Mexican Gold Acquires Pueblo Nuevo and La Luz 1 Concessions at Las Minas Project

THUNDER BAY, ONTARIO--(Marketwired - May 16, 2017) - Mexican Gold Corp. (the "Company" or "Mexican Gold ") (TSX VENTURE:MEX) is pleased to report that it has acquired a 100 % interest in the Pueblo Nuevo and La Luz 1 concessions at the Las Minas project, Veracruz State, Mexico.

Pursuant to the terms of the option agreement, the company acquired the Pueblo Nuevo and La Luz 1 concessions for US $ 150,000 plus VAT in cash. Mr. Ramon Farias Garcia, property owner, retained a 1.5% royalty, of which 0.5% can be purchased for US$ 500,000, plus VAT. Mexican Gold has a right of first refusal on the remaining 1% royalty.

Brian Robertson, Chairman, President and CEO stated, "We are very pleased to own a 100% interest in these two concessions. I wish to thank Mr. Farias for his strong support during the option period and willingness to renegotiate the option agreement on many occasions during difficult market conditions. We now look forward to advancing these properties, which contain historical mines with extensive workings, to the drill ready stage."

The Company recently completed an exploration program at the Pueblo Nuevo concession, including trenching, sampling and mapping. Assay results from the sampling program are pending. The program was focussed on identifying drill targets, building on earlier grass roots exploration work completed in 2015. 

The Pueblo Nuevo Concession

The Pueblo Nuevo concession covers an area of approximately 97.5 hectares with numerous high-grade epithermal quartz veins and silicified structures hosted in a sedimentary-igneous package. The veins have indicated strike lengths of 100 to 300 metres, with widths varying from 0.50 to 3.0 metres.

The concession is the site of several historical underground mines and adits including the La Miqueta, La Miqueta Alta, Marangola, Murcielagos, Dos Rios and El Cobre. The La Miqueta mine was extensively mined in the past and has 21 known levels. Historic mining activity was carried out on narrow (10-20 cm) quartz veins in both diorite and marble, extending approximately 100 metres on strike and over 100 metres vertically. Recent chip sampling of a vein on Level 1 at the historical La Miqueta mine graded to 11.99 g/t gold, 40.8 g/t silver and 1.34% copper or 14.76 Au Eq⁽¹⁾ over 1.0 metres. The Tamiagua vein structure consist of two parallel veins located approximately 16 metres apart and varying from 20 to 50 centimetres in width. Historical mining carried out on one of the veins included three levels with extensive stoping between levels Recent sampling of the veins graded up 28.02 g/t Au, 14.0 g/t Ag and 0.01% Cu over 0.2 metres .

Table 1 below details selective sampling results:

For a map of sample results and historical workings at Pueblo Nuevo concession, please click here: http://media3.marketwire.com/docs/1094897_map.pdf

The Luz Concession

The La Luz 1 concession adjoins the west boundary of the main Las Minas concession block and covers an area of approximately 43 hectares. Historical underground workings are present on the property, including Mina Blanca and other smaller adits. The mine workings are located in a deeply eroded valley and targeted a pyritic zone within a highly bleached diorite host rock. A selected chip sample from the pyritic zone graded up to 0.49 g/t gold, 6.7 g/t silver and 0.01% copper. Marble is found on the concession, indicative of a potential underlying skarn zone similar to the six other skarn zones located at Las Minas

All reported intervals referred to in this news release are sample lengths and additional information is required to determine true widths. Assays are uncut, length - weighted average values.

Gold equivalent (Au Eq) calculations use metal prices of US $1250/oz. for gold, US $18.00/oz. for silver and US $3.00 /lb. for copper. No adjustments have been made for potential relative differences in metal recoveries.

Au Eq g/t = Au g/t + [(Ag g/t x 0.014) + (Cu% x1.64)]

About Las Minas

The Las Minas Project hosts near-surface gold, silver and copper skarn mineralization and high-grade gold - silver epithermal vein deposits. The project is comprised of six mineral concessions covering approximately 1,616 hectares (3,995 acres), with several small scale, past-producing mines and a number of untested targets.

The district is host to one of the largest under explored gold - silver copper skarn systems known in Mexico, and has a production history that extends back to the Aztec era. The Las Minas granodiorite intrusive measures approximately 10 kilometres in diameter and underlies the Las Minas concessions. The mineralization controls and association with magnetite appear to be similar to the Guerrero Gold belt, which is the site of the Los Filos and Morelos gold deposits.

Las Minas is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets discussed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource.

Quality Assurance/Quality Control

The technical information in this news release has been reviewed and approved by Sonny Bernales, P. Geo., a registered Professional Geoscientist in the Province of British Columbia and a qualified person as defined by NI 43-101. Mr. Bernales is responsible for logistics and supervision of all exploration activity conducted by Mexican Gold on the property.

The Company has implemented and adheres to a strict Quality Assurance/Quality Control program which includes inserting mineralized standards and blanks into the sample stream, about 1 for every 10 samples. The standards and blanks were obtained from CDN Resource Laboratories Ltd. of Langley, BC, Canada. Each sample bag is properly sealed and kept in a secured, restricted storage place prior to shipping to the lab. Samples are shipped directly by Mexican Gold or picked-up by the lab vehicle with chain of custody/sample submittal signed and dated. The Company sends it samples to SGS Mineral Services (ISO/IEC 17025) at Durango, Mexico, an accredited and independent laboratory.

About Mexican Gold Corp

Mexican Gold Corp. is a Canadian based mineral exploration company committed to building long-term value through ongoing discoveries and strategic acquisitions of prospective precious metals deposits in Mexico. Mexican Gold is exploring the Las Minas Project, which is located in the core of the Las Minas district in the Veracruz State, Mexico. The district is host to one of the largest under-explored skarn systems known in Mexico and has a strong production history that dates back to the Aztec era.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about the magnitude or quality of mineral deposits, anticipated advancement of mineral properties or programs, future operations, results of exploration, prospects, commodity and precious metals prices, future work programs, anticipated financial and operational results, capital expenditures and objectives and the completion and timing of mineral resource estimates. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors, which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in the Company's disclosure documents available at www.sedar.com. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based on the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) have reviewed or accepts responsibility for the accuracy or adequacy of this release.

Contact

Brian Robertson
Chairman, President & CEO
Phone: 807-474-4271or 807-251-1816
Fax: 807-474-4272
E-mail: info@mexicangold.ca
Website at www.mexicangold.ca