Mexican GOLD Announces 3,000 Metre Diamond Drilling and Field Exploration Program at Las Minas
Thunder Bay, Ontario TSX-V: MEX
For Immediate Release June 20, 2017
MEXICAN GOLD ANNOUNCES 3,000 METRE DIAMOND DRILLING AND
FIELD EXPLORATION PROGRAM AT LAS MINAS
Mexican Gold Corp. ("Mexican Gold" or the "Company") (TSX-V: MEX) is pleased to announce a
3,000 metre diamond drilling program for its Las Minas gold – copper – silver project. The drilling
program targets expansion of the recently discovered mineralization at the Cinco Senores zone as well
as step-out drilling at the El Dorado / Juan Bran zone to extend the on-strike and down-dip
mineralization. Additionally, a field exploration pr ogram, consisting of trenching, sampling and mapping
will be carried out at the Santa Cruz zone to test the upward continuation of the zone above the area of
previous drilling. Trenching, sampling and mapping will also be undertaken at the Pueblo Nuevo
concession to further outline the quartz veins recently sampled at the site.
Brian Robertson, President and CEO, stated, "The exploration program is focused on three high priority
mineralized zones at Las Minas. The program combines a geophysical survey with expansion and
discovery diamond drilling and preliminary field exploration work. We believe the program will expand the
resource at El Dorado - Juan Bran and lead to the discovery of new zones of mineralization at both Cinco
Senores and Santa Cruz. The Pueblo Nuevo concession , with its numerous historical high-grade mines,
is a high–priority target area."
Exploration Drilling at Cinco Senores Zone
Widespread mineralization has been outlined at the Cinco Senores zone by numerous historical mine
workings, a large ground magnetic geophysical anomaly, plus mapping and sampling. Extensive
sampling of the mineralized zone outlined a wide area of highly mineralized skarn (see press release
dated February 2, 2011). Recent drilling at Cinco Senores intersected a high-grade 2.0 metre interval
with massive chalcopyrite grading 10.8 g/t gold, 41.7 g/t silver and 2.8% copper or 15.98 g/t Au Eq . in
hole LM-17-CS-04.(see press release dated May 15, 2017). The strong presence of chalcopyrite-
mineralized magnetite at the targeted skarn elevation in the step-out hole, when combined with earlier
drilling and sampling results (see press releases dated February 2, 2011 and August 8, 2011) is believed
to be indicative of a potential El Dorado/Juan Bran type zone at the Cinco Senores zone. The Cinco
Senores zone is located 670 metres west of the El Dorado/Juan Bran zone. The mineralization occurs on
the same contact of a district-scale diorite sill with the overlying Cretaceous platform as the large scale El
Dorado/Juan Bran zone – see Figure 1.
Figure 1: Cross Section of Cinco Senores, El Dorado/Juan Bran and Santa Cruz Zones
The exploration program at the Cinco Senores zone will commence with a detailed ground magnetic
geophysical survey to identify high priority targets for diamond drilling. Ground magnetic geophysical
surveys at Las Minas have prov en to be very successful for identifying highly mineralized zones. An
earlier geophysical survey at Cinco Senores outlined a large magnetic anomaly coincident with historical
mine workings (see press release dated February 4, 2013). Following the geophysical survey, a diamond
drilling program will be undertaken to test high-priority drill targets and extend the mineralization
discovered in Hole LM-17-CS-04.
Expansion Drilling at El Dorado / Juan Bran Zone
The Phase 1 drilling program at the Eldorado/Juan Bran zone was successful in expanding the El
Dorado/Juan Bran zone both on-strike and down dip. The drilling results are being incorporated in a
mineral resource estimate. The Eldorado/Juan Bran zone remains open both on strike and down dip. The
Phase 2 drilling program will focus on expansion of the current footprint of the mineralized zone, which
has been outlined up to 420 metres in width, extending over 600 metres down dip, with thicknesses
varying from 6 to 38 metres.
Exploration at High-Grade Santa Cruz Zone
The Santa Cruz zone has been partially outlined by high-grade diamond drill hole intersections, including
10.06 g/t Au Eq over 16.0 metres within 2.70 g/t Au Eq over 97.2 metres in hole LM-14-SC-03, 4.36
g/t Au Eq over 25.0 metres in LM-14-SC-07, and 24.1 g/t Au Eq over 9.6 metres within 3.57 g/t Au Eq
over 99.0 metres in hole LM-14-SC-08 (see press releases dated May 31, 2017, April 7, 2014 and
August 6, 2014). Recent field work identified highly mineralized boulders dislodged from the area above
the drill sites. Additionally, in-situ mineralization has been identified in the upward extension area of the
known mineralized zone. The area is also the si te of a large magnetic geophysical anomaly. A field
exploration work program, including trenching, sampling and mapping, is scheduled to identify the
upward extension of the high-grade Santa Cruz zone.
