TORONTO, July 08, 2019, — Magna Gold Corp. (TSXV: MGR) (“Magna” or the “Corporation”), is pleased to announce the initiation of phase one of an exploration program on its Mercedes Property in the State of Sonora, Mexico. Mercedes is an exploration property located within the Sierra Madre Occidental province, a historically productive, regionally extensive Tertiary volcanic field which stretches from the United States/Mexico border to Central Mexico. The project encompasses a total land tenure of 1,239 hectares located on a 20 km long regional mineralized trend hosting some important exploration targets as well as numerous old relevant mining works.
The project is located 43 km from Alamos Gold 3 Moz Mulatos Gold Mine, 40 km from Agnico’s 1 Moz La India Gold Mine, and adjacent to Minera Alamos’ Santana and Santa Rosa projects. Infrastructure and support services are available to the project; paved Federal Highway 16 passes through the western portion of the claims. Electricity, mail, phone services and accommodation are available at the nearby villages of Yecora and Santana. An electrical line (C.F.E.) passes through the property as it parallels the paved highway (fig 1.)
The initial exploration program is aimed at quickly confirming two objectives:
- To confirm the existence of an oxide zone (as suggested by historical drilling), of potential disseminated, quartz stockwork and vein hosted gold +/- silver mineralization within an envelope measuring up to 60m wide over a strike length of 220m and a down dip length in excess of 240m. A total of thirteen reverse circulation (RC) drill holes to a depth varying 150-200 meters each, totaling approximately 2,300 meters (figs. 2 and 3) will be carried out. The mineralized trend shown in Figure 2 was interpreted using data from historical drilling compiled from credible yet non-verifiable data. The presence of such trend is confirmed at surface by geological investigation and supported by recent rock chip and soil sampling.
- An extensive program of surface geochemistry including rock chip/grab sampling, systematic soil sampling and reconnaissance geological mapping on an area totaling approximately 500 hectares to identify new drilling objectives on the five identified additional targets (fig 4.)
Map showing historical drilling mineralized intercepts and new programmed (2019)
drilling on La Lamosa Hill.
Representative Cross Section showing an interpretation based on the historical drilling and the new programmed drilling 2019 to confirm and extend the gold mineralization on the La Lamosa target.
Exploration targets on the Las Mercedes Property.
This first phase of exploration started on June 17 and some activities have already been completed, including camp set up, aerial topography and access roads to the drill sites. Surface mapping is already underway, and drilling is scheduled to start the week of July 21 upon completion of drill sites and supporting geological mapping. Drilling is expected to finalize the week of August 18 and compilation of data, including assay results and geological Interpretation are expected to be released in September 2019.
Environmental permit for exploration was granted to Magna’s Mexican subsidiary on November 29, 2018 by SEMARNAT, Mexico’s Federal Ministry responsible for managing Environmental Protection and Natural Resources.
This phase of exploration is budgeted to cost approximately US $450,000.
Dale Brittliffe, P. Geo., independent geological consultant and author of the report “NI 43-101 Technical Report Mercedes Property, Yecora Area, Municipality of Yecora, Sonora, Mexico” prepared for Magna Gold Corp with an effective date of April 30, 2019 is a ´Qualified Person´ under National Instrument 43-101, and has approved the scientific and technical information contained in this press release.
About Magna Gold Corp.
Magna is an exploration company listed on the TSX Venture with its sole project located in the municipality of Yecora, Sonora, Mexico.
For more information, please contact Francisco Arturo Bonillas Zepeda, the Chief Executive Officer, Corporate Secretary and a director of the Corporation.
Francisco Arturo Bonillas Zepeda
CEO, Corporate Secretary and Director
T: +52 662.310.0326
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This News Release includes certain “forward-looking statements” which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Corporation’s future plans, objectives or goals, including words to the effect that the Corporation or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Corporation, the Corporation provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Corporation’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Corporation’s public documents filed on SEDAR. Although the Corporation believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.