First Mexican Gold Corp.

First Mexican Gold Corp.

January 18, 2011 09:16 ET

First Mexican Gold Corp. Acquires Contiguous Land

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2011) - First Mexican Gold Corp. (TSX VENTURE:FMG) is pleased to announce that it has added to its property package in the Guadalupe - Santa Anna area of Sonora State, Mexico. The Company's property package (known as Guadalupe Property, 1498 hectares) is contiguous to Corex Gold Corp.'s Santana Property where consistently good exploration results have been demonstrated.

To date, First Mexican exploration programs have focused on extensive soil and rock chip sampling across a large area of the Guadalupe property (Hilda's 30, 31, 32, 37, 38) plus some limited drilling. 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 bearing area. The company recently announced commencement of a 1250 metre, 8 to 10 hole diamond drill program (January 10, 2011) and is continuing with soil and rock chip sampling including mapping of occurrences.

The property acquired, Santa Martha, consists of one claim which is contiguous to both Hilda 30 and 31/32 properties. The property consists of 68 hectares and has historically been mined for both copper and gold/silver on a small scale. Soil and rock chip sampling is planned in the near future beginning at the historic copper mine on the property which is referred to as the "Bailey zone". This acquisition brings the First Mexican Gold Corp. total land holdings in the area to 1566 hectares.

Based on a recent visit to the Bailey zone the current drill program has been extended to include at least one initial drill hole intended to intersect the historic mine workings at depth. Inspection of a small amount of bagged broken rock at the entrance of the adit has shown an interesting display of azurite laden rock which will be the targeted rock of this drill hole. A road to access the site is being built and mapping of the area has begun.

Terms of the acquisition are a onetime payment of US$50,000.00 for a 100% ownership of this claim by the joint venture partners.

First Mexican Gold has also issued 100,000 options to consultants of the Company.

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.

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.

Contact Information

  • First Mexican Gold Corp.
    Jim Voisin
    President & CEO
    Toll Free: 1-800-366-8566 (Canada & USA)