THUNDER BAY, Ontario, Jan. 12, 2018 (GLOBE NEWSWIRE) — Mexican Gold Corp. (“Mexican Gold” or the “Company”) (TSX-V:MEX) (OTCMKTS:SRXLF) (FRA:4QW1) is pleased to announce its 2018 Phase 1 Exploration Program at the Las Minas property, Veracruz State, Mexico. The program will focus on resource expansion drilling to increase the initial 43-101 mineral resource estimate as well as exploration drilling to expand known mineralized zones. Additionally, field work will be carried out to identify new mineralized zones. Drilling and field exploration work will be conducted at the following top priority mineralized areas:
- Resource expansion drilling at the El Dorado/Juan Bran zone
- Resource expansion drilling at the Santa Cruz zone
- Exploration drilling at the Cinco Senores zone
- Exploration drilling at the Las Minillas zone
- Field exploration at the Santa Cruz zone
- Field exploration at the Pueblo Nuevo zone
- Field exploration at the Changaro Zone
Resource Expansion Drilling at the El Dorado/Juan Bran Zone
The highly successful 2017 resource expansion drill program at the El Dorado/Juan Bran zone identified the high-grade Dike Contact zone. Hole LM-17-ED-40 intersected 9.24 g/t Au Eq over 38.0 metres (5.36 g/t Au, 17.10 g/t Ag, 2.20 % Cu) – see press release Nov. 15, 2017. The drill program also extended the El Dorado/Juan Bran mineralization by a further 65 metres along strike. Both zones remain open for further expansion. The 2018 Phase 1 Exploration Program will focus on further expansion of the high-grade Dike Contact zone and extending the El Dorado/Juan Bran zone on strike and down dip.
Resource Expansion Drilling at Santa Cruz Zone
Initial delineation drilling at the Santa Cruz zone outlined a series of stacked high-grade lenses 8-40 metres thick within an exoskarn and endoskarn corridor measuring approximately 185 metres wide by 120 metres thick by 120 metres deep. Drilling completed in early-2014 included hole LM-14-SC-03 grading 5.03 g/t Au Eq (2.30 g/t Au, 19.07 g/t Ag, 1.57 % Cu) over 44.5 metres contained within 97.2 metres grading 2.70 g/t Au Eq (1.19 g/t Au, 9.42 g/t Ag, 0.79% Cu) – see press release April 7, 2014.
Resource expansion drilling at the Santa Cruz zone will target the upward extension of the zone and its continuation to depth. Recent field work at the Santa Cruz zone identified mineralized skarn outcropping above the current resource envelope. Additionally, mineralization has been intersected at drilling depths greater than 150 metres, indicative of the downward continuation of the zone.
Exploration Drilling at Cinco Senores Zone
A recently completed ground magnetic survey at the Cinco Senores zone identified flat–lying conductors very similar to the El Dorado/Juan Bran zone orientation. Several additional strong conductors were also identified by the moving loop Time Domain Electro Magnetic (TDEM) survey. The 2017 Phase 2 drilling program successfully extended the flat lying zone by 220 metres on trend. Diamond drill hole LM-17-CS-08 intersected 4.47 g/t Au Eq (1.58 g/t Au, 13.85 g/t Ag, 1.65 % Cu) over 4.0 metres – see press release dated December 12, 2017.
The drill program at the Cinco Senores zone will include exploration drilling to expand the mineralization intersected in hole LM-17-CS-08 and further testing of high priority targets identified by the ground magnetic and TDEM surveys.
Exploration Drilling at Las Minillas
The Las Minillas zone is the site of the historical San Jose del Oro mine which was operational in the 1930s. A high–resolution ground magnetic survey carried out over the zone in 2011 delineated a large magnetic-high anomaly measuring approximately 1,000 metres by 750 metres located next to the underground workings of the mine.
The TDEM survey completed in 2017 showed several strong conductors of limited size, which fit the geological model for the San Jose del Oro mine. These conductors are all in areas of full overburden cover. Diamond drill hole LM-11-LM-24, which was drilled in 2011 near the San Jose del Oro mine workings and located within the boundaries of the magnetic high anomaly, intersected 5.14 g/t gold, 8.6 g/t silver and 1.46% copper over 2.0 metres – see press release dated May 15, 2017.
Exploration drilling at the Las Minillas zone will be guided by results from the recently completed ground magnetic and TDEM survey and the 2011 ground magnetic survey.
Field Exploration at Santa Cruz Zone
During the last drill program at the Santa Cruz zone, fresh boulders with visible mineralization were noted near the drill pads. It was determined that the source of the boulders was up slope from the area being drilled. An earlier ground magnetic survey of the area also identified a large geophysical anomaly extending upward from the resource footprint. Preliminary surface investigations have shown intermittent but high-quality continuing mineralization well above the present deposit envelope.
