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VANCOUVER, BRITISH COLUMBIA--(Marketwire -
Jan. 8, 2010) - MAG Silver Corp. (TSX:MAG)(NYSE Amex:MVG)
("MAG") is pleased to announce additional gold and molybdenum
assay results from on-going drilling of the Pozo Seco Moly-Gold zone
discovery on its 100% owned Cinco de Mayo property in northern
Chihuahua State, Mexico (see press releases of September 23 and
November 10, 2009).
The best of the new holes in the Molybdenum-Gold ("Moly-Gold")
zone is Hole 144 which reports 0.16% molybdenum ("Moly") with
0.27 grams per tonne (g/t) gold over 43.97 metres (30.38 to 74.35 metre
depth). In addition holes 141 and 142 were drilled east of the Lucia
Fault and also returned strong molybdenum and gold results. These
combined holes demonstrate that the Moly-Gold zone continues to the
northwest and remains open towards recently acquired ground. Holes 143,
145, and 152 were drilled southwest of the Lucia Fault and returned no
significant values. Hole 148 was drilled east of the eastern bounding
fault to the Moly-Gold zone. This new drilling has now identified a
zone approximately 1,100 metres long by almost 350 metres wide
averaging almost 50 metres in thickness and it remains open to the
northwest.
Recent drilling has also discovered an emerging gold dominant zone
adjacent to the Pozo Seco Molybdenum-Gold zone discovery. Hole CM09-150
is the best of these new gold-dominant holes, returning 27.50 g/t gold
in a 0.30 metre zone lying at surface and containing abundant visible
gold within an overall 4.41 metres (4.95 to 9.36 metre depth) grading
1.99 g/t gold. Hole 150 and adjoining Holes 153 and 123 (see press
release of November 10, 2009) show only trace molybdenum in contrast to
neighbouring holes on the northeast side of the major
northwest-trending Lucia Fault, which appears to be the controlling
factor for the strong molybdenum mineralization.
Gold mineralization appears to overprint the molybdenum zone along a
perpendicular northeast-trending fault zone that continues to the
southwest where a recent geochemical grid sampling at Pozo Seco South
has revealed a 1 kilometre diameter area with highly anomalous gold,
silver, copper, zinc, lead, arsenic, antimony and mercury values. This
significant surface discovery represents a proximal metals signature
and the area is coincident with a significant "hot spot" in
the magnetic high anomaly that underlies the entire Pozo Seco area (see
details below).
The holes reported here include thirteen holes out of a 20 hole, 2,000
metre program being drilled on a 200 metre grid centered on discovery
Hole CM09-130 (75.2 metres of 0.31% Moly). An additional six holes are
reported on an initial reconnaissance program focused on a series of
strong jasperoid outcrops that run for 3 kilometres southeast of Pozo
Seco. Two of these show greater than 1.5% zinc intercepts, but the rest
reported no significant values. Details are provided below in Tables 1,
2 and 3 and Map 1.
Aggressive drilling with at least five rigs will resume the third week
of January to continue defining the principal Moly-Gold zone, as well
as tracing the new gold zone towards high-potential geochemical and
geophysical targets at Pozo Seco South generated during late 2009.
"On-going drilling at Pozo Seco has added 400 metres of strike
length to our potential stand-alone moly-gold zone and has identified a
new, very near surface high-grade gold zone that extends off to the
southwest towards a large multi-element geochemical anomaly" said
Dan MacInnis, MAG Silver President. "The gold and moly were
clearly introduced at separate times across overlapping and repeatedly
reactivated structural zones. The newly recognized near-by
multi-element geochemical anomaly that coincides with a very strong
underlying magnetic anomaly may reflect one of the major mineralization
centres we have been seeking and we will be drilling it
immediately."
MAG is also pleased to announce acquisition of a 150.8 hectare claim
which lies directly along the north western projection of the Pozo Seco
Molybdenum-Gold zone and completes control of the north western
extension of Pozo Seco.
