News

Magna Gold Corp Announces Results of its Ongoing Phase One Exploration Program

October 16, 2019

FOR IMMEDIATE RELEASE

MAGNA GOLD CORP ANNOUNCES RESULTS OF ITS ONGOING PHASE ONE EXPLORATION PROGRAM ON ITS MERCEDES PROPERTY - CONFIRMS HISTORICAL DRILLING - UNCOVERS SEVEN NEW EXPLORATION TARGETS.

 

Drilling Highlights:

 

-          Hole MER19-004: From surface, 118.87 m¹ (true width estimated at 59.44m) of 0.98 g/t AuEq², or 0.46 g/t Au and 42.6 g/t Ag.

Includes:

o   6.10 m of 2.87 g/t AuEq; or 1.14 g/t Au and 143.0 g/t Ag, and

o   12.16 m of 2.42 g/t AuEq; or 0.32 g/t Au and 172.8 g/t Ag; and

o   32.00 m of 0.92 g/t AuEq; or 0.75 g/t Au and 13.8 g/t Ag; and

 

-          Hole MER19-003: From surface, 120.4 m¹ (true width not determined) of 0.81 g/t AuEq²; or 0.54 g/t Au and 22.4 g/t Ag.

Includes:

o   18.30 m of 2.40 g/t AuEq; or 1.10 g/t Au and 106.7 g/t Ag; and

o   36.58 m of 1.51 g/t AuEq; or 0.74 g/t Au and 63.9 g/t Ag; and

o   41.15 m of 0.85 g/t AuEq; or 0.79 g/t Au and 5.6 g/t Ag.

 

-          Seven significant exploration targets identified within the property

 

¹ Downhole sample length reported MER19-003 was drilled down-dip within mineralization to confirm previous, historical drilling and is not a representative true width. The Corporation has insufficient information to determine the attitude of the mineralized zones.  True widths will be less than the core lengths by unknown factors.

² AuEq calculations are based on US $1,400/oz Au and $17/oz Ag, and do not consider metallurgical recoveries

 

TORONTO and NEW YORK, October 17, 2019 -- Magna Gold Corp. (TSXV: MGR, OTCQB: MGLQF) (“Magna” or the “Corporation”), provides an update report on its ongoing drill and exploration program on its Mercedes Property in the State of Sonora, Mexico. These results represent 2,219 meters of reverse circulation drilling in 17 holes and an extensive reconnaissance program covering approximately 500 hectares including the collection and assaying of 392 samples resulting in the identification of at least seven new significant mineralized targets (see Figure 1). More than seven kilometers of access roads were built.

 

Arturo Bonillas, President and CEO commented: “We are pleased with the results of our initial exploration program from which we are confirming the presence of new mineralized areas as uncovered by drilling and exploration reconnaissance. Work programs will now focus on expanding the mineralized extension on La Lamosa ridge and defining drill objectives on the new targets within our claims.”

 

 

 

Figure 1: Mercedes Property Simplified Geology Map and Selected Targets

 

La Lamosa Drilling Update

 

Drill results to date have confirmed, as suggested by historical drilling, the existence of an oxidized zone of disseminated gold and silver mineralization extending for almost 300 meters and identifying the presence of vuggy silica, coarse grained-sericite indicative of a high sulfidation epithermal system. These results show that mineralization is closely associated to an intrusive felsic rock and at its contact with the andesitic sequence (see Figures 2, 3 and 4). All these evidences indicate that gold and silver mineralization continue open at depth, to the SW (still being drilled), and to the East along of the NE-E structural trend.

 

Four additional holes are still in progress to confirm the extension of mineralization to the SW of La Lamosa and shall be complete by the end of October 2019. Once this campaign is complete, Phase 2 shall be designed to continue testing extensions of the mineralization along the structural trend and at depth.

 

Figure 2 and Table 1 below show drill hole location and drill intercept summary of the completed holes. It is important to mention that silver values were significantly higher than reported by historical drilling in some of the holes.

 

 

Figure 2: Drill Hole Location Map with Mineral Intercepts Projected to Surface

 

Figure 3: Section NE 150

 

Figure 4: Section NE 112.5

 

 

 

Table 1: Drill Intercept Summary

 

³ True widths are an approximation only. There is not yet enough information to calculate them accurately.

