Magellan Completes Bulk Test at SDA Mill for Toll Milling Contract Provides Update on El Dorado Gold-Silver Project
February 22 2019 - 8:00AM
InvestorsHub NewsWire
Magellan
Completes
Bulk
Test at SDA Mill for Toll Milling Contract
Provides Update
on
El Dorado Gold-Silver Project
Reno,
NV -- February 22, 2019 -- InvestorsHub NewsWire -- Magellan Gold
Corporation (OTCQB:
MAGE) ("Magellan"
or
"the Company"),
a U.S.
based mining and exploration enterprise focused on silver and gold,
today announced it
has
completed
a bulk
test of mineralized material supplied and
delivered by a private third-party to the Company's SDA
Mill at
Acaponeta,
Nayarit State, Mexico. As announced December
17, 2018, the purpose of the test was to determine the viability of
entering into a long-term processing agreement. Test processing of
an
initial bulk sample of
approximately 600
tons
was
carried out. The potential customer
was pleased with the mill's performance.
However, the
customer
experienced
difficulty in supplying ore on a consistent basis and
is
assessing
plans for
going forward. Meanwhile the Company
will continue to search for other toll milling
customers.
Magellan also has
continued to advance its El Dorado Gold-Silver Project, which lies
50 kilometers
south of
the SDA Mill. The Company plans
to
truck ore from El Dorado to
the mill for processing. Quotes have been
obtained for contract mining and applications for environmental and
blasting permits are in progress. Placing El Dorado into production
is a key step in Magellan's strategy of initiating and then
increasing production through the SDA Mill.
About
Magellan Gold Corporation
Magellan Gold
Corporation (OTCQB: MAGE) is a US public enterprise focused on the
exploration and development of precious metals. In November
2017 Magellan
completed
the purchase of
the
SDA
Mill
in the
State of Nayarit, Mexico, and in August 2018
announced acquisition of the nearby
El Dorado
Gold-Silver Project. Magellan
also owns
an advanced silver exploration
project
located
in Arizona.
The SDA
Mill is a fully operational flotation
plant that also includes a precious
metals leach circuit and associated assets, licenses and
agreements. The
mill has
the capacity to process ore at a rate of up to 200 tons per day.
The mill has a ten-year operating history. Historically its
operation has been based on sales of
flotation concentrates to smelters, and payment for precious metals
content. The mill lies within
the rich Sierra Madre Occidental mineralized belt, which
historically has yielded millions of ounces of precious metals and
offers multiple high-grade gold and silver epithermal
vein opportunities.
The El Dorado
Gold-Silver Project consists of a
50-hectare mining
concession located 50 kilometers south of the SDA Mill.
El Dorado
is situated within a district of epithermal vein systems from which
historic mining produced high grades. Drilling
in
2010-2011 identified gold-silver resources on two
veins that hold promise for underground mining. Following
completion of permitting and procurement of financing, the Company
intends to initiate mining at a production rate of 100 tons per day
and to truck the ore to the SDA Mill for processing.
The Silver District
Project
in
southwest Arizona comprises over 2,000 acres covering the heart of
the historic Silver District. The property contains
a near-surface historical drilled resource of 16 million ounces of
silver and exhibits exploration promise for significant
expansion.
To learn more about
Magellan Gold Corporation, visit
www.magellangoldcorp.com.
Cautionary
Statement
The United States
Securities and Exchange Commission permits mining companies, in
their filings with the SEC, to disclose only those mineral deposits
that a company can legally extract or produce. Under SEC Industry
Guide 7 standards, a "final" or "bankable" feasibility study
is
required to report reserves. Currently we have not
delineated "reserves" on any of our properties. We cannot be
certain that any deposits at our properties will ever be confirmed
or converted into SEC Industry Guide 7 compliant "reserves."
Investors are cautioned not to assume that all or any part of any
"resource" estimates will ever be confirmed or converted into
reserves or that they can be economically or legally
extracted.
Forward
Looking Statements
This
release contains "forward-looking
statements." Such
statements are based on good faith assumptions that Magellan Gold
Corporation believes are reasonable but which are subject to a wide
range of uncertainties and business risks that could cause actual
results to differ materially from future results expressed,
projected or implied by such
forward-looking statements. Factors
that could cause actual results to differ from those anticipated
are discussed in Magellan Gold Corporation's periodic filings with
the Securities and Exchange Commission.
Contacts:
Magellan Gold
Corporation
Pierce
Carson: (505)
463-9223
John
Power: (707)
884-3766
Peter
Nesveda
(INT
IR):
+61 4
1235 7375
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