MAG Silver Corp. (MAG: TSX / NYSE A)
(“MAG” or the
“Company”) reports the
discovery of the northeast (“NE”) oriented
‘Venadas
Vein” within the Minera Juanicipio Joint Venture Property
(Fresnillo plc 56% / MAG 44%).
Highlights:
- New Venadas Vein discovery is the first ever
mineralized vein in the Fresnillo district oriented at a high angle
(NE) to the historically mined northwest (“NW”) oriented
veins.
- Venadas intercepts lie at a very high-level in the vein zoning
model, suggesting considerable depth potential.
- Larger NE structures with intense surface alteration are known
within the Juanicipio property and are now high priority
exploration targets. None have ever been directly drilled.
The NE-oriented Venadas Vein was inferred from
the alignment of fifteen previously unconnected intercepts (See
Table 1, Figures 1 & 2) before being cut in an
underground development working as a 1.1 metre (“m”) wide
vein, reporting 116 grams per tonne (“g/t”) (3.4
ounces per ton (“opt”)) silver, 3.16 g/t gold.
VEN-1, the first drill hole specifically
designed to test the Venadas Vein, cut 3.0 m (drilling
width) grading 392 g/t (11.5 opt) silver and 5.54 g/t
gold. All intercepts contain negligible base metals and
lie above 1,750 m elevation, with most significantly higher than
the top of the Valdecañas Vein at 1850 m elevation.
This indicates a very high-level overall
position in the vein zoning model, suggesting that Venadas has
considerable depth potential.
Venadas is the first ever mineralized vein in
the overall Fresnillo District oriented at a high angle to the
historically mined NW oriented veins. Notably, other much
larger NE structures with intense surface alteration are known
farther afield within the Juanicipio property and are now priority
exploration targets. None have ever been directly
drilled.
“This is an entirely new and previously
unrecognized vein trend that runs opposite to the expected
NW-orientations shown by veins mined for nearly 500 years
throughout the known parts of the Fresnillo District. The JV
exploration team deserves great credit for puzzling it out” said
Dr. Peter Megaw, MAG Silver’s Chief Exploration Officer. “We think
these may be very important controls on the overall mineralization
system because the Valdecañas Vein gets wider and richer in gold
where Venadas and its suspected brethren cross it. Most
importantly, the cuts to date are all at high elevations, so we are
eager to drill them at depth to see if they improve like
Valdecañas”.
Possible Significances
- The recognition of NE-oriented veins different from the
well-known NW-orientated veins of the Fresnillo District opens many
exploration possibilities within the Juanicipio claim and the
district as a whole. Similar NE structures with very strong
alteration are known elsewhere within the Juanicipio claim and have
seen only reconnaissance mapping: All now become priority
exploration targets.
- Most Venadas Vein intercepts to date lie above 1,850 m
elevation. This is the depth of the top of the Valdecañas Vein
where it splits up into thin, irregular silver and gold-rich
veinlets with very low base metal values (See Figure 1). This
matches the characteristics of the Venadas Vein seen so far (See
Table 1), which suggests it should continue to improve in width and
grade to depth for several hundred metres.
- The Venadas Vein projects directly towards the overlap zone
between the Valdecañas West and East Veins. This zone has the
hallmarks of a major mineralizing-fluid upwelling zone and these
intersecting structures may have created an ideal vertical channel
for upwelling metal-laden fluids to rise quickly and spread
laterally into the individual structures.
- Two suspected similarly NE-oriented structures lie a few
hundred metres on either side of the Venadas Vein and are also
indicated by unconnected intercepts and extensive surface
alteration. The structure to the southeast projects into a distinct
vertical bulge in the Valdecañas Vein where gold values go up
significantly. These targets should be ideal for drill confirmation
from underground.
- Cross-cutting 1.1 km southward from the Valdecañas Vein to the
high-grade Juanicipio Vein might be significantly accelerated if
development could follow mineralization along the route.
