News Release ...MAG Silver Announces Juanicipio Resource Estimation and Exploration Update
12/1/2010 9:03:33 AM - Market Wire
IndicatedResources: 5.20 Million Tonnes containing 110.8 million ounces ofsilver, 321,300 ounces of gold Inferred Resources: 7.72 Million Tonnescontaining 93.3 million ounces of silver, 387,200 ounces of gold
VANCOUVER, BRITISH COLUMBIA, Dec 01, 2010 (MARKETWIRE via COMTEX News Network) --
MAGSilver Corp. (TSX: MAG)(NYSE Amex: MVG) ("MAG" or the "Company")announces an independent updated mineral resource estimate for theJuanicipio Property made by Scott Wilson Roscoe Postle Associates Inc.(Scott Wilson RPA) on behalf of MAG Silver. The Juanicipio property,located in the Fresnillo District, Zacatecas State, Mexico, is owned andoperated by Minera Juanicipio S.A. de C.V., a Mexican incorporatedjoint venture company held 56% by Fresnillo plc and 44% by the Company.The updated mineral resource estimate is based on drill resultsavailable to September 8, 2010 and used methods similar to the previousestimate of March 2009. A National Instrument 43-101 technical reportdocumenting the mineral resource estimate will be filed on SEDAR within45 days.
Indicated Mineral Resources are now estimated to total5.20 million tonnes of 662 grams per tonne (g/t) (19.3 ounces per ton(opt)) silver, 1.92 g/t gold, 1.78% lead, and 3.66% zinc at an NSRcut-off value of US$50 per tonne. Total contained metals in theIndicated Resource are 110.8 million ounces of silver, 321,300 ounces ofgold, 204.4 million pounds of lead, and 419.7 million pounds of zinc.At the same cut-off value of US$50 per tonne, Inferred Mineral Resourcesare estimated to total 7.72 million tonnes of 376 g/t (11.0 opt)silver, 1.56 g/t gold, 1.53% lead, and 2.74% zinc. The InferredResources contain an additional 93.3 million ounces of silver, 387,200ounces of gold, 260.7 million pounds of lead, and 466.1 million poundsof zinc.
The Indicated Mineral Resources are located exclusivelyin the Valdecanas Main Vein and Hanging Wall Vein #1. The InferredMineral Resources are contained within the Valdecanas Main Vein, severalhanging and footwall veins and in a stockwork zone located within theValdecanas structure. For the first time, an Inferred Resource isincluded for the Juanicipio Vein, located 1100 metres to the south ofthe Valdecanas Vein. Note that the Juanicipio Vein estimates do notinclude new Hole 18R (reported in detail below) that cut 1.56 metres(true thickness) grading 4,223 g/t (123 opt) silver, 2.97 g/t gold,5.57% zinc, and 3.00% lead.
"We are pleased, but not surprised,to have added over 2 million tonnes and more than 27 million ounces ofsilver and 111 thousand ounces of gold to our Indicated Resources," saidDan MacInnis, MAG's President and CEO. "The 77% increase in Indicatedtonnes shows a much larger high grade mineral inventory for thePrefeasibility Study anticipated by the end of the year, when comparedto the 2009 Scoping Study (see www.sedar.com). The increase was largelyachieved by infill drilling that elevated over 2 million tonnes from theInferred category to Indicated. Inferred tonnes stayed basically thesame thanks to drilling outside the previous resource area that replacedthe elevated tonnes with 2 million new tonnes. Using mining rateestimates from our 2009 Scoping Study, these increases add over 3 yearsto our estimated mine life. We are also pleased to have an InferredResource on our original discovery, the Juanicipio Vein, and lookforward to seeing what the new exceptionally high-grade intercept inhole 18R may add to resources there over time."
