Magellan Sampling Returns High-Grade Gold and Silver on Prospects Near SDA Mill, Nayarit State, Mexico
June 27 2017 - 5:00PM
InvestorsHub NewsWire
Magellan Sampling Returns High-Grade Gold and Silver on
Prospects Near SDA Mill, Nayarit State, Mexico
Reno, NV - June 27, 2017 - InvestorsHub NewsWire - Magellan Gold
Corporation (OTCQB:
MAGE) (Magellan or the Company), today commented on promising
high-grade gold and silver assays obtained from prospects within
trucking distance of the SDA Mill. The prospects were evaluated for
their potential to supply high-grade ore to the mill. In March
2017, the Company entered into an option agreement to purchase the
SDA Mill.
We recently conducted initial sampling on ten prospects, three
of which returned high-grade gold and silver assays, said CEO
Pierce Carson. We intend to follow up on these as well as a number
of other attractive opportunities of which we are aware. 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 targets.
Our program to evaluate and acquire promising sources of new ore
will be an on-going effort in line with our corporate objectives of
first, to develop lucrative high-grade ore for processing through
the mill in place of toll ore, and second, to expand production
above the current capacity of 200 tons per day.
In April 2017, Company geologists visited and sampled ten
prospects and collected 117 rock chip samples across epithermal
veins. Results from all prospects returned anomalous gold and
silver values. Highest individual values (not necessarily
representative) ranged to 170.0 g/mt gold and 733.0 g/mt silver.
Three prospects with encouraging results warrant follow-up.
The assay results from five adit samples from one of the
prospects show an open-ended, 70+ meter long high-grade ore shoot.
The ore shoot averages grades of 14.10 g/mt gold and 6.98 oz/mt
silver over an average width of 0.82 meters. The vein is exposed
for 200+ meters along strike. The 70+ meter long high grade portion
is open along strike and at depth. This prospect will receive high
priority for follow up.
In addition to the ten prospects the Company has sampled, a
number of others have been identified for evalution. One of these
is a high-grade silver vein exposed in shallow workings and has
been professionally sampled. The vein averages 1,200 g/mt silver
(38.6 oz/mt) over a minable width. It has been estimated that
approximately 2,000 tonnes are in sight but strike and depth extent
are unknown.
In March 2017, Magellan acquired a 150-day option to purchase
the SDA Mill from Rose Petroleum plc (Aim; ROSE) for consideration
of $1.0 million in cash and $500,000 in restricted common stock of
Magellan. The SDA Mill consists of an operational flotation plant,
and a precious metals leach circuit and associated assets. The
mills normal operation is based on sales of flotation concentrates
to smelters, and payment for precious metals content. Historically
the mill has operated for ten years, processing its own ore and
also engaged in toll milling for third party ore producers.
Management believes acquisition of the SDA Mill and
transformation of Magellan into a production company would
substantially enhance shareholder value. Consumation of the mill
purchase is subject to a number of conditions, among others the
Company completing a financing, and there can be no assurance that
the purchase will be completed.
About Magellan Gold Corporation
Magellan Gold Corporation (OTCQB: MAGE) is a US public
enterprise focused on the exploration and development of precious
metals. The Company has obtained an option to acquire the SDA
flotation plant in the State of Nayariit, Mexico, and controls two
precious metals exploration properties located in Arizona and in
Peru.
The 100% owned Silver District Property 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. The Niobamba
Silver-Gold Property in central Peru, on which the Company has the
right to earn a 50% interest, covers 9,027 acres and demonstrates
potential for a large, bulk tonnage, silver-gold deposit.
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 Corporations periodic filings with
the Securities and Exchange Commission.
Contacts:
Magellan Gold Corporation
Pierce Carson (505) 463-9223
John Power (707) 884-3766
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