MAG Silver Announces Silver-Zinc-Lead Sulphide Veins Near Skarn at Cinco De Mayo CM11-343: 483 g/t silver with 4.52% lead and 11.74% zinc over 2.81 metresCM11-335: 486 g/t silver with 4.56% lead and 6.32% zinc over 1.12 metres
CM11-343: 483 g/t silver with 4.52% lead and 11.74% zinc over 2.81 metres
CM11-335: 486 g/t silver with 4.56% lead and 6.32% zinc over 1.12 metres
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/25/11 -- MAG Silver Corp. (TSX: MAG)(NYSE Amex: MVG) ('MAG' or the 'Company') announces high-grade, silver-rich sulphide and skarn altered intrusion intercepts from on-going exploration drilling in the northwestern part of its 100% owned Cinco de Mayo (or 'Cinco') property in northern Chihuahua State, Mexico. The first two holes into the previously undrilled 'Polaris East' area have hit what appears to be the same set of sheeted sulphide replacement veins. The principal vein in Hole CM11-343 is 2.81 metres wide and grades 483 grams per tonne (g/t) (14.1 ounces per ton)(opt)) Silver, 0.22 g/t gold, 4.52% lead and 11.74% zinc. The same vein is also seen in Hole CM11-335 at 1.42 metres wide reporting 287 g/t (8.3 opt) silver, 0.24 g/t gold, 2.67% lead and 1.40% zinc, with the 0.57 metre interval from 527.11 to 527.68 (0.57m) carrying 636 g/t (18.5 opt) silver, 0.35 g/t gold, 5.42% lead and 2.35% zinc. The intercepts are approximately 50 metres apart with mineralization in both holes consisting of a series of parallel veins ranging from 0.25 to 3.50 metres in width that occur within an overall zone 20 to 35 metres wide. Both holes cut multiple additional parallel sulphide veins and veinlets and highly altered felsite and intermediate dykes. (Please see Table 1 below for the detailed results of the largest of the replacement veins. To see a diagram of the area, please go to the following link: http://media3.marketwire.com/docs/magi325.pdf.)
Perhaps just as significant, highly skarn-altered intrusion was cut in Hole CM11-349, drilled 250 metres southwest of Holes 335 and 343. Hole 349 entered highly altered intrusion approximately 280 metres downhole. At about 475 metres downhole the first of a series of structurally controlled multi-stage garnet-pyroxene skarn zones was intercepted. These skarns replace early granodioritic intrusive rocks and contain abundant fine-grained pyrite and arsenopyrite. These holes are the first to hit a significant intrusive body in the ongoing search for large-scale intrusive-contact mineralization that is believed to exist at Cinco de Mayo. All of the important geological signs point to Polaris and our immediate efforts will focus in this area. Hole CM11-350, designed to test the area between the skarned intrusion and sulphides is in progress. Assays are awaited for Hole CM11-349.
'We are encouraged to see high-grade silver-lead-zinc replacement sulphides in close proximity to a multiphase intrusive system, but even more encouraged to see such strong skarn replacement of the intrusions themselves,' said Dan MacInnis, MAG Silver President and C.E.O. 'The intrusion skarn characteristics we see speak of a very juicy system, which matches well with our exploration model and results to date for Cinco de Mayo.'
The holes were targeted on strong coincident Magnetic and ZTEM geophysical anomalies that underlie an area of roughly 3 kilometres by 3 kilometres lying along the northern projection of the structures that contain the Pozo Seco molybdenum-gold discovery and the Jose Manto.
Table 1 - Detailed assay results for Polaris East Sulphide Vein Intercepts
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From To Inter- Au Ag Ag Pb Zn
Hole ID (m) (m) val (m) (g/t) (g/t) (opt) (%) (%) Area
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CM11-343 519.72 523.23 3.51 0.19 65 1.9 0.46 7.51 Polaris
East
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CM11-343 533.80 536.61 2.81 0.22 483 14.1 4.52 11.74 Polaris
East
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CM11-343 544.86 546.75 1.89 0.06 138 4.0 1.26 4.74 Polaris
East
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CM11-343 553.63 554.80 1.17 0.23 148 4.3 1.11 1.69 Polaris
East
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CM11-335 527.11 528.53 1.42 0.24 287 8.3 2.67 1.40 Polaris
East
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including 527.11 527.68 0.57 0.35 636 18.5 5.42 2.35
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including 527.43 527.68 0.25 0.54 1,250 36.4 10.80 4.14
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CM11-335 545.00 547.27 2.27 0.42 263 7.7 2.37 3.73 Polaris
East
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including 545.00 546.12 1.12 0.36 486 14.2 4.56 6.32
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On-Going Exploration Program Update
The following table lists the assay results for 49 holes and 20,215 metres of drilling at Cinco de Mayo during the last quarter of 2010 and to date in 2011. A total of six specific areas throughout the property were targeted and they are identified in the table.
