MAG Silver Development & Exploration Update
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 17, 2014) - MAG
Silver Corp. (TSX:MAG)(NYSE MKT:MVG) ("MAG" or the "Company") is
pleased to provide an update on its exploration and development
projects in Mexico. At December 31, 2013, the Company had cash of
US$25 million, which is sufficient to maintain all of its
properties and currently planned programs through 2014 and into
2015.
Juanicipio Project
On October 28, 2013, the Company announced that the Minera
Juanicipio S.A. de C.V. ("Minera Juanicipio") Joint Venture had
commenced underground development at the Juanicipio property, based
on the recommendations made to it in a 2012 National Instrument
43-101 compliant Updated Preliminary Economic Assessment prepared
by AMC Mining Consultants (Canada) Ltd. (the "AMC Study"), as filed
on SEDAR. The proposed 2014 Minera Juanicipio development budget is
US$11.4 million (MAG's 44% share is US$5 million), and is focused
primarily on the ramp advancement. To date, the decline has
progressed approximately 147 metres utilizing a continuous miner.
It is expected that the 115 metre per month advance rate outlined
in the AMC Study will be attained progressively by the operator,
Fresnillo plc, to achieve the 1,200 metres of advance planned for
the year.
On February 5, 2014, the Company hosted a visit to the
Juanicipio site for 12 mining analysts, who had the opportunity to
see firsthand the professionalism with which the ramp is being
advanced and developed. The visit included an overall viewing of
the property, including the portal, the decline and the core
shack.
In addition to the Juanicipio development, significant
exploration work is also planned to seek new veins and trace
structures and veins in neighbouring parts of the district onto the
Minera Juanicipio joint venture ground. The proposed 2014
exploration budget for Minera Juanicipio is US$2.7 million (MAG's
44% share is US$1.2 million).
The majority of drilling in 2013 was focused on infill drilling
on the Valdecañas Vein designed to convert inferred mineral
resources to indicated mineral resources. An updated Minera
Juanicipio resource estimate is expected to be available in the 2nd
quarter of 2014.
Cinco de Mayo
The Cinco de Mayo Project owned 100% by the Company is a 25,000
hectare district scale project located in northern Chihuahua State,
Mexico. No drilling was undertaken in 2013 as the Company has been
in the process of negotiating a renewed surface access agreement
with the local landowners, the Ejido Benito Juarez (the "Ejido"),
since it was asked to vacate the property in November 2012 at what
the Company maintains was an illegally constituted Ejido Assembly
(see press releases November 19 and 20, 2012).
Various Ejido members legally challenged the Assembly meeting on
the grounds that proper notice was not given, key signatures
required to properly call the meeting were fraudulent, and that the
vote taken at the meeting was fraught with irregularities,
including a significant number of votes being cast by unverified
proxies. MAG had expected that the Assembly and the resolutions
passed would be nullified by the Fifth Unified Agrarian Tribunal
("the Tribunal"), but the Company has just been notified that the
Tribunal rejected the Ejido challenge. The ruling was made on
narrow technical grounds and did not speak to the merits of the
actions of the Assembly, however the Tribunal did note that a vote
of a majority of Ejido members can revoke the actions of the
challenged Assembly at any time. The Company has been advised that
an appeal of the ruling, based on failure of the Tribunal to
consider broader requirements of the Agrarian Law, has already been
filed with the Mexican Supreme Court by the same Ejido members, and
should be considered within the next 60 days.
As permission of the Ejido assembly is required to obtain
surface access, MAG continues to pursue negotiations with the
Ejido, and anticipates that the Tribunal's ruling (and the outcome
of the pending appeal) will have minimal impact on the ratification
by the Ejido of any settlement agreement that may ultimately be
reached. While no assurances can be given, MAG is continuing the
negotiation process with the intent of arriving at a settlement
agreement that would be fully supported at a properly constituted
Assembly. The Company believes that the access issue is a temporary
delay and continues to work diligently with State and local
officials to negotiate renewed access to our mining claims and
return our significant economic and social benefits to the
community in the second half of 2014.
