MX GOLD CORP DUE DILIGENCE STUDIES SUPPORTS PREVIOUS WORK. PLANNING 1,000 TONNE PER DAY THROUGHPUT ON THE MAGISTRAL PROJECT
Vancouver, B.C. - MX Gold Corp. (TSX-V: MXL) (FSE: ODV) (OTCQX: MXLGF) (the "Company" or "MX Gold") announced on October 25, 2016 a binding agreement with Gracepoint Mining Corp., a subsidiary of Firma Holdings Corp. (OTC: FRMA) to acquire a 50% interest in the Magistral, Del Oro tailings project, which is located within the "Golden Triangle" in Santa Maria Del Oro, Durango, Mexico. The project in 2016 included a fully permitted, 500 tonne/day Dynamic Cyanide counter current system plant constructed in 2013, for approximately $4.5 million and is in excellent condition. Additionally, the Magistral project includes the exclusive rights to process the mineralized mill tailings.
MX Gold since then has conducted extensive due diligence studies that include testing of the tailings deposit by Wayne Ash PEng. Mr. Ash's results, listed below show an average gold grade of 2.17 grams/tonne gold with a recovery rate averaging 82.30%.
...Magistral Project Mineralized Tailings Project:
A historical estimate was completed by Corporation Ambiental de Mexico, S.A. de C.V. referred to as "CM" on January 20, 2012 titled "Perforacion y Muestreo en Presa de Jaleas Estimation Volumetrica, Tonelaje y Ley Promedio". CM reported from an auger drilling program a probable reserve of 1,292,917.2 tonnes averaging 2.06 grams/tonne gold. No preliminary feasibility or feasibility study was completed to support the historical estimate of probable reserves.
The assumptions for this estimate are based on 58 auger samples, 2.45 to 3.0 metres in length from 24 drill holes. There has been no additional work on the tailings project since January 20, 2012 to upgrade or verify the historical estimate. MX Gold Corp. stated that an independent, qualified person has not done sufficient work to classify the historical estimate as a current mineral resource or reserve and is not treating the historical estimate as a current mineral resource or reserve.
Bullet Points
24 auger drillholes have been completed of the tailings using a hollow stem auger.
Drilling tested 96,000 square metre area.
Average depth of tailings - 7.91 metres.
58 auger samples ranging from 2.45 to 3.0 metre lengths were submitted for analysis. Results range from 0.49 to 4.21 grams/tonne gold.
Average gold grade - 2.06 grams/tonne
The technical information in this news release has been reviewed and approved by Lorne Warner, P.Geo, and a qualified person as defined by National Instrument 43-101.
Dan Omeniuk MX Gold Corp. Chairman and CEO said: "MX Gold due diligence work to date has provided us with results very similar to if not slightly better than previous studies" thereby giving us greater confidence in the project as we move towards production.
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