MAG Silver Corp. (TSX / NYSE American: MAG) (“MAG”
or “MAG Silver”) is pleased to report results from 2020 drilling on
the Juanicipio Project (56% / 44% joint venture between Fresnillo
plc (“Fresnillo”) and MAG Silver). A total of 33 surface holes
(27,900 metres (“m”)) and 77 underground definition holes (11,800
m) were completed with the primary objectives of: infilling and
expanding the Valdecañas Deep Zone (“Deep Zone”) to optimise its
extraction; and definition drilling of the upper high-grade
Valdecañas Bonanza Zone (“Bonanza Zone”) where test mining has
already begun and the focus for the first several years of mining
in this area. Currently the 2021 drilling program is well on track
with five drill rigs on surface running concurrently with continued
underground definition drilling.
According to Fresnillo, the project
operator, mine development and mill construction continue to
advance on budget and on schedule to commence mill commissioning in
Q4 2021.
Selected highlights of the 2020 drilling
program are presented below in Table 1. Figure
1 shows the significant increase in drillhole intercept
density and growth of the Valdecañas Vein, especially the Deep
Zone, since the 2017 PEA (see Press Release dated November 7, 2017,
and in contrast with drill results and Figures in Press Release
dated February 14th, 2017). Figure 2 shows the
growth of the Anticipada vein since the end of 2016.
A complete set of tables by vein of the
2019 drilling results are available here
along with a new 3D video displaying the entire Valdecañas
Vein system, available
here.
The 2020 drilling program
successfully:
- Confirms, and allows modeling with
greater detail and confidence of the high-grade silver resource
within the upper parts of the Valdecañas Bonanza Zone where the
first several years of mining will occur;
- Confirms, expands, and allows
improved modeling of the continuous wide mineralization of the
Valdecañas Deep Zone; and,
- Confirms, expands, and allows
improved modeling of the ever-growing Anticipada Vein.
“As we begin ramping up into full scale
production it is a rare luxury to be firming up and extending the
deep mineralization that has high potential to add tonnes, grade
and years to our mine life”, said George Paspalas, MAG Silver’s
President and CEO. “We are delighted to continue seeing the
consistent high grades, thicknesses and continuity at depth that we
have come to expect from the Valdecañas Vein System, but we are
equally pleased that the detailed definition drilling is helping to
get the entire operation off on the right foot through better
understanding of the top of the vein. Added to the knowledge and
benefits we’re getting from processing development material at the
Fresnillo mill, we look forward to a successful plant start up this
fall.”
Table 1: 2020 Drilling
Highlights1
Hole ID |
From(m) |
To(m) |
Length(m) |
TW2(m) |
Silver(g/t)3 |
Gold(g/t) |
Lead (%) |
Zinc (%) |
Copper(%) |
Valdecañas Vein “Deep Zone” |
D5-3-3 |
817.90 |
855.75 |
37.85 |
21.0 |
357 |
0.9 |
1.6 |
3.1 |
0.2 |
incl. |
838.90 |
849.90 |
11.00 |
6.1 |
1023 |
1.6 |
2.2 |
1.7 |
0.3 |
incl. |
840.90 |
841.90 |
1.00 |
0.6 |
7920 |
4.3 |
4.9 |
3.6 |
0.4 |
incl. |
848.90 |
849.90 |
1.00 |
0.6 |
2160 |
1.4 |
0.7 |
0.5 |
0.1 |
D1-6-1 |
989.25 |
1010.60 |
21.35 |
18.1 |
198 |
3.9 |
4.2 |
10.0 |
0.4 |
Valdecañas Vein “Bonanza Zone” |
MIW-1 |
83.70 |
87.65 |
3.95 |
3.1 |
3584 |
5.7 |
0.5 |
0.6 |
0.0 |
MIC-6 |
70.80 |
79.40 |
8.60 |
5.2 |
1356 |
3.3 |
0.2 |
0.2 |
0.0 |
Skarn
Zone |
D7-7 |
1192.45 |
1471.35 |
278.90 |
N/E4 |
31 |
0.0 |
0.0 |
1.3 |
0.1 |
Anticipada Vein |
D5-3-1 |
819.50 |
830.80 |
11.30 |
10.3 |
112 |
0.6 |
3.2 |
6.2 |
0.1 |
D5-3-3 |
809.10 |
811.35 |
2.25 |
2.0 |
691 |
0.4 |
6.6 |
6.5 |
0.1 |
D6-7 |
916.25 |
927.25 |
11.00 |
7.6 |
101 |
2.4 |
2.9 |
3.5 |
0.2 |
incl. |
924.25 |
925.25 |
1.00 |
0.7 |
196 |
10.5 |
4.1 |
6.5 |
0.5 |
Venadas
Vein |
MIC-9 |
93.70 |
94.60 |
0.90 |
0.9 |
580 |
2.7 |
0.0 |
0.0 |
0.0 |
Valentina
Vein |
MIE-1 |
68.95 |
71.35 |
2.40 |
1.9 |
607 |
9.8 |
0.0 |
0.0 |
0.0 |
1 Featuring only select intercepts from 2020. Complete tables of
results are located here2 Estimated true widths were estimated from
cross sections and core angles3 grams per tonne4Not determined
2020 Drilling Program
The 2020 drilling program was designed with two
principal goals: 1) to improve geological and geostatistical
confidence in the uppermost part of the high-grade Bonanza Zone
