MAG Silver Reports on the Juanicipio Joint Venture
Vancouver, B.C...MAG Silver Corp. (TSX:MAG) (NYSE.A:MVG) ("MAG") is pleased to provide an update from the June quarterly Technical Committee meeting of Minera Juanicipio SA , a joint venture between Fresnillo Plc and MAG. In addition assay results are reported for three definition drill holes along the Valdecañas Vein and one exploration hole recently completed on the Juanicipio Vein. The joint venture continues to execute the 2009 program where presently there are 4 drills turning. Preliminary engineering studies and detailed metallurgical work are also progressing.
The Juanicipio Joint Venture held its regularly scheduled quarterly Technical Committee meeting on June 18, 2009 to review progress on the 2009 program. To date, Joint Venture expenditures amount to $US1.6 million and Fresnillo, as the operator, has completed 9,592 meters of drilling. This represents 40% of the proposed drilling for the year, with both drilling and expenditures consistent with that expected to the end of May.
Drilling has included 6,032 meters on the Valdecañas Vein, 3,028 meters on the Juanicipio Vein and almost 500 meters on the Encino Vein where ground conditions continue to prove frustratingly difficult. The committee is considering a proposal to be presented to the Minera Juanicipio Board for review and possible approval, whereby an additional 8,000 meters of drilling would be directed to the Valdecañas Vein to maximize conversion from inferred to indicated resources.
Wardrop Engineering provided an updated draft report of the Scoping Level Study (43-101) directed at a stand alone scenario for the Valdecañas Vein. Fresnillo has already given Wardrop commentary and recommendations on the report based on local experience operating in Mexico, and MAG is preparing its observations, with final results expected before the end of the third quarter.
Assay results have been received for four recent holes drilled on the joint venture holdings. Three of the holes were drilled as part of the planned 2009 infill drilling program designed to define the Valdecañas Vein on one hundred meter centres as well as define the upper limit of the Bonanza Zone. The remaining hole was an exploration hole drilled on the Juanicipio Vein.
The most important results from this series are from Hole PE2, drilled on the east-central portion of the Valdecañas vein. The assays report a high grade silver and gold intercept of 8.85 meters (8.02 meters true width) carrying 448 grams per tonne silver (13.1 ounces per ton (opt)), 5.70 g/t gold (0.17 opt), 1.68% lead and 4.21% zinc.
Holes PC and JB were drilled to define the top of the bonanza zone and returned values consistent with expectations for intersections just above the zone. (see table below for details.)
The fourth hole drilled, Hole 21P was on the Juanicipio Vein and this hole intersected the vein almost 150 meters east of hole 20P and about 45 meters higher in elevation. Results are consistent with earlier results at this elevation and details are included in the table below.
Drilling has now tracked the Juanicipio Vein for over 1 kilometre along strike, with textures and metal values indicating that the vein is being cut at a high level, potentially comparable to the irregular uppermost portions of the Valdecañas Vein (Note zone above about 1800m elevation on Long Section below). Results to date indicate that the "top out" of the Juanicipio Vein lies at an elevation 100 to 150 metres deeper than that seen in the Valdecañas Vein, so the next series of planned holes have been redesigned to seek the heart of the Bonanza Zone 100-200 metres deeper.
The overall 2009 exploration program proposes a minimum of 24,000 metres of drilling focused on the Valdecañas Vein, Juanicipio Vein, the Encino Vein and new exploration targets. The Board also authorized $US 500,000 for development engineering studies. One drill is currently operating on the Juanicipio Vein, two drills are presently turning on the Valdecañas Vein and one drill is operating in the Encino area.
Quality Assurance and Control: The samples are shipped directly in security sealed bags to ALS-Chemex Laboratories preparation facility in Guadalajara, Jalisco, Mexico (Certification ISO 9001). Samples shipped also include intermittent standards and blanks. Pulp samples are subsequently shipped to ALS-Chemex Laboratories in North Vancouver, Canada for analysis. Two extra pulp samples are also prepared and are analyzed (in progress) by SGS Laboratories (Certification ISO 9001) and Inspectorate Laboratories (Certification ISO 9001) (or other recognized lab). The bulk reject is subsequently sent to CIDT (Center for Investigation and Technical Development) of Peñoles in Torreon, Mexico for metallurgical testing where a fourth assay for each sample is analyzed and a calculated head grade is received on the basis of a concentrate balance. The CIDT also does a full microscopic, XRF and XRD mineralogical analysis.
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 a vendor of one project, other than Juanicipio, 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 the Joint Venture
The 8,000 hectare Juanicipio property is located in Zacatecas State, Mexico just outside the mining town of Fresnillo. The Fresnillo mine area has been in continuous production since the 1500's and today is host to the world's largest producing primary silver mine operated by Fresnillo plc. The Fresnillo/MAG Juanicipio Joint Venture lies 5 kilometres west from the principal production head-frame of the Fresnillo Mine and 1.5 kilometres west from the Saucito Vein, currently undergoing preproduction development with construction of a 600 metre shaft and a 2,200 metre decline. Fresnillo operates the delineation and exploration program on behalf of the joint venture company, Minera Juanicipio S.A. DE C.V.
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 and its partner Fresnillo plc are delineating a significant new silver vein discovery on the Juanicipio property in Zacatecas State, Mexico. MAG has also identified a new silver, lead and zinc discovery at its 100% owned Cinco de Mayo property. MAG is based in Vancouver, British Columbia, Canada. Its common shares trade on the TSX under the symbol MAG and on the NYSE Amex under the symbol MVG.
On behalf of the Board of
MAG SILVER CORP.
President and CEO
|For further information on behalf of MAG Silver Corp.
Contact Gordon Neal, VP Corp. Development
For further information on behalf of Fresnillo plc
Contact Octavio Alvidrez, Investor Relations
52 (55) 5279 3250
52 (55) 5279 3217
Neither the Toronto Stock Exchange nor the New York Stock Exchange Alternext US LLC has reviewed or accepted responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG 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 include, but are not limited to, changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions, political risk, currency risk and capital cost inflation. In addition, forward-looking statements are subject to various risks, including that data is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment. The reader is referred to the Company's filings with the SEC and Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.
Cautionary Note to U.S. Investors: The U.S. Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "Inferred resources," that the SEC guidelines prohibit U.S. registered companies from including in their filings with the SEC.
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