First Mexican Gold Corp. TSX-V : FMG CA$0.03 ▲0.03 (0.00%)
CVE:FMG

First Mexican Gold Corp. TSX-V : FMG

Company ID [CVE:FMG] Last trade:CA$0.03 Trade time:16:00:00 EST Value change:▼0.03 (0%)

First Mexican Exploration Update for Shareholders 

First Mexican Gold Corp: Vancouver, British Columbia, TSX-V: FMG
This comprehensive update is for the purpose of keeping shareholders of First Mexican Gold Corp as informed as possible on the it’s recent activities. Your Company has been very busy during Q1 2011 advancing the exploration program on the Guadalupe project area, Sonora state Mexico, after completing the listing on the Venture Exchange this past January. Precious metal results to date have been very encouraging and support the company’s view of the positive exploration potential of this prospective gold/silver/copper bearing area which is bordered by Corex Gold Corp (TSX-V: CGE) on two sides and in the same general area as the Mulatos mine of Alamos Gold Inc., Dolores mine of Minefinders Corp Ltd., and Ocampo mine of Gammon Gold Inc.


A summary list of Q1 2011 activities and accomplishments is outlined below, in no particular order or timeline:


1. The Company completed 8 diamond drill holes in Q1 2011 with results summarized below in Table 1 " `Summary of Drilling Results to Date’. These holes were intended to further test our known high grade Karen Zone (5 holes); while also drilling the first 3 holes on the Diana Zone Target which was developed as a result of both grid sampling and trench sampling in 2010 and believed to be a low grade low dilution bulk mineable target very comparable to Corex`s activities approximately 1.5 kilometers to the West.

2. SJ Geophysics Ltd. of Delta, BC, completed an extensive 3D IP survey (Induced Polarization) totaling 42 kilometres of survey lines on 100 meter spacing. This survey was increased from the originally planned 29 km as a result of positive IP field results over a new discovery area now being referred to as the Erica zone target which trends over 1,100 metres North to South with widths from 400 to 500 meters and an interpreted thickness of 450 metres where the northern extent is located approximately 500 metres East SE of the Karen Zone.

3. Company exploration team continues baseline systematic geological exploration utilizing mapping of soil and rock chip samples in a grid approach while sampling known and visible surface expressions.

4. FMG signed a four year agreement with the Adjito of Guadalupe Tayopa and Santana which permits access to all properties as required. First Mexican Gold works hard to maintain good relations with the local Adjitos in the area.

5. Completed 75% of the new exploration camp to date with new living quarters for exploration personnel and a controlled access compound. The Company now has a more extensive operations camp/compound for its management and exploration team which includes accommodation, secure core storage & logging facilities, equipment storage and maintenance.

6. Management completed an Option Agreement with Kootenay Gold Inc. (TSX-V: KTN) as part of its strategy to expand the land package in the area, see press release dated February 17, 2011.

7. Expanded the land package from 1,568 hectares to 15,112 hectares, a 10 fold increase.

8. Reported significant and highly interesting sampling results from numerous areas of the property not yet drilled, see Table 2 & Table 3 below.

9. Completed a small financing for $309,600 at .45 cents with a half warrant exercisable at .55 cents.

10. Continued road development with approximately 20 km completed to date.

11. Initiated a new drill program utilizing one diamond drill rig with 2 holes completed to date (HDH 11-12 & HDH 11-13) with assays pending. At least 5 holes will be strategically placed holes along strike of Erica`s 1,100 metre chargeability corridor (holes HDH 11-12,13,14,15 and 16) to test for mineralization along the contact and to assess requirements for an expanded program, before resuming drilling on the Diana, Karen, and initial drilling on Bailey . Hole HDH 11-14 has now commenced.


Two maps illustrating the results for both the Diana & Erica zones are now available on the company websitewww.fmgoldcorp.com; or via the following links:
Erica zone: http://fmgoldcorp.com/images/Guadalupe_Erica_Zone%20April%2027-2011.jpg
Diana zone: http://fmgoldcorp.com/images/stories/diana-zone-chargeability-plan-view-03-22-11.jpg


Table 1 - Summary of Drilling Results to Date


ZONE

Drill hole

from (m)

to (m)

Length (m)

Au (g/t)

ag (g/t)

cu (%)

Misc.

KAREN

               
 

HDH 09-01

15.55

21.35

5.8

3.67

753

 

Not surveyed

 

HDH 09-02

3.05

18.30

15.25

2.58

47

 

Not surveyed

 

HDH 09-03

0.00

37.80

37.8

6.51

678

 

Not surveyed

 

HDH 11-04

0.00

15.24

15.24

1.57

336

0.18

 
 

plus

21.35

43.70

22.35

0.35

200

1.21

 
 

HDH 11-05

0.00

33.46

33.46

4.27

395

1.24

 
 

HDH 11-06

17.90

39.50

21.60

4.90

104

0.73

 
 

HDH 11-07

     

NS

NS

NS

 
 

HDH 11-08

     

NS

NS

NS

 
 

RC hole #2

41

43

2.0

1.48

1330

   
 

RC hole #3

18

36

18

6.52

61

   

DIANA

               
 