Drilling will continue to focus on the Polaris and Polaris East areas with two drill rigs to locate the source(s) for gold-silver-molybdenum-lead-zinc-copper and tungsten mineralization, 'fugitive' calcite veins, jasperoid alteration, intrusions and the newly identified skarn alteration.
Table 2 - Assay Results Cinco Exploration
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From To Inter- Au Ag Ag Cu Pb Zn
Hole ID (m) (m) val (m) (g/t) (g/t) (opt) (%) (%) (%) Area
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CM10- No significant Intercepts/hole lost in fault Polaris
329(i)
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CM10-304 No significant Intercepts Polaris
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CM10-309 No significant Intercepts Polaris
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CM10-312 24.00 27.03 3.03 0.01 4 0.1 0.01 1.01 1.77 Polaris
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CM10-315 No significant Intercepts Polaris
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CM10-318 No significant Intercepts Polaris
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CM10- 291.70 304.80 13.10 0.35 4 0.1 0.01 Polaris
324(i)
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CM10-331 No Significant Intercepts Polaris
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CM10-332 No Significant Intercepts Polaris
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CM10- No significant Intercepts/hole lost in fault Polaris
333(i)
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CM11-335 527.11 528.53 1.42 0.24 288 8.4 2.67 1.40 Polaris
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and 545.00 547.27 2.27 0.42 264 7.7 2.37 3.73 Polaris
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CM11- 142.10 143.26 1.16 0.00 52 1.5 0.02 0.01 Polaris
336(i)
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CM11- No significant Intercepts/hole lost in fault Polaris
337(i)
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CM11-341 385.81 386.12 0.31 0.06 18 0.5 2.27 0.01 0.00 Polaris
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CM11-343 50.00 52.03 2.03 1.48 9 0.3 0.01 0.03 0.06 Polaris
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and 55.00 60.50 5.50 0.56 11 0.3 0.02 0.14 0.13 Polaris
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and 519.72 523.23 3.51 0.20 65 1.9 0.01 0.46 7.51 Polaris
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and 533.80 536.61 2.81 0.22 483 14.1 0.01 4.52 11.74 Polaris
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and 544.29 546.75 2.46 0.06 124 3.6 1.14 3.72 Polaris
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and 553.63 554.80 1.17 0.11 148 4.3 1.11 1.69 Polaris
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CM10-296 No significant Intercepts PSS
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CM10-297 64.78 69.25 4.47 0.02 46 1.3 0.02 1.08 0.96 PSS
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and 71.11 76.40 5.29 0.05 47 1.4 0.01 0.52 1.00 PSS
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CM10-298 59.00 59.60 0.60 0.07 5 0.1 0.01 0.88 2.93 PSS
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CM10-303 24.58 26.06 1.48 0.39 7 0.2 0.03 1.31 3.93 PSS
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and 40.57 41.58 1.01 0.69 9 0.3 0.06 1.82 3.85 PSS
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and 141.02 141.52 0.50 11.85 9 0.3 0.01 0.04 0.30 PSS
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and 206.68 208.06 1.38 2.26 1 0.03 0.08 PSS
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and 206.68 207.34 0.66 4.56 3 0.1 0.04 0.14 PSS
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CM10-305 No significant Intercepts PSS
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CM10-320 No significant Intercepts PSS
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CM10-323 No significant Intercepts PSS
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CM10-327 No significant Intercepts PSS
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CM10-328 147.80 149.35 1.55 0.07 3 0.1 0.05 0.37 1.88 PSS
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and 211.45 213.35 1.90 1.11 0 0.03 0.01 PSS
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CM10-299 No significant Intercepts La
Camarada
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CM10-300 47.06 48.12 1.06 0.03 5 0.2 0.01 0.06 3.75 La
Camarada
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and 50.88 51.96 1.08 0.02 12 0.4 0.02 0.11 3.40 La
Camarada
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and 54.26 71.36 17.10 0.02 145 4.2 0.71 0.06 0.71 La
Camarada
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incl- 57.20 58.48 1.28 0.05 101 2.9 8.83 0.30 1.07 La
uding Camarada
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incl- 58.48 67.35 8.87 0.01 210 6.1 0.03 0.02 0.07 La
uding Camarada