Table 1: Assay Results – Venadas Vein
Holes
HOLE-ID |
From(m) |
To(m) |
Length(m) |
TW(1)(m) |
Ag(g/t) |
Au(g/t) |
Pb(%) |
Zn(%) |
Cu(%) |
Elevation(m) |
37P |
476.10 |
481.60 |
5.50 |
2.06 |
489 |
0.94 |
0.00 |
0.02 |
0.01 |
1917 |
Incl. |
480.50 |
481.60 |
1.10 |
0.40 |
1485 |
1.15 |
0.01 |
0.02 |
0.00 |
|
43P |
523.55 |
527.70 |
4.15 |
1.43 |
491 |
2.69 |
0.01 |
0.02 |
0.02 |
1843 |
Incl. |
526.05 |
527.70 |
1.65 |
0.57 |
965 |
6.39 |
0.01 |
0.02 |
0.01 |
|
44P |
594.85 |
597.50 |
2.65 |
0.75 |
121 |
0.44 |
0.01 |
0.04 |
0.00 |
1749 |
78P |
583.90 |
584.90 |
1.00 |
0.47 |
3 |
0.77 |
0.00 |
0.01 |
0.01 |
1967 |
84P |
693.60 |
694.55 |
0.95 |
0.55 |
654 |
4.02 |
0.00 |
0.01 |
0.00 |
1828 |
92P |
863.85 |
865.15 |
1.30 |
0.82 |
73 |
0.03 |
0.00 |
0.00 |
0.00 |
1735 |
IE |
485.70 |
486.80 |
1.10 |
0.47 |
5 |
0.02 |
0.00 |
0.01 |
0.00 |
1875 |
IF2 |
552.75 |
554.65 |
1.90 |
0.89 |
98 |
0.50 |
0.00 |
0.00 |
0.00 |
1802 |
IG |
436.60 |
437.30 |
0.70 |
0.41 |
240 |
1.35 |
0.00 |
0.01 |
0.01 |
1935 |
JE |
467.35 |
468.25 |
0.90 |
0.42 |
267 |
0.53 |
0.00 |
0.01 |
0.00 |
1916 |
KD |
629.60 |
631.00 |
1.40 |
0.50 |
171 |
0.42 |
0.00 |
0.02 |
0.01 |
1809 |
M18 |
635.35 |
636.10 |
0.75 |
0.29 |
43 |
0.07 |
0.00 |
0.01 |
0.00 |
1723 |
M20-2 |
467.25 |
469.05 |
1.80 |
0.80 |
771 |
0.38 |
0.00 |
0.01 |
0.03 |
1931 |
M21 |
507.30 |
507.90 |
0.60 |
0.23 |
217 |
0.24 |
0.00 |
0.01 |
0.01 |
1896 |
P4 |
488.50 |
489.20 |
0.70 |
0.20 |
122 |
0.13 |
0.00 |
0.01 |
0.01 |
1828 |
RV-4 |
411.70 |
419.05 |
7.35 |
1.77 |
245 |
4.24 |
0.00 |
0.01 |
0.01 |
1961 |
Incl. |
417.30 |
418.15 |
0.85 |
0.20 |
1160 |
25.10 |
0.00 |
0.01 |
0.04 |
|
SA-2 |
202.00 |
203.55 |
1.55 |
0.62 |
410 |
0.26 |
0.00 |
0.01 |
0.03 |
1870 |
SA-3 |
209.15 |
209.95 |
0.80 |
0.74 |
806 |
5.32 |
0.00 |
0.01 |
0.01 |
1903 |
VEN-1 |
286.05 |
289.05 |
3.00 |
1.10 |
389 |
5.54 |
0.00 |
0.00 |
0.00 |
1905 |
VM-10 |
290.06 |
291.43 |
1.37 |
0.94 |
449 |
1.30 |
0.03 |
0.02 |
0.00 |
1853 |
Underground |
- |
- |
- |
1.10 |
116 |
3.20 |
0.00 |
0.00 |
- |
1955 |
(1) TW = True Width and is estimated
from sections.