Table 1 - Mineral Resource Estimate for the Juanicipio Project as of
September 8, 2010
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Silver Gold Lead Zinc Silver Gold Lead Zinc
Tonnage (Ag) (Au) (Pb) (Zn) NSR (Ag) (Au) (Pb) (Zn)
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M t g/t g/t % % US$/t M oz K oz M lbs M lbs
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INDICATED
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Valdecanas 4.81 645 1.87 1.82 3.77 346 99.7 288.4 193.2 400.0
Main Vein
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Hanging Wall 0.40 868 2.57 1.28 2.25 430 11.1 32.9 11.2 19.7
Vein 1
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Total 5.20 662 1.92 1.78 3.66 352 110.8 321.3 204.4 419.7
Indicated
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INFERRED
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Valdecanas 5.04 386 1.72 1.90 3.37 243 62.6 278.0 211.1 374.1
Main Vein
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Footwall 0.79 510 0.69 0.51 0.82 231 12.9 17.5 8.8 14.1
(Desprendido)
Vein
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Hanging Wall 0.12 554 0.53 0.75 1.54 232 2.2 2.1 2.0 4.2
Vein 1
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Hanging Wall 0.35 802 1.17 1.79 3.68 368 9.0 13.1 13.8 28.3
Vein 2
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Footwall 0.19 136 1.21 2.97 4.55 139 0.8 7.3 12.3 18.9
Vein 2
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Stockwork 0.97 37 1.03 0.52 1.07 51 1.2 32.3 11.0 22.9
Zone
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Juanicipio 0.26 553 4.37 0.28 0.63 337 4.7 36.8 1.6 3.6
Vein
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Total 7.72 376 1.56 1.53 2.74 224 93.3 387.2 260.7 466.1
Inferred
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Footnotes:
1. CIM Definition Standards have been followed for classification of
mineral resources.
2. Mineral resources are reported at a NSR value cut-off of US$50/tonne.
NSR values are calculated in US$ using factors of
.42 per g/t Ag,
3. $21.25 per g/t Au, $9.73 per % Pb and $8.14 per % Zn. These factors are
based on metal prices of US$16.00/oz Ag, US$1000/oz Au,
.80/lb Pb and
$1.00/lb Zn and estimated recoveries and smelter terms.
4. The mineral resource estimate uses drill hole data available as of
September 8, 2010.
5. Mineral resources are not mineral reserves and do not have demonstrated
economic viability.
6. Totals may not add correctly due to rounding.
Resource Estimation Details
TheJuanicipio drill hole database includes 107 diamond core holes totaling87,731 metres drilled prior to September 8, 2010. A set of crosssections and plan views were interpreted to construct three-dimensionalwireframe models of the mineralized veins using the descriptive logs, aminimum NSR value of approximately US$50 per tonne, and a minimumthickness of 1.5 metres. Prior to compositing to two metre lengths, highgrades were cut to 6,000 g/t silver, 16 g/t gold, and 15% for both leadand zinc. Grades and density were estimated using inverse distancecubed. All blocks within the wireframes are reported as mineralresource. Approximately 2% of the Indicated tonnes and 7% of theInferred tonnes have values less than US$50 per tonne but are includedfor continuity. Much of the Stockwork Zone has NSR values less thanUS$50 per tonne, but it is included as mineral resource because itrepresents incremental tonnage adjacent to the Valdecanas and FootwallVeins. Classification into the Indicated and Inferred categories wasguided by the drill hole density and the apparent continuity of themineralized zones.
Comparison with Previous Results
Table 2compares the current and previous mineral resource estimate made byScott Wilson RPA. The 77% increase in Indicated tonnage reflects thecloser spaced drilling and improved confidence in the grade continuity.The addition of Inferred resources along and across strike more thanoffsets the elevation of resources to the Indicated category. Slightdecreases in average grades in both the Indicated and Inferredcategories are due to the addition of lower grade material both up anddown dip of the main, high grade core.
Table 2 - Comparison of Current and Previous Mineral Resource Estimates
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Silver Gold Lead Zinc Silver Gold Lead Zinc
Tonnage (Ag) (Au) (Pb) (Zn) (Ag) (Au) (Pb) (Zn)
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M t g/t g/t % % M oz K oz M lbs M lbs
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Current Estimate
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Indicated 5.20 662 1.92 1.78 3.66 110.8 321 204.4 419.7
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Inferred 7.72 376 1.56 1.53 2.74 93.3 387 260.7 466.1
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March 2009 Estimate
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Indicated 2.95 879 2.22 2.39 4.15 83.3 210 155.2 269.4
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Inferred 7.21 458 1.54 1.89 3.14 106.1 356 301.0 498.2
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Difference
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Indicated 2.26 -217 -0.30 -0.61 -0.49 27.5 111.35 49.2 150.3
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Inferred 0.52 -82 0.02 -0.36 -0.40 -12.8 31.00 -40.3 -32.1
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Percent Difference
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Indicated 77% -25% -13% -25% -12% 33% 53% 32% 56%
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Inferred 7% -18% 1% -19% -13% -12% 9% -13% -6%
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Exploration Results for the Juanicipio Vein
Drillingcontinues on the Juanicipio Vein, primarily in the area around theInferred Resource mentioned above (see Longitudinal Section:https://media3.marketwire.com/docs/MVGJuanicipioVein.jpg). The JuanicipioVein lies 1.1 kilometers south of the Valdecanas Vein and wasdiscovered in the first hole drilled in the Juanicipio Claim by MAGSilver in 2003. Overall, the Juanicipio Vein behaves more erratically inwidth and grade than the Valdecanas Vein, but the local extremely highgrades maintain high exploration interest. The general textural andgrade patterns of the Juanicipio Vein suggest that its Bonanza Zone liesdeeper than that of the Valdecanas Vein, which is consistent with welldocumented vertical and lateral shifts in the centres of mineralizationover time in the Fresnillo District.
