MAG Silver Corp. (MAG: TSX / NYSE A) ("MAG") announces results from
the 2019 28-hole (33,864 metre ("m")) diamond drilling program on
the Juanicipio Joint Venture Property (Fresnillo plc 56% / MAG
44%). The program expanded and upgraded the wide, high-grade Deep
Zone and confirmed additional northeast-trending veins (See Press
Release dated March 4, 2019).
Continued in-fill and
exploration drilling on other targets is ongoing in 2020, with four
surface rigs running concurrently with mine development and
construction (see Joint Venture Press Release dated
February 24, 2020).
Drill Highlights (see
Table 1):
- Confirms and expands continuous wide, high-grade mineralization
in the Valdecañas Deep Zone
- Confirms and expands the wide, high-grade zones in the
Anticipada Vein
- Confirms and expands the Venadas Vein to the south with strong
silver and gold grades
- Discovery of northeast-trending Valentina and Venadas II veins
through drilling and development.
Exceptional intercepts
include:Table 1: Highlights
HOLE- ID |
From(m) 2 |
To(m) |
TW1(m) |
Silver(g/t) 2 |
Gold(g/t) |
Lead(%) |
Zinc(%) |
Copper(%) |
VEIN |
D5-12 |
989.45 |
997.00 |
5.7 |
3884 |
8.4 |
6.5 |
9.7 |
0.3 |
Valdecañas |
D1-10 |
1038.85 |
1072.80 |
21.1 |
129 |
1.7 |
3.5 |
7.8 |
0.2 |
Valdecañas |
D6-6 |
984.30 |
1017.55 |
21.2 |
147 |
1.2 |
3.9 |
8.8 |
0.3 |
Anticipada |
D5-9 |
772.20 |
774.05 |
1.0 |
187 |
10.6 |
1.3 |
4.4 |
- |
Pre-Anticipada |
93P |
772.45 |
775.80 |
2.5 |
918 |
1.8 |
- |
- |
- |
Venadas |
P32 |
569.20 |
572.10 |
1.2 |
279 |
0.7 |
- |
- |
- |
Venadas II |
M39 |
560.95 |
564.95 |
0.7 |
1216 |
3.6 |
- |
- |
- |
Valentina |
1 True widths (“TW”) were measured off cross sections2
Abbreviations used: metres (“m”) and grams per tonne (“g/t”)
"With production from the Bonanza Zone in sight,
we are very pleased that the 2019 drilling program lived up to
expectations by improving the understanding of the Deep Zone, which
should add many years of life to the mine," said George Paspalas,
President and CEO of MAG. "The discovery of more northeast-trending
veins close to the planned production areas, coupled with the
expanding high-grade Anticipada and Pre-Anticipada veins, should
add significantly to the growing mineral endowment of the project
and, importantly, provide considerable mining flexibility
throughout an extended mine life.”A complete set of tables
by vein of the 2019 drilling results are available at
https://magsilver.com/site/assets/files/5810/nr-mar3-2020-table1-sdadds.pdf along
with a new 3D video displaying the entire Valdecañas Vein system,
available at
https://magsilver.com/site/assets/files/5810/SSMovieHQ2_3-Mar3-2019-sdsawe.mp4.
The Valdecañas Vein System is a multi-stage,
high-grade northwest-trending vein swarm comprising the Valdecañas
Vein, the sub-parallel hangingwall Anticipada and Pre-Anticipada
Veins and several smaller splays (See Figure 1).
