MEXIGOLD CORP.
Contact: InvestorRelations
Phone (604) 684-2181
info@mexigoldcorp.com
MEXIGOLD CORP. COMMENCES EXPLORATION TARGETING WORK PROGRAMS AT THE CATRINA AND PEDERNAL GOLD PROJECTS IN DURANGO, MEXICO
Vancouver, British Columbia, Canada - July 28, 2011 - Mexigold Corp. (the "Company" or "Mexigold") (TSXV-MAU) is pleased to announce that it has commenced drill targeting work programs at the Catrina and Pedernal Gold Projects in Durango, Mexico. The systematic exploration programs will build on previous work completed during the Kinross-Riverside Alliance, and will aim to increase discovery potential while adding value to both properties. The programs will include further soil and rock chip sampling, as well as ground magnetics, inverse-polarity geophysics surveys and trenching to refine targeting for the first phase of drilling on each property. Following the work programs at Catrina and Pedernal, a sampling program is expected to begin at the Escondida Gold Project. All three of these properties are located within the highly productive Mesa Central Region of Mexico.
"Mexigold is excited to work with Riverside Resources Inc. ("Riverside") (TSXV-RRI) to advance these three projects toward discovery. The work programs developed with Riverside have been designed to increase discovery potential and include near-term drill testing," stated Peeyush Varshney, President & CEO of Mexigold.
Catrina Project
A total of 827 soil samples have already been collected and will now be sent to the lab for assaying. Further rock sampling along with a comprehensive trenching program are designed to test the extents of alteration and mineralization in areas of shallow cover, and further refine the drill targets in the main Catrina target zone. Final drill planning and mobilization are expected to follow the initial phases of this work program with drill testing expected to start in the fall.
Pedernal Project
An induced polarization (IP) program will be completed at Pedernal in addition to the systematic geochemistry sampling, mapping and trenching. The IP program will consist of 16 line-km to cross cut the veins controlling mineralization and test the potential depth of the system and refine drill locations. Drill testing is anticipated to follow field work and analysis this fall.
Escondida Project
The planned work on the Escondida property will include a targeting program designed to further delineate the proposed drill program on the property. This will include assaying 1,685 soil samples that have already been collected, further rock chip sampling, ground magnetics and a continuation of the inverse-polarity geophysics survey that has identified a clear east-west striking trend through the main drill target zone. The planned drill testing at Escondida will be carried to the second year of the work program.
Agreement Details:
Mexigold can acquire a 75 % interest in the Durango properties by issuing Riverside an aggregate 2.6 million Mexigold shares, making total cash payments of $500,000 to Riverside, and incurring an aggregate $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 P.Geo, Technical Advisor, 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
Peeyush Varshney, LL.B.
President & CEO
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