Mexican GOLD Signs Drill Contract to Commence Drilling Program at Las Minas
Thunder Bay, Ontario TSX-V: MEX
For Immediate Release August 24, 2017
MEXICAN GOLD SIGNS DRILL CONTRACT TO COMMENCE DRILLING
PROGRAM AT LAS MINAS
Mexican Gold Corp. ("Mexican Gold" or the "Company") (TSX-V: MEX / OTCMKTS: SRXLF
/ FRA: 4QW1) announced today the signing of a diamond drilling contract for the
commencement of drilling at its Las Minas property located in Veracruz State, Mexico.
The Company has contracted with K.D.L. Mexico S.A de C.V. for up to 3,000 metres of diamond
drilling. The drill program will focus on expanding known mineralization at the El Dorado/Juan
Bran, Cinco Senores, and Las Minillas zones and testing new targets identified by geophysical
surveys. Drilling will also be scheduled for the high-grade Santa Cruz zone, contingent on the
results of a planned surface work program at the site.
Expansion Drilling at El Dorado/Juan Bran Zone
The drill program at the El Dorado/Juan Bran zone is focused on expanding the initial Mineral
Resource Estimate. The zone remains open for expansion on strike and down dip. The drilling
will include step-out drilling to extend the zone to the west of the current resource outline – see
Figure 1 – 2017 Phase 2 Drilling at El Dorado/Juan Bran Zone below.
A recent initial Mineral Resource Estimate for the El Dorado/Juan Bran and Santa Cruz zones
estimated that the two zones contain a total Inferred Resource of 719,000 Au Eq ozs contained
within 10,304,000 tonnes grading 2.17 g/t Au Eq, a total Indicated Resource of 299,000 Au Eq
ozs contained within 4,908,000 tonnes grading 1.89 g/t Au Eq and a total Measured Resource of
5,000 Au Eq ozs contained within 62,000 tonnes grading 2.32 g/t Au Eq for a total Measured
and Indicated Resource of 304,000 Au Eq ozs contained within 4,970,000 tonnes grading 1.90
g/t Au Eq – see press release dated August 1, 2017.
Figure 1: 2017 Phase 2 Drilling at El Dorado/Juan Bran Zone
Expansion and Exploration Drilling at Cinco Senores Zone
Extensive mineralization has been outlined by numerous historical mine workings, diamond
drilling, field mapping and sampling at the Cinco Senores zone. Recent drilling at the zone
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 drill program at the Cinco Senores zone will include step-out drilling to expand the
mineralization intersected in hole LM-17-CS-04 as well as test high priority targets identified by
the ground magnetic and TDEM surveys.
Exploration Drilling at Las Minillas Zone
Mineralization has been outlined at the Las Minillas zone by the historical San Jose de Oro mine
workings, a large scale ground magnetic geophysical anomaly, earlier drilling, plus mapping and
sampling on surface and underground.
Diamond drilling at Las Minillas will target significant mineralization identified by the ground
magnetic and TDEM surveys.
Brian Robertson, President and CEO, commented, “We are very excited to commence our 2017
Phase 2 diamond drilling program at all of these high priority zones. The drilling program has the
potential to dramatically expand the initial resource reported by the Company. ”
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 company committed to building
long-term value through ongoing discoveries and strategic acquisitions of prospective precious
metals deposits in Mexico. Mexican Gold is exploring the Las Minas Project, which is located in
the core of the Las Minas 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 more information, please contact:
Brian Robertson, President & CEO
Phone: 807-474-4270 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 includes, but is not limited to, statements about the estimation of mineral resources, magnitude or quality of mineral
deposits, anticipated advancement of mineral properties or programs, future operations, results of exploration, prospects,
commodity and precious metals prices, future work programs, 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 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 degree to which mineral resource estimates are reflective of actual
mineral resources and the risks identified in the Company's disclosure documents available at www.sedar.com. 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 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 on 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 Regulation Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.