MUNICIPIO AQUILES SERDAN CHIHUAHUA, MEXICO
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The Guigui Property is a 100% interest in a 4,500-hectare property in the Santa Eulalia Mining District of Chihuahua, Mexico, home to the world's largest Carbonate Replacement Deposit ("CRD") camp. Strong aero-magnetic anomalies were identified in late 2007 but could not be drilled because they straddled the eastern border of the original "Guigui" claim and continued into ground covered by the Juarez Mega-Claim filed by the Mexican Geological Service in mid-2007. This adjoining part of the Juarez concession was liberated in July 2013 and the Company filed for and obtained the additional 3,800 hectare "Guiguito" concession. The combined property now consists of roughly 8,300 hectares. The eastern area magnetic anomalies were drilled in 2015 and encountered pre-mineralization intrusions. Further exploration on the property is currently being considered in the central and western areas of the concession package.
Guigui represents a significant landholding in and around world's largest CRD district; and is an exploration opportunity for MAG Silver in this historically rich Santa Eulalia District.
Carbonate Replacement Deposits (CRDs) represent 40% of Mexico's historical silver production and the Santa Eulalia Mining District is the leading CRD producer with nearly 450 million ounces of silver and substantial amounts of lead and zinc mined from the period 1702-2001. Today, Grupo Mexico continues to operate the San Antonio Mine in the East Camp of Santa Eulalia District.
Our 100%-owned Guigui property now covers approximately 8,300 hectares in the region. It consists of 4500 hectares within the Santa Eulalia Mining District, 22 kilometres east of Chihuahua City, Chihuahua. MAG also controls all of the ground to the immediate south and between the east and west Camps of the Santa Eulalia, in addition to the newly acquired 3,800 hectare "Guiguito" concession.
Mineralization in the district is very closely related in time and space to a series of felsite intrusions that apparently had a common stock source. Similar intrusions occupy the centre of substantial additional stock contact mineralization in districts such as San Martin, Zacatecas or Leadville, Colorado. The geologic model predicts that the principal intrusive centre related to district mineralization lies concealed under volcanic cover in the Guigui claims adjacent to the historic mining centre. It is the search for this concealed intrusive source that is the foundation of exploration in the MAG Silver Guigui project.
A nine-hole drill program was conducted by MAG in 2005. Hole 05 returned a narrow intercept that assayed 3.5 ounces per tonne of silver and 5.6 % lead and 4.3 % zinc over 0.40 metres. Hole 6 returned with an 8.3 metre intercept of 4.2 ounces per tonne silver. It is significant that these intersections were within a 30 to 100 metre wide zone of manganoan-calcite (alteration) brecciation containing abundant veinlets and stringers of silver, lead and zinc minerals. Limited field work was conducted at Guigui in 2006 and 2007. A 600-line kilometre airborne electromagnetic and magnetic survey flown in late 2006 was integrated in early 2007 with substantial database accumulated at Guigui.
A substantial database of past work on the property has now been accumulated since 2006 from airborne electromagnetic and magnetic surveys as well as the eastern area magnetic anomalies were drilled in 2015 and encountered pre-mineralization intrusions. Further exploration on the property is currently being considered in the central and western areas of the concession package.
It is early days at Guigui, but with our significant land position in this historically proven district, and with our growing knowledge of CRD systems, we believe there is good exploration potential to be realized in this vastly underexplored region.