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VANCOUVER,
BRITISH COLUMBIA--(Marketwire - Sept. 23, 2009) - MAG Silver Corp.
(TSX:MAG)(NYSE Amex:MVG) ("MAG") is pleased to announce assay
and geological results from ongoing exploration drilling on its 100%
owned Cinco de Mayo property in northern Chihuahua State, Mexico. The
most significant result from this ongoing program is the discovery of a
high grade Molybdenum (Mo) (gold) zone at Pozo Seco located 4.0
kilometres southwest of the Jose Manto Discovery (see Tables 1.0 and
2.0). To view Table 2, please click on the following link: http://media3.marketwire.com/docs/mag923t2.pdf.
Hole 130, reported 75 metres (beginning near surface) averaging 0.307%
molybdenum (Mo), including 34.5 metres averaging 0.637% Mo with 0.140
ppm gold, and also including 4.65 metres that runs 1.64% Mo with 0.467
ppm gold.
A second hole, 83, cut a 56.8 metre section (beginning near surface)
running 0.19% molybdenum with 0.11 ppm gold, including a 17.4 metre
section within the lower part of the zone that runs 0.47% molybdenum
with 0.20 ppm gold. The base of this zone also includes a 2.3 metre
section carrying 4% Zinc (to view diagram, please click on the
following link: http://media3.marketwire.com/docs/mag923map.JPG).
Table 1.0 Highlights from Pozo Seco Moly (gold) Zone --------------------------------------------------------------------------- From To Width Molybdenum Gold Zinc Hole Number metres metres metres % ppm % --------------------------------------------------------------------------- CM09-130 6.10 81.30 75.20 0.307 0.07 0.08 --------------------------------------------------------------------------- including 46.77 81.3 34.53 0.637 0.141 0.18 --------------------------------------------------------------------------- including 68.8 73.45 4.65 1.64 0.467 0.94 --------------------------------------------------------------------------- CM08-083 22.63 79.45 56.82 0.19 0.11 0.28 --------------------------------------------------------------------------- including 55.91 73.33 17.42 0.47 0.20 0.73 --------------------------------------------------------------------------- including 70.70 73.33 2.63 0.58 0.15 4.08 --------------------------------------------------------------------------- CM09-123 21.08 44.17 23.09 0.02 0.33 0.10 --------------------------------------------------------------------------- including 28.93 30.48 1.55 0.03 1.09 0.14 ---------------------------------------------------------------------------
"The Pozo Seco
moly-gold zone intersections are significant in that they not only
report high grade Mo (Au) over appreciable widths...creating potential
as a stand-alone high-grade molybdenum target, but they are remarkably
similar to mineralization that flanks the central parts of San
Martin-Sabinas, Zacatecas, the largest skarn-replacement deposit known
in Mexico," said Dan MacInnis, MAG Silver President. "The
Cinco de Mayo system continues to demonstrate its extent and strength
as a very high percentage of the recent holes, drilled in the 7.5 by 16
kilometre area south and west of the Jose Manto, have encountered new silver,
gold and molybdenum mineralization. The Pozo Seco moly-gold results may
be a strong indicator that a causitive intrusive center is located
nearby. The data are being compiled into a state-of-the-art database
which indicates we have numerous additional geophysical targets to test
and we look forward to continued significant advances in our
understanding of this very large, complex, and poorly exposed
system."
Result details, Cinco de Mayo Project
Recent drilling has focused on testing a series of geophysical
anomalies revealed by a new district-scale airborne survey designed to
locate the centre of what is emerging as a large scale Carbonate
Replacement Deposit (CRD). Three of these anomalies, Pozo Seco, Sierra
Ruso and La Gloria have proven to be associated with significant
mineralization and alteration, with Holes 83 and 130 at Pozo Seco
showing high-grade molybdenum-gold mineralization similar to that seen
flanking the central parts of several of Mexico's largest
Silver-Lead-Zinc-Copper-Gold CRD systems.