Table 1.0 Highlights from Pozo Seco Moly-Gold Zone -------------------------------------------------------------------- HoleID: From To Interval Moly Moly Gold -------------------------------------------------------------------- metres metres metres ppm % g/t -------------------------------------------------------------------- CM09-141 0.00 64.85 64.85 1006 0.101 0.18 -------------------------------------------------------------------- Including 48.98 64.85 15.87 1672 0.167 0.35 -------------------------------------------------------------------- Including 60.73 64.85 4.12 4318 0.432 0.52 -------------------------------------------------------------------- CM09-142 3.25 42.62 39.37 1163 0.116 0.15 -------------------------------------------------------------------- Including 23.78 30.46 6.68 2212 0.221 0.21 -------------------------------------------------------------------- Including 35.58 42.62 7.04 1289 0.129 0.22 -------------------------------------------------------------------- CM09-143 No Significant Intercepts -------------------------------------------------------------------- CM09-144 30.38 74.35 43.97 1590 0.159 0.27 -------------------------------------------------------------------- Including 34.08 39.34 5.26 1873 0.187 0.59 -------------------------------------------------------------------- Including 62.79 67.20 4.41 4260 0.426 0.23 -------------------------------------------------------------------- Including 64.80 74.35 9.55 1560 0.156 0.47 -------------------------------------------------------------------- CM09-145 No Significant Intercepts -------------------------------------------------------------------- CM09-146 42.75 47.77 5.02 693 0.069 0.04 -------------------------------------------------------------------- CM09-147 69.80 73.15 3.35 2100 0.210 0.02 -------------------------------------------------------------------- CM09-148 No significant intercepts -------------------------------------------------------------------- CM09-149 No significant intercepts -------------------------------------------------------------------- CM09-150 4.95 9.36 4.41 39 0.004 1.99 -------------------------------------------------------------------- including 4.95 5.25 0.30 10 0.001 27.50 -------------------------------------------------------------------- CM09-152 No significant intercepts -------------------------------------------------------------------- CM09-153 95.87 112.46 16.59 96 0.010 0.42 --------------------------------------------------------------------
Additional drilling, Cinco de Mayo Project
Six additional holes have been completed recently along the 3 kilometre
long band of jasperoid outcrops that extend southeast from the Pozo
Seco. Holes 151, 154 and 155 to 158 were drilled between 500 and 3,500
metres from Pozo Seco. Hole 155 reported significant values: 2.19
metres (8.06 to 10.25 metre depth) ran 0.33 grams gold, with the
subsequent intercept (10.25 to 11.29 metre depth) running 1.54% zinc.
The remaining four holes had no significant results.
Table 2.0 Highlights from Jasperoid Zone drilling -------------------------------------------------------------------- HoleID: From To Interval Moly Moly Gold -------------------------------------------------------------------- metres metres metres ppm % g/t -------------------------------------------------------------------- CM09-151 No significant intercepts -------------------------------------------------------------------- CM09-154 No significant intercepts -------------------------------------------------------------------- CM09-155 8.06 10.25 2.19 33 0.003 0.33 -------------------------------------------------------------------- CM09-155 10.25 11.29 1.04 20 0.002 0.10 -------------------------------------------------------------------- CM09-156 No significant intercepts -------------------------------------------------------------------- CM09-157 28.33 28.79 0.46 4 0.0 0.08 -------------------------------------------------------------------- CM09-158 No significant intercepts --------------------------------------------------------------------
Geochemical Sampling, Pozo Seco South:
A systematic geochemical sampling program was begun in late 2009 on
several outcrop areas south and south west of the Pozo Seco moly-gold
zone. Over 200 samples have been taken to date, for which assays have
been received for about 150. Most of the results come from a 1
kilometre diameter alluvium-surrounded outcrop area lying about 1250
metres southwest of Hole 150 along the projection of the gold trend.
This area sits directly above a high on the strong positive magnetic
anomaly that underlies the entire Pozo Seco zone and is believed to
reflect an underlying intrusive body. The area is laced with
northwest-trending structures, many of which are silicified and some of
which contain 20-50 cm thick galena and tennantite-bearing barite
veins. The area shows consistently high gold, silver, copper, zinc,
lead, arsenic, antimony and mercury values (Table 3.0) and drilling
here will be undertaken immediately on rigs returning to the project.
Table 3.0. Summary of results from Surface Geochemical Sampling (N =
greater than 150)
Gold: Maximum of 4.38 grams per tonne; 18 samples exceed 0.66 g/t Silver: Maximum of 47.1 grams per tonne; 18 samples exceed 10 g/t Lead: Maximum of 78,600 ppm (7.8%); 35 samples exceed 2,500 ppm (0.25%) Copper: Maximum of 31,000 ppm (3.1%); 15 samples exceed 2,000 ppm (0.2%) Zinc: Maximum of 94,600 ppm (9.46%); 62 samples exceed 5,000 ppm (0.5%) Arsenic: Maximum of 1,745 ppm; 1 sample exceeds 500 ppm Antimony: Maximum of 211 ppm; 4 samples exceed 75 ppm Mercury(i): Maximum of 19 ppm; 51 samples exceed 1 ppm (i)Mercury was only analyzed for the first 100 samples.
About
Pozo Seco:
Pozo Seco (Dry Well) lies above a strong 2 by 3 kilometres positive
magnetic-high anomaly lying 4 kilometres southwest of the Jose Manto
(silver, lead, zinc). To date, sixteen vertical and two angle holes
have been drilled into molybdenum-gold or gold mineralization, starting
at or near the surface, in a broad, gently east-dipping, breccia
developed along the strong northwest-trending Lucia Fault zone. The
molybdenum mineralization gives way abruptly to gold mineralization at
the southeast end of the zone, but remains open to northwest.
Hole CM-87, drilled 900 metres north of the northernmost hole (CM-144)
in the Pozo Seco Moly-Gold zone was drilled just east of the projection
of the Lucia Fault. CM-87 reported 19.50 metres grading 0.30 grams gold
and .04% molybdenum which strongly suggests the Pozo Seco zone
continues significantly farther to the northwest.
Diagrams can be found on the website www.magsilver.com.
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.
To view the maps associated with this press release, please click on
the following link: http://media3.marketwire.com/docs/mag17.pdf
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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