• News

MAG Silver Exploration Update and Results

April 30, 2004

MAG Silver Corp. (TSX-V:MAG) provides this exploration update including results of recent drilling at its Guigui Project. This update includes announcements of aggressive new exploration in all its properties continuing MAG's on-going focus on district-scale, high-grade potential.

MAG remains bullish on silver and gold. We see no signs that the fundamentals that have caused these metals to improve over the last 2 years have changed and believe that the recent downward volatility in the silver and gold markets is temporary. However, these drops provide an opportunity for MAG to reiterate and reinforce its philosophy of focusing on district-scale exploration in high-grade systems. Silver grades of over 20 ounces per ton kept Fresnillo profitable during the lowest silver prices seen in the last 25 years. Historic Batopilas grades, measured in percent, could weather almost any market low imaginable. MAG's commitment to aggressive exploration in these, and the other high-grade districts in our inventory, is intended precisely to provide our shareholders the kind of downside protection that only high grade can provide. It also avoids the uncertainties inherent in moving marginal projects forward in the face of volatile prices. We therefore have committed over C$2,000,000 in exploration funding for our projects in 2004 for the work described below.

Juanicipio and Lagartos Projects, Zacatecas, Mexico: MAG has received Board approval for, and has begun an aggressive Phase 3 Exploration Program for its 100% owned Juanicipio and related Lagartos Properties along the famous Fresnillo Trend in Zacatecas. The program includes continuing geologic mapping, an extensive NSAMT geophysical survey (underway), and a minimum of 3,000 metres of core drilling. Road building in Juanicipio proper began in early April and has advanced over 400 metres. Immediate Juanicipio targets to be tested from the new road include the extension of the Poleo Sur Trend (on which Peñoles currently has 6 rigs drilling) and the intersection of the Iron Oxide Pits and Kaolinite Pits Structures, two of the best mineralized structures drilled in Phase 1. This intersection lies in an area of substantial alteration some 800 metres to the northwest of where these were previously drilled.

Reconnaissance geologic mapping of the Lagartos Northwest and Southeast Claims, guided by satellite image analysis, has identified a number of structures showing alteration and mineralization similar to those successfully drilled in Juanicipio in MAG's Phase 1 program. These structures, plus a series of anomalies identified last fall in an orientation NSAMT program along the (buried) projection of major regional structures, are a major focus of the current NSAMT survey. Drill permitting for the outcropping targets has begun, with buried targets to be permitted once refined with new NSAMT results. Drill start-up is slated for June, 2004.

Juanicipio lies 5 kilometres from the principal production headframe of the Fresnillo Mine, and less than 3 kilometres 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 0.1 oz/T Au) veins. Production since 1560 is around 800 million ounces of silver, with half of this coming since 1976 when the high-grade Santo Nino style veins currently being mined were found. Recent exploration by Peñoles has focused on tracing veins discovered in the last 6 years westward from the historic mining centre towards Juanicipio.

MAG's Phase 1 drilling verified that Fresnillo style mineralization continues into Juanicipio from the historic mining areas and that NSAMT is an exceptionally useful exploration tool for locating favorable structures for drilling. The technique also allows targeting the most silver-dominant levels in the veins, which are well above the deep conductive anomalies that guided most of Phase 1 drilling. Phase 1 drilling cut higher gold grades than are typically encountered in the district, prompting re-assessment of the magnitude and zoning of the Fresnillo system and filing of the Lagartos Claims to the northwest and southeast of Juanicipio (See Press Release of January 21, 2004). MAG believes that the known part of the Fresnillo District may be only a small portion of a mega-district.

Guigui Project, Santa Eulalia District, Chihuahua: MAG recently completed an initial drilling program to seek the source zone(s) of the historic Santa Eulalia District Silver Mining District in its 100% owned Guigui Property. The program consisted of 6 holes: four drilled in the southwestern portion of the property (GG0301-04) seeking a stock contact skarn suggested by geology and magnetic and CSAMT geophysics; and two holes drilled in the eastern part of the property (GG0405-06) seeking the southern extension of the style of tabular skarn mineralization exploited in Grupo Mexico's San Antonio Mine (See Table below). Results in the western area indicate that the central, barren intrusive phase of a polyphase magmatic system was encountered and explains the geophysical signatures. Results from the eastern area indicate close proximity to significant mineralization. Based on the drilling of irregular mineralization in the eastern area and strong "near-mineralization" alteration and intrusive types in the western area, a 3-Axis Bore-Hole UTM survey is being executed to locate more coherent mineralization near the holes drilled.

