Magellan Gold CEO Updates Shareholders
Reno, Nevada -- July
18, 2017 -- 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 conveyed
the following message to shareholders:
I want to take this opportunity to welcome our new shareholders
and to bring you up to date on the progress your company is making.
To reintroduce myself, my name is Pierce Carson. I hold a PhD in
economic geology from Stanford University and have managed the
discovery, financing, development and operation of mining
properties internationally and domestically during a career
spanning over forty years. I have led operating teams that have
been highly successful in developing new gold and copper mines.
Shareholders in the related companies saw dramatic stock pice
increases. Now, at Magellan, management aims to duplicate or better
that track record with the ultimate objective of creating
substantial value for Magellan shareholders.
Since I became CEO in June 2016, management has refocused the
company and developed a strategic plan to transform Magellan into a
viable operating company. Basic elements of the strategic plan are
(1) to complete the acquisition of the SDA flotation mill in the
State of Nayarit, Mexico, which, importantly, would enable the
company to achieve near-term production; (2) to expand the 16
million ounce historic silver resource at our flagship Silver
District Project, Arizona, with the view of advancing the project
towards development and production; (3) to conduct initial drilling
of our Ninobamba, Peru silver-gold exploration property, which
holds promise for discovery of a large, disseminated bulk-minable
silver/gold deposit; and (4) to continue to build a precious metals
resource base through new acquisitions, with a focus on
high-quality silver properties. Our overall goal is to build a
substantial mining company driven by cash flow and possessing a
portfolio of quality exploration and development projects for
future growth.
SDA Mill Acquisiton, Nayarit, Mexico
On March 3, 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 Company paid an intial
$50,000 option fee on March 3, 2017, and on June 1, 2017 paid an
additionl $100,000 option fee that also will apply to the purchase
price if the transaction closes. Consummation 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.
The SDA Mill consists of an operational flotation plant,
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 be an
exciting development that would substantially enhance shareholder
value. The Companys strategy following the acquisition will be to
build production and increase cash flow. A key objective will be to
secure high-grade feed sources located near the mill.
On June 27, 2017 the Company reported on high-grade gold and
silver assays obtained from initial sampling of prospects within
trucking distance of the SDA Mill. The promising assay results were
obtained from three of ten prospects evaluated for their potential
to supply high-grade ore to the mill. The Company intends to follow
up on these as well as a number of other attractive opportunities
that have been identified. 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.
Silver District Project, Arizona
Magellans flagship advanced exploration project is its 100%
owned district-scale Silver District Project in southwest Arizona.
The project encompasses three major epithermal vein structures
having a collective strike length of eight miles. Historical
drilling of 465 holes (62,866 ft) delineated 16.0 million ounces of
silver plus fluorspar available for open pit mining.
Magellans district-scale property position covers the heart of
the historic Silver District and includes all of the important
historical producers, most of the old mines and prospects and all
of the known exploration targets. Historic recorded production
during 1883-1893 from underground mines was 1.56 million ounces of
silver and 2.33 million pounds of lead.
Excellent potential exists to increase silver ounces through
deeper drilling, as historical drilling was limited to only 130 ft
vertical depth. Subject to funding, Magellan plans to conduct an
extensive drilling program to test strike and depth extensions of
the known vein deposits. The initial target potential is 60 million
ounces silver (1 million ounces gold equivalent). Following better
definition of the total size of the resource, the Company intends
to update previous metallurgical and engineering studies with the
objective of advancing the Silver District Project toward
development and production.
Niobamba Silver-Gold Project, Central Peru
On October 25, 2016, Magellan announced it had concluded a
definitive agreement with Rio Silver, Inc. (TSX.V:
RYO) whereby Magelan has the right to earn a 50% undivided
interest in the Niobamba Silver-Gold Project. To earn its 50%
interest, Magellan must spend $2.0 million in exploration over
three years. Niobamba is located in south-central Peru and offers
ready access. The land package includes a large, contiguous
property comprising five concessions totaling 36.5 square
kilometers (9,027 acres).
Early mining in the area is known since colonial times, as early
as the 16th century. In more recent times, significant
historical exploration work has been conducted on the Niobamba
concessions by Rio Silver and several major companies. This
historical work provides the project with an an extensive database
comprising geological, geochemical, geophysical and drilling data,
as well as numerous silver, gold and combined silver-gold targets
in an historic silver mining district with positive infrastructure
in mining-friendly Peru.
Silver-gold mineralization on the concessions extends to over
six kilometers in an east-west direction. This mineralized trend is
extensively altered and contains a number of largely untested and
open-ended silver and gold anomalies, several of which appear to
represent excellent bulk mineable open pit targets. The Company is
particularly encouraged by results of historical drilling and
surface trenching, which returned potential ore grade
mineralization over substantial widths.
Niobamba holds potential for a large, bulk tonnage disseminated
silver/gold deposit. Mineralization reflects a high sulfidation
epithermal style that in Peru and elsewhere has produced world
class precious metals deposits.
As part of its earn-in agreement, Magellan committed to conduct
a 700-meter diamond drilling program in 2017. Magellan plans to
focus its initial drilling effort on areas trenched by Rio Silver
in 2012. As shown by results of seventeen trenches, two subparallel
zones of silver-gold and silver mineralization, the Niobamba North
Zone and the Niobamba South Zone, exhibit good continuity,
substantial widths and grades at surface and strike extents of 400+
meters. Mineralization demonstrates the potential for an
outcropping, bulk-tonnage, and disseminated-silver-gold deposit.
The goal of the drilling program will be to progressively outline a
Ni 43-101 silver-gold resource in these target areas.
Acquisition of other high quality precious metals assets:
Magellan continues to assess additional acquisition
opportunities. The focus is on quality silver properties with known
resources and promising exploration upside.
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 Nayarit, 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