Mexican GOLD Announces Drill Results from the Las Minas Project and Provides a Corporate Update
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Vancouver, BC
For Immediate Release
TSX-V: MEX
January 21, 2020
MEXICAN GOLD ANNOUNCES DRILL RESULTS FROM THE LAS MINAS PROJECT AND PROVIDES
A CORPORATE UPDATE
Mexican Gold Corp. (the “Company” or “Mexican Gold") (TSXV: MEX) is pleased to announce
the results from its recent drill program at the Las Minas project in Veracruz, Mexico. The
objectives of the diamond drilling program included: infill drilling at El Dorado, the extension of
the Cinco Senores zone, initial drill testing of the Pueblo Nuevo prospect, and the testing of a
large, blind geophysical anomaly north of the Cinco Senores area. A total of 13 holes were
drilled totalling 2071 metres.
Highlights:
• Discovery of a new, high-grade gold occurrence in a previously unexplored area near the
Cinco Senores prospect grading 21.37 g/t gold over 2m and 8.94 g/t gold within the
entire 5.2m altered zone
• Infill drilling at El Dorado returned 2.61 g/t gold equivalent over 23.0m in hole LM-19-JB-
26 and 2.77 g/t gold equivalent over 6.0m in hole LM-19-JB-27
• Hole LM-19-LM-03 cut in excess of 100m of endoskarn with anamolus gold, silver, and
copper values suggesting its possible close proximity to a zone of mineralized exoskarn
TEM Anomaly
Hole LM-19-CS-13 tested the southern area of the TEM anomaly. The hole was collared where
the El Dorado sill contact was known to have been eroded, suggesting that the TEM anomaly
could point to mineralization under the sill. The hole remained in intrusive rock for its entire
length. A very strong 21.37 g/t gold intersection at 123.5m is related to quartz veining and
silicification with massive magnetite and pyrite veinlets. This mineralization occurs
stratigraphically below the El Dorado zone level and contains negligible silver and copper. It
may be remobilized from skarn at depth or it may be an analogue of the Pueblo Nuevo gold
vein occurrences.
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Hole LM-19-LM-03 tested the northern portion of the TEM anomaly where the El Dorado zone
contact is known to lie at ~200m depth. Below 70m of overburden, the hole cut >100m of
endoskarn (and minor dikes) with anomalous gold, silver, and copper values, as is invariably
encountered proximal to the mineralized exoskarn in the nearby resource and related
prospects. As it is virtually impossible for endoskarn to exist apart from exoskarn, the hole is
interpreted to be following the contact of a sub-vertical dike with potentially mineralized
exoskarn across the contact. Please refer to Map 1 below.
El Dorado Infill Drilling
Wide hole spacing in certain pockets of the known resource at El Dorado presented an
opportunity to add ounces to the resource by way of additional drilling to bridge the statistical
correlation. The Company had identified three pockets that needed one drill hole each in order
to potentially add mineralization at El Dorado.
Two holes, LM-19-JB-26 and LM-19-JB-27, were drilled in the most sparsely sampled portion of
the El Dorado zone, which coincided with a limited, relatively weak portion of the resource
area. The 2019 holes provided much stronger results than the surrounding holes, providing
additional tonnage and showing that there are no consistent zones of weakness within the El
Dorado deposit. A third hole (LM-19-JB-28), which targeted an undrilled area of the Dike
Contact zone, never penetrated the contact, remaining in contact-related endoskarn with
moderate mineralization.
Cinco Senores
The western area of Cinco Senores is entirely overburden covered. Hole LM-19-CS-14 cut
mostly intrusive rock with weak to moderate skarn suggesting the hole appears to be within a
dike. Hole LM-19-CS-15 began in strong endoskarn which weakened downhole but carried
anomalous gold, silver, and copper values, suggesting the hole was drilled into a dike and away
from the mineralized exoskarn known to exist to the north-east.
Pueblo Nuevo
The first drilling in the long history of mining on the Pueblo Nuevo concession tested 2 areas:
Tamiahua and Dos Rios both of which have extensive historic mining featuring high gold values,
coincident with strong topographic lineaments suggesting the presence of cross structure.
Although drilling encountered several gold-bearing veins, the vein intersections lacked the high
gold grades and the concentrations of base-metal sulphides that had been sampled extensively
on surface. Please refer to Map 2 below.
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Gold equivalent (Au Eq) calculations used metal prices of USD $1500/ounce for gold, USD $18.00/ounce for silver,
and USD $2.75/pound for copper. No adjustments were made for potential relative differences in metal recoveries.
Au Eq g/t = Au g/t + [(Ag g/t x 0.012) + (Cu% x 1.25)]
Corporate Update
The Company is also pleased to announce that at its December 18, 2019 annual and special
general meeting (the “Meeting”), shareholders overwhelmingly approved a continuance (the
“Continuance”) of the Company’s incorporation from Ontario to British Columbia. The Board
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and management of the Company believe that the Continuance of the Company’s existence
under the British Columbia Business Corporations Act will provide the Company with greater
flexibility going forward. A copy of the Company’s new articles of incorporation, along with a
summary of the corporate law changes that will occur in connection with the Continuance are
contained in the Company’s management information circular for the Meeting dated November
18, 2019, a copy of which is available under the Company’s SEDAR profile available at
www.sedar.com. The Company also announced that, subject to TSX Venture Exchange
approval, in connection with the Continuance, the Company intends to change its name to
Mexican Gold Mining Corp. The Company will provide shareholders with a further update with
respect to the effective date of the Continuance and concurrent name change in the coming
weeks.
Quality Assurance/Quality Control
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 or picked-up by the lab vehicle with a chain of custody/sample submittal signed
and dated. The Company sends its samples to SGS Mineral Services (ISO/IEC 17025) at Durango,
Mexico, an accredited and independent laboratory.
Qualified Person
The technical information in this news release 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.
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.
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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. 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 market conditions, 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.