MAG Silver Corp. (TSX:MAG)(NYSE Amex:MVG) ("MAG" or the "Company")
announces an independent updated Mineral Resource estimate for the
Juanicipio Property completed by Roscoe Postle Associates Inc.
("RPA") on behalf of MAG. The updated RPA Mineral Resource estimate
is based on drill results available as of August 5, 2011, and was
prepared in parallel with the June 2011 estimate by Strathcona
Mineral Services ("Strathcona") recently completed on behalf of the
Minera Juanicipio Joint Venture ("Joint Venture") (see Press
Release dated November 10, 2011). The Company continues to
commission its own Mineral Resource estimates to ensure the
integrity of the resource estimates published on behalf of the
Joint Venture.
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. A National Instrument
43-101 technical report documenting the Mineral Resource estimate
will be filed on SEDAR within 45 days.
Highlights of the August 2011 RPA Estimate
The August 2011 RPA estimate indicates more contained silver and
gold as compared to the June 2011 estimate by Strathcona. The
additional contained ounces are explained by RPA's inclusion of
several additional drill holes in the Juanicipio Vein, the addition
of two extra zones (Stockwork and Hanging Wall Vein 1) and a
different approach to the calculation of cut-off grade. The RPA
estimate uses a cut-off of US$55.00/tonne Net Smelter Return
("NSR"), which includes contained values for silver, gold and base
metals. The June 2011 Strathcona estimate uses 100 grams per tonne
(g/t) contained silver as a cut-off grade. Both approaches are
industry acceptable; however the use of the 100 g/t silver cut-off
used by Strathcona excludes a measurable volume of gold-bearing and
base metal rich mineralization lying deeper in the vein system.
Indicated Mineral Resources are estimated by RPA to total 6.2
million tonnes of 728 g/t silver, 1.9 g/t gold, 1.9% lead, and 3.9%
zinc at an NSR cut-off value of US$55.00 per tonne. Total contained
metals in the Indicated Resource are 146 million ounces of silver,
384,000 ounces of gold, 267 million pounds of lead, and 539 million
pounds of zinc.
Indicated Mineral Resources according to RPA are higher by 18
million ounces of silver and 38,000 ounces of gold as compared to
the June 2011 Strathcona estimate.
At the same cut-off value of US$55.00 per tonne, Inferred
Mineral Resources are estimated by RPA to total 7.1 million tonnes
of 373 g/t silver, 1.6 g/t gold, 1.5% lead, and 2.6% zinc. The
Inferred Resources are estimated to contain 85 million ounces of
silver, 370,000 ounces of gold, 236 million pounds of lead, and 400
million pounds of zinc.
Inferred Mineral Resources according to RPA are higher by 14
million ounces of silver and 178,000 ounces of gold as compared to
the June 2011 Strathcona estimate.
Notwithstanding the RPA estimate, MAG continues to support, as
agreed to by the Joint Venture, the use and inclusion of the
Strathcona estimate for the pending updated preliminary economic
assessment being undertaken by AMC Mining Consultants (Canada)
Ltd.
Dan MacInnis, President and CEO of MAG, stated, "The RPA
estimate with its additional ounces of silver and gold continues to
validate that through ongoing drilling and discovery there remains
considerable upside in the project area."
The Indicated Mineral Resources are located in the Valdecanas
Main Vein, the Hanging Wall Vein #1, and for the first time the
Footwall Vein #1. The Inferred Mineral Resources are contained
within the Valdecanas Main Vein, several hanging and footwall
veins, a stock-work zone located within the Valdecanas structure
and the Juanicipio Vein, located 1,100 metres to the south of the
Valdecanas Vein.
