Jun 10, 2004
MAG Silver Commences 3000 metre Drilling Program at Juanicipio and Lagartos near Fresnillo
MAG Silver Corp. (TSX-V:MAG) reports that it began a 3000 metre drilling program on its 100% owned 8,000 hectare Juanicipio and 120,000 hectare Lagartos Properties near Fresnillo, Zacatecas on June 5. Drilling will continue to trace Fresnillo District style mineralization within Juanicipio (See Press Releases of Jul. 7, 2003 and Oct. 14, 2003) and seek regional-scale extensions of the Fresnillo District within the Fresnillo Structural Trend in Lagartos (See Press Release of Aug. 20, 2003, Jan 6, 2004, and Apr. 30, 2004). Drill targets have been generated using the results of 2003 drilling, detailed geologic mapping and over 40 line-kilometres of NSAMT geophysics completed May 29. Drilling results from 2003 showed that high grade silver occurs in Juanicipio veins at depths comparable to principal mineralization in the adjacent Fresnillo Mine (See Press release of Nov. 13, 2003), so the 2004 drilling will test the structures some 300 metres higher in elevation than most of MAG's 2003 intercepts.
Drilling at Juanicipio has begun with testing of a laterally persistent structure marked by extensive brecciation, alteration, and strong coherent NSAMT anomalies. Industrias Peñoles are currently using 5 drill rigs to test what appears to be the extension of this structure from 500 to 2500 metres to the east. A 2003 test of this structure (Hole JI03-03) was lost in a 3.5 metre wide crystal-lined void 50 metres before reaching the target anomaly, but did cut some silver mineralized stringers before being lost. Subsequent 2004 targets for Juanicipio include the intersections of the major gold and silver mineralized structures cut in Holes JI03-01, 02, 05 and 06 (See Press Releases of Jul. 7, 2003 and Nov. 13, 2003), and structures controlling kaolinite alteration exploited in a series of shallow open pit mines on the west side of Juanicipio. All of these structures have been mapped in detail and crossed by recent NSAMT lines.
The Lagartos Project areas lie northwest and southeast of Juanicipio within the "Fresnillo Trend", a major NW-SE trending regional structural zone that encompasses Fresnillo/Juanicipio and contains the important Sombrerete, Zacatecas, Real de Angeles and Guanajuato Districts. Regional-scale zoning features revealed by MAG's 2003 drilling and geological re-evaluation strongly indicate that Fresnillo mineralization may be significantly more extensive than previously recognized and large-scale extensions of the district are the principal Lagartos targets. Drilling will focus initially in Lagartos NW because more work has been done there, but at least one hole is planned for Lagartos SE. The Lagartos NW area is largely covered by gravel, but sparse outcrops show rock-types, structures, and alteration that appear identical to those seen at Fresnillo and Juanicipio 15 to 30 kilometres away. Drilling at Lagartos NW will test anomalies located through the recently completed geophysical survey which focused on covered structural trends and structurally-controlled alteration that strongly resembles that which successfully guided drilling at Juanicipio (See Press Releases of Nov. 19, 2003 and Feb 13, 2004).
MAG President George Young said, "We are delighted to be drilling again at Juanicipio. Building on what we learned in 2003 lets us drill to shallower depths and should give us increased confidence for our first drilling at Lagartos. The geology and geophysical signatures of the Lagartos areas are very similar to what we see in Juanicipio and we are very optimistic about applying our exploration techniques to the balance of our 120,000 hectare holdings. If successful, we open the possibility of completely redefining the Fresnillo District."
Juanicipio lies 5 kilometres from the principal production headframe of the Fresnillo Mine, and less than 3 kilometres from its westernmost underground workings. Industrias Peñoles currently produce over 31 million ounces of silver annually from high-grade (23 oz/T Ag plus up to 0.1 oz/T Au) veins. Production since 1560 is around 800 million ounces of silver, with half of this coming since 1976 when the high-grade Santo Nino style veins currently being mined were found. Recent exploration by Peñoles has focused on tracing veins discovered in the last 6 years westward from the historic mining centre towards Juanicipio. Phase 1 drilling at Juanicipio continued this trend and targeted six major surface-mapped structures coincident with strong NSAMT geophysical anomalies farther along the projection of veins being mined or explored in the adjoining Fresnillo Mine area. Fresnillo style mineralization was encountered in 4 out of 6 target structures drilled in Phase 1 and both of the two remaining holes hit veinlets with grades indicating that favourable areas were being approached. (See Press Release of Nov. 13, 2003). Lagartos NW extends 3 to 30 kilometres to the northwest of MAG's Juanicipio claim, and Lagartos SE extends 15 to 50 kilometres to the southeast of Fresnillo. Lagartos SE surrounds the northern half of the famous Zacatecas District, which produced an estimated 1 billion ounces of silver and 3 million ounces of gold. Both areas are largely covered, but sparse outcrops exhibit structurally-controlled alteration similar to that successfully drilled in Juanicipio and associated with veins extensively mined both at Fresnillo and Zacatecas.
Qualified Person and Quality Assurance and Control
Dr. Peter Megaw, Ph.D., C.P.G., has acted as the Qualified Person as defined in National Instrument 43-101, for this project and disclosure and supervised the preparation of the technical information in this release. Dr. Megaw has a Ph.D. in geology and more than 20 years of relevant experience focussed on silver and gold mineralization, and exploration and drilling in Mexico. He is a Certified Professional Geologist (CPG 10227) by the American Institute of Professional Geologists and an Arizona Registered Geologist (ARG 21613). Dr. Megaw is not independent as he is a MAG Silver shareholder and a vendor of four projects, other than Juanicipio, whereby he may receive additional shares.
In the work for MAG, Dr. Megaw has designed the geological, geochemical and geophysical surveys undertaken by project geologists under his control and supervision. Geochemical samples are assayed by standard Fire Assay and Atomic Absorption methods by BSI Inspectorate in their Reno, Nevada laboratory after preparation in their Durango, Mexico facilities. Sampling procedures include the insertion by MAG of blind duplicates and blanks into the sample stream for assay in addition to the lab's internal quality control standards. Selected significant gold and silver assays are checked by another competent laboratory.
Readers are referred to the qualifying report dated November 19, 2002 by Pincock, Allen and Holt, Qualified Person, available at www.magsilver.com for background information on the project and the program underway.
About MAG Silver Corp.
MAG Silver is focussed on exploration targets in the Mexican Silver Belt that are of interest at any conceivable silver price, in districts with known large-scale production. Current projects include: 1) The Juanicipio and Lagartos Projects in the Fresnillo Mining District of Zacatecas...the world's premier silver producer; 2) The Guigui Project in the Santa Eulalia District, the world's largest known Carbonate Replacement Deposit (CRD); 3) The Batopilas District, one of the highest-grade silver districts in the world; 4) The Adargas Project, one of the most gold-rich CRDs in Mexico; 5) Cinco de Mayo, a largely covered district-scale exploration play in the center of the Chihuahua CRD Belt; and 6) Sierra Ramirez, an exceptionally silver-rich CRD in eastern Durango near the famous Concepcion del Oro District.
On behalf of the Board of
MAG SILVER CORP.
"George S. Young"
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For further information on behalf of MAG Silver Corp. contact George S. Young
Phone: (604) 630-1399
Toll free: (866) 630-1399
Fax: (604) 484-4710
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.