Field work at Santa Cruz will include mapping, trenching and sampling to identify zones of mineralization up slope from the initial resource envelope.
Field Exploration at Pueblo Nuevo
The 2017 Phase 1 field exploration program at the Pueblo Nuevo concession identified high-grade quartz veins occurring along the same sill contact believed to be part of the metallogenic system as the better known gold – copper skarn deposits at Las Minas proper. The veins are contained within a 400 metre wide shear zone. Sampling of the Tamiagua 1 vein structure yielded up to 24.86 g/t gold and 17.8 g/t silver or 25.13 g/t Au Eq over 0.25 m, contained within a 0.72 m interval grading 19.09 g/t gold and 10.6 g/t silver or 19.24 g/t Au Eq. – see press release May 31, 2017.
A field exploration consisting of mapping, trenching and sampling will be carried out to identify potential parallel vein systems and define drill targets.
Field Exploration at Changaro
The Changaro zone is contained within a large corridor measuring approximately 400 metres by 700 metres with extensive historical mining activity. The Changaro mine was mined as a high – grade dike related mineralized zone over a vertical height of 200 metres. Sampling of the Changaro mine workings carried out in 2011 yielded 8 m grading 9.92 g/t gold, 20.78 g/t silver and 0.63 % copper or 11.45 g/ tonne gold equivalent, including 2.0 m grading 28.87 g/t gold, 20.3 g/t silver and 0.68% copper or 30.46 g/t gold equivalent – see press release May 10, 2011. Based on limited field work completed to date, it is believed that the Changaro zone is a structurally-controlled system of retrograde gold skarn development which forms steeply-plunging ore-shoots.
A field exploration program consisting of mapping, trenching is planned for the 2018 Phase 1 exploration program, to be followed by ground geophysics.
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 are 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 samples to SGS Mineral Services (ISO/IEC 17025) at Durango, Mexico, an accredited and independent laboratory.
True width for hole LM-17-ED-40 is estimated to be 94 percent of core width, and 70-75% for hole LM-17-CS-03. Additional information is required to determine the true width of mineralization intersected in hole LM- 14-SC-03. Assays are uncut, length–weighted average values.
(1) Gold equivalent (Au Eq) calculations use metal prices of US $1200/oz. for gold, US $19.00/oz. for silver and US $3.00/lb. for copper. No adjustments have been made for potential relative differences in metal recoveries.
Au Eq g/t equals Au g/t + (Ag g/t x 0.016) + (Cu% x 1.71).
About Las Minas
The Las Minas Project hosts near-surface gold – silver and copper skarn mineralization and high–grade gold – silver epithermal vein deposits. The project is comprised of six mineral concessions covering approximately 1,616 hectares (3,995 acres), with several small scale, past-producing mines and a number of untested targets.
The district is host to a large gold, silver and copper skarn system that has a production history that extends back to the Aztec era. The Las Minas diorite intrusive measures approximately 10 kilometres in diameter and underlies the Las Minas concessions. The mineralization controls and association with magnetite appear to be similar to the Guerrero Gold belt, which is the site of the Los Filos and Morelos gold deposits.
Information Regarding NI-43-101 Initial Mineral Resource Estimate
In 2017, the Company reported an initial mineral resource estimate of 304,000 gold equivalent ounces (Au Eq ozs) contained within 4,970,000 tonnes grading 1.90 g/t Au Eq (0.92 g/t Au, 0.59% Cu. 4.37 g/t Ag) in a Measured and Indicated category for the El Dorado/Juan Bran and Santa Cruz zones, with an additional Inferred Resource of 719,000 Au Eq ozs contained within 10,304,000 tonnes grading 2.17 g/t Au Eq.( 1.08 g/t Au, 0.66 % Cu, 3.99 g/t Ag) (reported in the Company’s news release dated August 1, 2017 and the 43-101 report titled “NI 43-101 Technical Report Mineral Resource Estimate Las Minas – Gold – Copper Project”, John T, Boyd Company, Mining and Geological Consultants, Denver, Colorado, USA, Report No “3830.001“ dated September, 2017, prepared by John J. Read, P. Geo., Q.P. and Sam J. Shoemaker Jr., Registered Member S.M.E, Q.P.) The report is available on SEDAR.
The El Dorado/Juan Bran and Santa Cruz zones remain open for expansion and comprise two of eight known mineralized zones at the Las Minas 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.
For more information, please contact:
Brian E. Robertson, P. Eng., President & CEO
Phone: 807-474-4270 or 807-251-1816
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 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 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 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 information, whether as a result of new information, future events or otherwise, except as required by law.