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VANCOUVER, BRITISH
COLUMBIA--(Marketwire - July 15, 2009) - MAG Silver Corp. (TSX:MAG)(NYSE
Amex:MVG) ("MAG") reports that it has executed an option
agreement to acquire 100% interest subject to a 1.5% Net Smelter
Royalty in the San Ramone property in Zacatecas State, Mexico. The San
Ramone property combined with MAG's existing adjoining holdings at
Lagartos SE, gives MAG control of a significant portion of the eastern
part of the historic Mala Noche silver vein system. The Lagartos SE
area which has been a major focus of MAG's exploration efforts in the
region is located 93 kilometres south of the Fresnillo District and the
site of the Valdecanas vein discovery.
"The Zacatecas district is the next major producing silver
district along the Fresnillo Silver Trend in Mexico. We see a similar
discovery potential using the same disciplined exploration approach,
adjacent to producing veins, that has led to our success in the
historic Fresnillo area," said Dan MacInnis, President and CEO of
MAG.
Under the four year agreement MAG may acquire a 100 per cent interest,
from Castle Resources Limited (TSX VENTURE:CRI), in the property
subject to certain cash payments and work commitments. The San Ramone
property is comprised of eight mineral concessions totaling 312.2
hectares situated approximately five kilometres northeast of the city
of Zacatecas and immediately adjoining MAG Silver's large Lagartos
south-east property (to view the attached diagram please click on http://media3.marketwire.com/docs/mag715.jpg and website at www.magsilver.com). The property covers the east portion of a former productive
vein system that is one of the six principal high grade gold and silver
vein sets comprising the Zacatecas Silver district. These vein systems
have had significant past production of high grade gold and silver
mineralization and production on the Mala Noche continues today from
the San Roberto mine operated by Cozamin almost six kilometres west of
the San Ramone area.
MAG recognizes that the Zacatecas District as the only major past
producing silver province in Mexico that has not seen the same level of
modern exploration as have many of the other significant silver
districts. This new acquisition is in keeping with MAG's exploration
philosophy that the Zacatecas district is host to significant
extensions of many of the high grade vein systems. MAG controls all of
the ground along the east and west flanks of this district and the San
Ramone property acquisition adds significantly to MAG's coherent
holdings along the east side.
The basic terms of the option agreement commit MAG Silver to expend
US$500,000 during the first year and make a US$75,000 payment on
signing of the agreement. For subsequent years, at its option, MAG is
also required to make work expenditures of US$500,000 during the second
year of the option, US$1,000,000 during the third year of the option,
and US$1,250,000 during the fourth year of the option for total work
related expenditures of US$3,250,000. In addition, MAG Silver has also
agreed to an optional cash payment of US$750,000 on or before the fifth
anniversary of the agreement. Castle will retain a 1.5% NSR in the
project.
About Lagartos SE: The Lagartos SE and the Lagartos NW comprise two
very large and separate claim groups lying along a southeast to
northwest mineralized silver trend centred on Fresnillo. The properties
lay along the "Fresnillo Silver Trend", a large regional
structural zone hosting the world class Guanajuato, Zacatecas, and
Fresnillo epithermal Silver-Gold vein districts. All of the known deposits
were found in outcrop between 350 and 500 years ago. It is believed
that significant vein systems lie covered by the recent alluvial soils
that mask over 60% of the trend. It has been shown that the application
of modern exploration technology is able to aid in the detection and
the exploration for mineralization hidden beneath this alluvial cover.
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.
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. 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 Amex
has reviewed or accepted responsibility for the accuracy or adequacy of
this news release, which has been prepared by management.
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