MAG is very encouraged by our first round drilling results. It appears that the western area geophysics picked up the central barren part of the kind of complex polyphase intrusion system that cores big integrated CRD-skarn systems throughout Mexico. This means we have to move back towards the historic district in future drilling. It is important to remember that we're working through 100-250 metres of cover in a very large area, and there remains ample room to host the target predicted by our exploration model. Results indicating that we are zeroing in on the source of the world's largest carbonate replacement deposit must be considered very positive. The felsite dikes, mineralization and Manganese-rich alteration cut in the eastern area holes indicate we are very close to a significant mineralization centre; probably the continuation of the style of mineralization Grupo Mexico mines next door at the San Antonio Mine. Our next holes will be directed beneath and beside our first two holes but we still have another 1.5 kilometres of favourable structure left to follow. We expect that the down-hole geophysics about to begin will provide additional targeting vectors for both areas.

The Santa Eulalia Mining District lies 22 kilometres east of Chihuahua City, Chihuahua. Santa Eulalia is the largest of a number of similar districts in central Mexico and produced over 450 million ounces of silver and substantial amounts of lead and zinc over the nearly 300-year period from 1702-2001. Santa Eulalia and comparable Carbonate Replacement Deposits (CRD) are generally considered to form a spectrum ranging from stock contact skarns, through dike and sill contact skarns and massive sulfides, to massive sulfide chimneys and mantos. Santa Eulalia mineralization is very closely related in time and space to a series of felsite intrusions that apparently had a common stock source. It is the search for this intrusive source that is the foundation of exploration in the Guigui Project. Similar intrusions occupy the centre of substantial additional stock contact mineralization in districts such as San Martin, Zacatecas or Leadville, Colorado.

Don Fippi Project, Batopilas District, Chihuahua: An orientation underground and surface-based NSAMT and 3-axis UTM MAG survey began April 24th to determine if highly-conductive historic Batopilas-style native silver mineralization can be located geophysically. The survey is designed to test favorable areas revealed by detailed geologic mapping as well as areas in and near existing workings where old reports indicate silver ores may remain. A significant part of the survey is utilizing the recently reopened and rehabilitated Porfirio Diaz Tunnel (PDT) (See Press Release of April 6, 2004) which gives underground access to over 3 kilometres of the western portion of the district. The geophysical results will be combined with detailed structural analysis to generate drill targets for testing 3Q, 2004.

The Don Fippi project area covers approximately 4,800 hectares centered on the historic Batopilas District Batopilas District located deep within the famous Copper Canyon country of southwestern Chihuahua. Batopilas produced an estimated 200 to 300 million ounces of silver between 1660 and 1913 from bodies of very high grade crystalline native silver irregularly distributed along a series of NE-trending structures. Batopilas ore grades range from the 1880-1913 average direct-smelting grade of 8,000 g/T (257 oz/T) to high-grade ores of up to 75% Ag. Significant tonnages of milling ore grading 265 g/T (8.5 oz/T) were also produced. Historically, Batopilas exploration was "stope and hope" but new bonanzas were encountered regularly along the structures. MAG is applying a number of modern geological and geophysical exploration techniques to locate new ore high-grade shoots quickly and cheaply.

Adargas District, Jimenez, Chihuahua: Drilling has commenced to offset a 1997 core hole that hit 20 centimetres of Zn-Pb-Ag massive sulfides developed along a rhyolite dike/limestone wallrock contact. The 1997 target was the intersection of a 200 metres down-plunge projection of an irregularly plunging chimney orebody and a strong CSAMT geophysical anomaly. The major pursuing the target unsuccessfully offset this hole by 300 metres instead of 25 to 50 metres and abandoned the project. MAG's program will be a series of 25-meter offsets leading back towards the vertical projection of the principal chimney. Holes will be drilled far enough to seek mineralization on both sides of the dike.

The Adargas District is an under-explored 850 hectare Au, Ag, Pb, Zn, Cu Carbonate Replacement Deposit (CRD) that lies at the intersection of two exceptionally productive regional ore deposit trends. Adargas mineralization consists of a series of irregular replacement chimneys developed on the flanks of distinctive rhyolite dikes. Pre-1924 production from Adargas was roughly 350,000 T of oxide ores grading 9-27 g/T (.25-.9 oz/T) Au, 1000 g/T (34 oz/T) Ag, and 24-36% Pb. High zinc grades are also present, but zinc was not recovered from the oxide ores. High gold grades were encountered throughout the mine, with the highest in the deeper oxidized parts of the mine. Adargas closely resembles the famous Naica deposit, which lies 120 metres to the NNW along one of the major regional trends. Naica was "rediscovered" in the mid-1950's by following dike contact mineralization to depth changing it from an obscure occurrence to one of Mexico's major Pb-Ag-Zn mines. The exploration concept for Adargas is virtually identical, starting in the area of the major old mine and working outwards towards showings of similar mineralization that occur for several kilometres along strike.

Cinco de Mayo Project, Benito Juarez, Chihuahua: The MAG Board approved a US$100,000 pre-drilling exploration budget on April 27, 2004. Exploration will utilize geochemical and geophysical techniques to trace mineralization from outcrop beneath adjoining cover. The mineralization is known to contain magnetic pyrrhotite, indicating that airborne or ground magnetics may be useful. Work will begin immediately with the goal of developing targets for drilling in 4Q, 2004.