The best of the recent holesis Hole 18R, which cut 1.56 metres (true thickness) reporting 4,223 g/t(123.2 opt) silver, 2.97 g/t gold, 3.00% lead and 5.57% zinc. Hole18.5R, drilled 125 metres west of 18R cut a wider (3.55 metre true widththickness) segment of the vein, with significant but lower grades (seeTable 3). More importantly, hole 18.5R cut several hanging wall veins,the first seen along the Juanicipio Vein; the most important of these is0.55 metre wide and carries 453 g/t (13.2 opt) silver. Hole 17.5 R iscurrently in progress to determine if the mineralization cut in 18.5Rcontinues to depth.
Table 3- Juanicipio Vein Drilling Results
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Gold Silver Lead Zinc True
Hole From To (Au) (Ag) (Pb) (Zn) Width
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Number m m g/t g/t % % (metres)
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18P 627.60 628.2 1.47 4,100 2.02 4.07 (i)0.60
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18R 754.70 756.5 2.97 4,223 3.00 5.57 1.56
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18.5R HW 880.90 882.5 0.28 453 0.19 0.92 0.55
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18.5R 889.65 894.0 0.43 548 0.34 1.20 3.55
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18Q 719.85 720.7 0.27 55 1.54 2.00 (i)0.85
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19R 921.60 922.2 2.09 731 10.50 7.66 0.52
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(i) Represents core length
QualifiedPerson - Resource: The Mineral Resources for the Juanicipio Propertydisclosed in this press release have been estimated by Mr. David Ross,P.Geo., an employee of Scott Wilson RPA and independent of MAG. Byvirtue of his education and relevant experience Mr. Ross is a "QualifiedPerson" for the purpose of National Instrument 43-101. The MineralResources have been classified in accordance with CIM DefinitionStandards for Mineral Resources and Mineral Reserves, (December 2005).Mr. Ross, P.Geo. has read and approved the contents of this pressrelease as it pertains to the disclosed mineral resource estimate.
QualifiedPerson- Exploration: Dr. Peter Megaw, Ph.D., C.P.G., has acted as thequalified person as defined in National Instrument 43-101 for thisdisclosure and supervised the preparation of the remaining technicalinformation in this release. Dr. Megaw has a Ph.D. in geology and morethan 20 years of relevant experience focused on silver and goldmineralization, and exploration and drilling in Mexico. He is acertified Professional Geologist (CPG 10227) by the American Instituteof Professional Geologists and an Arizona registered geologist (ARG21613). Dr. Megaw is not independent as he is a Director and Shareholderof MAG and is the vendor of this project, whereby he may receiveadditional shares. Dr. Megaw is satisfied that the results are verifiedbased on an inspection of the core, a review of the sampling procedures,the credentials of the professionals completing the work and the visualnature of the silver and base metal sulphides within a district wherehe is familiar with the style and continuity of mineralization.
QualityAssurance and Control: The samples are shipped directly in securitysealed bags to ALS-Chemex Laboratories preparation facility inGuadalajara, Jalisco, Mexico (Certification ISO 9001). Samples shippedalso include intermittent standards and blanks. Pulp samples aresubsequently shipped to ALS-Chemex Laboratories in North Vancouver,Canada for analysis. Two extra pulp samples are also prepared and areanalyzed (in progress) by SGS Laboratories (Certification ISO 9001) andInspectorate Laboratories (Certification ISO 9001) (or other recognizedlab). The bulk reject is subsequently sent to CIDT (Center forInvestigation and Technical Development) of Penoles in Torreon, Mexicofor metallurgical testing where a fourth assay for each sample isanalyzed and a calculated head grade is received on the basis of aconcentrate balance. The CIDT also does a full microscopic, XRF and XRDmineralogical analysis.
