US Gold Reports Encouraging Results, Dahlman Maintains Buy

Dahlman Rose has published a research report on US Gold UXG as the company continues to report encouraging drill results at El Gallo.

In the report, Dahlman Rose writes "On March 8, US Gold announced that recent drilling efforts at the El Gallo project in Mexico have expanded the size of the resources and further define mineralization from the recently discovered veins. The Main Zone has been extended 60 meters to the east and 50 meters to the southeast and the potential to further extend mineralization in each direction appears encouraging. Alamo, one of the new veins discovered in late 2010, returned 9.3 gpt Au over 1.7 meters and 7.6 gpt Au over 1.7 meters. Drilling at Chapotillo, another one of the new veins, continues to expand in size and results are expected to be included in the next updated resource. A feasibility study and mine permit submittal remains on track for end of 2011."

Dahlman Rose maintains its Buy rating and $9.05 price target.

US Gold closed yesterday at $7.77.