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VANCOUVER,
BRITISH COLUMBIA--(Marketwire - May 20, 2009) - MAG Silver Corp. (TSX:MAG)(NYSE
Amex:MVG) ("MAG") reports on behalf of Minera Juanicipio SA,
a 56/44 joint venture between Fresnillo plc ("Fresnillo") and
MAG, preliminary metallurgical results of combined recoveries in the
lead, zinc and pyrite (iron) concentrates are: 96% of the Silver; 88%
of the Gold; 90% of the Lead and 82% of the Zinc.
Conventional selective flotation tests were done on drill core
composites grading 812 grams per tonne (g/t) silver; 1.64 g/t gold;
1.86% lead; and 3.17% zinc, with grinding to 80% less than 40 microns,
to make lead, zinc and pyrite concentrates (see Table B below). Parameters
were similar to those in routine application at the nearby Fresnillo
Silver (lead, zinc) Mine, except that the test grind is slightly finer.
The concentrate grades and recoveries of silver, gold, lead, and zinc
in the selective flotation tests are satisfactory. Twenty percent of
the gold reports to the pyrite concentrate so processes to recover this
gold are under evaluation.
A $500,000 engineering budget, including a Scoping Level Study for a
stand alone mine on the Juanicipio Joint Venture is underway and
results are expected before the end of the second quarter.
"We are pleased, but not surprised, to see that preliminary
testing shows that mineralization from the Valdecanas Vein responds to
roughly the same metallurgical processes as are routinely used
next-door at the Fresnillo Mill," said Dan MacInnis, MAG Silver
President. "Combining these results with our newly updated
Indicated and Inferred Resource studies puts us two big steps forward
on the path to bringing the Valdecanas Vein towards production."
The operator of the Joint Venture, Fresnillo is also reporting that
drilling of the Encino Vein has started with Hole C17.
Certain drill results are also reported here on holes that tested the
modelled elevation of the Bonanza Zone on the Juanicipio Vein which
include the widest vein intercept on the Juanicipio Vein to date. To
date, all the holes drilled on the Juanicipio Vein show vein quartz
textures, barite, and the low base metal values typical of the
uppermost reaches of a bonanza zone like that encountered in the
Valdecanas Vein. Currently, Hole 21P is in progress on the Juanicipio
Vein at about this same level, but subsequent holes are planned to test
the vein at least 100 metres deeper than Hole 19P.
Hole RB was drilled on the eastern portion of
the Valdecanas Vein to define the uppermost limits of the Bonanza Zone,
almost 100 metres up dip from recently reported Hole RC. As expected, a
very narrow intercept was encountered carrying insignificant values. This
hole effectively defines the upper limit of the vein near the eastern
boundary of the Joint Venture.
At this time three holes (PC, PE and JB) are in progress on the
Valdecanas Vein and are part of the proposed 5,000 metre definition
drill program for 2009.
In the last week of March, a drill was assigned to the Encino Vein and
drilling was started with Hole C17. This hole is targeted to intersect
the Encino Vein up dip and within 50 metres of the intercept reported
in Hole JI-06-IE. This hole is the initiation of an 8,000 metre
proposed drill program for 2009 on the Encino Vein. (See diagrams at: http://media3.marketwire.com/docs/mag520diagrams.pdf.)
The overall 2009 exploration program proposes a minimum of 24,000
metres of drilling focused on the Valdecanas Vein, Juanicipio Vein, the
Encino Vein and new exploration targets. One drill is currently
operating on the Juanicipio Vein, three drills are presently turning on
the Valdecanas Vein and one drill is operating on the Encino Vein.
