Mojina

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MOJINA PROPERTY
CHIHUAHUA, MEXICO

On March 30, 2010, the Company entered into an option agreement to acquire a 100% interest in the 5,500 hectare Mojina Silver-Lead-Gold (Zinc) property, subject to a 2.5% net smelter return royalty, half of which can be purchased at any time for US$1,250,000.

Under the terms of the agreement, the Company paid US$35,000 upon signing the agreement, and an additional US$65,000 subsequent to March 31, 2010. The Company is obligated to make additional scheduled cash payments totalling $960,000 through 2015 and incur cumulative exploration expenditures totalling $2,500,000 over five years to 2015. To March 31, 2010, the Company has completed $3,173 in exploration costs.

Located in north-central Chihuahua Mojina lies approximately 40 km due south of MAG's Cinco de Mayo property. The Mojina property includes the long-inactive Mojina Mine which produced an estimated 125,000 tonnes grading 8-10% Lead, 80-330 g/t (2.3 - 10 oz/t) Silver and 2-4 g/t Gold from thoroughly oxidized manto ores. MAG's reconnaissance dump sampling also revealed elevated Molybdenum, Tellurium, Indium and Gallium values.

About Mojina

The Mojina Property lies along the main strand of the Mexican Carbonate Replacement Deposit (CRD) Belt which includes the famous Santa Eulalia District (>50 million tonnes of production grading 330 g/t (11 oz/t) Silver; 8.2% Lead and 7.8% Zinc) and MAG's nearby Cinco de Mayo property. Mojina lies at the intersection of the strong group of NW-trending structures that define the Mexican CRD Belt and the nearly north-south structure that hosts the Pozo Seco Molybdenum-Gold zone at Cinco de Mayo.

Historic production at the Mojina Mine came from mantos 1 to 5 m thick lying along the upper and lower contacts of a 20 m thick felsite sill emplaced into a west-dipping limestone sequence. Exploited mineralization was thoroughly oxidized and probably originally contained zinc which was flushed out during oxidation. Alteration patterns in the felsite, manto geometry and intrusive outcrops along the western side of the range indicate a buried source just west of the main body of the range and initial exploration will focus in that area.

Pozo Seco Similarities