Guigui

GUIGUI PROPERTY
MUNICIPIO AQUILES SERDAN CHIHUAHUA, MEXICO

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September 2008

Guigui represents dominant landholding around world's largest CRD district; opportunity for MAG to play leading role in uncovering new mineral wealth in historically rich Santa Eulalia District

Carbonate Replacement Deposits (CRDs) represent 40% of Mexico's historical silver production and the Santa Eulalia Mining District 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 operates the San Antonio Mine in the East Camp of Santa Eulalia District.

Our 100%-owned Guigui property covers approximately 4500 hectares within the Santa Eulalia Mining District, 22 kilometres east of Chihuahua City, Chihuahua, and is a key project within MAG's CRD project portfolio. MAG controls all of the ground to the immediate south and between the east and west Camps of the Santa Eulalia making us a significant player in any future developments in this historically silver rich district.


Concealed intrusive source key to district mineralization

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 intrusive source that is the foundation of exploration in the Guigui project.


Initial drilling significant

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.


Program results 2006/2007

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. Work in 2008 has been limited.


Outlook

It is early at Guigui, but with our dominant land position in this 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.