MAG Silver Commences Drilling Program at Guigui
MAG Silver Corp. (TSX-V: MAG) is pleased to report that drilling began on October 20, 2003 on its 4,553-hectare Guigui Project in the Santa Eulalia District in Chihuahua, Mexico. The Santa Eulalia District hosts a carbonate replacement silver deposit that has produced over 450,000,000 ounces of silver from nearly 50 million tonnes of ores averaging 350 g/T (11.3 Oz/T) silver, 8.2% lead and 7.8% zinc. Despite nearly 300 years of continuous mining of interconnected high-grade deposits, these have never been traced back to the style of near-source intrusion-related mineralization typical of these deposits worldwide. MAG and others have performed geological and geochemical zoning studies and gravity, magnetic, CSAMT and NSAMT geophysical surveys to define the near-source mineralization targets on the property. The 3,500-metre drill program on Guigui will consist of up to 8 holes to test these targets, the largest of which centres on a geophysical anomaly more than 1 kilometre in diameter that MAG infers to reflect a buried intrusive body.
Targets include: 1) Sulphide and/or skarn mineralization surrounding the inferred intrusive source for the district; 2) Sulphide and/or skarn mineralization along structures outboard of the inferred central intrusion; 3) Sulphide mineralization beneath the Los Arenales Fluorite Mine and related prospects; and 4) Sulphide and/or skarn mineralization along the West Fault of the San Antonio Graben. The latter is the principal ore-hosting feature of the San Antonio Mine, the major mine in the eastern part of the district.
Ongoing Drilling at Juanicipio
The onset of the drilling at Guigui coincides with the completion of the first seven holes at MAG's Juanicipio project. Hole 7 was completed on October 16, and final samples from Hole 7 will be sent for assaying on or about October 22, 2003. Samples have been submitted and analyses are pending for Hole 6. The results from previous drilling have been the subject of earlier releases - see press releases of August 14 and October 14, 2003. While conducting the drilling at Guigui, MAG will analyze the results to date at Juanicipio and prepare for additional drilling, as well as continue preparation work for advanced exploration on the Don Fippi project in the Batopilas District.
About MAG Silver Corp.
MAG combines a seasoned management team with two projects in drilling mode adjoining high-grade producing districts. In addition to the Guigui project described in this release, MAG also operates the Juanicipio project that lies 5 km from the principal production headframe of the Fresnillo Mine, and less than 3 km from its westernmost underground workings. Industrias Peñoles currently produce over 31 million ounces of silver annually from high-grade (23 oz/T Ag plus up to .1 oz/T Au) veins. Production since 1560 is around 700 million ounces of silver, with half of this coming since 1976 when the high-grade Santo Nino style veins currently being mined were found. Current silver reserves exceed 500 million ounces. Recent exploration by Peñoles has focused on tracing veins discovered in the last 6 years westward from the historic mining centre towards Juanicipio. Peñoles has recently begun ramping up production to over 50 million ounces per year through exploitation of the San Carlos Vein, the biggest of their new western vein discoveries. MAG has completed its first round of drilling, the results of which support the extension of Fresnillo-style mineralization and grades onto the Juanicipio property. See press releases of August 14 and October 14, 2003.
MAG also operates the Don Fippi Project, in the historic Batopilas District. Batopilas produced some 300,000,000 ounces of silver from native-silver rich ores prior to its abrupt closure during the Mexican Revolution. Consolidated by MAG for the first time since the revolution, the Batopilas District contains numerous targets that will be tested with modern exploration techniques to delineate high-potential targets for drill testing on or adjacent to former producing structures.
MAG Silver is focussed on exploration targets in the Mexican Silver Belt that are of interest at any conceivable silver price, in districts with known large scale production. MAG currently has approximately $4,000,000 of working capital to proceed with its exploration projects.
None of the mineral properties in which the Company holds an interest are known to contain commercial quantities of minerals or precious gems. All exploration programs proposed for any mineral properties in which the Company has an interest are exploratory in nature.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although MAG Silver 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 included silver prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. The exploration for mineral resources is inherently characterized by substantial risk.
On behalf of the Board of
MAG SILVER CORP.
"George S. Young"
- 30 -
For further information on behalf of MAG Silver Corp. contact George S. Young
Toll free:(866) 630-1399
Fax: (604) 484-4710
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.