Additional proximal veins to Valdecañas include the parallel
Juanicipio vein located 1,000m to the south and 3 newly discovered
northeast-trending veins (Venadas, Venadas II and Valentina) all of
which intersect the Valdecañas Vein. Remodeling now shows
Valdecañas as a single vein with deep dilatant zones (bulges) on
each side, and also significantly extends the Anticipada Vein to
the east.Valdecañas Vein Infill
Drilling in 2019 returned the thickest and
deepest lateral intercepts to date on the Valdecañas Vein, with
deep mineralization now continuous over a 2,000m strike length and
up to 1,100m vertically from the top of the Bonanza Zone. The 2019
vein intercepts range in width from approximately 1 m to over 21m
(See Figure 2 and tables at
https://magsilver.com/site/assets/files/5810/nr-mar3-2020-table1-sdadds.pdf)
and the Valdecañas Vein remains open laterally to the claim
boundaries at both ends and to depth. The best 2019
intercept is Hole D5-12, which cut 5.7m (true width) grading 3,884
g/t (113 ounces per ton (“opt”)) silver, 8.4 g/t (0.25 opt) gold,
6.5% lead, 9.7% zinc and 0.3% copper. This includes a 0.8m (true
width) zone that ran 16,271 g/t (475 opt) silver, 9.2 g/t gold
(0.27 opt), 17.8% lead, 11.8% zinc and 0.2% copper. The
location of this intercept is important as it greatly expands the
thick and high-grade eastern dilatant zone. Other significant holes
include D1-5 and D1-10, both within the western dilatant zone, and
D6-6 in the eastern dilatant zone. D5-11 also adds very good width
and grade above the east dilatant zone.Notably, many intercepts in
the Valdecañas Deep Zone continue to demonstrate atypically high
silver grades that MAG believes are ascribable to stacking or
superimposition of mineralization related to a later deeper,
boiling zone (mineralized horizon). As well, areas within the Deep
Zone show extensive skarn and the increasing copper grades expected
in the "root zone" (lower reaches) of an epithermal vein. Gold
grades remain high and are remarkably consistent throughout the
vertical extent of the Valdecañas Vein. These
characteristics, interpreted in combination with other geological
features, reflect proximity to a major mineralizing-fluid upwelling
zone where multiple repeated pulses of mineralization combined to
generate exceptionally high-grade and thick polymetallic
mineralization. The search for additional mineralizing fluid
upwelling zones within the Juanicipio Joint Venture property is
ongoing, as each could be a centre of additional high-grade
mineralization.Anticipada Vein
The Anticipada Vein is sub-parallel to and lies
50-100m in the hangingwall of the Valdecanas Vein. In 2019 it
was coincidentally cut by 11 holes targeting the Valdecañas Vein
and several of these intercepts significantly expand the vein.
This is especially the case in a vertical zone along its
western reaches where it widens and higher grades appear (See
Figure 3 and tables at
https://magsilver.com/site/assets/files/5810/nr-mar3-2020-table1-sdadds.pdf).
The best intercept is in Hole D6-6, which cut 21.2m (true
width) grading 147 g/t (4.3 opt) silver, 1.2 g/t gold, 3.9% lead,
8.8% zinc and 0.3% copper. This includes a 1m (true width) zone
that ran 548 g/t (16 opt) silver, 2.1 g/t gold, 17.4% lead, 14.2%
zinc and 0.9% copper. Two other holes (D5-10 and D5-11)
extend the well-mineralized zone on the eastern end of the vein.
The remaining six holes tested the western limits of the vein and
show moderate to relatively weak mineralization. The
Anticipada Vein remains open to depth and to the
east.Pre-Anticipada Vein
The Pre-Anticipada Vein is also subparallel to
the Valdecañas Vein and is located a further 50-100m into
hangingwall above the Anticipada Vein. It was coincidentally cut by
five infill holes targeting the Valdecañas Vein but their geometry
was not favourable (See Figure 4 and tables at
https://magsilver.com/site/assets/files/5810/nr-mar3-2020-table1-sdadds.pdf).
The two easternmost holes (D5-8 and D5-9) cut appreciable silver
and gold values within the coherent high-grade zone that
characterizes the Pre-Anticipada Vein (See Figure
4) but do not significantly expand it. Pre-Anticipada
remains open for 200-300m to the eastern property boundary and to
depth.Venadas, Venadas II (NEW DISCOVERY) and Valentina
(NEW DISCOVERY) Veins
Five surface drill holes tested the Venadas Vein
(See Figure 5 and tables at
https://magsilver.com/site/assets/files/5810/nr-mar3-2020-table1-sdadds.pdf),
the first northeasterly-trending vein ever found in the Fresnillo
District (See Press Release March 4, 2019), to depth and to the
south. The hole drilled farthest to the south (93P) extends the
vein to 800m from its intersection with the Valdecañas Vein and cut
high silver and gold grades with no base metals (2.5m (true width)
grading 918 g/t (27 opt) Ag and 1.8 g/t Au). Vein textures and the
lack of base metals indicates this is a high-level intercept and
that the vein should have good potential to depth. Hole
97P was the only hole drilled below 93P and it hit only a narrow,
pinched-down vein. Additional deeper holes are planned for
2020 to determine where the vein opens up again at depth.
