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.
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.
https://www.globenewswire.com/NewsRoom/AttachmentNg/5fe0b4bd-5cf1-4998-8a3e-739fcc6645ef
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.
https://www.globenewswire.com/NewsRoom/AttachmentNg/39d674e0-2e90-4e06-b36c-e51da0fd7f97
Hole
Locations: https://www.globenewswire.com/NewsRoom/AttachmentNg/c24dee2e-8bd4-4b79-96db-efb37074304d
Drill
Results: https://www.globenewswire.com/NewsRoom/AttachmentNg/596088d4-0a94-4df9-9901-5b9857f66fa2
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 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 ww.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.
For more information, please contact:
Philip O’Neill – CEO, President, and DirectorE-mail:
info@mexicangold.caWebsite 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.
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