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VANCOUVER, BRITISH
COLUMBIA--(Marketwire - Dec. 1, 2010) - MAG
Silver Corp. (TSX:MAG)(NYSE Amex:MVG)
("MAG" or the "Company") announces an independent
updated mineral resource estimate for the Juanicipio
Property made by Scott Wilson Roscoe Postle
Associates Inc. (Scott Wilson RPA) on behalf of MAG Silver. The Juanicipio property, located in the Fresnillo District, Zacatecas State, Mexico, is
owned and operated by Minera Juanicipio S.A. de C.V., a Mexican incorporated
joint venture company held 56% by Fresnillo
plc and 44% by the Company. The updated mineral resource estimate is
based on drill results available to September 8, 2010 and used methods
similar to the previous estimate of March 2009. A National Instrument
43-101 technical report documenting the mineral resource estimate will
be filed on SEDAR within 45 days.
Indicated Mineral Resources are now estimated to total 5.20 million tonnes of 662 grams per tonne
(g/t) (19.3 ounces per ton (opt)) silver, 1.92 g/t gold, 1.78% lead,
and 3.66% zinc at an NSR cut-off value of US$50 per tonne.
Total contained metals in the Indicated Resource are 110.8 million
ounces of silver, 321,300 ounces of gold, 204.4 million pounds of lead,
and 419.7 million pounds of zinc. At the same cut-off value of US$50
per tonne, Inferred Mineral Resources are
estimated to total 7.72 million tonnes of 376
g/t (11.0 opt) silver, 1.56 g/t gold, 1.53% lead, and 2.74% zinc. The
Inferred Resources contain an additional 93.3 million ounces of silver,
387,200 ounces of gold, 260.7 million pounds of lead, and 466.1 million
pounds of zinc.
The Indicated Mineral Resources are located exclusively in the Valdecanas Main Vein and Hanging Wall Vein #1. The
Inferred Mineral Resources are contained within the Valdecanas
Main Vein, several hanging and footwall veins and in a stockwork zone located within the Valdecanas structure. For the first time, an
Inferred Resource is included for the Juanicipio
Vein, located 1100 metres to the south of the
Valdecanas Vein. Note that the Juanicipio Vein estimates do not include new Hole
18R (reported in detail below) that cut 1.56 metres
(true thickness) grading 4,223 g/t (123 opt) silver, 2.97 g/t gold,
5.57% zinc, and 3.00% lead.
"We are pleased, but not surprised, to have added over 2 million tonnes and more than 27 million ounces of silver
and 111 thousand ounces of gold to our Indicated Resources," said
Dan MacInnis, MAG's President and CEO.
"The 77% increase in Indicated tonnes
shows a much larger high grade mineral inventory for the Prefeasibility
Study anticipated by the end of the year, when compared to the 2009
Scoping Study (see www.sedar.com).
The increase was largely achieved by infill drilling that elevated over
2 million tonnes from the Inferred category
to Indicated. Inferred tonnes stayed
basically the same thanks to drilling outside the previous resource
area that replaced the elevated tonnes with 2
million new tonnes. Using mining rate
estimates from our 2009 Scoping Study, these increases add over 3 years
to our estimated mine life. We are also pleased to have an Inferred
Resource on our original discovery, the Juanicipio
Vein, and look forward to seeing what the new exceptionally high-grade
intercept in hole 18R may add to resources there over time."
Table 1 - Mineral Resource Estimate for the Juanicipio Project as of September 8, 2010 --------------------------------------------------------------------------- Silver Gold Lead Zinc Silver Gold Lead Zinc Tonnage (Ag) (Au) (Pb) (Zn) NSR (Ag) (Au) (Pb) (Zn) --------------------------------------------------------------------------- M t g/t g/t % % US$/t M oz K oz M lbs M lbs --------------------------------------------------------------------------- INDICATED --------------------------------------------------------------------------- Valdecanas 4.81 645 1.87 1.82 3.77 346 99.7 288.4 193.2 400.0 Main Vein --------------------------------------------------------------------------- Hanging Wall 0.40 868 2.57 1.28 2.25 430 11.1 32.9 11.2 19.7 Vein 1 --------------------------------------------------------------------------- Total 5.20 662 1.92 1.78 3.66 352 110.8 321.3 204.4 419.7 Indicated --------------------------------------------------------------------------- INFERRED --------------------------------------------------------------------------- Valdecanas 5.04 386 1.72 1.90 3.37 243 62.6 278.0 211.1 374.1 Main Vein --------------------------------------------------------------------------- Footwall 0.79 510 0.69 0.51 0.82 231 12.9 17.5 8.8 14.1 (Desprendido) Vein --------------------------------------------------------------------------- Hanging Wall 0.12 554 0.53 0.75 1.54 232 2.2 2.1 2.0 4.2 Vein 1 --------------------------------------------------------------------------- Hanging Wall 0.35 802 1.17 1.79 3.68 368 9.0 13.1 13.8 28.3 Vein 2 --------------------------------------------------------------------------- Footwall 0.19 136 1.21 2.97 4.55 139 0.8 7.3 12.3 18.9 Vein 2 --------------------------------------------------------------------------- Stockwork 0.97 37 1.03 0.52 1.07 51 1.2 32.3 11.0 22.9 Zone --------------------------------------------------------------------------- Juanicipio 0.26 553 4.37 0.28 0.63 337 4.7 36.8 1.6 3.6 Vein --------------------------------------------------------------------------- Total 7.72 376 1.56 1.53 2.74 224 93.3 387.2 260.7 466.1 Inferred --------------------------------------------------------------------------- Footnotes: 1. CIM Definition Standards have been followed for classification of mineral resources. 