Venadas Vein History
The Venadas Vein was originally intersected in
2011 in Hole 43P, which cut 4.15 m (drilling width) grading
491 g/t silver (14.3 opt) and 2.69 g/t gold Including 1.65 metres
grading 965 g/t silver (28.1 opt) and 6.39 g/t gold (See
Press Release of September 1, 2011). Several attempts were made to
offset this intercept based on the premise that the vein was
NW-oriented like all other known veins in the Fresnillo
District. When none succeeded the target was shelved.
More recently, with the discovery of the Anticipada Vein in the
hangingwall of the Valdecañas Vein (See Press Release
of August 15, 2016), systematic re-evaluation and
remodeling of the many unconnected hangingwall intercepts in
historic drill holes led to the recognition that numerous oblique
vein intercepts, including 43P, fell on a NE-oriented plane that
coincides with a surface-mapped fracture once systematically
prospected for kaolinite. Hole VEN-1 was the
first hole designed to test this target directly and cut
3.0 m (drilling width) grading 392 g/t (11.5 opt) silver, 5.56 g/t
gold, with no Lead, Zinc or Copper at 1,905 m elevation.
VEN-1 was completed about the same time the Conveyor Ramp exposed
the Venadas Vein underground, where cross-cuts now follow it for
roughly 20m in both directions. Channel sampling there shows a
1.1 m width, reporting 116 g/t (3.4 opt)
silver, 3.16 g/t gold with no base metals.
Qualified Person: Dr. Peter
Megaw, Ph.D., C.P.G., and Lyle Hansen, M.Sc., P.Geo have acted as
the qualified persons 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 35 years of relevant experience focussed on silver and
gold exploration 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 Chief Exploration Officer (CXO)
and a Shareholder of MAG. Dr. Megaw is satisfied that the
results are verified based on an inspection of the core and
underground exposures, 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. Mr. Hansen is a registered Professional Geologist
with Engineers and Geoscientists BC (149624) and has more than 10
years experience in epithermal veins. Mr. Hansen is not independent
as he is Geotechnical Director of MAG.
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 Peñoles 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 Silver Corp. (MAG: TSX /
NYSE A) is a Canadian exploration and development company focused
on becoming a top-tier primary silver mining company, by exploring
and advancing high-grade, district scale, silver-dominant projects
in the Americas. Our principal focus and asset is the Juanicipio
Property (44%), being developed in Joint Venture partnership with
Fresnillo Plc (56%). Juanicipio is located in the Fresnillo Silver
Trend in Mexico, the world's premier silver mining camp and we are
currently developing the surface and underground infrastructure on
the property to support a 4,000 tonnes per day mining operation
with the operational expertise of our JV partner, Fresnillo plc. As
well, we have an aggressive exploration program in place targeting
multiple highly prospective targets across the property. In
addition, we continue to work on regaining surface access to our
100% owned Cinco de Mayo property in Mexico while we seek other
high grade, district scale opportunities.
On behalf of the Board ofMAG SILVER
CORP.
"George Paspalas"President and
CEO
For
further information on behalf of MAG Silver Corp. Contact
Michael Curlook, Vice President Investor Relations
and Communications |
|
Website:Phone:Toll
free: |
|
www.magsilver.com(604) 630-1399(866) 630-1399 |
Email: Fax: |
|
info@magsilver.com(604) 681-0894 |
|
|
Neither the Toronto Stock Exchange nor the NYSE
American have reviewed or accepted responsibility for the accuracy
or adequacy of this press release, which has been prepared by
management.
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.
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
Figure 1: Plan map of the Fresnillo
District showing the dominant SW oriented veins in contrast to the
NE orientation of the Venadas
Veinhttp://www.globenewswire.com/NewsRoom/AttachmentNg/8d370493-c616-48f6-9004-ce753a283275
Figure 2: Vertical longitudinal section
of the Venadas
Veinhttp://www.globenewswire.com/NewsRoom/AttachmentNg/bbd8f7ca-8d8b-4adb-8e37-ea2320d4c606
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