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 Vancouver, B.C�MAG Silver Corp. (TSX:MAG)
(NYSE-A:MVG) (�MAG�) has been advised by the operator of the Juanicipio
Joint Venture that a new high grade vein appears to have been discovered as
a result of detailed drilling in the vicinity of the Valdeca�as Vein.
Re-interpretation of a previously) reported intersection of high grade gold
and silver in Hole JI-06-IE, (1,843 grams per tonne (g/t)) (53.7 ounces per ton
(opt)) silver, 4.43 g/t gold, 3.54% lead and 5.96% zinc over a true width
of 3.41 metres
(see press release dated June 12, 2007) shows that this is a new and
separate north-dipping vein named the �Encino�. The Encino Vein lies
in the hanging wall about 200 metres above the south dipping
Valdeca�as Vein and dips back towards it (see section attached and www.magsilver.com for diagram).
The Encino Vein was not
previously recognized because initial drilling in the area, directed at the
Valdeca�as Vein, was either parallel to and/or in front of this
structure. Earlier interpretations concluded that the intersection in
Hole JI-06-IE was the down-dip extension of the Valdeca�as Vein, but
subsequent nearby intercepts of the Valdeca�as Vein show that such geometry
is improbable. In addition this new interpretation indicates that JI-06-IE
did not intersect the Valdeca�as Vein, so the Valdeca�as Vein at this time
remains open down-dip on section I.
Similar, closely-spaced
vein sets with opposing dips are common in the overall Fresnillo Silver
district. The Encino Vein appears open along strike in both
directions and its intercept with the Valdeca�as Vein provides an excellent
exploration target.
The Encino Vein
features prominently in the 2009 proposed exploration program presented at
a recent Minera Juanicipio SA Technical Committee by Fresnillo plc, the
operator of the Juanicipio Joint Venture. In order to test and assess this
preliminary interpretation of the �Encino Vein�, the project operator has
allocated 8,000
metres of drilling from a proposed 25,000 metre
program for 2009. The objective of the 2009 drill program will be to
confirm and follow up on the Encino Vein as well as to further explore the
Valdeca�as Vein, Juanicipio Vein, and other drill targets. The 2009
preliminary budgeted program is subject to approval by the board of Minera
Juanicipio, the 56%/44% Fresnillo / MAG Joint Venture Company. A full
board meeting is scheduled for late January.
Quality Assurance and Control: The samples 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 other recognized lab). The bulk reject is subsequently sent
to CIDT (Center for Investigation and Technical Development) of Pe�oles in
Torreon, 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 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 a vendor of one project, other than Juanicipio, 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 Joint Venture in
Zacatecas State, Mexico. The joint venture has outlined an initial inferred
resource estimate of 237.8 million ounces of silver (see press release
dated June 18, 2008). MAG�s 44% interest equates to 104.5 million
ounces of silver. In addition to the silver resource the estimate
also reports a total inferred resource of 480,000 ounces
of gold and almost 1 billion pounds of combined lead and zinc (457,700
tonnes). (Investors should refer to the June 18, 2008 press release
for disclaimer information regarding resources). Fresnillo plc has made an
unsolicited bid for all of the outstanding shares of MAG Silver. 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. Its common shares trade on the TSX under the symbol MAG and on the
NYSE Alternext US (formerly AMEX) under the symbol MVG.
On behalf of the Board
of
MAG SILVER CORP.
"Dan MacInnis"
President and CEO
For further information
on behalf of MAG Silver Corp.
Contact Gordon Neal, VP
Corp. Development
Website: www.magsilver.com
Phone (604)
630-1399
Toll free: (866)
630-1399
Email:
info@magsilver.com
Fax:
(604) 484-4710
Neither the Toronto
Stock Exchange nor the New York Stock Exchange Alternext US LLC has
reviewed or accepted responsibility for the accuracy or adequacy of this
news 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 theUS 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, 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
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