2. Mineral resources are reported at a NSR value cut-off of US$50/tonne. NSR values are calculated in US$ using factors of $0.42 per g/t Ag, 3. $21.25 per g/t Au, $9.73 per % Pb and $8.14 per % Zn. These factors are based on metal prices of US$16.00/oz Ag, US$1000/oz Au, $0.80/lb Pb and $1.00/lb Zn and estimated recoveries and smelter terms. 4. The mineral resource estimate uses drill hole data available as of September 8, 2010. 5. Mineral resources are not mineral reserves and do not have demonstrated economic viability. 6. Totals may not add correctly due to rounding.
Resource Estimation Details
The Juanicipio drill hole
database includes 107 diamond core holes totaling 87,731 metres drilled prior to September 8, 2010. A set of
cross sections and plan views were interpreted to construct
three-dimensional wireframe models of the mineralized veins using the
descriptive logs, a minimum NSR value of approximately US$50 per tonne, and a minimum thickness of 1.5 metres. Prior to compositing to two metre lengths, high grades were cut to 6,000 g/t
silver, 16 g/t gold, and 15% for both lead and zinc. Grades and density
were estimated using inverse distance cubed. All blocks within the
wireframes are reported as mineral resource. Approximately 2% of the
Indicated tonnes and 7% of the Inferred tonnes have values less than US$50 per tonne but are included for continuity. Much of the Stockwork Zone has NSR values less than US$50 per tonne, but it is included as mineral resource
because it represents incremental tonnage adjacent to the Valdecanas and Footwall Veins. Classification into
the Indicated and Inferred categories was guided by the drill hole density and the apparent continuity of the
mineralized zones.
Comparison with Previous Results
Table 2 compares the current and previous mineral resource estimate
made by Scott Wilson RPA. The 77% increase in Indicated tonnage
reflects the closer spaced drilling and improved confidence in the
grade continuity. The addition of Inferred resources along and across
strike more than offsets the elevation of resources to the Indicated
category. Slight decreases in average grades in both the Indicated and
Inferred categories are due to the addition of lower grade material
both up and down dip of the main, high grade core.
Table 2 - Comparison of Current and Previous Mineral Resource Estimates --------------------------------------------------------------------------- Silver Gold Lead Zinc Silver Gold Lead Zinc Tonnage (Ag) (Au) (Pb) (Zn) (Ag) (Au) (Pb) (Zn) --------------------------------------------------------------------------- M t g/t g/t % % M oz K oz M lbs M lbs --------------------------------------------------------------------------- Current Estimate --------------------------------------------------------------------------- Indicated 5.20 662 1.92 1.78 3.66 110.8 321 204.4 419.7 --------------------------------------------------------------------------- Inferred 7.72 376 1.56 1.53 2.74 93.3 387 260.7 466.1 --------------------------------------------------------------------------- March 2009 Estimate --------------------------------------------------------------------------- Indicated 2.95 879 2.22 2.39 4.15 83.3 210 155.2 269.4 --------------------------------------------------------------------------- Inferred 7.21 458 1.54 1.89 3.14 106.1 356 301.0 498.2 --------------------------------------------------------------------------- Difference --------------------------------------------------------------------------- Indicated 2.26 -217 -0.30 -0.61 -0.49 27.5 111.35 49.2 150.3 --------------------------------------------------------------------------- Inferred 0.52 -82 0.02 -0.36 -0.40 -12.8 31.00 -40.3 -32.1 --------------------------------------------------------------------------- Percent Difference --------------------------------------------------------------------------- Indicated 77% -25% -13% -25% -12% 33% 53% 32% 56% --------------------------------------------------------------------------- Inferred 7% -18% 1% -19% -13% -12% 9% -13% -6% ---------------------------------------------------------------------------
Exploration Results for the Juanicipio Vein
Drilling continues on the Juanicipio Vein,
primarily in the area around the Inferred Resource mentioned above (see
Longitudinal Section: http://media3.marketwire.com/docs/MVGJuanicipioVein.jpg).
