Message #9 From:
NewsBot Date: May 6, 2006 09:05:46 AM
USCS USCorp, Stock Message Board, News, Quote, DD
USCorp Announces Results of Drilling at Its Kingman Area Tailings PropertyUSCorp (OTCBB:IPWG message board, news, dd, quote) announced the results of exploratory drilling at its Kingman Area Tailings Property located near Kingman, Ariz. The purpose of the exploratory drilling and testing was to confirm the presence of economically viable mineral resources in the tailings. Prior owners and certain documents provided by prior owners estimated these resources to contain 400,000 tons of tailings with valuable mineralization. The drilling was targeted specifically at each of the three terraced levels of the tailings.
Our drilling was done by Boart Longyear Co.'s Peoria, Ariz., office with a representative of USCorp present. Boart Longyear is a highly respected premier global drilling company. The drilling was conducted during March 2006 under the supervision of Dr. Robert Cameron of Geological Support Services, our consulting geologist on this property. Preparation of drill samples was completed by our consulting geologist, the drillers and observed by a USCorp representative on site. The samples were sent to two independent laboratories for complete chemical analysis, atomic absorption and fire assays. The laboratories used were SGS Minerals Services, Ontario, Canada, and the 125-year-old Jacobs Assay Office in Tucson, Ariz. Additional samples were taken by our consulting geologist from crevices and holes dug from the top and into the side of the tailings using a procedure called "cone and quartering." Based on the GPS measurement of the tailings by our consulting geologist and the known depth of the tailings obtained by drilling, the revised estimate of the tonnage is approximately 744,215.5 tons.
As promised, under the direction of our consulting geologist, we fully explored and tested from every angle to satisfy our shareholders. Based on the exploration and test results, however, it is not economically viable to pursue exploration or development of this property any longer.
In a report to the company, USCorp's consulting geologist stated in part: "...Samples were subjected to fire assay for gold and silver with both Atomic Absorption and Gravimetric Finish. Additionally, an economic spectrum was performed upon every fifth sample to establish levels of other economic metals. The results of these tests were underwhelming..."
From a practical standpoint, assuming .006 ounce per ton gold and .35 ounce per ton silver, we have ore worth $10.60 per ton. Further, even if gold were to reach $2500 per ounce and silver $60, we still have a product worth only $36 per ton.
Based on currently working operations, were a plant set up and operating on site today, wages, water, chemicals and power would still cost more than $45 per ton. Accordingly, based on the numbers this does not appear to be an economic proposition.
Due to certain conditions not being met, title to the claims is reverting back to prior claim holder.
Robert Dultz, USCorp CEO, commented: "It is time to shift our focus and attention to aggressively pursue our primary properties, namely the exploration, testing and development of the Twin Peaks in the Eureka Mining District of Arizona and our Chocolate Mountain Region Claims in the Mesquite Mining District of California. These are properties that we are much more familiar with and believe to be good based on historical reports in our possession and on our own reports and experience with the properties. We expect to have exciting news on these properties soon."
About USCorpUSCorp is an "exploration stage" company with operations centered on completing exploration of its wholly owned subsidiary USMetals' mining property known as the Twin Peaks Mine, and its wholly owned subsidiary Southwest Resource Development's mining property known as the Chocolate Mountain Region claims.
For more information about USCorp, please go to: www.uscorpnv.com.
Forward-Looking Statements
Statements contained in this release that are not historical facts are forward-looking statements that involve risks and uncertainties. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those discussed in "Risk Factors" in the company's Forms 10-KSB, Forms 10-QSB, 8-K and other filings with the U.S. Securities and Exchange Commission. The actual results that the company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
USCorp, Las Vegas
Robert Dultz, 702-933-4034
www.uscorpnv.com
