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VANCOUVER,
BRITISH COLUMBIA--(Marketwire - Jan. 19, 2010) - MAG Silver Corp. (TSX:MAG)(NYSE
Amex:MVG) ("MAG") announces the discovery of the extension,
into MAG's 100% owned ground, of one of the most productive high grade
silver veins in Mexico's historic billion-ounce silver producing
Zacatecas District.
Two holes (VGSE06 and VGSE07), appear to have discovered the
continuation of the prolific Veta Grande Vein, the second most
important production vein in the Zacatecas district. The holes were
targeted along the direct projection of the vein, approximately 500
metres east of its last confirmed outcrops. This discovery shows that
this important and historic vein is open along strike from areas of
past production including an additional 4 kilometres of possible
projection on MAG's wholly owned property.
In a second discovery in the same vicinity, Holes PR-01 and 02, drilled
in the Puerto Rico Vein, which runs parallel to the Veta Grande Vein,
have encountered high-grade silver mineralization. Hole PR-01 cut 417
grams per tonne (g/t) (12.1 ounces per ton (opt)) silver and 109 ppb
gold over 1.00 metre while Hole PR-02, drilled 125 metres deeper, cut
850 g/t (24.8 opt) silver and 273 ppb gold over 0.95 metres. Accompanying
low base metal values (see table below) indicate the vein was likely
cut at levels above the expected epithermal vein zone where higher
precious metals should be present.
Additional significant results from drilling in other areas of the
Lagartos project are presented in Table 1. To view the maps and
diagrams associated with this release, please click on the following
link: http://media3.marketwire.com/docs/magm0119.pdf. Maps and diagrams can be found on the website www.magsilver.com.
"We are pleased to have confirmed the uninterrupted continuation
of the important Veta Grande structure under cover and are eager to
begin seeking ore-shoots within the 4 kilometres of strike length that
lies within our ground," said Dan MacInnis, President of MAG
Silver. "We are also pleased to have cut such high-grade
mineralization within the upper reaches of a zone within the Puerto
Rico Vein that we believe will improve with depth. The area where the
drilling was conducted is largely unexplored. The combination of grade
and clear multi-stage mineralization indicate that the Puerto Rico Vein
may be more important than historically recognized."
Veta Grande SE Details: The Veta Grande ("Big Vein") was the
second most important vein in this billion-ounce silver producing
district. Both VGSE-06 and 07 cut a 75 metre wide shear zone laced by
sulphide-bearing chalcedony, quartz, barite and calcite veinlets. A 2.8
metre composite zone in VGSE-06 ran 17 g/t (0.5 opt) silver at 275
metres depth. The interpreted down-dip extension of the same zone in
VGSE-07 ran 40.8 g/t (1.2 opt) silver over 1.4 metres at 650 metres
depth. Gold, lead, zinc and copper values were low. The results
indicate that the Veta Grande structure has little lateral
displacement. Vertical movement on the fault should have dropped the
eastern part down, so any bonanza zone is expected to found at a deeper
level.
Puerto Rico Details: The Puerto Rico Vein lies approximately 3
kilometres north of the Veta Grande Vein zone. The Puerto Rico Vein has
seen minor historic production and remains largely unexplored. Seven
holes were drilled along approximately 1000 metres of strike length of
the vein, intersecting the structure between 150 and 350 metres beneath
the surface.
Holes PR09-01, 02, 03 and 04 were drilled along approximately 450
metres of the northwestern vein extent at different elevations.
The presence of high silver and gold grades with low base metals in
three of the Puerto Rico Vein intercepts indicates they are very high
within the zoning pattern expected for Zacatecas District epithermal
vein. Drilling is planned to test the vein deeper in several locations.
Table 1.0 ---------------------------------------------------------------------------- Drill Gold Silver Silver Lead Zinc Copper Hole From To Width ppb g/t opt ppm ppm ppm ---------------------------------------------------------------------------- PR09-01 198.00 199.00 1.00 111 417 12.2 8 33 12 ---------------------------------------------------------------------------- PR09-02 310.85 311.80 0.95 270 850 24.8 29 127 213 ---------------------------------------------------------------------------- PR09-03 272.35 273.30 0.95 80 29.6 0.9 80 3570 900 ---------------------------------------------------------------------------- including 275.10 276.15 1.05 250 41 1.2 14 146 62 ---------------------------------------------------------------------------- PR09-04 239.90 240.50 0.60 1210 106 3.1 8 66 32 ----------------------------------------------------------------------------
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 silver, lead and zinc discovery at its 100% owned
Cinco de Mayo property as well as a moly-gold discovery on the same
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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