First Mexican Reports Drill Results for Guadalupe Property in Mexico

TSX-V Trading Symbol: FMG

VANCOUVER, Oct. 15, 2012 /CNW/ - First Mexican Gold Corp. (the 'Company' or 'FMG') (TSX-V: FMG, Frankfurt: 21M) would like to announce that it has received partial results from the recent drill program with results from its first two step out holes on the Karen zone with two holes yet to be reported. These holes were drilled some 36 meters above the fourth and fifth holes (see summary data below for Karen zone).

• Drills 7.65 meters of 3.64 g/t gold near surface 36 meters above prior drill holes
• Drills 3.05 meters of 3.70 g/t gold & 296 g/t silver 36 meters above prior drill holes

Hole 32 encountered a previously not encountered 7.65 meters of gold mineralization starting at a shallow depth of 10.65 meters and extending to 18.3 meters which graded 3.64 grams per tonne gold. This hole was designed to test the vertical extent of the Karen zone slightly stepped out from previously drill holes, but was terminated short of the zone due to the drill entering a previously mined historic tunnel.

Hole 33 was collard from the same location but drilled 180 degrees to hole 32 to explore a previously undrilled area of the Karen zone. This hole encountered 3.9 grams of gold and 98.6 grams of silver over 3.05 meters between 28.95 and 32.00 meters down hole. Further down hole a 7.85 meter section of core returned 1.92 grams of gold and 167.5 grams of silver which included a 3.05 meter section of core returning 3.7 grams of gold and 296.5 grams of silver between 50.3 to 53.35 meters. These holes have assisted in increasing both the size and understanding of the Karen zone.

Zone	Drill Hole	From (m)	To  (m)	Length (m)	Au (g/t)	Ag (g/t)	Cu (%)	Ag Eq. g/t
KAREN
	HDH 11-27	49.2	58.9	9.70	6.22	1853	12.62	3105
	HDH 11-28	21.35	22.85	1.50	.56	20.4	.20	63.5
	HDH 11-29	16.75	28.95	12.20	1.86	70	.14	173.6
		35.05	86.90	51.85	.16	6.15	.52
	HDH 11-30	27.45	51.85	24.40	.34	25.8	.42	74
	including			1.50	4.44	380	1.64	724.7
		82.35	88.45	6.10	.43	31	.12	61.6
New	HDH 12-32	10.65	18.30	7.65	3.64	N/A	N/A	187.2
New	HDH 12-33	28.95	32.00	3.05	3.90	98.6	N/A	298.6
New	Plus	45.50	53.35	7.85	1.92	167.5	.27	285.2
New	Including	50.30	53.35	3.05	3.70	296.5		486.7

 

As stated in the previous press release these assays were processed using quarter cores. This quartering of the core does have a tendency to reduce the accuracy of the assays as the greater the volume of core, the better representative the assay is of the sampled area. Under these conditions we are pleased with the results from these first two holes.

The rationalization for the above drill program was to test the outer reaches of the known mineralized area in an effort to establish a direction to the source of this occurrence prior to possibly extracting material for possible heap leach testing. The mineralization in the Karen zone has historically been drill indicated to be a high grade area that starts at surface and with strong intensity at shallow depths. The company is waiting for assay results from 2 more holes.

First Mexican Gold has also added to the zone count in the Guadalupe property by adding two more zones warranting names. A structure that was previously tested and found to contain good surface mineralization in relative numbers to the Diana zone was thought initially to be a parallel structure to the Diana zone. Upon further observation and review it is now believed to be a faulted off extension of the Diana zone that can be traced on surface over 400 meters. Going forward we will refer to this zone as Madison.

The second is an area of previously narrow vein mining that contains two adits with near vertical narrow veins that extend to surface. This area can be visually seen to extend in excess of 300 meters beyond previously mined areas. Sampling of the veins in the adits has produced visible pyrite in one vein and visible azurite (copper oxide) in another. More detailed sampling is now under way and assay results will be released when received.  This zone will be referred to as Ann zone and is on strike to Kristen and just south of Katelyn. This area is the least explored of the original claim package and is visually very interesting. The footings of a historic mill have been located on the Katelyn zone. It is believed that this mill was supplied feed from both Ann and Katelyn zone where a significant old adit has also been located that crosscuts the structure on Katelyn. Further investigation is required of this adit on Katelyn.

Karen zone drill highlights to date: all near surface intercepts see news releases April 28, 2011 & February 27, 2012.

• DDH #1: 5.8 meters of 3.67 g/t Au, 753 g/t Ag
• DDH #2: 15.2 meters of 2.58 g/t Au, 47 g/t Ag
• DDH #3: 37.8 meters of 6.51 g/t Au, 678 g/t Ag
• RC hole #2: 2 meters of 1.48 g/t Au & 1330 g/t Ag
• RC hole #3: 18 meters of 6.52 g/t Au & 61 g/t Ag
• HDH 11-04: 15.2 meters of 1.57 g/t Au, 335 g/t Ag, 0.18% Cu               
              plus 22.3 meters of .35 g/t Au, 200 g/t Ag, 1.21% Cu
• HDH 11-05: 33.4 meters of 4.27 g/t Au, 395 g/t Ag, 1.24% Cu
• HDH 11-06: 21.6 meters of 4.90 g/t Au, 104 g/t Ag, 0.73% Cu
• HDH 11-27: 9.7 meters of 6.22 g/t Au, 1853 g/t Ag, 12.62% Cu
• HDH 11-29: 12.2 meters of 1.86 g/t Au, 70 g/t Ag, .14% Cu
• HDH 11-30: 24.4 meters of .34 g/t Au, 25.8 g/t Ag, .42% Cu

"The company is pleased to have extended the known Karen zone discovery another 36 metres up the mountain from previous high grade intercepts," said Jim Voisin, President and Chief Executive Officer of First Mexican.  Mr. Voisin adds: "we remain committed to our shareholders to build a good resource base in what we believe to be the high potential Guadalupe property package in an area that has now attracted significant interest from major companies such as the agreement between our neighbour Corex Gold and Vale, this provides some indication of the value of properties in this area."

John Archibald, PGeo, 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 has now completed the acquisition of a 100% interest in the Guadalupe property package.  The Company now holds extensive exploration rights in this high potential exploration area that is now attracting attention from major mining companies.

On behalf of the Board of Directors,

Jim Voisin
President & CEO
First Mexican Gold Corp.
519 699 5352

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.

 

SOURCE: First Mexican Gold Corp.

Vancouver Head Office
#1000, 355 Burrard Street Vancouver, B.C. V6C 2G8 Canada
Phone:  [phone]
Website: www.fmgoldcorp.com