Mexican Gold Announces Drill Results From the Las Minas Project and Provides a Corporate Update

VANCOUVER, British Columbia, Jan. 21, 2020 (GLOBE NEWSWIRE) -- 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.