.
Results and Analysis
Results from SGM's most recent diamond drill holes are shown in Table 1
below.
Drill Holes 190 - 193, and KDH-24 Assay Summary
Visible
Interval width* Au Interval width* Au Au in
(m) (m) (g/tonne) (ft) (ft) (oz/ton) Vein Core
Hole#
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DDH-190 E 41,845.5; N 70,592.8; bear 166 deg, +45 deg, 205m (671 ft)
66.8 - 68.3m 1.5m 1.0 g/t 219.0 - 224.0 ft 5.0 ft 0.03 oz/t 48 Vn
75.6 - 79.5m 3.9m 4.5 g/t 248.1 - 260.8 ft 12.7 ft 0.13 oz/t 5 Vn
including
75.6 - 77.6m 2.0m 6.9 g/t 248.1 - 254.5 ft 6.4 ft 0.20 oz/t 5 Vn
85.1 - 86.9m 1.8m 5.1 g/t 279.0 - 285.0 ft 6.0 ft 0.15 oz/t 50 Vn Au
including
86.0 - 86.9m 0.9m 7.5 g/t 282.0 - 285.0 ft 3.0 ft 0.22 oz/t 50 Vn Au
164.6 - 167.4m 2.8m 3.8 g/t 539.8 - 549.0 ft 9.2 ft 0.11 oz/t 10 Vn
including
165.4 - 166.5m 0.9m 5.5 g/t 543.0 - 546.0 ft 3.0 ft 0.16 oz/t 10 Vn
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DDH-191 E 41,838.1; N 70,593.0; bear 234 deg, +45 deg, 101m (331 ft)
67.3 - 69.1m 1.8m 6.5 g/t 220.8 - 226.8 ft 6.0 ft 0.19 oz/t 50 Vn
including
68.2 - 69.1m 0.9m 8.9 g/t 223.8 - 226.8 ft 3.0 ft 0.26 oz/t 50 Vn
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DDH-192 E 41,592.0; N 70,973.0; bear 318 deg, -65 deg, 15m (51 ft)
12.9 - 14.3m 1.4m 0.7 g/t 42.2 - 47.0 ft 4.8 ft 0.02 oz/t 42 Vn
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DDH-193 E 41,594.0; N 70,970.0; bear 315 deg, +62 deg, 61m (201 ft)
23.5 - 24.5m 1.0m 1.7 g/t 77.2 - 80.5 ft 3.3 ft 0.05 oz/t 50 Vn
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KDH-24 E 39,318.0; N 74,663.7; bear 203 deg, -68 deg, 241m (792 ft)
216.7 - 221.0m 4.3m 2.7 g/t 710.9 - 724.9 ft 14.0 ft 0.08 oz/t K 5 Vn
including
219.0 - 221.0m 2.0m 5.5 g/t 718.5 - 724.9 ft 6.4 ft 0.16 oz/t K 5 Vn
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* True vein widths for KDH - 24 are approximately 80% of the reported
intervals, and approximately 50% for 48 and 5 Vn, 75% for 50 Vn, 90%
for 10 Vn intercepts in Hole 190, approximately 90% for Holes 191, 192,
and approximately 75% for Hole 193.
"The Company is currently conducting an updated Mineral Resource Estimate under Canadian regulatory standards, with the results to be announced shortly. Our 2006-2007 drilling program has continued to deliver positive results and should result in the addition of significant quantities of new, higher degree of confidence resources and modest amounts of new lesser degree of confidence resources to the overall Sutter Project resource inventory," reported Mr. Hal Herron, President.
"Significant new resources should be added with these latest results. Hole 190 provided 200 feet of geological and grade continuity to a new vein structure (10 Vein). Past and current drill results have now delineated a 600-foot strike length of gold mineralization in the new 10 Vein structure, which remains open in all directions. Hole KDH-24 was our fourth surface drill hole, and it intersected the up-dip periphery of the historic Inferred Resource in the Keystone 5 Vein. The 2006 drill program continues to produce results that support the expansion of the mineral resource base for the project as well as providing essential geologic data for mine plan development. The successful identification of strong gold mineralization outside of the present defined resources validates Sutter Gold's models for continuity and lateral extensions of the gold bearing veins. Thus, we are confident that ounces can be moved up (2,697,400 tons @ 0.193 oz/ton containing 521,000 ounces and 492,900 tons @ 0.352 oz/ton containing 173,000 ounces as reported in the March 2006 NI43-101 Resource Report under Canadian regulatory standards) into the higher degree of confidence resources category, which was the primary goal of the Company's $ 1.2 million (Cdn) diamond drill program. The proposed drilling program only involves some 10% of the Company's 3.2 miles of property position along the Mother Lode trend, leaving some 90% of the property open for further exploration along strike and at depth", stated Mr. Hal Herron, President.
All core samples from the drilling program are sawn in half, with one half of the core being prepped and analyzed using screened metallics fire assay methods by American Assay Laboratory in Reno, NV. The remaining half core is stored in a secured facility at the Sutter Gold site for future inspection and assay verification. Standards and blanks are inserted into all sample shipments and a minimum 10 percent of samples are resubmitted for replicate analysis.
The Sutter Gold 2006 core drilling program is planned and supervised by Mr. Mark Payne, P.Geo. Calif. 7067, the Qualified Person for the Sutter Gold Project, as defined by NI 43-101, and has reviewed this release.
About Sutter Gold
The Sutter Gold project in California contains a 3.2 mile segment of the Mother Lode belt from which 10 historic mines produced 2.3 million ounces of gold. The historic mines bracket a one-mile-long portion of the Mother Lode belt with no historic gold production and which contains the Lincoln and Comet zones. The Lincoln and Comet zones were blind discoveries that did not outcrop at surface and which represent the first significant new gold discoveries made along the Mother Lode belt in the last 50 years. The Sutter Gold project has been the subject of considerable modern exploration activity, most of it centering on the Lincoln and Comet zones, which are adjacent to each other and together referred to as the Lincoln project. A total of 85,085 feet of drilling have been accomplished in 190 diamond drill holes, and modern underground development consists of a 2,850-foot declined ramp with 2,400 feet of crosscuts plus five raises. The historic gold production was documented in a detailed report completed by Mark Payne, the consulting geologist to Sutter Gold and a qualified person as defined by National Instrument 43-101.
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ABOUT U.S. ENERGY CORP. AND CRESTED CORP.
Disclosure Regarding Mineral Resources
Under SEC and Canadian Regulations;
And Forward-Looking Statements
The Company owns or may come to own stock in companies which are traded on foreign exchanges, and may have agreements with some of these companies to acquire and/or develop the Company's mineral properties. Examples of these other companies are Sutter Gold Mining Inc., Uranium Power Corp., sxr Uranium One, and Kobex Resources Ltd. These other companies are subject to the reporting requirements of other jurisdictions.
United States residents are cautioned that some of the information available about our mineral properties, which is reported by the other companies in foreign jurisdictions, may be materially different from what the Company is permitted to disclose in the United States.
This news release includes statements which may constitute "forward- looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, future trends in mineral prices, the availability of capital, competitive factors, and other risks. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revision or changes after the date of this release.
For further information on the differences between the reporting limitations of the United States, compared to reports filed in foreign jurisdictions, and also concerning forward-looking statements, please see the Company's Form 10-K ("Disclosure Regarding Forward-Looking Statements"; "Disclosure Regarding Mineral Resources under SEC and Canadian Regulation"; and "Risk Factors"); and similar disclosures in the Company's Forms 10-Q.
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Source: U.S. Energy Corp.
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