Exploration at High-Grade Pueblo Nuevo Concession
The Pueblo Nuevo concession is host to several historical underground mines and adits, including the La
Miqueta, La Miqueta Alta, Tamiagua, Marangola, Murcielagos, Dos Rios and El Cobre. The La Miqueta
mine was extensively mined in the past and has 21 known levels. Historic mining activity was carried out
on narrow (10-20 cm) quartz veins in both diorite and marble, extending approximately 100 metres on
strike and over 100 metres down-dip. A recent sampling program at the Tamiagua 1 vein structure
yielded up to 24.86 g/t gold and 17.8 g/t silver or 25.13 g/t Au Eq over 0.25 metres, contained within a
0.72 metre interval grading 19.09 g/t gold and 10.6 g/t silver or 19.24 g/t Au Eq (see press release
dated May 31, 2017). The Phase 2 field exploration program will consist of trenching, sampling and
mapping to extend the known veins on strike and explore for parallel vein systems . All of the vein
structures at Pueblo Nuevo strike NNE to NE, indicative of a potential series of parallel vein structures.
Status of Mineral Resource Estimate
Mexican Gold contracted John T. Boyd Company to complete a mineral resource estimate for the El
Dorado/Juan Bran and Santa Cruz zones. The required site visit has been completed and the estimate is
well advanced. Because of the steep topography at Las Minas and heavy vegetation cover, the existing
PhotoSat survey of the area did not provide suffi cient survey accuracy for bare ground elevations. A
ground or LiDAR survey is required to obtain the accuracy required for the estimate. Mexican Gold is
working with companies providing LiDAR and ground surveys in Mexico. The mineral resource estimate
is now expected to be completed by late July, following a LiDAR or ground survey of the resource area.
About Las Minas
The Las Minas Project hosts near-surface gold – copper and silver skarn mineralization and high-grade
gold - silver quartz vein deposits. The project is comprised of six mineral concessions covering
approximately 1,616 hectares (3,995 acres), with numerous small scale, past-producing mines and a
number of untested targets.
The district is host to one of the largest under expl ored gold – silver copper skarn systems known in
Mexico, and has a production history that extends back to the Aztec era. The Las Minas granodiorite
intrusive measures approximately 10 kilometres in diameter and underlies the Las Minas concessions.
The mineralization controls and association with magnetite appear to be similar to the Guerrero Gold
belt, which is the site of the Los Filos and Morelos gold deposits.
Las Minas is an early–stage exploration project and does not contain any mineral resource estimates as
defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The
potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient
exploration to define a mineral resource for the targets discussed herein. It is uncertain if further
exploration will result in these targets being delineated as a mineral resource.
Quality Assurance/Quality Control
The technical information in this news re lease has been reviewed and approved by Sonny
Bernales, P. Geo., a registered Professional Geoscientist in the Province of British Columbia and a
qualified person as defined by NI 43-101. Mr. Bernales is responsible for logistics and supervision of all
exploration activity conducted by Mexican Gold on the property.
The Company has implemented and adheres to a strict Quality Assurance/Quality Control program which
includes inserting mineralized standards and blanks into the sample stream, about 1 for every 10
samples. The standards and blanks were obtained from CDN Resource Laboratories Ltd. of Langley, BC,
Canada. Each sample bag is properly sealed and kept in a secured, restricted storage place prior to
shipping to the lab. Samples are shipped directly by Mexican Gold with chain of custody/sample
submittal signed and dated. The Company sends its sa mples to SGS Mineral Services (ISO/IEC 17025)
at Durango, Mexico, an accredited and independent laboratory.
About Mexican Gold Corp.
Mexican Gold Corp. is a Canadian based mineral exploration company committed to building long-term
value through ongoing discoveries and strategic acquisit ions of prospective precious metals deposits in
Mexico. Mexican Gold is exploring the Las Minas Projec t, which is located in the core of the historic Las
Minas mining district in the Veracruz State, Mexico. The district is host to one of the largest under-
explored skarn systems known in Mexico and has a strong production history that dates back to the
Aztec era.
For further information, please contact:
Brian Robertson, President & CEO
Phone: 807-474-4270 or 807-251-1816
Fax: 807-474-4272
E-mail: [email protected]
Website: www.mexicangold.ca
CAUTIONARY STATEMENT REGARDIN G FORWARD-LOOKING INFORMATION : This news release includes certain
information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking
information includes, but is not limited to, statements about the magnitude or quality of mineral deposits, timing for completi on of
a mineral resource estimate at Las Minas, anticipated advancement of mineral properties or programs, future operations, results
of exploration, prospects, commodity and precious metals prices, future work prog rams, anticipated financial and operational
results, capital expenditures and objectives and the completion and timing of mineral resource estimates. Forward-looking
information is necessarily based upon a number of estimates and as sumptions that, while considered reasonable, are subject to
known and unknown risks, uncertainties, a nd other factors which may cause the actual results and future events to differ
materially from those expressed or implied by such forward-l ooking information, including the risks identified in the Company's
disclosure documents available at www.sedar.co m. There can be no assurance that such in formation will prove to be accurate,
as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should
not place undue reliance on forward-looking information. All forwar d-looking information contained in this press release is giv en
as of the date hereof and is based upon the opinions and estimates of management and information available to management
as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regula tion Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.