About MAG Silver Corp. (www.magsilver.com)
MAGis focused on district scale projects located within the Mexican SilverBelt. Our mission is to become one of the premier companies in theSilver Mining Industry. MAG is conducting ongoing exploration of itsportfolio of 100% owned properties in Mexico including a silver, leadand zinc discovery and a moly-gold discovery at its 100% owned Cinco deMayo property in Chihuahua State. MAG and Fresnillo plc are jointlydelineating a significant new silver vein discovery on the JuanicipioJoint Venture in Zacatecas State. MAG is based in Vancouver, BritishColumbia, Canada. Its common shares trade on the TSX under the symbolMAG and on the NYSE Amex under the symbol MVG.
On behalf of the Board of MAG SILVER CORP.
Dan MacInnis, CEO & Director
Thisrelease includes certain statements that may be deemed to be"forward-looking statements" within the meaning of the US PrivateSecurities Litigation Reform Act of 1995. All statements in thisrelease, other than statements of historical facts are forward lookingstatements including statements, including statements that addressfuture mineral production, reserve potential, exploration drilling,exploitation activities and events or developments. Forward-lookingstatements are often, but not always, identified by the use of wordssuch as "seek", "anticipate", "plan", "continue", "estimate", "expect","may", "will", "project", "predict", "potential", "targeting", "intend","could", "might", "should", "believe" and similar expressions. Thesestatements involve known and unknown risks, uncertainties and otherfactors that may cause actual results or events to differ materiallyfrom those anticipated in such forward-looking statements. Although MAGbelieves the expectations expressed in such forward-looking statementsare based on reasonable assumptions, such statements are not guaranteesof future performance and actual results or developments may differmaterially from those in the forward-looking statements. Factors thatcould cause actual results to differ materially from those inforward-looking statements include, but are not limited to, changes incommodities prices, changes in mineral production performance,exploitation and exploration successes, continued availability ofcapital and financing, and general economic, market or businessconditions, political risk, currency risk and capital cost inflation. Inaddition, forward-looking statements are subject to various risks,including that data is incomplete and considerable additional work willbe required to complete further evaluation, including but not limited todrilling, engineering and socio-economic studies and investment. Thereader is referred to the Company's filings with the SEC and Canadiansecurities regulators for disclosure regarding these and other riskfactors. There is no certainty that any forward looking statement willcome to pass and investors should not place undue reliance uponforward-looking statements.
Cautionary Note to Investors Concerning Estimates of Indicated Resources
Thispress release uses the term "Indicated Resources". MAG advisesinvestors that although this term is recognized and required by Canadianregulations (under National Instrument 43-101 - Standards of Disclosurefor Mineral Projects), the U.S. Securities and Exchange Commission doesnot recognize this term. Investors are cautioned not to assume that anypart or all of mineral deposits in this category will ever be convertedinto reserves.
Cautionary Note to Investors Concerning Estimates of Inferred Resources
Thispress release uses the term "Inferred Resources". MAG advises investorsthat although this term is recognized and required by Canadianregulations (under National Instrument 43-101-Standards of Disclosurefor Mineral Projects), the U.S. Securities and Exchange Commission doesnot recognize this term. Investors are cautioned not to assume that anypart or all of the mineral deposits in this category will ever beconverted into reserves. In addition, "Inferred Resources" have a greatamount of uncertainty as to their existence, and economic and legalfeasibility. It cannot be assumed that all or any part of an InferredMineral Resource will ever be upgraded to a higher category. UnderCanadian rules, estimates of Inferred Mineral Resources may not form thebasis of feasibility or pre-feasibility studies, or economic studiesexcept for Preliminary Assessment as defined under Canadian NationalInstrument 43-101. Investors are cautioned not to assume that part orall of an Inferred Resource exists, or is economically or legallymineable.
Please Note: Investors are urged to consider closelythe disclosures in MAG's annual and quarterly reports and other publicfilings, accessible through the Internet at www.sedar.com andwww.sec.gov/edgar/searchedgar/companysearch.html.
Neither theToronto Stock Exchange nor the American Stock Exchange has reviewed oraccepted responsibility for the accuracy or adequacy of this newsrelease, which has been prepared by management.
Contacts: MAGSilver Corp. Gordon Neal VP Corp. Development (604) 630-1399 or Tollfree: (866) 630-1399 (604) 681-0894 (FAX) info@magsilver.comwww.magsilver.com
SOURCE: MAG Silver Corp.
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