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VANCOUVER,
BRITISH COLUMBIA--(Marketwire - July 10, 2009) - MAG Silver Corp. (TSX:MAG)(NYSE
Amex:MVG) ("MAG") is pleased to provide an update from the
June quarterly Technical Committee meeting of Minera Juanicipio SA, a
joint venture between Fresnillo Plc and MAG. In addition assay results
are reported for three definition drill holes along the Valdecanas Vein
and one exploration hole recently completed on the Juanicipio Vein. The
joint venture continues to execute the 2009 program where presently
there are 4 drills turning. Preliminary engineering studies and
detailed metallurgical work are also progressing.
The Juanicipio Joint Venture held its regularly scheduled quarterly
Technical Committee meeting on June 18, 2009 to review progress on the
2009 program. To date, Joint Venture expenditures amount to $US1.6
million and Fresnillo, as the operator, has completed 9,592 meters of
drilling. This represents 40% of the proposed drilling for the year,
with both drilling and expenditures consistent with that expected to
the end of May.
Drilling has included 6,032 meters on the Valdecanas Vein, 3,028 meters
on the Juanicipio Vein and almost 500 meters on the Encino Vein where
ground conditions continue to prove frustratingly difficult. The
committee is considering a proposal to be presented to the Minera
Juanicipio Board for review and possible approval, whereby an
additional 8,000 meters of drilling would be directed to the Valdecanas
Vein to maximize conversion from inferred to indicated resources.
Wardrop Engineering provided an updated draft report of the Scoping
Level Study (43-101) directed at a stand alone scenario for the
Valdecanas Vein. Fresnillo has already given Wardrop commentary and
recommendations on the report based on local experience operating in
Mexico, and MAG is preparing its observations, with final results
expected before the end of the third quarter.
Assay results have been received for four recent holes drilled on the
joint venture holdings. Three of the holes were drilled as part of the
planned 2009 infill drilling program designed to define the Valdecanas
Vein on one hundred meter centres as well as define the upper limit of
the Bonanza Zone. The remaining hole was an exploration hole drilled on
the Juanicipio Vein.
The most important results from this series are from Hole PE2, drilled
on the east-central portion of the Valdecanas vein. The assays report a
high grade silver and gold intercept of 8.85 meters (8.02 meters true
width) carrying 448 grams per tonne silver (13.1 ounces per ton (opt)),
5.70 g/t gold (0.17 opt), 1.68% lead and 4.21% zinc.
Holes PC and JB were drilled to define the top of the bonanza zone and
returned values consistent with expectations for intersections just
above the zone (see table below for details).
The fourth hole drilled, Hole 21P was on the Juanicipio Vein and this
hole intersected the vein almost 150 meters east of hole 20P and about
45 meters higher in elevation. Results are consistent with earlier
results at this elevation and details are included in the table below.
Drilling has now tracked the Juanicipio Vein for over 1 kilometre along
strike, with textures and metal values indicating that the vein is
being cut at a high level, potentially comparable to the irregular
uppermost portions of the Valdecanas Vein (Note zone above about 1800m
elevation on Long Section below). Results to date indicate that the
"top out" of the Juanicipio Vein lies at an elevation 100 to
150 metres deeper than that seen in the Valdecanas Vein, so the next
series of planned holes have been redesigned to seek the heart of the
Bonanza Zone 100-200 metres deeper.
Table 1 -------------------------------------------------------------------------- True Hole Width Silver Silver Gold Lead Zinc Width No Vein From To Metres g/t opt g/t % % Metres -------------------------------------------------------------------------- PE2 Valdecanas 652.10 660.95 8.85 448 13.1 5.70 1.68 4.21 8.02 -------------------------------------------------------------------------- Inc. 652.10 656.10 4.00 561 16.4 12.13 1.48 3.43 3.43 -------------------------------------------------------------------------- PC Valdecanas 580.35 581.45 1.10 92 2.7 0.28 0.03 0.19 0.95 -------------------------------------------------------------------------- JB Valdecanas 626.55 628.65 2.10 78 2.3 0.14 0.01 0.08 2.07 -------------------------------------------------------------------------- 21P Juanicipio 781.90 782.60 0.70 66 1.9 0.36 0.00 0.01 0.70 --------------------------------------------------------------------------
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. The Board also authorized $US 500,000 for development
engineering studies. One drill is currently operating on the Juanicipio
Vein, two drills are presently turning on the Valdecanas Vein and one
drill is operating in the Encino area.
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.
To view accompanying maps, please click on the following link: http://media3.marketwire.com/docs/MAGMaps.pdf
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