Mexican GOLD Initiates Update to 43-101 Resource and Extends Financing
Thunder Bay, Ont. TSX-V: MEX
For Immediate Release February 8, 2019
MEXICAN GOLD INITIATES UPDATE to 43-101 RESOURCE
and EXTENDS FINANCING
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
MEXICAN GOLD CORP. (TSX-V: MEX; OTCQB: MEXGF; FRA:4QW1) ("Mexican Gold", “MEX”
or “the Company") is pleased to announce that it has engaged Mine Development Associates (“MDA”) of
Reno, Nevada, USA to provide an updated 43-101 Resource on Mexican Gold’s Las Minas Project in the
State of Veracruz, Mexico. Since the initial 43 -101 Resource was completed in August 2017, MEX has
drilled an additional 6,454 metres in 39 holes, increasing the amount of drilli ng in the Resource area by
approximately 40%. Additionally, higher grade mineralization was encountered in the late 2017 and early
2018 drilling in the El Dorado Dike contact zone. For example, drill hole LM -17-ED-40 encountered 38
metres grading 5.39 g/t Au, 17.1 g/t Ag and 2.20% Cu, while drill hole LM-18-ED-49 intercepted 38 metres
of 4.51 g/t Au, 16.2 g/t Ag and 3.33% Cu.
The updated Resource will incorporate the new and higher grade drill results and will also be developed
using a newer and more ref ined geologic, mineral domain model. Dr. Carl Hering, CEO, stated that “ An
updated 43-101 Resource should show significant improvement over the maiden Resource and demonstrate
a more realistic understanding of Project potential.” The updated Resource is scheduled to be completed in
the Spring of 2019 and will be utilized to plan further drilling in mid-2019.
The Company previously announced a non-brokered private placement of units in the Company (“Units”)
at $0.20 per Unit for gross proceeds of up to $3,000,000 subject to the Company’s option to increase the
size of the private placement by 25% (the "Private Placement") (see Companies last updated news release
of December 21, 2018.
Each Unit offered under the Private Placement consists of one common share of the Company (a “Common
Share”) and one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant is
exercisable into a Common Share at the price of $0.30 per Common Share for a period of thirty-six months,
subject to the Company’s option to accelerate the expiry date of the Warrants on notice to the holders of
the Warrants, if at any time after four months and one day from the closing date of the Private Placement,
the closing price of its Common Shares on a stock exchange in Canada is greater than $0.45 per Common
Share for a period of 20 consecutive trading days.
The Company closed the first tranche of the Private Placement for gross proceeds of $2,063,000 on
November 22, 2018 and is aiming to close the second tranche of the Private Placement before the end of
February 2019.
The net proceeds from the Private Placement will be used to continue exploration on the Company’s Las
Minas project located in the State of Veracruz, Mexico, and for general working capital purposes.
Securities issued pursuant to the Private Placement will be subject to a four month and one day statutory
hold period. As at the date hereof there is no material fact or material change related to the Company that
has not been generally disclosed. The Private Placement is subject to the final approval of the TSX Venture
Exchange.
Quality Assurance/Quality Control
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 company committed to building long-term
value through ongoing discoveries and strategic acquisitions of prospective precious metals and copper
deposits in North America. 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:
Carl Hering, PhD Geology, CEO
Brian E. Robertson, P. Eng., President
Phone: 303-895-5241 or 807-251-1816
Fax: 807-474-4272
E-mail: [email protected]
Website at www.mexicangold.ca
CAUTIONARY STATEMENT REGARDING FORWARD -LOOKING INFORMATION: This news
release includes certain information that may constitute "forward -looking information" under applicable Canadian
securities legislation. “Forward -looking information” can often, but not always, be identified by the use of words
such as “believes”, “anticipates”, “ expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. These
statements are based on information currently available to the Company, and the Company provides no assurance
that actual results will meet management’s expectations. Forward-looking information includes, but is not limited to,
statements about the closing of the Private Placement, the future exploration results relating to the Las Minas project,
and exploration plans for the Las Minas project and the exploration potential of the Las Minas project. Forward -
looking information is necessarily based upon a number of estimates and assumptions that, while considered
reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual
results and future events to differ materially from those expressed or implied by such forward -looking information,
including the risks identified in the Company's disclosure documents. There can be no assurance that such information
will prove to be acc urate, 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 forward -
looking information contained in this press release is given 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 informati on, whether as a result of new
information, future events or otherwise, except as required by law.
Neither 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.