First Mexican Gold Corp.
TSX VENTURE : FMG

First Mexican Gold Corp.

April 28, 2011 09:15 ET

First Mexican Exploration Update for Shareholders

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 28, 2011) - First Mexican Gold Corp. (TSX VENTURE: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 VENTURE: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 VENTURE: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 website www.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

ZONEDRILL HOLEFROM (m)TO (m)LENGTH (m)Au(g/t)Ag(g/t)Cu(%)MISC.
KAREN
HDH 09-0115.5521.355.83.67753Not surveyed
HDH 09-023.0518.3015.252.5847Not surveyed
HDH 09-030.0037.8037.86.51678Not surveyed
HDH 11-040.0015.2415.241.573360.18
plus21.3543.7022.350.352001.21
HDH 11-050.0033.4633.464.273951.24
HDH 11-0617.9039.5021.604.901040.73
HDH 11-07NSNSNS
HDH 11-08NSNSNS
RC hole #241432.01.481330
RC hole #31836186.5261
DIANA
HDH 11-099.7025.4015.70.77105
including10.7022.0011.30.91142
plus36.1036.80.702.5812.123
HDH 11-100.0039.0039.40135
including9.8839.0029.12.47172
HDH 11-114.0553.5049.45.4286
including34.7048.0013.30.75195
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
ZONESAMPLE NUMBERAu(g/t)Ag(g/t)Cu(%)BippmSbppmPbppm
BAILEY
ORE DUMP4791572.74166.2536101770
4791582.842700.293584750
4791590.078.83.78938
ROCK FACE
4791090.1157.5.175216513
4791100.1487.7.295581342
4791110.4386.5.1729792584
479112.10270
479113.30340
479114.62258
479115.69276
4791180.5722.3.9619579304
4791197.69110.163522080767
47912013.75262.25171542508110
4791212.0760.1.112462550504
4791220.19814.1.0614313308
4791230.23810.4.1154238672
4791240.0979.2.0817128846
4791280.13418.67252425
4791293.29933328803650
4791302.5150.612924301725
4791311.08522.4781335845
4791332.1534.5702575018200
4791343.884252.54916>1000023100
4791380.1052.7.0153281785
4791390.44711.1.12632181450
4791400.4774.5.097312191135

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
LOCATIONSAMPLE NUMBERAu (g/t)Ag (g/t)Cu (%)Sb ppmPb ppm
CUATAS
Cruz de MayoFA1322G11.494.0462080
LM1041D1.54672.69620510
Urquidez
LM1118F0.1792
MK7880.1457
MK7960.1284
La CABANA FRAC II
Minas ViejasCA1032D3.254620.69811500860
MK7821.03182.083702990
CA1034D0.451595.645483070000
CA1028G0.2573050.1275410116000
CA1029G0.1762540.0913400115000
CA1038G0.1171560.304104015600
Promontorio
CA984D12.287713.401545015650
FA1323D0.4653.295120014050
LM1045CH5.42119.07737103980
LM1046G4.495042.701175033500
TR5880.4215.0701202450
TR589D.01734.50

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 (TSX VENTURE:IMI). 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.

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