Pozo Seco lies above a strong 2 by 3 kilometres positive magnetic
anomaly lying 4 kilometres southwest of the Jose Manto. To date five
vertical holes have been drilled on 250 metre centres and all have
encountered molybdenum-gold mineralization, starting at or near the
surface, in a broad, gently east-dipping, pervasively silicified
structural breccia.
Additional holes (91, 123, and 129), drilled as 250 metre offsets to
the east and southeast of Hole 83, encountered the same breccia and
confirm continuity of the moly-gold mineralization within the breccia.
Hole 123, drilled 250 metres southwest of Hole 83 cut 23 metres
(21.08-44.17 metres down-hole) reporting 0.33 ppm gold, including 1.55
metres grading 1.09 g/t gold. The airborne electromagnetic VTEM system
indicates increasing conductivity coincident and on-trend with the
mineralization moving towards the southeast (Figure 01).
Sierra Ruso: Hole 127, drilled on a covered magnetic anomaly, 5.8
kilomtres to the SSE of Pozo Seco along the same mineralized structural
trend, cut a pervasively silicified and locally mineralized breccia
more than 20 metres wide with a 4.55 metre wide zone that reports 186
g/t (5.4 opt) silver, including a 1.5 metre zone carrying 496 g/t (14.5
opt) silver. This breccia is the focus of on-going drilling. Very
well-developed gold-bearing jasperoids crop out sporadically between
Sierra Ruso and Pozo Seco, indicating that mineralization may be
laterally coherent along the fault zone that appears to link these two
discovery zones.
The La Gloria area lies 3.5 kilometres southeast of the Jose Manto
above a strong, "L"-shaped magnetic low of similar magnitude
to the elongate magnetic low flanking the Jose Manto. Twelve holes have
been drilled in this completely featureless area, with most cutting
strong hornfels, tungsten-bearing skarn and thin felsite dikes. Ten of
the holes report more than 0.25 ppm gold. Hole 114 cut multiple
mineralized horizons ranging from 0.33 to 2.3 metres in thickness that
reported 0.1 to 1.67 g/t gold, 75.7 g/t (2.2 opt silver), 1.3 to 7.6%
lead, and 0.15 to 0.7% zinc. Holes 116, 122, and 124 also report
significantly anomalous values in skarn associated with felsic
intrusions.
Nineteen additional holes have been drilled around the Jose Manto, and
along its projections, seeking extensions and feeders to this zone. Of
these, all but one hit significantly anomalous mineralization and
several have hit mineralization comparable in grade but not thickness
to previous drilling in this area. Hole 79, hit 2.59 metres carrying
0.1 g/t gold, 163 g/t (4.8 opt silver, 2.49% lead, and 2.72% zinc
including 0.18 metres with 0.45 g/t gold, 1,835 g/t (53.5 opt silver),
20.1% lead, and 6.29% zinc.
Twelve other geophysical anomalies and geological targets throughout
the range have been tested with one or more holes, with four holes (88,
96, 97 and 110) yielding significant anomalies.
Diagrams can also be found on the website www.magsilver.com.
About Cinco de Mayo
Cinco de Mayo is a 15,000 hectare property straddling the same
regionally-mappable structure that contains the largest Carbonate
Replacement Deposits (CRDs) in Chihuahua. Exposures are very limited,
so exploration is guided by MAG's CRD exploration model, airborne
magnetic and VTEM and ZTEM surveys, surface mapping of the sparse
outcrops, and drilling. Results to date indicate the presence of a deep
2 by 3 kilometre intrusive center with high-level intrusive offshoots
lying beneath a high limestone ridge, flanked by a series of prominent
linear magnetic lows that coincide with NW-SE structural zones created
during pre-mineral regional thrust faulting. The Jose Manto and Pozo
Seco trends have poor to no outcrop, but have yielded the best results.
