VANCOUVER, BRITISH COLUMBIA, Jan 24, 2012 (MARKETWIRE via COMTEX) — First Mexican Gold Corp. (the ‘Company’ or ‘FMG’) (frankfurt:21M) is pleased to announce that it has completed its 80% option earn-in on the Guadalupe property in Sonora State, Mexico, from Minera Internacional Milenio S.A. de C.V., (MIMSA), a wholly owned subsidiary of International Millennium Mining Corp (tsx venture:IMI). The option agreement was subject to First Mexican Gold having to spend a total of US$4 million dollars on the project.
Immediately subsequent to the completion of the “Option Agreement” both companies have agreed, subject to TSX Venture Exchange acceptance, to enter into a sale of the final 20% interest in the Guadalupe property held by MIMSA. The conditions of sale are the issuance of 4 million shares and a 2% NSR to International Millennium Mining Corp with 1% purchasable for US$1 million dollars. The 4 million shares will have a 9 month hold period and be subject to reasonable future trade restrictions as outlined in the agreement to purchase.
The Guadalupe property package has been the focus of much of the exploration to date that the company has conducted in this area and comprises approximately 11,506 hectares. To date the company has identified the Karen zone as hosting a high grade target starting at surface and the Diana zone which hosts a lower grade high tonnage target. See some highlights of drilling results below that have already been disclosed in previous news releases. Both these zones will continue to be a key focus for 2012 in addition to exploration of new zones of high potential including the optioned land package from Kootenay Gold Inc. /quotes/zigman/373233 CA:KTN +1.60% .
“We are pleased to have acquired a 100% property interest for our shareholders and confirmed the high grade potential of the Karen zone and lower grade/higher tonnage potential of the Diana zone in 2011 in what is fast becoming a regional exploration success with numerous area exploration camps now existing and doing work,” said Jim Voisin, President and Chief Executive Officer of First Mexican. Mr. Voisin adds: “Although to date the company has defined zones with potential to build a significant resource, most of the property area remains open to future exploration work. The company plans numerous sampling, drilling and IP survey data work programs for 2012 and is very pleased with these discovered zones so early in our exploration program.”
Karen zone drill highlights to date: all near surface intercepts, see news release April 28, 2011.
— DDH #1, 5.8 metres of 3.67 g/t Au, 753 g/t Ag
— DDH #2, 15.2 metres of 2.58 g/t Au, 47 g/t Ag
— DDH #3, 37.8 metres of 6.51 g/t Au, 678 g/t Ag
— RC hole #2: 2 metres of 1.48 g/t Au & 1330 g/t Ag
— RC hole #3: 18 metres of 6.52 g/t Au & 61 g/t Ag
— HDH 11-04, 15.2 metres of 1.57 g/t Au, 335 g/t Ag, 0.18% 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, 0.73% Cu
Diana zone drill highlights to date: all near surface intercepts, see news release March 10, 2011.
— HDH 11-09, 15.7 metres of .77 g/t Au, 105 g/t Ag
— HDH 11-10, 39.0 metres of .40 g/t Au, 135 g/t Ag
— HDH 11-11 49.5 metres of .42 g/t Au, 86 g/t Ag, including 13.3 metres
of .75 g/t Au, 195 g/t Ag
Management is of the opinion that the initial results it has provided demonstrate that the area has excellent exploration potential. Coupled with the neighbour’s results, Corex Gold, 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.
John Archibald, PGeo, 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 upon completion of the sales agreement will hold 100% interest in the Guadalupe property package. 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.
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.
First Mexican Gold Corp.
President & CEO
519 699 5352