First Mexican finds gold and silver at Guadalupe

Recently-listed First Mexican Gold (FMG-V) has released good gold-silver assay results from shallow scout drilling at its Guadalupe project in Mexico’s Sonora state.

The company drilled five holes on the Karen zone and, roughly 3 km northwest, three holes on the Diana zone for a total of 1,000 metres on the project.

On the Karen zone, hole 11-4 cut 15.3 metres carrying 1.57 grams gold per tonne and 336 grams silver per tonne from surface, hole 11-5 returned 33.5 metres grading 4.27 grams gold and 395 grams silver plus 1.24% copper, also from surface, and hole 11-6 cut 21.6 metres carrying 4.9 grams gold and 104 grams silver. Holes 7 and 8 did not hit economic mineralization.

On the Diana zone, hole 11-11 cut 49.5 metres carrying 0.42 gram gold and 86 grams silver from 4 metres depth, hole 11-9 returned 15.7 meters of 0.77 gram gold and 105 grams silver from 9 metres, and hole 11-10 hit 39 metres averaging 0.4 gram gold and 135 grams silver from surface.

The results are the first for First Mexican as a public company. In late December the company completed a reverse takeover and rolled back shares on a 1 new for 1.1376 old shares basis, and in January listed its shares on the Venture.

The company also completed a $2.1-million financing last December, and now has 31.5 million outstanding plus just under 12 million warrants. On the day the latest results were released, the company closed a $310,000 private placement at 45 a share, for a further 688,000 shares.

Since going public, the Jim Voisin-led company added significantly to its land package in the area. From what was initially a 15 sq. km property, First Mexican now either owns or has the right to earn a significant portion of 151 sq. km. Most recently the company optioned 36 sq. km from Kootenay Gold (KTN-V). Corex Gold‘s (CGE-V) Santana property is next door.

As a private company, First Mexican completed 10 drill holes in 2009 and revised its option agreement on the then Hilda claims to be able to earn 80%. The highlight from the earlier drilling was hole 9-3 on the Karen zone that hit 37.8 metres grading 6.51 grams gold and 678 grams silver from surface, and included 16.9 metres of 10.6 grams gold and 1,416 grams silver.

In February the company released rock chip samples from the Bailey zone, roughly 2 km south of the Karen zone. Results included 4.5 metres carrying 7.84 grams gold and 144 grams silver and 3 metres of 10.72 grams gold and 186 grams silver.  

First Mexican’s share price dropped 7¢ or 14.3% on the latest news to close at 42¢ with 46,000 shares traded. The company started trading at 45¢ in January and hit a high of 71¢ before settling below the 40¢ range at presstime.