where test mining has already begun, and 2) to infill and expand
the currently defined “Inferred Resource” (See Press Release dated
November 7th, 2017) part of the Deep Zone where potential exists to
extend the mine life and/or increase the production rate. Many of
the holes directed at the Valdecañas vein coincidentally also cut
one or more of the hangingwall Anticipada and Pre-Anticipada veins
and also footwall veins. Fourteen of these cut the Anticipada vein
with some outstanding intercepts. Owing to drillhole geometries,
the Pre-Anticipada Vein was not intercepted on its east side where
it appears to improve in grade and thickness. In addition to the
above, 17 holes intercepted the NE-trending Venadas Vein Family
(Table 1). Three exploration holes were drilled during 2020: two
directed at the long-suspected North Vein and one a deep test of
the Juanicipio Vein.
The surface-based drilling program was very
successful in part because using directional drilling technology
reduced the total meters drilled, greatly reduced holes lost in bad
ground, and most importantly increased accuracy for hitting deep
targets. Underground drilling from strategic drill stations allowed
for rapid and accurate drilling of 77 tightly spaced holes (20 -
30m centers) ranging from 80 to 340m long.
The 2020 drill program was fully executed on
time and within budget. MAG is pleased that the COVID-19 mitigation
protocols implemented by Fresnillo effectively prevented
significant impacts to the health of project personnel and
development activities. The only significant effect for the drill
program was delayed assay results including 17 underground holes
that remain pending.
Valdecañas Vein
Bonanza Zone Definition Drilling: The first
major priority of the 2020 program was an underground definition
drilling program targeting the uppermost part of the very
high-grade Bonanza Zone (Table 1, Figure 1
and tables located here) where mining
will occur for the next several years. The top of this zone was
known to be irregular, and its upper limits not well defined, so
tightly spaced drilling was undertaken from underground drill
stations between 50 and 200m from the vein. All intercepts show the
high silver and gold grades with very low base metals typical of
the top of the Valdecañas Vein. Hole MIC-6 is an
outstanding example which cut 5.2m true width
grading 3.3 grams per tonne “g/t” g/t Gold and 1356 g/t
(43.4 ounces per ton “oz/t”) Silver and 0.4% combined Lead plus
Zinc. The underground drilling results in this program
help define in detail the upper limits of the mineralization and
continuity of grade and thickness within the vein. Additionally,
the significant boost to the geochemical database for the Bonanza
Zone allows more detailed grade distribution analysis and these
added geotechnical data provide crucial information on ground
conditions. Stope design based on the results is underway.
Deep Zone Infill and Expansion Drilling: The
second major focus of 2020 was continued infill and expansion
drilling of the Deep Zone (Table 1, Figure
1 and tables located here) with 21 holes
(14 infill and 7 expansion) drilled from surface. Most used state
of the art directional drilling technology to allow multiple vein
intercepts from a single “mother” hole and more importantly, high
precision targeting as targets are deep. All but one
infill hole cut significant grade with width (Figure
1). An outstanding example is: Hole D1-6-1, with
18.1m grading 3.9 g/t Gold, 198 g/t (6.3 oz/t) Silver, 14.2% Lead
plus Zinc and 0.4% Copper, which very nicely reinforces
the width and grade of the western dilatant zone. Hole
D5-3-3 was the highlight on the east side with
21.0m grading 0.9g/t Gold, 357 g/t (11.4 oz/t) Silver, 4.7%
Lead plus Zinc and 0.2% Copper, including 6.1m grading 1.6g/t Gold,
1023 g/t (32.7 oz/t) Silver, 3.9% Lead plus Zinc and 0.3%
Copper. The weakest hole (P34) went into the narrow
“waist” between the two dilatant zones about 24m from a previous
weak intercept. Seven holes were aimed to expand the mineralized
envelope laterally and to depth (Figure 1). All 7
intercepted significant grades and/or widths of mineralized vein
(see companion table). In particular, D1-9 and P37 on the west and
D7-7, P35 and D5-3-4 on the east incrementally extend the
mineralized part of the Valdecañas Vein to depth. The other three
intercepted significant vein widths but with lower grades, such as
P38_R which intercepted a thick 11.6m vein of low
grade.