"TABLE A" --------------------------------------------------------------------------- Silver Silver Gold True Hole No Vein From To Width g/t opt g/t Lead Zinc Width --------------------------------------------------------------------------- 19Q Juanicipio 656.55 660.60 4.05 133 3.80 2.66 0.03 0.10 3.10 --------------------------------------------------------------------------- 16Q Juanicipio 683.30 684.35 1.05 75 2.2 0.62 0.07 0.42 0.27 --------------------------------------------------------------------------- JI-09-RB Valdecanas 505.40 506.30 0.90 4.80 0.14 0.02 0.00 0.02 0.16 --------------------------------------------------------------------------- "TABLE B" METALLURGICAL BALANCE Minera Juanicipio - Valdecanas Project ------------------------------------------------------------------ Assays ------------------------------------------------------------------ Weight Au Ag Pb Zn Cu Fe Product (%) (g/t) (g/t) (%) (%) (%) (% ------------------------------------------------------------------ Feed 1.64 812 1.86 3.17 0.11 9.66 ------------------------------------------------------------------ Lead Conc. 3.9 25.92 17,498 42.58 7.84 0.83 9.76 ------------------------------------------------------------------ Zinc Conc. 5.2 1.94 898 0.55 50.30 0.45 9.62 ------------------------------------------------------------------ Iron Conc. 15.0 2.14 366 0.30 0.25 0.03 32.93 ------------------------------------------------------------------ Tails 75.9 0.27 33 0.16 0.29 0.06 5.05 ------------------------------------------------------------------ ------------------------------------------------------------------ Distribution (%) ------------------------------------------------------------------ Weight Product (%) Au Ag Pb Zn Cu Fe ------------------------------------------------------------------ Feed 100.0 100.0 100.0 100.0 100.0 100.0 ------------------------------------------------------------------ Lead Conc. 3.9 62.0 84.4 89.7 9.7 29.6 4.0 ------------------------------------------------------------------ Zinc Conc. 5.2 6.1 5.7 1.5 82.1 21.3 5.2 ------------------------------------------------------------------ Iron Conc. 15.0 19.6 6.8 2.4 1.2 4.6 51.2 ------------------------------------------------------------------ Tails 75.9 12.3 3.1 6.4 7.0 44.4 39.7 ------------------------------------------------------------------
Details of Metallurgical Testwork
Testing for mineralogical characterization, recovery process definition
and basic milling engineering studies has been done in CIDT
laboratories on composite samples taken from 10 diamond drill hole
intercepts spaced along the length and height of the Valdecanas Vein.
Mineralogy at Valdecanas is fine-grained and dominated by galena,
sphalerite, pyrite and chalcopyrite with silver sulphides (principally
acanthite a.k.a. "argentite") and silver sulphosalts
(principally pyrargyrite) in a quartz-calcite-aluminosilicate gangue. 85%
of the silver is contained in acanthite and pyrargyrite, gold
dominantly occurs with silver as electrum (80%) and in pyrite (20%). The
sphalerite carries about 53% Zn with 10% Fe. Average Work Index is
17.4, which is consistent with the gangue mineralogy dominated by
quartz and aluminosilicates.
The testwork indicates specific recoveries in the lead concentrate of:
62% of the gold; 84% of the silver; 89.7% of the lead, and 9.7% of the
zinc. Recoveries in the zinc concentrate are: 6.1% of the gold; 5.7% of
the silver; 1.5% of the lead; and 82% of the zinc. Recoveries in the
pyrite concentrate are: 19.6% of the gold; 6.8% of the silver; 2.4% of
the lead, and 1.2% of the zinc.
Overall the grades and recoveries of silver, lead, zinc and gold in the
selective flotation tests are satisfactory considering the fine-grain
size and galena-sphalerite-pyrite-gangue mineralogical assemblage. However,
grinding to 80% less than 40 microns increases the liberation of galena
and sphalerite to 93 and 86% respectively, with a concomitant
improvement in recovery of silver and gold.
Approximately 20% of the gold and 7% of the silver reports to the
pyrite concentrate and recovery of gold and silver from these are being
tested in more depth. Preliminary cyanidation testing of these pyrite
concentrates, remilled to 80% less than 5 microns, indicates potential
recoveries of approximately 80% of the gold and 90% of the silver in
these concentrates.
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 Penoles 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 the Joint Venture
The 8,000 hectare Juanicipio property is located in Zacatecas State,
Mexico just outside the mining town of Fresnillo. The Fresnillo mine
area has been in continuous production since the 1500's and today is
host to the world's largest producing primary silver mine operated by
Fresnillo plc. The Fresnillo/MAG Juanicipio Joint Venture lies 5
kilometres west from the principal production head-frame of the
Fresnillo Mine and 1.5 kilometres west from the Saucito Vein, currently
undergoing preproduction development with construction of a 600 metre
shaft and a 2,200 metre decline. Fresnillo operates the delineation and
exploration program on behalf of the joint venture company, Minera
Juanicipio S.A. DE C.V.
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. 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
Amex 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 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 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.
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