Mexican GOLD Mining Announces the Commencement of a 10,000 Meter Program to Aggressively Drill Test All Targets at Las Minas
Vancouver, BC TSX-V: MEX
For Immediate Release July 7, 2020
MEXICAN GOLD MINING ANNOUNCES THE COMMENCEMENT OF A 10,000 METER
PROGRAM TO AGGRESSIVELY DRILL TEST ALL TARGETS AT LAS MINAS
Mexican Gold Mining Corp. (the “Company” or “Mexican Gold") (TSXV: MEX) is pleased to
announce that a 10,000 meter drill program is under way at Las Minas, designed to follow up on
the discovery made in 2019 at the Cinco Senores Vein target, as well as to test 3 other high priority
exploration targets at the project. Addition ally, expansion and upgrade drilling is planned to
optimize the current resource at El Dorado for inclusion in the upcomi ng Preliminary Economic
Assessment (“PEA”).
Highlights:
On July 1, drilling began at Las Minas to follow up on the new gold discovery made in
2019 at the Cinco Senores Vein target (5.2m of 8.7 g/t gold from 114m, including 2m of
21.37 g/t gold, estimated 85% true-width).
Exploration drilling will te st the Changarro gold target for the first time and follow-up on
exciting results at both the Cinco Senores Skarn and Las Minillas targets.
Expansion and upgrade dril ling is planned to optimize the current resource at El Dorado
for inclusion in the upcoming PEA Study.
As detailed in a press release on June 9, 2020, CTA has now completed fieldwork for an
environmental baseline study of the Las Minas project area.
An expanded and enhanced metallurgical study is in process with ALS Laboratories in
Kamloops, BC, and an airborne LiDAR survey is scheduled for the week of July 6 with
LiDAR America of Ventura, CA
“We are excited to follow up on last year’s discovery of the Cinco Senores Vein target, where the
Company intersected 2m of 21.37 g/t gold in a new zone. This discovery demonstrates the well-
endowed nature of Las Minas and the potential fo r opening up another area of significant gold
mineralization at the project. At the same time, we will be drilling brand new targets at Changarro,
Cinco Senores Skarn, and Las Mini llas, as well as drilling at El Dorado for resource expansion
and upgrading. Mexican Gold’s 43-101 resour ce estimate published in October 2019
demonstrates a robust resource that will form the basis of our upcoming PEA Study” stated Philip
O’Neill, Chief Executive Officer.
Drilling Program
Mexican Gold has begun its 2020 diamond drilling program which will include 10,000m of both
resource and exploration drilling. Kluane Drilling Ltd, has been retained for this program.
A focus of the 2020 drilling is to expand and upgrade the current resource at El Dorado, which
remains open in multiple directions. There are al so several satellite intersections which may tie
into the main resource area. Careful study of resource models is being used to optimize the results
of this drilling for the upcoming PEA Study.
Drilling will also follow up the November 2019 discovery at Cinco Senores in hole LM-19-CS-13.
At 114m vertical depth, a 5.2m shallow-dipping, pyrite-rich quartz vein was intersected which
assayed 8.94 g/t gold, including 21.37 g/t gold over 2m. The true widths of the intersections are
estimated to be 85% of the down-hole lengths. Drilling in 2020 will attempt to define the previously
unknown veining and intersect further strong gold values.
Fieldwork from late 2019 at the Changarro prospect has defined 2 parallel, high-grade vein trends
within a 25m wide, NNW-trending deformation corridor . From a newly rediscovered mine on the
west vein, 3m-spaced chip samples averaging 0.65m in width returned an average of 8.82 g/t gold
along the entire 52m drift. These recent results complement 2018 chip sampling on the east vein
trend of 13.04 g/t Au over an 8m width. Drilling is planned to test the down-dip continuity and strike
extent of this zone, the first clear drill target at Changarro.
The Cinco Senores skarn target, a continuation of the El Dorado zone, has been intersected by
drilling over a continuous 235m E-W width and surface showin gs add a further 170m of E-W
extent. The potential north and south extensions of the known mineralized skarn will be tested by
the 2020 drilling program.
The Las Minillas skarn occurrence shows ext ensive mineralization on surface and underground,
but has only been tested by 3 holes over a 400m width. Hole LM-11-LM-24 near the Minillas mine
returned 7.52 g/t Au equivalent over 2m in ve ry poor recovery. Recent hole LM-19-LM-03 450m
from the mine averaged 100ppb Au over 42m of endoskarn, s uggesting significant nearby
exoskarn mineralization. Drilling in 2020 will target strong EM conductors and El-Dorado type
skarn settings.
Environmental Baseline Study
Consultoría y Tecnología Ambiental has comple ted the fieldwork portion for an environmental
baseline study at the Las Minas project and delivery of the full report is expected in July 2020.
The surface water study included sampling nearby rivers and creeks to analyze concentrations of
metals and mercury (total and dissolved) and ot her inorganic parameters (chlorides, pH, color,
sulphates, hardness, dissolved oxygen, total suspended solids, and conductivity). The flora and
fauna study included observations along transects in the project area of influence to identify
species of herpetofauna, birds, and flora, including possible protec ted species from these three
groups. The work was carried out in June by specialist biologists.
This initial environmental baseline project will complement Mexican Gold’s forthcoming
preliminary economic assessment study in advancing the Las Minas project toward the feasibility
stage.
Enhanced Metallurgical Study
The metallurgical work now in process expands t he scope of the previous metallurgical study in
2015. Multiple portions of the depos it are being tested individually for ore-blending compatibility
and further work on tailings characteristics, pr ocess refinement, and extraction of a subsidiary
magnetite concentrate will follow. Results and reporting are expected in August, 2020.
LiDAR Digital Terrain Model
A digital terrain model (“DTM”), accu rate to within 10cm, will cover 50 km 2 including and
surrounding the Las Minas project. A terrain model is necessary for the upcoming PEA Study to
support location and design of infrastructure and material transport options. The DTM will be
produced using the airborne LiDA R method, which can precisel y locate the ground surface
through vegetation.
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.
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 ar e shipped directly by
Mexican Gold or picked-up by the lab vehicle with chain of custody/sample submittal signed and
dated. The Company sends its samp les to SGS Mineral Services (ISO/IEC 17025) at Durango,
Mexico, an accredited and independent laboratory.
About Mexican Gold Mining Corp.
Mexican Gold 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 Amer icas. Mexican Gold is exploring and advancing
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 respec t to Mexican Gold within the m eaning 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 t hat 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 recommendati ons, 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, ev ents 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 fr om those anticipated in
such statements. Mexic an 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.