Importantly, two additional northeast-trending
veins (Venadas II and Valentina; See Figures 6 and
7 and tables at
https://magsilver.com/site/assets/files/5810/nr-mar3-2020-table1-sdadds.pdf)
were discovered during 2019 through a combination of drilling and
being cut in development headings. Both had been suspected based on
oblique angle vein intercepts in several holes directed towards the
Valdecañas Vein (See Press Release of March 4, 2019). Drill
hole P32, which was designed to intercept Venadas II on the way to
Valdecañas, cut 1.2m (true width) grading 279 g/t (8 opt) Ag; 0.7
g/t Au. The Valentina Vein was also cut multiple times by the
eastern development ramp and a number of historic Valdecañas vein
drill holes, the best of which is Hole M39 which cut 0.7m grading
1,215 g/t (35 opt) Ag, and 3.6 g/t Au.
The intercepts for Venadas, Venadas II and
Valentina lack significant base metal grades (with the exception of
one intercept) indicating that these holes have likely cut the
veins high in the mineralizing system. Also, all three veins have
been intercepted on both the hangingwall and footwall side of the
Valdecañas Vein in drill core and underground workings. This,
combined with underground exposures of mineralized cross cutting
northeast trending veinlets, strongly suggest that these veins
cross-cut the main-stage of the Valdecañas Vein and may coincide
with the long-recognized late gold-rich mineralization stage.
Short-hole underground drilling and drifting is contemplated for
fleshing out these veins and determining what relationship they
have with the Valdecañas Vein.
Qualified Person: Dr. Peter
Megaw, Ph.D., C.P.G., and Lyle Hansen, M.Sc., P.Geo have acted as
the qualified persons as defined in National Instrument 43-101 for
this disclosure and supervised the preparation of the technical
information in this release. Dr. Megaw has a Ph.D. in geology and
more than 35 years of relevant experience focussed on silver and
gold exploration in Mexico. He is a Certified Professional
Geologist (CPG 10227) by the American Institute of Professional
Geologists and an Arizona Registered Geologist (ARG 21613). Dr.
Megaw is not independent as he is Chief Exploration Officer and a
Shareholder of MAG. Dr. Megaw is satisfied that the results
are verified based on an inspection of the core and underground
exposures, a review of the sampling procedures, the credentials of
the professionals completing the work and the visual nature of the
silver and base metal sulphides within a district where he is
familiar with the style and continuity of mineralization. Mr.
Hansen is a registered Professional Geologist with Engineers and
Geoscientists BC (149624) and has more than 10 years experience in
epithermal veins. Mr. Hansen is not independent as he is
Geotechnical Director of MAG.
Quality Assurance and Control:
The samples are shipped directly in security-sealed bags to
ALS-Chemex Laboratories preparation facility in Guadalajara,
Jalisco, Mexico (Certification ISO 9001). Samples shipped also
include intermittent standards and blanks. Pulp samples are
subsequently shipped to ALS-Chemex Laboratories in North Vancouver,
Canada for analysis. Two extra pulp samples are also prepared and
are analyzed (in progress) by SGS Laboratories (Certification ISO
9001) and Inspectorate Laboratories (Certification ISO 9001) (or
other recognized lab). The bulk reject is subsequently sent to CIDT
(Center for Investigation and Technical Development) of Peñoles in
Torreon, Mexico for metallurgical testing where a fourth assay for
each sample is analyzed and a calculated head grade is received on
the basis of a concentrate balance. The CIDT also does a full
microscopic, XRF and XRD mineralogical analysis.
About MAG Silver Corp.
(www.magsilver.com)
MAG Silver Corp. is a Canadian development and
exploration company focused on becoming a top-tier primary silver
mining company, by exploring and advancing high-grade, district
scale, silver-dominant projects in the Americas. Its principal
focus and asset is the Juanicipio Property (44%), being developed
in a Joint Venture with Fresnillo plc (56%). Juanicipio is located
in the Fresnillo Silver Trend in Mexico, the world's premier silver
mining camp. The Joint Venture partners are currently
constructing and developing the surface and underground
infrastructure on the property to support a 4,000 tonnes per day
mining operation, with the operational expertise of our JV partner,
Fresnillo plc. As well, an expanded exploration program is in place
at Juanicipio with multiple highly prospective targets across the
property.