Table 1 - August 5, 2011 RPA Estimate with June 1, 2011 Strathcona Resource
Estimate for comparison
----------------------------------------------------------------------------
RPA August 2011(i) Tonnage Ag Au Pb Zn Ag Au Pb Zn
$US55 NSR Cut-Off M t g/t g/t % % M oz K oz M lb M lb
----------------------------------------------------------------------------
INDICATED
----------------------------------------------------------------------------
Valdecanas Main Vein 5.6 694 2.1 2.0 4.0 125 371 247 499
----------------------------------------------------------------------------
Footwall Vein 0.3 1,359 0.4 1.8 4.2 13 3.3 12 27
----------------------------------------------------------------------------
Hanging Wall Vein 1 0.3 755 0.8 1.1 1.9 8.2 9.2 8.4 14
----------------------------------------------------------------------------
Total Indicated 6.2 728 1.9 1.9 3.9 146 384 267 539
----------------------------------------------------------------------------
INFERRED -
----------------------------------------------------------------------------
Valdecanas Main Vein 4.4 332 1.7 1.9 3.2 47 240 181 306
----------------------------------------------------------------------------
Footwall (Desprendido) Vein 0.7 456 0.8 1.0 1.3 11 18 16 21
----------------------------------------------------------------------------
Hanging Wall Vein 1 0.1 553 0.5 0.6 1.4 1.4 1.1 1.0 2.5
----------------------------------------------------------------------------
Footwall Vein 2 0.2 145 1.3 3.2 4.9 0.8 7.3 12 18
----------------------------------------------------------------------------
Stockwork Zone 0.6 44 1.3 0.6 1.5 0.9 27 8.4 20
----------------------------------------------------------------------------
Juanicipio Vein 1.1 693 2.2 0.7 1.3 24 77 17 32
----------------------------------------------------------------------------
Total Inferred 7.1 373 1.6 1.5 2.6 85 370 236 400
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Strathcona June 2011 Tonnage Ag Au Pb Zn Ag Au Pb Zn
100 g/t Silver Cut Off M t g/t g/t % % M oz K oz M lb M lb
----------------------------------------------------------------------------
INDICATED
----------------------------------------------------------------------------
Valdecanas Main Vein 5.7 702 1.9 2.2 4.2 128 346 268 521
----------------------------------------------------------------------------
Total Indicated 5.7 702 1.9 2.2 4.2 128 346 268 521
----------------------------------------------------------------------------
INFERRED -
----------------------------------------------------------------------------
Valdecanas Main Vein 2.0 459 2.0 1.6 3.1 30 129 71 137
----------------------------------------------------------------------------
Footwall (Desprendido) Vein 1.8 540 0.9 1.8 3.2 31 52 71 127
----------------------------------------------------------------------------
Juanicipio Vein 0.5 638 0.8 0.9 1.7 10 13 10 19
----------------------------------------------------------------------------
Total Inferred 4.3 513 1.4 1.6 3.0 71 192 152 280
----------------------------------------------------------------------------
(i)Parameters and definitions for the RPA estimation.
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are estimated at an incremental NSR cut-off value
of US$55 per tonne.
3. Mineral Resources are estimated using an metal prices of US$19.25/oz
Ag, US$1,100/oz Au, US$0.93/lb Pb and US$0.88/lb Zn, and metal
recoveries of 95% for Ag, 88% for Au, 94% for Pb, and 87% for Zn.
4. A minimum mining width of 1.5 metres was used.
5. Numbers may not add due to rounding.
Resource Estimation Details
The Juanicipio drill hole database includes 131 diamond core
holes totaling 108,509 metres drilled prior to August 5, 2011. 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$55
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 were
estimated using inverse distance cubed (ID3). Classification into
the Indicated and Inferred categories was guided by the drill hole
spacing and the apparent continuity of the mineralized zones.
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 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, (November 2010). Mr. Ross, P.Geo.,
has read and approved the contents of this press release as it
pertains to the disclosed Mineral Resource estimate.
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.
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 developing the Valdecanas
Deposit 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.
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.
Contacts: MAG Silver Corp. Gordon Neal VP Corp. Development
(604) 630-1399 or Toll Free: (866) 630-1399 (604) 681-0894
(FAX)info@magsilver.comwww.magsilver.com
MAG Silver (AMEX:MAG)
Historical Stock Chart
From May 2024 to Jun 2024
MAG Silver (AMEX:MAG)
Historical Stock Chart
From Jun 2023 to Jun 2024