CVE:FMG

First Mexican Gold Corp. TSX-V : FMG

Company ID [CVE:FMG] Last trade:CA$0.02 Trade time:15:56:00 EST Value change:▼0 (0%)

First Mexican Increases Land Package to 15,112 Hectares

First Mexican Gold Corp: Vancouver, British Columbia, TSX-V: FMG 
First Mexican Gold Corp (FMG-TSX-V) is pleased to announce that it has entered into an Option Agreement with Kootenay Gold Inc. (KTN-TSX-V) which adds significantly to its property package at its Guadalupe Property in Sonora State, Mexico.  The Company’s current property package of 11,506 hectares is contiguous to Corex Gold Corp (CGE-TSX-V) Santana Property where consistently good drilling results have been demonstrated to date.

The Option Agreement with Kootenay Gold continues the land package expansion strategy of First Mexican management.  The property package comprises 3606 hectares that are contiguous to the present land holdings and is considered very prospective for gold and silver mineralization with numerous historic workings present.  The claims include La Cabana 1 Frac I, La Cabana 1 Frac II, La Cabana 1 Frac III and Cuatas which are 100% owned by Kootenay.

The Option Agreement allows First Mexican to acquire a 60% undivided interest by paying US$25,000 on signing, issuing an aggregate 1,200,000 common shares of FMG over 5 years and spending US$2 million on the property over 5 years.  Plus Kootenay retains a 1% NSR interest which can be purchased for US$1 million.  The earn-in period can be accelerated at the discretion of FMG.  At completion of the earn-in a JV Agreement will be formalized.  This property has been added to the existing Option Agreement with International Millennium Mining Corp (IMI-TSX-V).

Historic and recent non-compliant sampling has been conducted by Kootenay Gold with over 120 samples assayed with the highlights listed below.  The samples from the Minas Viejas area of the La Cabana Frac II property is on trend and very close to the recently reported samples (news release Feb 16, 2011) from the Bailey zone of First Mexican.
Sample Highlights

  • sample # FA1322G returned 11.40 g/t gold, 92 g/t silver
  • sample # LM1041D returned 1.54 g/t gold, 672 g/t silver, .69% copper
  • sample # CA1032D returned 3.25 g/t gold, 4620 g/t silver, .698% copper
  • sample # CA984D returned 12.20 g/t gold, 877 g/t silver, 13.40% copper
  • sample # LM1046G returned 4.49 g/t gold, 504 g/t silver, 2.70% copper

Table of Key Sample Results


LOCATION

SAMPLE NUMBER

AU (g/t)

AG (g/t)

CU (%)

SB ppm

PB ppm

CUATAS

           

Cruz de Mayo

FA1322G

11.4

94

.046

2080

 
 

LM1041D

1.54

672

.69

620

510

Urquidez

           
 

LM1118F

0.179

2

     
 

MK788

0.145

7

     
 

MK796

0.128

4

     

La CABANA FRAC II

           

Minas Viejas

CA1032D

3.25

4620

.698

11500

860

 

MK782

1.03

182

.08

370

2990

 

CA1034D

0.45

1595

.645

4830

70000

 

CA1028G

0.257

3050

.127

5410

116000

 

CA1029G

0.176

2540

.091

3400

115000

 

CA1038G

0.117

1560

.304

1040

15600

Promontorio

           
 

CA984D

12.2

877

13.40

15450

15650

 

FA1323D

0.46

53

.295

1200

14050

 

LM1045CH

5.42

119

.077

3710

3980

 

LM1046G

4.49

504

2.70

11750

33500

 

TR588

0.421

5

.070

120

2450

 

TR589D

.017

3

4.50

   
             

         blanks = not significant

“The Kootenay Option Agreement allows First Mexican to acquire a significant interest in ground considered highly prospective and on trend with identified targets from our existing property package.  Initial reconnaissance has already begun and we intend to pursue exploration in the immediate area of the Bailey zone, we look forward to working with Kootenay going forward” said Jim Voisin, President and Chief Executive Officer of First Mexican. 
SJ Geophysics Ltd. of Delta, B.C., is currently on-site continuing with the extensive 3D IP survey totaling 45 kilometres of lines which includes the survey being extended towards the Bailey zone.  This 3D IP program is designed to enhance the drill targeting over multiple identified target rich areas and provide follow-up data to assist in the next phase of drilling within our continually expanding property package.


First Mexican Gold Corp is an active explorer for precious metals in Mexico and holds an option to acquire 80% interest in the Guadalupe property package from Minera Internacional Milenio S.A. de C.V., a wholly owned subsidiary of International Millennium Mining Corp (IMI-TSX-V).  The Company now has an interest in 15,112 hectares in this high potential precious metals exploration area.
On behalf of the Board of Directors,

Jim Voisin
President & CEO 
First Mexican Gold Corp.
519-699-5352

Vancouver Head Office
#1000, 355 Burrard Street Vancouver, B.C. V6C 2G8 Canada

Website: www.fmgoldcorp.com

We seek safe harbour.

This news release includes certain forward-looking statements or information.  All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the Guadalupe property and other future plans, objectives or expectations of the Company are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.  Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators.  The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.

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