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VANCOUVER,
BRITISH COLUMBIA--(Marketwire - Nov. 10, 2009) - MAG Silver Corp. (TSX:MAG)(NYSE
Amex:MVG) ("MAG") is pleased to announce strong gold and
molybdenum assay results from initial follow-up drilling of the Pozo
Seco Moly-Gold discovery on its 100% owned Cinco de Mayo property in
northern Chihuahua State, Mexico (see Press Release of September 23,
2009). The results of this step-out drilling show significant gold
values in close association with the high grade molybdenum
mineralization.
Hole CM09-139 is the best of the new holes, returning 0.73 grams per
tonne (g/t) gold with 0.35% molybdenum over 57.34 metres (18.63 to
75.97 metre depth), including 15.27 metres (31.15 to 46.42 metre depth)
grading 1.66 g/t gold and 0.60% molybdenum. Significant results have
also been encountered in the three adjoining holes (see table below),
which combine to show the host environment as a near-surface,
flat-lying and well-mineralized breccia. Holes CM09-137 and 138 are
angle holes designed to seek a feeder for the flat-lying mineralized
breccia and both holes intersected possible feeder candidates. The
holes reported here are the first six holes out of a proposed 20 hole,
2,000 metre program drilled on a 200 metre grid centred on discovery
Hole CM09-130 (75.2 metres of 0.31% Mo). An additional twelve holes for
which assays are pending have been drilled to date on 200 metre step
outs along a north-west to south-east trend. Details of assays received
are provided below in the table and map (to view the map please click
on: http://media3.marketwire.com/docs/mag1110.pdf).
"Follow-up drilling at Pozo Seco is yielding stronger and
increasingly more consistent gold values associated with high grade
moly over appreciable widths, significantly enhancing the potential
that a coherent near-surface, stand-alone, high-grade molybdenum-gold
target exists in the area," said Dan MacInnis, MAG Silver
President. "These results are also highly important in the context
of the overall Cinco de Mayo system as the extent of the moly-gold zone
here is rapidly growing larger than that known in any other CRD
system."
Table: Highlights from Pozo Seco Moly (gold) Zone --------------------------------------------------------------------------- Inter- Hole From: To: val Mo Mo Au Pb Zn Ag No. m m m ppm % g/t % % g/t --------------------------------------------------------------------------- CM09-131 102.63 106.54 3.91 1154 0.12 0.16 0.00 0.01 0.3 --------------------------------------------------------------------------- CM09-131 168.34 169.53 1.19 90 0.33 0.00 0.00 0.3 --------------------------------------------------------------------------- CM09-133 no significant results --------------------------------------------------------------------------- CM09-137 37.11 88.54 51.43 1,821 0.18 trace 0.00 0.00 0.3 --------------------------------------------------------------------------- CM09-137 44.42 56.31 11.89 2,755 0.28 trace 0.00 0.01 0.3 --------------------------------------------------------------------------- CM09-137 44.42 45.52 1.10 12,720 1.27 trace 0.00 0.00 0.4 --------------------------------------------------------------------------- CM09-138 51.34 78.36 27.02 2,205 0.22 0.22 0.00 0.02 1.5 --------------------------------------------------------------------------- CM09-138 76.04 78.36 2.32 11,290 1.13 0.32 0.00 0.06 0.5 --------------------------------------------------------------------------- CM09-139 18.63 75.97 57.34 3,498 0.35 0.73 0.03 0.13 1.4 --------------------------------------------------------------------------- CM09-139 31.15 46.42 15.27 6,004 0.60 1.66 0.08 0.05 2.1 --------------------------------------------------------------------------- CM09-140 34.33 82.09 47.76 1,149 0.11 0.34 0.01 0.05 3.9 --------------------------------------------------------------------------- CM09-140 34.33 53.17 18.84 2,356 0.24 0.72 0.01 0.04 9.0 ---------------------------------------------------------------------------
Additional drilling, Cinco de Mayo
Project
Four additional holes lacking significant results have been completed
recently outside the Pozo Seco area. Hole CM09-132 was drilled
approximately 1 kilometre southeast of and well off the Pozo Seco
"trend", and Holes CM09-134, 35 and 36 were drilled 5 kilometres
south of Pozo Seco at Sierra Ruso in areas outboard of the silver
bearing breccia cut in Hole 127, and reported September 23, 2009.
About Pozo Seco:
Pozo Seco ("dry well" in Spanish) lies above a strong 2 by 3
kilometres positive magnetic anomaly lying 4 kilometres southwest of
the Jose Manto. To date, six vertical and two angle holes have been
drilled into molybdenum-gold mineralization, starting at or near the
surface, in a broad, gently east-dipping, breccia. Two holes (CM-131
and 133) were drilled east of the limit of consistent high-grade
moly-gold mineralization within the breccia. Angle holes (CM-137 and
138) were drilled north and west of discovery hole CM-130 to seek
high-angle feeders for the flat-lying Pozo Seco Breccia. Both hit
narrow, high-angle features with strong moly but modest gold values.
Currently, effort is focused on drilling vertical offsets to discovery
Hole CM-130 on a 200 metre grid centred on a NW-SE trending axis
through a combination of Hole CM-130 and a series a strong, multi-stage
jasperoid breccia outcrops that show the same strong NW-SE fabric. Twelve
of these holes have been drilled and assays are pending; three more
holes remain to be drilled on the preliminary grid.
Diagrams can be found on the website www.magsilver.com.
About Cinco de Mayo:
Cinco de Mayo is a 15,000 hectare property straddling the same
regionally-mappable structure that contains the largest Carbonate
Replacement Deposits (CRDs) in Chihuahua. Exposures are very limited,
so exploration is guided by MAG's CRD exploration model, airborne
magnetic and VTEM and ZTEM surveys, surface mapping of the sparse
outcrops, and drilling. Results to date indicate the presence of a deep
2 by 3 kilometre intrusive center with high-level intrusive offshoots
lying beneath a high limestone ridge, flanked by a series of prominent
linear magnetic lows that coincide with NW-SE structural zones created
during pre-mineral regional thrust faulting. The Jose Manto and Pozo
Seco trends have poor to no outcrop, but have yielded the best results.
At least three other trends, some marked by pervasive silicification
(jasperoid) locally carrying strongly anomalous (greater than 200 ppb)
gold values, remain to be tested.
Overall, drilling has encountered strong CRD-skarn style mineralization
and alteration in a number of areas within the roughly 8 by 16
kilometres Cinco de Mayo property with very few drillholes completely
lacking mineralization in these drilled areas. The ability to test the
system with such large drilling step outs is testimony to the
widespread development and potential size of this carbonate replacement
(CRD) system. Recent drilling has focused on locating the central
(proximal) intrusive source for the system, to which outer (distal)
styles of mineralization should be zonally related. Strong molybdenum
mineralization in silicified breccias above the large regional positive
magnetic anomaly is comparable to what is seen in the proximal parts of
several major Mexican and US CRD systems and is consistent with what
MAG's CRD exploration model predicts. Development of increasingly
distal mineralization styles in structural corridors leading outward
from this centre is also consistent with the model. Despite these significant
advances in the understanding of this system, this must still be
considered an early-stage project.
Cinco de Mayo is held 100% by MAG and is one of six other district
scale projects operated by MAG.
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 new molybdenum-gold and silver-lead-zinc
discoveries at its 100% owned Cinco de Mayo 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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