Cinco de Mayo is a 2,500 hectare Carbonate Replacement Deposit (CRD) prospect located in north-central Chihuahua along the same major deep crustal break that underlies the important Santa Eulalia, Naica and San Pedro Corralitos CRD/skarn systems. The potential of this property emerged from 15 years of systematic regional exploration by Dr. Peter Megaw that shows Cinco de Mayo shares many of the key features of the distal parts of Santa Eulalia. The potential for finding a large CRD system is excellent.

Sierra Ramirez Property, Durango: The MAG Board approved a US$100,000 pre-drilling exploration budget for this project on April 27, 2004. Exploration will focus on determining the overall controls and zoning of the known mineralization in the western half of the district to define the most favorable areas for encountering larger scale occult mineralization. Basic geological, geochemical and geophysical work will begin immediately to define targets for drilling 4Q, 2004 or 1Q, 2005.

The Sierra Ramirez District lies in extreme eastern Durango, approximately 80 kilometres west of the Western Silver's Peñasquito Property in famous Providencia-Concepcion del Oro, Zacatecas District. Sierra Ramirez is a typical Mexican Carbonate Replacement Deposit (CRD) that produced an estimated 750,000-1,000,000 tons of very high grade (1000-3000 g/T Ag) Ag-Pb-Zn ores from Spanish Colonial times until the mid 1960s. Until recently, the land status was high fractionated, but MAG has acquired over 80% of the district by option from Minera Rio Tinto of Chihuahua, Mexico. Significant work was done by majors in the 1990s, but the property was never drilled.

Qualified Person and Quality Assurance and Control
Dr. Peter Megaw, Ph.D., C.P.G., has acted as the Qualified Person as defined in National Instrument 43-101, for this disclosure and supervised the preparation of the technical information in this release. Dr. Megaw has a Ph.D. in geology and more than 20 years of relevant experience focussed on silver and gold mineralization, and exploration and drilling in Mexico. He is a Certified Professional Geologist (CPG 10227) by the American Institute of Professional Geologists and an Arizona Registered Geologist (ARG 21613). Dr. Megaw is not independent as he is a MAG Silver shareholder and a vendor of two projects, other than Juanicipio, whereby he may receive additional shares.

Readers are referred to the qualifying report dated November 19, 2002 by Pincock, Allen and Holt, Qualified Person, available at www.magsilver.com for background information on the project and the program underway.

About MAG Silver Corp.
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. Current projects include: 1) The Juanicipio and Lagartos Projects in the Fresnillo Mining District of Zacatecas...the world's premier silver producer; 2) The Guigui Project in the Santa Eulalia District, the world's largest known Carbonate Replacement Deposit (CRD); 3) The Adargas Project, one of the most gold-rich CRDs in Mexico; Cinco de Mayo, a largely covered district-scale exploration play in the center of the Chihuahua CRD Belt; and 4) Sierra Ramirez, an exceptionally silver-rich CRD in eastern Durango near the famous Concepcion del Oro District.

On behalf of the Board of

"George S. Young"
President, Director

                               REC       Ag        Pb
                               %         ppm       ppm   
                        INTER       Au        Ag          Zn
HOLE    FROM    TO      metres      ppb       oz/T        ppm
GG0405  244.00  244.40   0.40   98  560  109  3.5  56000  43000
GG0405  362.80  364.00   1.20  100        13  0.4   1290   2720
GG0405  407.90  418.20  10.30  100        24  0.8   1492   4898
GG0405  426.35  427.80   1.45   97        27  0.9   8100   5800
GG0405  480.60  483.15   2.55  100        16  0.5   2280   9351
GG0405  532.60  546.55  14      97         7  0.2    960   1409
GG0405  599     601      2     100         7  0.2   1226   1830
GG0405  606.80  610.90   4     100         3  0.1    171   7795
GG0405  615.05  618.00   3      95         3  0.1    319   3747
GG0405  675.55  678.95   3.40  100        13  0.4    271   1239
GG0405  759.00  762.75   1.85   82        29  0.9    212    254
GG0405  769.30  770.10   0.80  100  558   90  2.9     85   1034
GG0405  788.60  789.15   0.55  100        13  0.4   3830   2690
GG0406  433.85  434.75   0.90  100        23  0.7    208    387
GG0406  441.70  448.95   7.25  100         9  0.3    716   3751
GG0406  454.95  455.95   1.00  100         7  0.2   2760   4500
GG0406  462.45  464.70   2.25  100         3  0.1    489    969
GG0406  498.90  511.90  13.00   99        98  3.1    432    801
GG0406  501.95  510.25   8.30   97       131  4.2    569   1031

- 30 -

For further information on behalf of MAG Silver Corp. contact George S. Young
Website: www.magsilver.com
Phone: (604) 630-1399
Toll free: (866) 630-1399

Email: info@magsilver.com
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.

Receive News & Email Updates

© 2021 MAG Silver Corp.
All rights reserved.