TORONTO, Jan. 8, 2021 /CNW/ - Magna Gold Corp. (TSXV:
MGR), (OTCQB: MGLQF) ("Magna" or the "Company")
announces that, as a result of a review by staff of the Ontario
Securities Commission, it is issuing the following news release
regarding the Company's technical disclosure in respect of the
Company's Mercedes property (the "Mercedes Property"). The
Company has updated the corporate presentation posted on its
website to, among other changes:
![Magna Gold Corp. logo (CNW Group/Magna Gold Corp.) Magna Gold Corp. logo (CNW Group/Magna Gold Corp.)](https://mma.prnewswire.com/media/1397181/Magna_Gold_Corp__Magna_Gold_Corp__Clarifies_Certain_Technical_Di.jpg)
- Remove certain disclosure of "resources" in respect of a
deposit on the Mercedes Property which did not use the applicable
mineral resource categories set out in section 1.2 of National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101") contrary to section 2.2(a) of NI
43-101 and that disclosed the quantity, grade or metal or mineral
content of a deposit that has not been categorized as an inferred
mineral resource, an indicated mineral resource or a measured
mineral resource contrary to section 2.3(1)(a) of NI 43-101;
- Remove certain disclosure of the quantity of contained metal or
mineral in respect of a deposit on the Mercedes Property which did
not state both the grade or quality and the quantity for each
category of the mineral resources contrary to section 2.2(d) of NI
43-101;
- Remove certain disclosure regarding the production and sale of
gold from the Mercedes Property, including anticipated production
and associated capital and operating expenditures and cash flows,
that may be characterized as the results of an economic analysis
that includes or is based on inferred mineral resources or an
exploration target contrary to section 2.3(1)(b) of NI 43-101;
- Remove any use of the term "ore" in the context of mineral
resources that may be potentially misleading; and
- Include the name and relationship to the Company of the
qualified person that prepared or supervised the preparation of the
information that forms the basis for the written disclosure or that
approved the written disclosure in accordance with section 3.1 of
NI 43-101.
The updated corporate presentation is now available on the
Company's website.
Additionally, the Company wishes to clarify certain disclosure
regarding the potential production and sale of gold from the
Mercedes Property. The decision to produce at the Mercedes Property
was not based on a technical report supporting either mineral
resources or mineral reserves demonstrating economic and technical
viability, and, as a result, there may be an increased uncertainty
of achieving any particular level of recovery of minerals or the
cost of such recovery, which include increased risks associated
with developing a commercially mineable deposit. Historically, such
projects have a much higher risk of economic and technical failure.
There is no guarantee that anticipated production costs will be
achieved. Failure to achieve the anticipated production costs would
have a material adverse impact on the Company's cash flow and
future profitability. Readers are cautioned that there is increased
uncertainty and higher risk of economic and technical failure
associated with such production decisions. It is further cautioned
that mineral resources are not mineral reserves and do not have
demonstrated economic viability.
Qualified Person
James Baughman (P. Geo.),
Consulting Geologist and a Qualified Person as defined by NI
43-101, has approved the scientific and technical information in
this news release.
About Magna Gold Corp.
Magna Gold Corp. is a Canadian gold company engaged in
operations, development, exploration and acquisitions in
Mexico. Its primary asset is the
producing San Francisco gold mine
in Sonora, Mexico and exploration
stage projects include San Judas,
La Pima and Mercedes.
The Company's shares trade on the TSXV under the trading symbol
"MGR" and OTCQB under the trading symbol "MGLQF". Magna is well
integrated into its nearby communities, employs local residents and
uses local services when possible.
For more information, please visit www.magnagoldcorp.com or
contact Arturo Bonillas, President,
Chief Executive Officer and a Director of the Company.
This news release includes certain "forward-looking statements"
which are not comprised of historical facts. Forward-looking
statements include estimates and statements that describe the
Company's future plans, objectives or goals, including words to the
effect that the Company or management expects a stated condition or
result to occur. Forward-looking statements may be identified by
such terms as "believes", "anticipates", "expects", "estimates",
"may", "could", "would", "will" or "plan". Since forward-looking
statements are based on assumptions and address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Although these statements are based on information
currently available to the Company, the Company provides no
assurance that actual results will meet management's expectations.
Risks, uncertainties and other factors involved with
forward-looking information could cause actual events, results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking information.
Forward looking information in this news release includes, but is
not limited to, information about the Company's objectives, goals
or future plans, the production and sale of gold, production
decisions, anticipated production costs, cash flow and
profitability. Factors that could cause actual results to differ
materially from such forward-looking information include, but are
not limited to, failure to identify mineral resources, failure to
convert estimated mineral resources to reserves, the inability to
complete a feasibility study which recommends a production
decision, the preliminary nature of metallurgical test results,
delays in obtaining or failures to obtain required governmental,
environmental or other project approvals, political risks,
inability to fulfill the duty to accommodate First Nations and
other indigenous peoples, uncertainties relating to the
availability and costs of financing needed in the future, changes
in equity markets, inflation, changes in exchange rates,
fluctuations in commodity prices, delays in the development of
projects, capital and operating costs varying significantly from
estimates and the other risks involved in the mineral exploration
and development industry, and those risks set out in the Company's
public documents filed on SEDAR. Although the Company believes that
the assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance
should not be placed on such information, which only applies as of
the date of this news release, and no assurance can be given that
such events will occur in the disclosed time frames or at all. The
Company disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
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SOURCE Magna Gold Corp.