Vancouver, British Columbia CANADA, Dec 20, 2011 (Filing Services Canada via COMTEX) — Mexigold Corp. (MAU – TSX Venture), and its Joint Venture Partner (and operator) Riverside Resources Inc. (“RRI”) are pleased to provide an update on the ongoing diamond drill program at the Catrina property, located in Durango State, Mexico. The drilling contract was awarded to Major Drilling of Hermosillo, Mexico. Drilling commenced on November 18th and to-date 5 holes have been completed. The drill is currently sitting on the 6th hole of the planned 8-hole drill program. Work has been temporarily halted to allow the exploration crew to take a short scheduled break for the Christmas season. Drilling will resume in January 2012.
Drilling production and recovery so far has been excellent, with recovery over 95% and drill production averaging 80m per day. Assays for the first 3 holes are expected by mid-January. The first 4 holes were drilled at azimuth 270 degrees and a dip of -60 degrees. The remaining holes will be drilled at an azimuth of 85 degrees and dips of between -50 degrees to -60 degrees.
The “Catrina-La Dura” gold zone is being tested by 7 angled holes varying between 200 and 350m depth. The holes are spaced out at about 100m centers, and will test approximately 700m of strike length. The Patos gold zone will be tested with a single hole to a proposed depth of 120m.
The Catrina-La Dura zone is a large, NE-SW trending, Au-As-Sb-Zn soil geochemical anomaly that measures 1.4 km long by 0.45 km in extent. The zone coincides with a zone of quartz-alunite-clay alteration in sedimentary host rocks. Gold values are associated with silicified breccias that have developed along the strongly fractured geological contact between porphyry andesitic dykes and sandstones of the Caracol Formation. The breccias are formed by silicified clasts of sandstone cemented by clays and iron oxides.
Drill hole CA-11-01 was drilled to a depth of 240.9m at the La Dura zone and targeted anomalous gold values from trench 61200 (175m long). The hole intersected variably altered and oxidized Caracol Formation sandstone and intercalated shale before bottoming in limestone. Minor faulting and brecciated intervals were encountered; and finely disseminated pyrite was noted from several intervals.
Drill hole CA-11-02 targeted anomalous gold values from trench 60940 (360m long). The hole was drilled to a depth of 311.1m and intersected strongly iron-oxide altered Caracol Formation sandstone to a depth of 95m. Strong to intensely silicified sandstone was present from 95m to 145m, with abundant quartz veins and sporadic brecciated segments. A similar unit of intensely silicified sandstone was encountered from 180 to 263m.
Drill hole CA-11-03 and drill hole CA-11-04 targeted anomalous gold values in a trench 60800 (220m long). CA-1103 was drilled to a depth of 221.5m and intersected oxidized and variably altered and faulted Caracol Formation sandstone intruded by pyritized granodiorite dykes down to 83m. Alteration assemblages include argillic, sericitic, pyritic and silicification. Intensely silicified limestone was encountered from 83m to 103m.
Drill hole CA-11-04 was drilled to a depth of 204.4m and encountered intervals of intercalated Caracol Formation sandstone and shale with argillic alteration increasing with depth and sporadic microveinlets of crystalline silica. Interspersed faults were noted. This sequence persisted to a depth of 106m before giving way to intervals of moderate to strong silicified sandstone associated with brecciation and faulting.
Drill hole CA-11-05 targeted anomalous gold values from trench 60700 (130m long). The hole was drilled to a depth of 286.7m and encountered argillic altered and fault-affected Caracol Formation sandstone intercalated with shale units. Moderate to strong Fe-oxide alteration was persistent downhole. Andesite dykes have intruded the sedimentary sequence and are variably altered with goethite and jarosite. Disseminated pyrite and pyrite in veinlets were noted and locally are up to 10% by volume. Silicification, zones of intense clay alteration and associated strong faulting were noted below 115m.
Durango Properties
The Durango properties comprise the Catrina, Escondida and Pedernal exploration concessions covering over 76,000 hectares. Extensive groundwork has been conducted by Riverside Resources identifying multiple drill-ready targets on all three properties. The Pedernal property is scheduled for drilling after completion of the Catrina drill campaign. All three of these properties are located within the highly productive Mesa Central Region of Mexico.
Agreement Details
Mexigold can acquire a 75-per-cent interest in the Durango properties (Catrina, Pedernal and Escondida) by issuing Riverside a total of 2.6 million Mexigold shares, making total cash payments of $500,000 to Riverside, and incurring $4-million in exploration expenditures on the Durango properties within 36 months of the agreement. Included in the exploration expenditure requirements is a commitment to drill a minimum of 3,000 metres on the Durango properties within 12 months from the date of the agreement.
Ken MacDonald, PGeo, technical adviser, is the designated qualified person as defined by National Instrument 43-101 and is responsible for the technical information contained in this release.
ON BEHALF OF THE BOARD OF DIRECTORS
Praveen Varshney, CA
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