On behalf of the Board ofMAG SILVER
CORP.
"George Paspalas"Chief Executive
Officer
Neither the Toronto Stock Exchange nor the NYSE
American has reviewed or accepted responsibility for the accuracy
or adequacy of this press release, which has been prepared by
management.
This release includes certain statements that
may be deemed to be “forward-looking statements” within the meaning
of the US Private Securities Litigation Reform Act of 1995. All
statements in this release, other than statements of historical
facts are forward looking statements, including statements that
address future mineral production, reserve potential,
exploration drilling, exploitation activities and events or
developments. Forward-looking statements are often, but not always,
identified by the use of words such as "seek", "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "project",
"predict", "potential", "targeting", "intend", "could", "might",
"should", "believe" and similar expressions. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements.
Although MAG believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include, but are not limited to, changes in
commodities prices, changes in mineral
production performance, exploitation and exploration
successes, continued availability of capital and financing, and
general economic, market or business conditions, political risk,
currency risk and capital cost inflation. In addition,
forward-looking statements are subject to various risks, including
that data is incomplete and considerable additional work will be
required to complete further evaluation, including but not limited
to drilling, engineering and socio-economic studies and
investment. The reader is referred to the MAG’s filings with
the SEC and Canadian securities regulators for disclosure regarding
these and other risk factors. There is no certainty that any
forward-looking statement will come to pass and investors should
not place undue reliance upon forward-looking statements.
Please Note: Investors are urged to consider
closely the disclosures in MAG's annual and
quarterly reports and other public filings, accessible through
the Internet at www.sedar.com and www.sec.gov LEI:
254900LGL904N7F3EL14
Cautionary Note to Investors Concerning Estimates of
Indicated Resources
This press release uses the term "Indicated
Resources". Investors are advised that although this term is
recognized and required by Canadian regulations (under National
Instrument 43-101 - Standards of Disclosure for Mineral Projects),
the U.S. Securities and Exchange Commission does not recognize this
term. Investors are cautioned not to assume that any part or all of
mineral deposits in this category will ever be converted into
reserves.
Cautionary Note to Investors Concerning Estimates of
Inferred Resources
This press release uses the term "Inferred
Resources". Investors are advised that although this term is
recognized and required by Canadian regulations (under National
Instrument 43-101 Standards of Disclosure for Mineral Projects),
the U.S. Securities and Exchange Commission does not recognize this
term. Investors are cautioned not to assume that any part or all of
the mineral deposits in this category will ever be converted into
reserves. In addition, "Inferred Resources" have a great amount of
uncertainty as to their existence, and economic and legal
feasibility. It cannot be assumed that all or any part of an
Inferred Mineral Resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of feasibility or pre-feasibility
studies, or economic studies except for Preliminary Assessment as
defined under Canadian National Instrument 43-101. Investors are
cautioned not to assume that part or all of an Inferred Resource
exists, or is economically or legally mineable.
Maps accompanying this announcement are available
at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/eb218c7f-92a2-4201-a1ca-f309c701cd79
https://www.globenewswire.com/NewsRoom/AttachmentNg/c45686ce-e40f-4bfd-a138-8261d7c8d705
https://www.globenewswire.com/NewsRoom/AttachmentNg/868b7663-7176-453f-ad28-dc762f02c926
https://www.globenewswire.com/NewsRoom/AttachmentNg/bb028be7-3402-4386-9085-9a06282956e9
https://www.globenewswire.com/NewsRoom/AttachmentNg/1891c07b-1c49-47f3-95cf-ca14c612b81a
https://www.globenewswire.com/NewsRoom/AttachmentNg/a8b4befb-f9f7-4539-af0b-b5d8582b3c82
https://www.globenewswire.com/NewsRoom/AttachmentNg/2936cb2f-4be8-42b9-a77b-4d55cc03e357
For further information on behalf of MAG Silver Corp.
Contact Michael J. Curlook, VP Investor Relations and Communications
Website: www.magsilver.com
Phone: (604) 630-1399
Toll free: (866) 630-1399
Email: info@magsilver.com
Fax: (604) 681-0894
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