why the news today is a big dealFor anyone who wants to know why the stock is trading higher today, just go to the MAG website and click the map of the Valdecanas Vein drilling. It is clearly visible that this latest interval is located very close to the hole IE. The results were reported in an NR on June 12th, with a 5m intercept of 1,800 gpt silver and 4.5 gpt gold, plus high grade base metals content. This occurred right around the 800m level.
Now today we see that an alteration zone of 16m width has been encountered very close to hole IE, and that it was intercepted at roughly the same depth. So this could be another very high grade intercept, and it is about 3 times the mineralized width.
The implications of this are huge. First off, the amount of resource tonnage that is added when you can demonstrate the extension of a vein across a huge 16m interval is impressive and significant. But also consider that the deposit remains open laterally, and they can still punch more holes in to the west and perhaps continue to encounter high grade intercepts.
When you hit kilo-grade silver across a meter or more of vein width it is something special. DIB reported news today with similar grades from their Cusi deposit in Chihuahua, but only over a much more narrow width. For MAG to potentially have kilo-silver plus excellent gold and base metals, across a 16m hole, makes it one of the best drill intercepts to come out of Mexico this year. People buying today are expecting the assays to confirm that this is indeed a huge new resource zone of that vein.
cheers!
COACH247