Batopilas

BATOPILAS PROPERTY
BATOPILAS DISTRICT MUNICIPIO BATOPILAS CHIHUAHUA, MEXICO

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September 2008

Control of Batopilas Silver District an opportunity for MAG to apply modern geoscience and exploration technology to historic high-grade producer

The 100%-owned Batopilas project covers 4,800 hectares in the historic Batopilas Native Silver District in southwestern Chihuahua, which produced some 300 million ounces of silver between 1632 and 1912. Production was curtailed and the infrastructure destroyed during the Mexican Revolution (1912) and never recovered.

In 2005, MAG was successful in assembling the Batopilas land package, representing 94% of the Batopilas Native Silver District and the first-ever consolidation of the district's numerous mines and workings. Our goal was the reexamination of this native silver-rich area using a new district exploration model developed by MAG explorationists.

Work begun by MAG in 2006 is the first modern exploration program conducted in the district in over 93 years.

The Batopilas project is a unique opportunity for our exploration team to apply its accumulated knowledge of the Mexican Silver Belt - and its proven leadership in the application of modern geoscience - to identify new mineral wealth in the Batopilas district, and try to revive its silver production past.


Latest drilling encounters 61.2 metres of silver-lead-zinc mineralization; affirms new exploration model

Announced on May 5, 2008, Batopilas drilling encountered a broad zone of silver-lead-zinc mineralization in the Las Animas area. The zone starts immediately beneath the casing at 9.02 metres down hole and extends to 70.87 metres for a total core length of 61.2 metres grading 20.5 g/t silver, 0.66% lead and 0.84% zinc.

These returns are consistent with the new exploration model MAG is pursuing: another target type from the veins that provided the district's historical production. We are seeking previously unconsidered mineralization styles such as broader scale silver-lead-zinc mineralization in and around the intrusive dikes and their source stock, and this was the first intersection of this type.

As President and CEO Dan MacInnis said with the announcement, "We are extremely pleased with both the extent and the tenor of this new zone. It is a confirmation of our exploration model and takes us one step closer to understanding the true nature and potential of Batopilas. Tracing this mineralization to where we believe it is in proximity to both the intrusive centre and major structures cutting the prospective stratigraphy is very exciting and presents a high-priority target for MAG."


New exploration model also targets historic high-grade silver at depth

Also part of the new exploration model, MAG is targeting the historic high-grade native silver vein mineralization in specific stratigraphic units where vein openings should be widest. This structural and stratigraphic model is thought to indicate that surface silver occurrences (structures) persist to depth and that there are further indications that as they approach the lower contact of the middle sedimentary member and the lower volcanic unit there are improvements in scale and tenor of the veins.

This model suggests that an almost untouched northern half of the district lies untested under Cerro de las Animas.


Batopilas project background: Historical production, early MAG work

Almost 300 years of silver production from Batopilas was from ore shoots of very high-grade crystalline native silver hosted in calcite veins. The Batopilas veins are distinct from the other epithermal vein deposits of the region, which typically have a productive zone a few hundred metres high. The Batopilas silver veins were productive over a vertical interval of at least 700 metres and the bottom of the system has apparently never been reached.

In 2005, MAG generated the first modern detailed geological and structural map of the district and is combining it with modern geophysical and geochemical exploration techniques to locate new ore shoots quickly and effectively.

In April, 2006, MAG completed Phase One of its Batopilas drill program. A total of 12 holes were drilled totalling 3,025 metres. This work was successful in identifying a number of important exploration control vectors at Batopilas that included: a better understanding of the lithological controls on the native silver mineralization; the structural history and structural ore host controls; the vein and structural geochemistry as well as the lateral and vertical metal zoning characteristics of the vein mineralization.


2007: Drilling encounters high-grade silver; surface work discovers rich vein and numerous new mineralized structures

Exploration in 2007 included drilling and extensive aerial and surface work on the Batopilas Native Silver District. The program's results included encountering of high grade silver in: drilling in the Roncesvalles-Todos Santos area, drilling in the Las Animas area (Cobriza veins) and in a series of drill roads and trenches in the Las Animas Ridge area.

A seven-hole, 2,907 metre diamond drill program started in mid-February was completed in June 2007. Highlights of the program included Hole BA-15 at Todos Santos which intersected 1.0 metre of 3,070 g/t silver (89.5 opt), 3.6% lead and 0.63% zinc. This intercept is located on the east side of the Roncesvalles Fault Zone in the footwall of the Todos Santos-San Roberto vein system. The intercept is interpreted to be a parallel footwall vein of the historically highly productive "Todos-Santos Vein".

A highlight from the trench and road program included the discovery and exposure of the Cobriza North vein structure. This vein is exposed in a 4.0 metre high road-cut and is from 0.25 to 1.0 metres wide. Eleven samples totalling 281.54 kilograms (620 pounds) of bulk material was collected for analysis. Metallic screen analysis returned an average minimum grade for this bulk sample of 11,158 g/t silver (324.4 opt).

The 2,495 metre program of trench and road building at Las Animas Ridge also discovered at least two mineralized structures: the northern extension of the Cobriza, described above, and a silver sulphide-bearing structure 225 metres farther southeast. This work also uncovered entrances to several old 1850's era workings, as well as cutting numerous and previously undocumented silver, lead and zinc mineralized structures.

Numerous high grade returns from chip samples included 1.0 metre of 828 g/t silver (24.1 opt), which led to the discovery of the extension of the Cobriza Structure, and 1.0 metre of 851 g/t silver (24.8 opt) which revealed a previously unknown silver sulphide structure. Additionally, more than a dozen other geochemically anomalous structures containing silver values from 10 to 580 g/t (0.3 to 16.9 opt) await follow up work this year, as do the assay results of 337 soil samples, 28 of which returned values greater than 10.0 g/t silver and as high as 246 g/t (7.2 opt) silver.


Batopilas Silver District: Outlook

The various encouraging returns and discoveries of 2007's work at Las Animas suggest that the mineralization may represent one single northeast-trending and northwest-dipping mineralized structural zone with a strike length in excess of 500 metres.

Potential for further discoveries in all areas of this silver-rich district is excellent, especially with the MAG team's experience, foundational mapping and geological-geochemical-geophysical work to date, and the continued application of modern exploration methods and advanced geoscience.

A high resolution airborne magnetics and electromagnetic survey was flown in 2007 over the Batopilas property. The 470 line kilometres of new data clearly highlight stratigraphic, intrusive and structural features defined in the new district scale mapping, and provide a sound basis for targeting further exploration drilling throughout the Batopilas Native Silver District.

Related News Releases:

May 05, 2008	MAG Silver Intersects Silver/Lead/Zinc Over Wide Zone at Batopilas
July 16, 2007	MAG Finds High Grade Silver At Batopilas
February 21, 2007	MAG Silver Resumes Drilling at Batopilas