• Deer Trail

  • Deer Trail

  • Deer Trail

Deer Trail Project
Piute County, Utah, USA

The Deer Trail Project includes 111 patented and 682 unpatented claims (approximately 5,600 Ha) encompassing the historic Deer Trail Mine and the adjoining Alunite Ridge area in Piute County, Utah. The Deer Trail Project displays and satisfies MAG’s top criteria when exploring for large CRD systems, specifically: the presence of high silver grades; location on a deep-penetrating regional-scale fault known to host major CRD-family deposits; location at the top of a thick section of favorable host rocks; and an identifiable plumbing network of faults and mineralization (see Press Release September 10, 2020).

MAG’s exploration focus is to seek the source of the historically mined high-grade Silver-Lead-Zinc-Copper-Gold Deer Trail manto in the thick section of high-potential limestone host (Redwall Limestone) that regional mapping indicates lies just below the interlayered sedimentary and limestone sequence that hosts the Deer Trail mine. This involves: verifying the presence of those potentially more favorable host rocks at depth; projecting the feeder structures of the known CRD mineralization to depth into these inferred underlying limestone host rocks; and seeking large-scale silver-rich massive sulfide replacements and potentially mineralized skarn in them. This program is well advanced with Phase I drilling having commenced in November 2020 and a deep-looking underground 2-D seismic survey completed in October 2020 to assist in determining projected depth and geometry of the inferred favorable host rocks. The underground seismic survey results are being processed to help refine final drill hole angles and depths for subsequent holes in the Phase I drill program.

Phase I drill program (Q4 2020 - Q2 2021)

With drill roads completed and drill pads fully permitted, in November 2020 MAG commenced a $2,300 6,000 metre Phase I surface-based core drilling program. Initial targets were derived within Leapfrog Geo® by integrating vast new technical data acquired over 2019 - 2020 and the large inherited historic data set into MAG’s CRD exploration model. Due to difficult near-surface drilling conditions that entailed unanticipated costs, the program will be approximately 4,500 metres when completed in Q2 2021. Deviation/directional drilling is being considered for on-going drilling to eliminate/minimize these costs going forward.

Phase I drilling priorities include:

  1. 1) Proving up the presence of, and determine the depth to, the Redwall Limestone;
  2. 2) Tracing the known steep-dipping feeder structures that fed the mine mineralization to depth into the Redwall Limestone;
  3. 3) Determining the direction towards the mineralizing intrusive unit(s) responsible for the high-grade replacement mineralization within and surrounding the Deer Trail Mine; and,
  4. 4) Seeking massive sulfide mineralization and mineralized skarn at depth and more proximal to the mineralizing intrusive controlled by the above.

 

Phase I drilling is expected to be completed during Q2 2021 with assays and interpretations expected shortly thereafter.

Phase I surface-based core drilling program is approximately 70% complete at March 31, 2021, and is expected to be completed during Q2 2021 with assays and interpretations expected shortly thereafter. Follow-up Phase II drill targeting is being planned as interpretation of the incoming core and draft lab results are incorporated into the district geological model. Other highly prospective areas of the large property package are also being considered for further exploration and subsequent drill testing.

COVID-19: Deer Trail Project

Safety is one of MAG’s key core values and MAG has implemented strict COVID-19 protocols for the Deer Trail Project in line with guidance from governmental public health agencies. The Company established its COVID-19 response plan for Deer Trail in June 2020 with safety measures that include mandatory mask use, COVID-19 testing for contractors and employees prior to returning to site, temperature screening, employee health surveys, antibody rapid tests for team members to track exposure and social distancing. The Company continues to monitor the Utah Center for Disease Control and World Health Organization recommendations, updating the protocols in September 2020 and again in early January 2021. These updates include additional controls for positive result cases and a safe return to the workplace plan (post COVID-19). Most project employees and contractors have now been fully vaccinated.