Salamandra
In May 2013, the Company entered into an option agreement with
Canasil Resources Inc. ("Canasil") whereby the Company can earn up
to a 70% interest in Canasil's 14,719 hectare Salamandra property
located in Durango State, Mexico. Drilling began in the fourth
quarter of 2013 under a committed initial 3,000 metre drill program
as required under the option agreement. The option agreement also
requires MAG to incur expenditures of $1 million in the first year.
Both of these requirements have been met and the currently active
drilling program has been extended by at least another 500 metres.
Salamandra appears to be a typical Mexican Carbonate
Replacement/Skarn system and lies 80 kilometres northwest of the
Sabinas (Peñoles) and San Martin (Grupo Mexico) mines that exploit
Mexico's largest known silver-lead-zinc skarn deposit. Salamandra
is also similar to MAG's Cinco de Mayo Project and the same
exploration model that drove successful exploration there is being
applied at Salamandra. MAG undertook detailed geologic mapping and
grid sampling of the property and systematically revaluated
Canasil's geophysical surveys and drilling results to generate over
twenty drill targets around the central outcropping intrusive
complex and under alluvial and volcanic cover to the east and west.
Most of these targets lie from 500 to 2,500 metres from the
mineralized zone Canasil drilled.
The initial 3,000 metre diamond drilling program commenced in
late November 2013 and was completed on February 11, 2014. The
first hole of the extended program is in progress. Assay results
are pending.
About MAG Silver Corp. (www.magsilver.com)
MAG Silver Corp. (TSX:MAG)(NYSEMKT:MVG) is focused on advancing
two significant projects located within the Mexican Silver Belt.
Our mission is to become one of the premier companies in the silver
mining industry. Currently, we are advancing the underground
decline towards the high grade Valdecañas silver vein and
delineating the Desprendido and Juanicipio discoveries in Zacatecas
State, all within the joint venture between MAG Silver (44%) and
Fresnillo plc (56%). In addition, we are negotiating surface access
in order to further delineate our district scale, 100% owned Cinco
de Mayo property in Chihuahua state, where two new silver, lead,
zinc discoveries are opening up further growth opportunities for
MAG Silver Corp. MAG is based in Vancouver, British Columbia,
Canada.
On behalf of the Board of MAG SILVER CORP.
George Paspalas, President & CEO
Neither the Toronto Stock Exchange nor the NYSEMKT has
reviewed or accepted responsibility for the accuracy or adequacy of
this press release, which has been prepared by management.
This release includes certain statements that may be deemed
to be "forward-looking statements" within the meaning of the US
Private Securities Litigation Reform Act of 1995. All statements in
this release, other than statements of historical facts are forward
looking statements, including statements that address future
mineral production, reserve potential, exploration drilling,
exploitation activities and events or developments. Forward-looking
statements are often, but not always, identified by the use of
words such as "seek", "anticipate", "plan", "continue", "estimate",
"expect", "may", "will", "project", "predict", "potential",
"targeting", "intend", "could", "might", "should", "believe" and
similar expressions. These statements involve known and unknown
risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in
such forward-looking statements. Although MAG believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors
that could cause actual results to differ materially from those in
forward-looking statements include, but are not limited to, changes
in commodities prices, changes in mineral production performance,
exploitation and exploration successes, continued availability of
capital and financing, and general economic, market or business
conditions, political risk, currency risk and capital cost
inflation. In addition, forward-looking statements are subject to
various risks, including that data is incomplete and considerable
additional work will be required to complete further evaluation,
including but not limited to drilling, engineering and
socio-economic studies and investment. The reader is referred to
the Company's filings with the SEC and Canadian securities
regulators for disclosure regarding these and other risk factors.
There is no certainty that any forward looking statement will come
to pass and investors should not place undue reliance upon
forward-looking statements.
Please Note:
Investors are urged to consider closely the disclosures in
MAG's annual and quarterly reports and other public filings,
accessible through the Internet at www.sedar.com and
www.sec.gov/edgar/searchedgar/companysearch.html
MAG Silver Corp.Michael J. CurlookVP Investor Relations and
Communications(604) 630-1399 or Toll free: (866) 630-1399(604)
681-0894info@magsilver.comwww.magsilver.com
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