Gold Stock Trades has been pushing that for awhile...here is his last commentary on Dec 16

U.S. Gold (UXG) Waiting Patiently for Drilling Results From El Gallo in the Magistral District

In Stock Movers on December 16, 2009 at 9:50 pm

After the major silver discovery last January from El Gallo, UXG has permitted a larger area to explore to confirm continuation. This has resulted in some bureaucratic delays. No new results are getting investors nervous and this sell off is a result of weak shareholders waiting for results. No reports for exploration companies gets investors concerned that drill results are poor.

However, no one really knows how big and expansive is this discovery. It’s a question mark for speculators. As soon as the larger permitting is worked out UXG has committed a lot of capital and manpower to continue finding the size and scope of the El Gallo asset.

The Magistral District in which El Gallo is massive with over 530,000 acres. Take a look at this map.

With gold concluding its minor trend correction, I believe UXG’s assets and land positions in Mexico and Nevada are an incredible asset to purchase as a leverage play to the price of gold and silver.

The long term technical picture of UXG is mixed and could continue consolidating. This is not a short term play. This is a company that needs to be accumulated and held.

I believe that this correction will be temporary as major producers and institutional investors are looking for positions where they can expand resources and have exploration opportunities. Results from El Gallo could perk interest in the next couple of weeks.

Disclaimer: I own share of UXG.