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Montezuma Mining Company Ltd Finds Anomalies Near Gruyere Gold Discovery

Montezuma Mining Company Ltd (ASX:MZM) has found new gold anomalies through aircore drilling at the wholly owned Yamarna Gold Project in Western Australia.

The aircore program has extended the Jatz gold anomaly and identified two new anomalies in the Ritz and Ryvita prospects.

All Montezuma's targets lie along strike and within 20 kilometres of the 6.2 million ounce Gruyere gold discovery.

Jatz now extends over 1.5 kilometres in strike length and is open to the north.

The latest round of aircore drilling recorded bottom of hole intercepts of up to 1 metre at 1.65 g/t gold.

This follows recent drill intercepts grading up to 19.1 g/t gold.

Assays are pending for 24 holes and further drilling will commence soon to extend Jatz to the north and further define Ritz and Ryvita.

Yamarna Gold Project

Yamarna is located within the Yamarna Greenstone Belt, east of Laverton in central Western Australia.

The principal target zone at Yamarna is located an estimated 15 kilometres along strike from the 6.2 million ounce Gruyere gold discovery by Gold Road Resources Ltd (ASX:GOR).

Initially, Montezuma defined a widespread region of gold anomalism covering 22 square kilometres and containing two parallel anomalous corridors.

Follow up air core drilling since mid 2015 has returned widespread high tenor gold anomalism.

The target zones are Jatz, Cruskit, Captains, Ritz and Ryvita with Jatz being the current focus of the company.

Analysis

The aircore drill program continues to identify anomalous gold at the Yamarna gold project, which now hosts 5 prospects.

All prospects are within an estimated 15-20 kilometre distance from the 6.2 million ounce Gruyere gold discovery.

Montezuma is in a strong financial position with $7.7 million in cash and investments.

At a share price of $0.20, Montezuma has a market cap of $14.1 million and enterprise value of $6.4 million.

Montezuma is highly leveraged to an emerging, underexplored gold province in the Yamarna Greenstone Belt, which is geologically similar to the Kalgoorlie Gold Belt.

The aircore infill program is expected to complete in the June quarter which will be followed by a reverse circulation drill program to test priority targets.

The company's share register is tightly held with the top 20 owning 71%.

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