The Agreement                                  (expressed in thousands of US dollars except as otherwise noted)

MAG executed an earn-in agreement (the “Agreement”) effective December 20th, 2018 to consolidate and acquire 100% of the historic Deer Trail Mine and surrounding Alunite Ridge area in Piute County, Utah (the “Deer Trail Project”). The counterparties to the Agreement (the “Parties”) contributed their respective Deer Trail claims and property rights to a newly formed company for a 99% interest in the company, with MAG holding the other 1% interest. MAG is the Project Operator and has the right to earn a 100% interest in the company and the Deer Trail Project, with the Parties retaining a 2% NSR. In order to earn in 100%, MAG must make a total of $30 million in escalating annual expenditures ($5,909 expended to March 31, 2021) and $2 million in royalty payments ($300 paid to March 31, 2021), both over 10 years, which commenced December 2018. The combined optional annual commitments do not exceed $2.5 million/year until after 2025. All minimum obligatory commitments under the Agreement have been satisfied (see 'Exploration and Evaluation Assets’ below).

Deer Trail is a silver-rich Carbonate Replacement Deposit (“CRD”) project potentially related to a Molybdenum-Copper Porphyry system or systems immediately to the west. Consolidating the property package allows MAG to apply its integrated district scale exploration model and apply new technology to the search for an entire suite of mineralization styles expected to occur on the property (see ‘Deer Trail Project’ below).

The combined property package came with decades of information generated through prior exploration programs focused on the historic Deer Trail mine itself, the inferred Porphyry centres and veins scattered throughout the property. These data include: extensive surface and underground geological maps; geochemical sampling results; logs, core and chips from over 20,000 meters of historic drilling; a districtwide airborne magnetic survey; 15 line kilometers of Audio Magneto-Telluric (AMT) geophysics; 2.5 km of U.S. Mine Safety and Health Administration (MSHA) certified underground workings; and an active mining permit. Infrastructure and access to the property are excellent. Disturbances identified by MAG are being proactively remedied and reviewed by governmental regulators, leaving no significant environmental legacy issues.

Deer Trail is a silver-rich Carbonate Replacement Deposit (“CRD”) project potentially related to a Molybdenum-Copper Porphyry system or systems immediately to the west. Consolidating the property package allows MAG to apply its integrated district scale exploration model and apply new technology to the search for an entire suite of mineralization styles expected to occur on the property.

EXPLORATION AND EVALUATION ASSETS

Option Earn-in Project

In 2017, the Company entered into an option earn-in agreement with a private group whereby the Company can earn up to a 100% interest in a prospective land claim package. To March 31, 2021, the Company has incurred $8,244 in exploration expenditures on the property and there are no further exploration funding requirements under the agreement.  However, to earn a 100% interest in the property package, the Company must make remaining cash or share payments of $100 and $150 on or before the fourth and fifth annual anniversaries of the agreement, at which time the vendors will retain a 2% net smelter returns royalty (“NSR”). 

Deer Trail Project

In 2018, the Company entered into an option agreement with another private group whereby MAG has the right to earn 100% ownership interest in a company which owns the Deer Trail project in Utah. MAG paid $150 upon signing the agreement and another $150 in October 2020.  To earn 100% interest in the property, MAG must make remaining cash payments of $1,700 over the next 8 years and fund a cumulative of $30,000 of eligible exploration expenditures ($5,909 incurred to March 31, 2021) by 2028. Upon MAG’s 100% earn-in, the vendors will retain a 2% NSR.

DT Technical Presentation


Deer Trail Technical Presentation

DT Non -Technical slide deck


Deer Trail Non -Technical slide deck PDF

DT Non-Technical Video Presentation


Deer Trail Non-Technical Video Presentation 

You are now leaving the MAG Silver website to go to an external third-party website.

By selecting this link, you will be transferred to a website that is not affiliated with, or under the ownership or control of the MAG Silver site. Proceed at your own risk. We are not responsible or liable for the operation, content or policies of the website to which you are linking, and do not endorse, control, supervise or review its policies, assumptions, content or forward-looking statements. You should address any concerns or questions you may have regarding that website to the site Administrator or Webmaster of that website.

Fresnillo Annual Report 2019

You are now leaving the MAG Silver website to go to an external third-party website.

By selecting this link, you will be transferred to a website that is not affiliated with, or under the ownership or control of the MAG Silver site. Proceed at your own risk. We are not responsible or liable for the operation, content or policies of the website to which you are linking, and do not endorse, control, supervise or review its policies, assumptions, content or forward-looking statements. You should address any concerns or questions you may have regarding that website to the site Administrator or Webmaster of that website.

Website

Receive News & Email Updates


© 2021 MAG Silver Corp.
All rights reserved.
Disclaimer