MAG Silver Intercepts More Molybdenum-Gold at Pozo Seco and New Intercepts of Zinc-Lead-Copper-Silver-Gold
0.052% molybdenum over 164.86 metres (532.50 feet)
and 0.10% molybdenum over 94.03 metres (303.72 feet)
Vancouver, BC -- MAG Silver Corp. (TSX:MAG) (NYSE-A:MVG) ("MAG") announces additional gold and molybdenum ("moly") assay results from on-going drilling (17 diamond drill holes) of the Pozo Seco moly-gold discovery on its 100% owned Cinco de Mayo (or "Cinco") property in northern Chihuahua State, Mexico. Results confirm that Pozo Seco not only represents an emerging moly deposit target in its own right, but also represents an important indicator of nearby significant lead-zinc-silver mineralization typical of the Carbonate Replacement Deposits (CRDs) in this part of Mexico. A step out of 1.1 kilometres from Pozo Seco also intercepted the system with indications that the potential lead-zinc-silver root of the system may be near. Drilling continues with 4 machines conducting step out and in-fill drilling.
Seven additional holes have been completed near Hole CM10-221 in an attempt to follow the thick molybdenum mineralization at "Pozo Seco Deep" reported April 14, 2010. Hole CM10-230 was the closest offset and cut 164.86 metres (532.50 feet) of 0.052% molybdenum (Mo) with 0.19 grams per ton (g/t) gold before the hole was lost in a caving fault zone. This fault zone may be part of the controlling structure to the regional mineralization pattern and may lead back to the lead-zinc-silver rich source for the observed moly mineralization.
Like CM10-221, there were several higher grade intercepts in CM10-230 (see table below). Holes behind and flanking the zone (CM10-226, 236 and 237) cut significant thicknesses of similar mineralization, as did Hole 224 that was drilled 400 metres to the northwest. Hole CM10-233, an attempt to test below CM10-221, was lost at 146.30 metres in a cave. Continued drilling will attempt to test beneath this area.
Seven additional holes have been completed in the 100 metre grid drilling pattern in the Pozo Seco Prime Zone. The results are consistent with those from neighbouring holes in terms of thickness and grade. The best of these recent holes is CM10-228, which cut 94.03 metres (0 to 94.03 metre depth) grading 0.1% Mo and 0.15 g/t gold, with the first 24.84 metres from surface running 0.21% Mo and 0.32 g/t gold.
Hole CM10-247, an aggressive 1.1 kilometre step-out angle hole of the Pozo Seco Deep zone, cut the Pozo Seco Fault (see below) at 300 metres and entered the favourable Finlay Limestone. The Finlay is in turn cut by a series of 5 strong quartz-calcite-barite-sulphide veins, ranging from 0.50 to 5.50 metres in thickness with up to 10% base metal and pyrite sulphides. These "Rancho Zone" veins are very similar to calcite-quartz-sulphide veins encountered above and around high-grade manto, chimney and skarn zones in many of the world's large CRDs. Assays are pending for this hole. Drilling is in progress to determine the source of the veins.
"The recent drilling continues to firm up and expand the stand-alone moly-gold mineralization at Pozo Seco and results from the holes that have been completed in the Pozo Seco Deep zone appear to confirm that this is a fluid upwelling area with significant thickness and grade" said MAG CEO, Dan MacInnis. "The fact that our 1.1 kilometre step-out hole cut multiple mineralized veins with a more proximal mineralization style, suggests we're on the right track."
MAG has also drilled a series of three step-out holes through complete cover designed to test the Pozo Seco Fault 500 metres southwest of Pozo Seco Prime. The first of these holes was an angle hole CM10-235, which encountered an altered 2 metre wide quartz porphyry dike in the fault at 238 metres downhole with 0.40 metre (223.08 to 223.48 metre downhole) of sulfide replacement mineralization grading 0.51% copper and 0.84% lead in limestone on the north side. This was followed with 100 metre offsets to the east and west (CM10-238 and 239 respectively). CM10-239 intersected 3.75 metres of 0.17 g/t Au, 0.41% Pb and 1.24% Zn starting at 172 metres within the Finlay limestone.
On-going Exploration Program
Drilling is continuing with 4 machines: (2 dedicated to tracing the Rancho Zone veins towards their source, 1 focused on testing geophysical anomalies coincident with the Pozo Seco Zone, and 1 seeking the large-scale replacement and skarn mineralization typical of the deposits in the trend hosting Cinco de Mayo). Moly is a typical (and proximal) component of CRDs, and the moly zone outlined at Cinco is several times larger than that in the largest known CRDs in Mexico, suggesting that very large scale silver, lead, zinc and copper mineralization may be present in the heart of Cinco de Mayo. Gold, silver and base metal intercepts encountered at depth in some of the recent drill holes further substantiate MAG's exploration model.
The tables below are presented by area and can be cross referenced with the diagrams located at www.magsilver.com. Holes are vertical unless indicated otherwise.
Table 1.0 Highlights from Pozo Seco Deep Zone
|CM10-233||Hole lost in cave / No significant intercepts|
Table 2.0 Pozo Seco Prime Moly-Gold Zone
Table 3: Rancho Zone and Pozo Seco Fault Zone
|CM10-235||No significant intercepts|
|CM10-238||No significant intercepts|
* CM10-230 was lost in mineralization
**CM10-239 also has 0.17 g/t Au, 0.41% Pb and 1.24% Zn over 3.75 m starting at 172 m.
Quality Assurance and Control: The Company has in place a quality control program to ensure best practices in sampling and analysis. Samples were collected by employees of consulting firm Minera Cascabel S.A. de C.V. on behalf of MAG Silver Corp. The surface rock samples are shipped directly in security sealed bags to ALS-Chemex Laboratories preparation facilities in Hermosillo, Sonora or Chihuahua City (Certification ISO 9001). Sample pulps are shipped from there to ALS-Chemex Laboratories in North Vancouver, Canada for analysis. All samples were assayed for gold by standard fire assay-ICP finish with a 50 gram charge. Gold values in excess of 3.00 g/t were re-analyzed by fire assay with gravimetric finish for greater accuracy. Silver, values in excess of 100 g/t are repeated by fire assay, zinc, copper and lead values in excess of 1% repeated by Atomic adsorption for high grade materials. Molybdenum is analyzed by ICP-MS to 1%, and checked by atomic adsorption, over 1% Molybdenum is being reanalyzed by Atomic adsorption methods for high grade materials.
Qualified Person: 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 Director and Shareholder of MAG and is the vendor of this project, whereby he may receive additional shares. Dr. Megaw is satisfied that the results are verified based on an inspection of the core, a review of the sampling procedures, the credentials of the professionals completing the work and the visual nature of the silver and base metal sulphides within a district where he is familiar with the style and continuity of mineralization.
About MAG Silver Corp. (www.magsilver.com)
MAG is focused on district scale projects located within the Mexican Silver Belt. Our mission is to become one of the premier companies in the Silver Mining Industry. MAG is conducting ongoing exploration of its portfolio of 100% owned properties in Mexico. MAG and Fresnillo plc are jointly delineating a significant new silver vein discovery on the Juanicipio property in Zacatecas State, Mexico. MAG is based in Vancouver, British Columbia, Canada. Its common shares trade on the TSX under the symbol MAG and on the NYSE.A under the symbol MVG.
On behalf of the Board of
MAG SILVER CORP.
President and CEO
For further information, please contact:
Contact Gordon Neal, VP Corp. Development
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