Mexican GOLD Announces a New Resource Estimate FOR the Las Minas Project IN Veracruz, Mexico
Vancouver, BC TSX-V: MEX
For Immediate Release October 10, 2019
MEXICAN GOLD ANNOUNCES A NEW RESOURCE ESTIMATE FOR THE LAS MINAS
PROJECT IN VERACRUZ, MEXICO
Mexican Gold Corp. (the “Company” or “Mexican Gold") (TSXV: MEX) is pleased to announce a
new NI 43-101 resource estimate for the Las Minas Project in Veracruz, Mexico. The resource
estimate was prepared by Mine Development Associates (“MDA”) of Reno, NV.
Highlights:
• The Las Minas Project hosts 645,000 ounces of gold equivalent (“AuEq”) at an average
grade of 3.674 g AuEq/t, in the Indicated category – see Table 1 below.
• The Las Minas Project hosts 217,000 ounces of AuEq at an average grade of 2.679 g
AuEq/t, in the Inferred category – see Table 1 below.
• MDA prepared the Las Minas resource estimate based on potential exploitation by
underground mining methods and deemed 1.5 g AuEq/t to be the appropriate cut-off
grade for the resource. The resource is no longer being analyzed from an open-pit
perspective.
• A new drill program exploring highly-prospective targets at Las Minas is scheduled to
commence on October 15, 2019.
Philip O’Neill, Chief Executive Officer of Mexican Gold, stated “We are very pleased with this
robust resource estimate. The block model prepared by MDA holds together very well for a
skarn deposit. The level of rigor used by MDA further allows us the opportunity to potentially
explore economic studies for the potential exploitation of minerals at the El Dorado and Santa
Cruz zones. Our focus now shifts to our upcoming drill program at Las Minas where we hope to
unlock additional value through the drill bit, especially at our highly-prospective Pueblo Nuevo
and Cinco Senores targets.”
A 3,000-meter drill program is scheduled to commence at Las Minas on October 15, 2019. The
program is set to drill 4 highly prospective targets and 2 geological concepts. The 4 targets are
Pueblo Nuevo, the Cinco Senores TEM Anomaly, Las Minillas and El Dorado; and the 2
geological concepts are the potential for skarn mineralization Sub-Sill and at the Mancuerna
Dike Swarm. Kluane Drilling has now begun mobilization for the Las Minas drill program.
Table 1. Las Minas Total Reported Mineral Resources
(cutoff grade of 1.5g AuEq/t)
Indicated 5,457,000 1.782 313,000 6.5 1,148,000 1.250 150,319,000 3.674 645,000
Inferred 2,514,000 1.252 101,000 5.5 446,000 0.938 51,965,000 2.679 217,000
Note: rounding m ay cause apparent inconsistencies
oz AgCla ss oz AuEqTonnes g Au/t oz Au % Cu lbs Cu g AuEq/tg Ag/t
CIM Definition Standards were followed for mineral resource estimates. The Las Minas mineral
resource estimates were prepared by Mine Development Associates of Reno, Nevada under the
supervision of Paul Tietz. Mr. Tietz is a Qualified Person and is independent of the Company as
defined by NI 43- 101. Mr. Tietz has reviewed and verified the Mineral Reso urce information in
this press release.
The Effective Date of the Mineral Resource is September 12, 2019.
The stated resources are fully diluted to 3 m cubed blocks and are tabulated on a AuEq cutoff
grade of 1.5 g AuEq/t.
Using the individual metal grades of each block, the AuEq grade is calculated using the
following formula:
g AuEq/t = g Au/t + (0.0123077 * g Ag/t) + (1.4492753 * %Cu)
This formula is based on prices of USD $1,300.00 per ounce gold, USD $16.00 per ounce silver,
and USD $2.75 per pound copper.
Metal recoveries were not included in the equivalency calculation since the metallurgical studies
completed to-date indicate just a minor recovery difference. It is reasonably expected that the
majority of Inferred mineral resources could be upgraded to the Indicated classification with
continued exploration.
An updated Technical Report will be prepared and filed on SEDAR (www.sedar.com) within 45
days of this news release.
About Mexican Gold Corp.
Mexican Gold Corp. is a Canadian based mineral exploration and development company
committed to building long-term value through ongoing discoveries and strategic acquisitions of
prospective precious metals and copper projects in the Americas. Mexican Gold is exploring the
Las Minas Project, which is located in the core of the Las Minas mining district in Veracruz
State, Mexico, and is host to one of the newest, under-explored skarn systems known in Mexico.
For more information, please contact:
Philip O’Neill – CEO, President, and Director
E-mail: [email protected]
Website at www.mexicangold.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
All statements in this press release, other than statements of historical fact, are "forward-looking
information" with respect to Mexican Gold within the meaning of applicable securities laws, and
with respect to the proposed Offering and proposed use of proceeds. Mexican Gold provides
forward-looking statements for the purpose of conveying information about current expectations
and plans relating to the future and readers are cautioned that such statements may not be
appropriate for other purposes. By its nature, this information is subject to inherent risks and
uncertainties that may be general or specific and which give rise to the possibility that
expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that
assumptions may not be correct and that objectives, strategic goals and priorities will not be
achieved. These risks and uncertainties include but are not limited to completion of Offering,
exploration findings, results and recommendations, as well as those risks and uncertainties
identified and reported in Mexican Gold’s public filings under Mexican Gold’s SEDAR profile at
www.sedar.com. Although Mexican Gold has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those described in forward-
looking information, there may be other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that such information will prove
to be accurate as actual results and future events could differ materially from those anticipated
in such statements. Mexican Gold disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new information, future events or otherwise
unless required by law.