HDH 11-09

9.70

25.40

15.70

.77

105

   
 

including

10.70

22.00

11.30

.91

142

   
 

plus

36.10

36.80

.70

2.58

12

.123

 
 

HDH 11-10

0.00

39.00

39

.40

135

   
 

including

9.88

39.00

29.12

.47

172

   
 

HDH 11-11

4.05

53.50

49.45

.42

86

   
 

including

34.70

48.00

13.30

.75

195

   

NS = not significant

Table 2 - Bailey Zone Sample Highlights

  • sample #479120 returned 13.75 g/t gold, 262 g/t silver, .25% copper
  • sample #479119 returned 7.69 g/t gold, 110 g/t silver, .16% copper
  • sample #479158 returned 2.84 g/t gold, 2700 g/t silver, .29% copper
  • sample #479134 returned 3.88 g/t gold, 425 g/t silver, 2.54% copper

ZONE

SAMPLE nUMBER

Au (g/t)

ag (g/t)

cu (%)

Bi ppm

Sb ppm

Pb ppm

BAILEY

             

ORE DUMP

479157

2.74

166

.25

3610

1770

 
 

479158

2.84

2700

.29

358

4750

 
 

479159

0.07

8.8

3.78

9

38

 

ROCK FACE

             
 

479109

0.115

7.5

.17

5

216

513

 

479110

0.148

7.7

.29

5

581

342

 

479111

0.438

6.5

.17

29

792

584

 

479112

   

.10

   

270

 

479113

   

.30

   

340

 

479114

   

.62

   

258

 

479115

   

.69

   

276

 

479118

0.57

22.3

.96

19

579

304

 

479119

7.69

110

.16

352

2080

767

 

479120

13.75

262

.25

1715

4250

8110

 

479121

2.07

60.1

.11

246

2550

504

 

479122

0.198

14.1

.06

14

313

308

 

479123

0.238

10.4

.11

54

238

672

 

479124

0.097

9.2

.08

17

128

846

 

479128

0.134

18.6

 

7

252

425

 

479129

3.2

99

 

333

2880

3650

 

479130

2.51

50.6

 

129

2430

1725

 

479131

1.085

22.4

 

78

1335

845

 

479133

2.15

34.5

 

702

5750

18200

 

479134

3.88

425

2.54

916

>10000

23100

 

479138

0.105

2.7

.015

3

28

1785

 

479139

0.447

11.1

.12

63

218

1450

 

479140

0.477

4.5

.097

31

219

1135

Table 3 - Kootenay Acquisition Sample Highlights

Historic and recent non-compliant sampling has been conducted by Kootenay Gold with over 120 samples assayed with the highlights listed below. These samples were not taken under 43-101 guidelines.
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 Bailey zone of First Mexican, outlined in Table 2 above.

  • 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, .69% 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

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

   
             

Highlighted intercepts to date on Karen zone:

  • HDH 11-04, 15.2 metres of 1.57 g/t Au, 336 g/t Ag & .18% Cu
  • HDH 11-05, 33.4 metres of 4.27 g/t Au, 395 g/t Ag & 1.24% Cu
  • HDH 11-06, 21.6 metres of 4.90 g/t Au, 104 g/t Ag & .73% Cu
  • RC hole #3, 18.0 metres of 6.52 g/t Au, 61 g/t Ag

Highlighted intercepts to date on Diana zone:

  • HDH 11-09, 11.3 metres of .91 g/t Au, 142 g/t Ag
  • HDH 11-10, 29.1 metres of .47 g/t Au, 172 g/t Ag
  • HDH 11-11, 13.3 metres of .75 g/t Au, 195 g/t Ag

Management is of the opinion that the initial results we have provided demonstrate that the area has excellent exploration potential. Coupled with our neighbour’s results, Corex Gold Corp, a strong regional play is starting to develop in an already prolific gold and silver mining region that boasts successful projects such as Gammon Gold’s Ocampo, Minefinder’s Dolores and Alamos Mulatos projects.

Jim Voisin, President and Chief Executive Officer of First Mexican remarks, “We are very pleased to have accomplished so much in just our first quarter as a public company. Our recent results and strategic acquisitions demonstrate the property package assembled has excellent exploration potential for which we are very committed to increased drilling activity and justifying a multi-drill rig program in these coming months. It`s evident the large size of our newly discovered Erica zone has the potential to develop and outline a significant discovery, while to date our higher grade intercepts at both the Diana and Karen zones compare favorably with our neighbor Corex Gold Corp.`s results. We believe First Mexican provides investors a very good early entry opportunity in this current bull market for precious metals that many industry analysts expect to continue for many years yet.”

John Archibald, PGeo, of Billiken Management Services Inc., a qualified person pursuant to NI 43-101, has reviewed and approved the technical information in this press release on behalf of the company. Samples were prepared and assayed by an accredited lab, ALS Chemex, Vancouver, BC. Quality control is monitored on a continual basis and utilizes a system of standards, blanks and duplicates to ensure analytical accuracy.

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 (MIMSA) a wholly owned subsidiary of International Millennium Mining Corp (IMI-TSX-V). The Company now controls a total of 15,112 hectares in this high potential 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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