RIVERTON, Wyo., June 26 /PRNewswire-FirstCall/ -- U.S. Energy Corp. (NASDAQ:USEG) and Crested Corp. (OTC:CBAG) (BULLETIN BOARD: CBAG) , natural resource exploration and development Companies, announce an expanded surface and underground drilling program for their subsidiary, Sutter Gold Mining Inc. (TSX VENTURE: SGM). The new core drilling program for its Lincoln Project in California includes a 2,100 meter (7,000 ft.) surface drill program of six holes on the Company's Keystone property and one deep exploratory hole of approximately 760 meters (2,500 ft.) from an underground drill station. Sutter management decided to continue the core drilling based on the encouraging results obtained from the 2006-2007 drill program that was completed in June 2007. The drill program's objectives are as follows: 1. Surface: To further test and define 200 meters (650 ft.) of strike length southward from 2006 drill holes KDH-24 and KDH-28 with the goal of extending the gold resource contained in the Keystone 5 vein which could potentially host up to 300,000 tons of new mineralization; and 2. Underground: This deep hole is to test for recurring sets of gold-quartz veins to 2,500 feet in the boudinaged meta-basalt unit hosting the Lincoln - Comet Zones and to potentially add new inferred mineral resources to the project.
"We are excited about leveraging the excellent results of the 2006-2007 drilling program into this new US$700,000 program. It is a logical extension based on the results thus far. This is a real opportunity to significantly advance the project by potentially increasing the gold resource in a significant way." "Work continues on the pre-feasibility study and resource updates based on the 2006-2007 drill program. Management anticipates announcing both work products in July 2007 which is a slight delay from our previous estimate of June 2007," noted Hal Herron, Chief Executive Officer of Sutter Gold Mining Inc. "As reported earlier, this drilling program only affects some 10% of the 3.2 miles of Mother Lode trend that the Company controls, leaving some 90% of the property open for exploration potential ... along both strike and at depth." Mr. Mark Payne, P. Geo. Calif. 7067, is the Qualified Person for the Sutter Gold Project, as defined by NI 43-101 and has reviewed this release.
About the Sutter Gold Mine The Sutter Gold project 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 that contains the Lincoln and Comet zones. The Lincoln and Comet zones were "blind" discoveries that did not outcrop at surface and represent the first significant new gold discoveries made along the Mother Lode belt in the last 50 years. A total of 85,085 feet of drilling has 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 and five raises. A NI 43-101 compliant resource report has outlined indicated and inferred resources at the project. The project has also received all of the major permits required for production. 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.
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., 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. DATASOURCE: U.S. Energy Corp.
CONTACT: Mark Larsen, President, or Hal Herron, Sr. V.P., both U.S.
Energy Corp., +1-307-856-9271
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