At least three other trends, some marked by pervasive silicification
(jasperoid) locally carrying strongly anomalous (greater than 200 ppb)
gold values, remain to be tested.
Overall, drilling has encountered strong CRD-skarn style mineralization
and alteration throughout an area roughly 8 by 16 kilometres, with very
few drillholes completely lacking mineralization. The ability to test
the system with such large drilling step outs is testimony to the
widespread development and potential size of this carbonate replacement
(CRD) system. Recent drilling has focused on locating the central
(proximal) intrusive source for the system, to which outer (distal)
styles of mineralization should be zonally related. Strong molybdenum
mineralization in silicified breccias above the large regional positive
magnetic anomaly is comparable to what is seen in the proximal parts of
several major Mexican and US CRD systems and is consistent with what
MAG's CRD exploration model predicts. Development of increasingly
distal mineralization styles in structural corridors leading outwards
from this centre is also consistent with the model. Despite these
significant advances in the understanding of this system, this must
still be considered an early-stage project.
Cinco de Mayo is held 100% by MAG and is one of six other district
scale projects operated by MAG.
Quality Assurance and Control: The Company has in place a quality
control program to ensure best practices in sampling and analysis.
Samples were collected by employees of consulting firm Minera Cascabel
S.A. de C.V. on behalf of MAG Silver Corp. The surface rock samples are
shipped directly in security sealed bags to ALS-Chemex Laboratories
preparation facilities in Hermosillo, Sonora or Chihuahua City
(Certification ISO 9001). Sample pulps are shipped from there to
ALS-Chemex Laboratories in North Vancouver, Canada for analysis. All
samples were assayed for gold by standard fire assay-ICP finish with a
50 gram charge. Gold values in excess of 3.00 g/t were re-analyzed by
fire assay with gravimetric finish for greater accuracy. Silver, zinc,
copper and lead values in excess of 100 ppm, 1%, 1% and 1% respectively
are also repeated by fire assay.
Qualified Person: Dr. Peter Megaw, Ph.D., C.P.G., has acted as the
qualified person 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 20
years of relevant experience focussed on silver and gold
mineralization, and exploration and drilling 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 a Director and
Shareholder of MAG and is the vendor of this project, whereby he may
receive additional shares. Dr. Megaw is satisfied that the results are
verified based on an inspection of the core, 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.
About MAG Silver Corp. (www.magsilver.com)
MAG is focused on district scale projects located within the Mexican
Silver Belt. Our mission is to become one of the premier companies in
the silver mining industry. MAG and its partner Fresnillo plc are
delineating a significant new silver vein discovery on the Juanicipio
property in Zacatecas State, Mexico. The total contained metals at the
Juanicipio property on a 100% project basis in the Indicated Resource
are 83 million ounces of silver, 210,000 ounces of gold and 155 million
pounds of lead and 269 million pounds of zinc. The Inferred Resources
contain an additional 106 million ounces of silver, 356,000 ounces of
gold and 301 million pounds of lead and 498 million pounds of zinc. MAG
has also identified a new silver, lead and zinc discovery at its 100%
owned Cinco de Mayo property. MAG is based in Vancouver, British
Columbia, Canada. MAG's common shares trade on the TSX under the symbol
MAG and on the NYSE-A under the symbol MVG.
On behalf of the Board of MAG SILVER CORP.
Dan MacInnis, President and CEO
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, 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 Company'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.
Cautionary Note to U.S. Investors: The U.S. Securities and Exchange
Commission permits U.S. mining companies, in their filings with the
SEC, to disclose only those mineral deposits that a company can
economically and legally extract or produce. We use certain terms in
this press release, such as "Inferred resources," that the
SEC guidelines prohibit U.S. registered companies from including in
their filings with the SEC.
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/edgar/searchedgar/companysearch.html.
Neither the Toronto Stock Exchange nor the American Stock Exchange has
reviewed or accepted responsibility for the accuracy or adequacy of
this news release, which has been prepared by management.
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