Two of the surface holes (D7-1 and D7-7) were
drilled very deep on the Valdecañas Vein and cut 187m and 279m
respectively of zinc mineralized skarn surrounding the vein. These
are by far the greatest mineralized skarn thicknesses drilled to
date in the district and provide additional definition of the
ore-fluid upwelling zone that appears to have fed the entire
Valdecañas Vein System.
Anticipada / Pre-Anticipada
Fourteen Valdecañas-directed holes
coincidentally cut and nicely infill the parallel hangingwall
Anticipada Vein (Table 1, Figure 2, and
tables located here). Hole
D5-3-1 is one of the widest holes through
Anticipada to date and cut 10.3 m true width grading 0.6g/t
Gold, 112 g/t (3.6 oz/t) Silver, 9.3% Lead plus Zinc and 0.1%
Copper. The best silver intercept was Hole
5-3-3 with 2 m true width grading
0.4 g/t Gold, 691 g/t (22.1 oz/t) Ag and 13.1% Lead plus
Zinc. Several of the holes cut high gold
grades, the best being D5-3-5 and
D6-7 reporting single assay intervals of
13.9 g/t and 10.5 g/t
respectively (see Figure 2 and Companion Table). Most of the holes
cut significant base metals with Hole D7-1 also reporting 0.7%
Copper.
Venadas “North-East Trending” Vein
Family
The total drilling program resulted in 22 total
intercepts (not including the 19 underground holes with pending
assays) on the northeast-trending “Venadas Vein Family”. Most of
the intercepts show significant silver and gold grades with very
low base metals indicating a very high level of exposure analogous
to the top of the Bonanza Zone of Valdecañas. The best intercept
was from the Valentina Vein, with the highlight being
MIE-2 which cut 2.4m true
thickness grading 9.8 g/t Gold and 607 g/t
(19.5 opt) Silver.
Isolated Intercepts
In addition to the principal veins of the
Valdecañas Vein System noted above, there were numerous isolated
intercepts (see tables located
here) that cannot be readily joined into a vein at
this time. The geometries and apparent thicknesses of most of these
intercepts are unknown and most are probably short splays from the
identified veins while some may join up with continued
drilling.
Other Targets
Three holes were drilled outside of the
Valdecañas Vein System during 2020. One (101P) cut modest
mineralization deep and to the west on the Juanicipio Vein,
demonstrating continuity of mineralization in the structure. Two
holes (P33 and P33-2) targeted the long-suspected North Vein some
400m to the north of the footwall of the Valdecañas Vein. These
holes are very close to each other, and both cut around 2.5m of
barren “high-level looking” quartz vein at a similar elevation to
the irregular top-out of the Valdecañas vein. Deeper drilling to
test this vein at elevations similar to the Bonanza Zone of the
Valdecañas vein is planned for 2021.
Quality Assurance and Control:
The samples (half core) 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 another recognized lab). The remaining
half core is placed back into the core boxes and is stored on site
with the rest of the drill hole core in a secured core storage
facility. The bulk reject is subsequently sent to the Center for
Investigation and Technical Development (“CIDT”) of Peñoles in
Torreon, Coahuila State, 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.
Qualified Persons: 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 36 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 11 years experience in
epithermal veins. Mr. Hansen is not independent as he is
Geotechnical Director of MAG.
About MAG Silver Corp.
(www.magsilver.com )
MAG Silver Corp. (MAG: TSX / NYSE A) 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 Project
(44%), being developed in a Joint Venture partnership with
Fresnillo Plc (56%), the Operator. Juanicipio is located in the
Fresnillo Silver Trend in Mexico, the world's premier silver mining
camp, and the Joint Venture is currently developing an underground
mine and constructing a 4,000 tonnes per day processing plant which
is expected to commence commissioning in Q4 2021. Underground mine
production of development material commenced in Q3 2020, and an
expanded exploration program is in place targeting multiple highly
prospective targets both at Juanicipio by the Joint Venture and by
MAG at the Deer Trail 100% earn-in project in Utah.
For further
information on behalf of MAG Silver Corp. |
Contact Michael J. Curlook, VP
Investor Relations and Communications |
|
|
|
|
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Phone: |
(604) 630-1399 |
Website: |
www.magsilver.com |
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Toll Free: |
(866) 630-1399 |
Email: |
info@magsilver.com |
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,
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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
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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:
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