Azteca Gold Corp.
TSX VENTURE : AZG

Azteca Gold Corp.

May 12, 2009 11:31 ET

Azteca Gold Corp.: Two Mile Update and Closing Date of Private Placement

SPOKANE, WASHINGTON--(Marketwire - May 12, 2009) - Matthew Russell, President of Azteca Gold Corp. (the "Company") (TSX VENTURE:AZG) wishes to announce the closing of the current private placement, as well as provide an update on its exploration activities at the Two Mile Project in the Silver Valley of Idaho.

Further to the Company's March 11, 2009 press release, Azteca Gold wishes to announce that the second and final closing of its present $2.5 million financing shall occur Wednesday, May 13th. On April 17, 2009, a first closing was held in which a total of 3,525,807 units were issued for total gross proceeds of $705,161 Management will participate for approximately 25% of the final closing amount.

Units are priced at $.20, and consist of one common share and one share purchase warrant. Each warrant entitles the holder to purchase one common share for $0.35 for a period of 2 years from the date of closing. Funds from this private placement will be used for drilling and assaying expenses at the Company's 50% owned Two Mile Project as well as for general corporate purposes.

"Regarding an update on our drilling activities at Two Mile, we have encountered disseminated sulfides and stock-work veining in DDH-006 in generally increasing strength from approximately 9350 FT to current depth of 9807 FT," said Mr. Russell. "We have been encouraged by the diminishing amounts of pyrrhotite (iron sulfide), while the chalcopyrite (copper sulfide) and sphalerite (zinc sulfide) are obviously primary. There is also minor though increasing galena (lead sulfide). The system appears generally stronger at 006 than at the 005 location, in that the identifiable sulfide beds in the 'upper zone' appear thicker, and perhaps exist in greater quantity. The extent of any precious metals will be determined by assay."

Having encountered promising mineralization at the original target depth ('TD") of 8750 FT, the Company re-set the target depth to 10,300 FT. It is the opinion of the Company that this stratigraphic range from 9350 FT to 9807 FT is remarkably similar in rock types and mineralization to the "lower main sulfide zone" of DDH-005A from approximately 7400 to 7850 FT. As in DDH-005A, stock-work veining may be indicative of adjacent massive sulfides but does not guarantee it.

Geophysics Plan

The Company wishes to stress that the purpose of hole DDH-006 is to develop a mineral resource on-strike with the massive zinc-silver-lead sulfide mineralization intersected in hole DDH-005A. However, the intersection of a similar mineralized stratigraphic sequence does not insure intersection of similar type zone of massive mineralization.

"If similar massive mineralization is intersected in hole-006 as we expect, we plan to conduct a series of electrical continuity tests between holes DDH-005 and DDH-006. These tests may show continuity of particular massive sulfide beds between the two holes, which lie approximately 1 kilometer apart," said Mr. Russell.

The information contained in this news release has been reviewed and approved by Matthew Russell, President and CEO, the Company's Qualified Persons as defined in National Instrument 43-101.

WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

Shares issued: 177,862,964

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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