The Juanicipio Vein lies 1.1 kilometers south
of the Valdecanas Vein and was discovered in
the first hole drilled in the Juanicipio
Claim by MAG Silver in 2003. Overall, the Juanicipio
Vein behaves more erratically in width and grade than the Valdecanas Vein, but the local extremely high
grades maintain high exploration interest. The general textural and
grade patterns of the Juanicipio Vein suggest
that its Bonanza Zone lies deeper than that of the Valdecanas
Vein, which is consistent with well documented vertical and lateral
shifts in the centres of mineralization over
time in the Fresnillo District.
The best of the recent holes is Hole 18R, which cut 1.56 metres (true thickness) reporting 4,223 g/t (123.2
opt) silver, 2.97 g/t gold, 3.00% lead and 5.57% zinc. Hole 18.5R, drilled 125 metres
west of 18R cut a wider (3.55 metre true
width thickness) segment of the vein, with significant but lower grades
(see Table 3). More importantly, hole 18.5R cut several hanging wall
veins, the first seen along the Juanicipio
Vein; the most important of these is 0.55 metre
wide and carries 453 g/t (13.2 opt) silver. Hole 17.5 R is currently in
progress to determine if the mineralization cut in 18.5R continues to
depth.
Table 3- Juanicipio Vein Drilling Results --------------------------------------------------------------------------- Gold Silver Lead Zinc True Hole From To (Au) (Ag) (Pb) (Zn) Width --------------------------------------------------------------------------- Number m m g/t g/t % % (metres) --------------------------------------------------------------------------- 18P 627.60 628.2 1.47 4,100 2.02 4.07 (i)0.60 --------------------------------------------------------------------------- 18R 754.70 756.5 2.97 4,223 3.00 5.57 1.56 --------------------------------------------------------------------------- 18.5R HW 880.90 882.5 0.28 453 0.19 0.92 0.55 --------------------------------------------------------------------------- 18.5R 889.65 894.0 0.43 548 0.34 1.20 3.55 --------------------------------------------------------------------------- 18Q 719.85 720.7 0.27 55 1.54 2.00 (i)0.85 --------------------------------------------------------------------------- 19R 921.60 922.2 2.09 731 10.50 7.66 0.52 --------------------------------------------------------------------------- (i) Represents core length
Qualified Person - Resource: The Mineral
Resources for the Juanicipio Property
disclosed in this press release have been estimated by Mr. David Ross, P.Geo.,
an employee of Scott Wilson RPA and independent of MAG. By virtue of
his education and relevant experience Mr. Ross is a "Qualified
Person" for the purpose of National Instrument 43-101. The Mineral
Resources have been classified in accordance with CIM Definition
Standards for Mineral Resources and Mineral Reserves, (December 2005).
Mr. Ross, P.Geo. has
read and approved the contents of this press release as it pertains to
the disclosed mineral resource estimate.
Qualified Person- Exploration: 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 remaining technical information in this release. Dr. Megaw has a Ph.D. in geology and more than 20 years
of relevant experience focused 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.
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.
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 is conducting ongoing exploration of
its portfolio of 100% owned properties in Mexico including a silver,
lead and zinc discovery and a moly-gold
discovery at its 100% owned Cinco de Mayo
property in Chihuahua State. MAG and Fresnillo
plc are jointly delineating a significant new silver vein discovery on
the Juanicipio Joint Venture in Zacatecas
State. 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, CEO & Director
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 Investors Concerning Estimates of Indicated
Resources
This press release uses the term "Indicated Resources". MAG
advises investors that although this term is recognized and required by
Canadian regulations (under National Instrument 43-101 - Standards of
Disclosure for Mineral Projects), the U.S. Securities and Exchange
Commission does not recognize this term. Investors are cautioned not to
assume that any part or all of mineral deposits in this category will
ever be converted into reserves.
Cautionary Note to Investors Concerning Estimates of Inferred Resources
This press release uses the term "Inferred Resources". MAG
advises investors that although this term is recognized and required by
Canadian regulations (under National Instrument 43-101-Standards of
Disclosure for Mineral Projects), the U.S. Securities and Exchange
Commission does not recognize this term. Investors are cautioned not to
assume that any part or all of the mineral deposits in this category
will ever be converted into reserves. In addition, "Inferred
Resources" have a great amount of uncertainty as to their
existence, and economic and legal feasibility. It cannot be assumed
that all or any part of an Inferred Mineral Resource will ever be
upgraded to a higher category. Under Canadian rules, estimates of
Inferred Mineral Resources may not form the basis of feasibility or
pre-feasibility studies, or economic studies except for Preliminary
Assessment as defined under Canadian National Instrument 43-101.
Investors are cautioned not to assume that part or all of an Inferred
Resource exists, or is economically or legally mineable.
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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