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CM10-302 No significant Intercepts La
Camarada
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CM10-306 No significant Intercepts La
Camarada
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CM10-307 253.40 254.04 0.64 0.22 3 0.1 0.23 0.12 La
Camarada
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CM10-310 No significant Intercepts La
Camarada
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CM10-311 152.10 152.60 0.50 0.01 4 0.1 0.01 0.01 5.43 La
Camarada
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CM10-314 470.04 471.37 1.33 0.00 7 0.2 0.03 5.43 La
Camarada
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CM10-316 No significant Intercepts La
Camarada
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CM10-319 No significant Intercepts La
Camarada
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CM10-321 No significant Intercepts La
Camarada
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CM10-322 52.88 54.69 1.81 0.01 6 0.2 0.03 2.41 La
Camarada
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CM10-325 No significant Intercepts La
Camarada
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CM10-301 88.59 89.55 0.96 1.80 6 0.2 0.01 Tres
Amigos
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CM10-308 No significant Intercepts Agate
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CM10-313 No significant Intercepts Agate
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CM10-317 39.46 40.21 0.75 0.08 114 3.3 0.01 0.04 0.45 Agate
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CM10-326 No significant Intercepts Agate
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CM10-330 40.89 41.87 0.98 0.00 71 2.1 0.06 0.29 Agate
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CM10-295 No significant Intercepts La
Gloria
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CM10-334 142.11 142.58 0.47 0.03 418 12.2 0.05 6.66 17.90 La
Gloria
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CM11-338 No significant Intercepts La
Gloria
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CM11-340 No significant Intercepts La
Gloria
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CM11-344 494.50 495.22 0.72 0.11 297 8.7 0.06 0.11 0.14 La
Gloria
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(i)hole lost in fault before reaching targeted depth
PSS indicates the area of Pozo Seco South
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 remaining technical information in this release. Dr. Megaw has a Ph.D. in geology and more than 20 years of relevant experience focused 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.
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 Penoles 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.
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 including a silver, lead and zinc discovery and a moly-gold discovery at its 100% owned Cinco de Mayo property in Chihuahua State. MAG and Fresnillo plc are jointly developing the Valdecanas Deposit on the Juanicipio Joint Venture in Zacatecas State. MAG is based in Vancouver, British Columbia, Canada. Its common shares trade on the TSX under the symbol MAG and on the NYSE Alternext under the symbol MVG.
On behalf of the Board of MAG SILVER CORP.
Dan MacInnis, CEO & Director
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, 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 Investors Concerning Estimates of Indicated Resources
This press release uses the term 'Indicated Resources'. MAG advises investors that although this term is recognized and required by Canadian regulations (under National Instrument 43-101 - Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize this term. Investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into reserves.
Cautionary Note to Investors Concerning Estimates of Inferred Resources
This press release uses the term 'Inferred Resources'. MAG advises investors that although this term is recognized and required by Canadian regulations (under National Instrument 43-101-Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize this term. Investors are cautioned not to assume that any part or all of the mineral deposits in this category will ever be converted into reserves. In addition, 'Inferred Resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under Canadian National Instrument 43-101. Investors are cautioned not to assume that part or all of an Inferred Resource exists, or is economically or legally mineable.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and www.sec.gov/edgar/searchedgar/companysearch.html.
Neither the Toronto Stock Exchange nor the American Stock Exchange has reviewed or accepted responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Contacts:
MAG Silver Corp.
Gordon Neal
VP Corp. Development
(604) 630-1399 or Toll Free: (866) 630-1399
(604) 681-0894 (FAX)
info@magsilver.com
www.magsilver.com