 

 

New Exploration Targets:

 

At least seven significant exploration targets within the property were identified (See Figure 1). Some of these targets are related to a well identified contact zone between an intrusive batholith and volcanic sequence which extends for more than 3 kilometers within the claims (La Lamosa, Mina Vieja- Mina de Oro, El Salto). Other targets are related to a structurally controlled system of quartz tourmaline breccias within the mentioned intrusive (La Lamosa NE extension, Noche Buena, La Cueva, and Olvidada). All the targets were accessed and preliminarily sampled.

 

The following table shows the most significant results reported to date on three of the new targets:

 

 

 

 

Quality Assurance – Quality Control

 

A database, including drilling and surface sampling was assembled by the Magna exploration team directly on field using a tablet with a specialized software installed for this purpose. Magna provided the protocol for handling, logging and preparing samples on site.  Samples were divided using riffle splitter, labelled, sealed and then collected by a dedicated Bureau Veritas vehicle at regular intervals for transport to the Hermosillo laboratory. Samples varying in weight from 9 to 15 kilograms were prepared by Bureau Veritas using the Preparation Code PRP70-250, Crush to 70% passing 10 mesh, then riffle split and pulverize 85% -200mesh 250g. All samples were analyzed for gold by method FA450, fire assay on a 50 g sample size, with Atomic Absorption Spectroscopy finish (AAS). Second splits of pulp by Bureau Veritas Hermosillo were shipped to Bureau Veritas Lab in Vancouver, Canada to be analyzed by trace elements (33) using aqua regia digest and ICP-ES finish. Over limit samples were re-assayed, Ag using AR201 greater than 100 g/t; Cu and Pb using AQ370 over 1%. Reference samples equivalent to one quarter of the material recovered for each interval of 1.54 meters drilled were transported to the company storehouse at the Yecora Village.

 

Assays results have been monitored by QA-QC program including insertion of material references as certified standards, blanks samples, duplicates prepared on field and reject duplicate samples, this include about 15% of additional samples, although it is pending check assays with a third lab. 

 

 

Technical Information & Qualified Person Notes

 

This technical contents of this news release have been reviewed by Mr. Dale Brittliffe, P.Geo, who is a consultant to the Corporation and recognized as a Qualified Person (“QP”) under the guidelines of National Instrument 43-101. Mr. Brittliffe has approved the contents of this news release.  

 

 

References:

 

All numbers in this news release are rounded and assays are uncut and undiluted. AuEq calculations are based on US $1,400/oz Au and $17/oz Ag, and do not consider metallurgical recoveries.

 

Complete assay tables, reports, photographs, graphics, maps associated with this news release, including access to VRIFY© platform  can be found at: www.magnagoldcorp.com

 

About Magna Gold Corp.

 

Magna Gold Corp is a mineral exploration company focused on acquiring, exploring and developing quality precious metals properties in Mexico. Primary strength of the Corporation is the team of highly experienced mining professionals with a proven track record of developing properties in Mexico from discovery to production on budget and on time.

 

 

ON BEHALF OF THE BOARD OF DIRECTORS

 

Arturo Bonillas

CEO, Director

 

For further information, please contact Magna Gold Corp. +52 (662) 310 0326, email info@magnagoldcorp.com or visit our website at www.magnagoldcorp.com

 

 

CAUTIONARY STATEMENT: Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

This news release contains forward-looking information, which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements made herein with respect to, among other things, the Corporation’s objectives, goals or future plans, potential corporate and/or property acquisitions, exploration results, potential mineralization, exploration and mine development plans, timing of the commencement of operations, and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, exploration results being less favourable than anticipated, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, risks associated with the defence of legal proceedings and other risks involved in the mineral exploration and development industry, as well as those risks set out in the Corporation’s public disclosure documents filed on SEDAR. Although the Corporation believes that management’s assumptions used to develop the forward-looking information in this news release are reasonable, including that, among other things, the Corporation will be able to identify and execute on opportunities to acquire mineral properties, exploration results will be consistent with management’s expectations, financing will be available to the Corporation on favourable terms when required, commodity prices and foreign exchange rates will remain relatively stable, and the Corporation will be successful in the outcome of legal proceedings, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Corporation disclaims any intention or obligation to update or revise any forward-looking information contained herein, whether as a result of new information, future events or otherwise, except as required by applicable securities laws