REPEAT - Magna Gold Corp Announces Results of its Ongoing Phase One Exploration Program on its Mercedes Property - Confirms Historical Drilling - Uncovers Seven New Exploration Targets

(Press Release First Issued on October 15, 2019.)

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:
    ○ 6.10 m of 2.87 g/t AuEq; or 1.14 g/t Au and 143.0 g/t Ag, and
    ○ 
    12.16 m of 2.42 g/t AuEq; or 0.32 g/t Au and 172.8 g/t Ag; and
    ○ 
    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:
    ○ 
    18.30 m of 2.40 g/t AuEq; or 1.10 g/t Au and 106.7 g/t Ag; and
    ○ 
    36.58 m of 1.51 g/t AuEq; or 0.74 g/t Au and 63.9 g/t Ag; and
    ○ 
    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, Oct. 16, 2019 (GLOBE NEWSWIRE) -- 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 accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/2205eda8-e81b-45ae-9031-20eeddf545af

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 accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/6d329fc5-6bc0-4180-b6f2-2acd6cda58c3

Figure 3 accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/a6c093d4-72f4-4e29-9110-ba5d613e0415

Figure 4 accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/4dcf96ee-5fe7-49ab-9ca3-bb1c33687ca7

 
Table 1: Drill Intercept Summary
RC
Hole No.
Total Length From
(m)
To
(m)
Width
(m)
True Width3 (m) Au
g/t
Ag
g/t
AuEq
g/t
Hole
purpose
MER19-001 167.64 0.00 140.21 140.21 Not Available Drilled Down Dip 0.53 8.49 0.64 Twin MER08-001
    0.00 33.53 33.53   0.66 6.13 0.74
  Include 0.00 13.72 13.72   1.04 3.06 1.08  
and   44.20 48.77 4.57   0.52 1.86 0.54  
and   60.96 97.54 36.58   0.97 9.86 1.09  
  Include 60.96 68.58 7.62   1.54 2.06 1.57  
  Include 71.63 92.96 21.33   1.00 13.12 1.16  
and   128.02 140.21 12.19   0.66 9.81 0.78  
  Include 129.54 135.64 6.10   0.85 14.35 1.03  
MER19-002 152.40 0.00 18.29 18.29 At the footwall 0.55 2.53 0.58 Exploration
  Include 3.05 4.57 1.52   1.33 2.20 1.36  
  Include 7.62 15.24 7.62   0.76 2.96 0.80  
and   111.25 114.30 3.05   0.58 23.50 0.87  
MER19-003 134.11 0.00 120.40 120.40 Not Available Drilled Down Dip 0.54 22.40 0.81 Twin MER08-002
and   24.38 28.96 4.57   0.41 4.86 0.47
and   32.00 68.58 36.58   0.74 63.88 1.51  
  Include 45.72 64.01 18.29   1.10 106.67 2.40  
and   79.25 120.40 41.15   0.79 5.63 0.85  
  Include 83.82 92.96 9.14   1.24 11.56 1.38  
  Include 96.01 97.54 1.52   1.73 1.30 1.75  
and   108.20 118.87 10.67   1.09 4.46 1.15  
MER19-004 131.06 0.00 118.87 118.87 59.44 0.46 42.59 0.98 Exploration
and   18.29 44.20 25.91 12.95 0.59 64.23 1.37  
  include 28.96 30.48 1.52 0.76 1.16 48.20 1.75  
  include 33.53 39.62 6.10 3.05 1.14 143.00 2.87  
    44.20 50.29 6.10 3.05 0.12 45.19 0.66  
    50.29 62.45 12.16 6.08 0.32 172.79 2.42  
    62.45 87.77 25.32 12.66 0.27 25.88 0.59  
and   80.77 112.76 31.99 15.99 0.75 13.84 0.92  
  include 80.77 92.96 12.19 6.10 0.78 15.03 0.96  
  Include 100.58 109.73 9.14 4.57 1.26 11.57 1.40  
and   115.82 120.40 4.57 2.29 0.70 5.27 0.77  
MER19-005 91.44 6.10 9.14 3.05 Not available 0.33 0.33 0.34 Exploration
and   30.48 32.00 1.52 0.31 0.31 0.31  
MER19-006 91.44 4.57 27.43 22.86 11.43 0.57 25.23 0.88 Exploration
  Include 18.29 25.91 7.62 3.81 1.09 44.50 1.63  
and   50.29 53.34 3.05 1.52 0.86 8.35 0.96  
MER19-007 131.06 0.00 27.43 27.43 17.83 0.45 10.15 0.57 Exploration
  Include 3.05 9.14 6.10 3.96 0.80 15.44 0.99  
  Include 22.86 24.38 1.52 0.99 1.11 7.60 1.20  
MER19-008 140.20 0.00 62.48 62.48 40.16 0.36 12.44 0.52 Exploration
and   28.96 47.24 18.29 11.76 0.55 17.94 0.76  
MER19-009 91.44 0.00 10.67 10.67 6.86 0.35 0.35 0.36 Exploration
and   51.82 56.39 4.57 2.94 1.23 1.23 1.25  
  include 53.34 54.86 1.52 0.00 2.65 2.65 2.68  
and   76.20 77.72 1.52 0.00 0.40 0.40 0.41  
MER19-010 100.58 0.00 30.48 30.48 21.55 0.60 15.85 0.80 Exploration
include   7.62 12.19 4.57 3.23 1.74 69.00 2.58  
include   19.81 25.91 6.10 4.31 0.69 6.68 0.78  
and   35.05 47.24 12.19 8.62 0.31 0.31 0.31  
MER19-011 115.82 68.58 76.20 7.62 4.90 0.52 20.04 0.77 Exploration
include   68.58 70.10 1.52 0.98 1.36 24.60 1.66  
MER19-012 152.40 0.00 1.52 1.52 1.52 0.39 0.39 0.39 Exploration
and   4.57 6.10 1.52 1.52 0.49 0.49 0.50  
MER19-013 155.45 No significant assay results   Exploration
MER19-014 161.54 15.24 42.67 27.43 27.43 0.69 9.32 0.80 Exploration
  Include 15.24 22.86 7.62 7.62 0.83 11.06 0.96  
  Include 25.91 28.96 3.05 3.05 1.27 32.75 1.67  
  Include 32.00 38.10 6.10 6.10 0.74 1.20 0.76  
and   47.24 51.82 4.57 4.57 0.37 8.70 0.48  
MER19-015 128.02 50.29 67.06 16.76 8.38 0.77 7.10 0.86 Exploration
And   88.39 114.30 25.91 12.95 0.38 24.86 0.69  
  Include 106.68 114.30 9.14 4.57 0.92 15.14 1.10  
MER19-016 112.78 No significant assay results   Exploration
MER19-017 161.54 No significant assay results   Exploration
MER19-018 125.00 In Progress   Exploration
MER19-019 125.00 In Progress   Exploration
MER19-020 125.00 In Progress   Exploration
MER19-021 125.00 In Progress   Exploration
 
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:
 
Area Sample type Width (m) Sample # Gold
g/t
Silver g/t Copper % Lead
%
Salto Colorado Channel 2.0 708 1.18 389 2.65 3.90
  Channel 1.0 710 1.38 66 0.12 0.12
  Dump - 715 2.39 460 4.21 4.00
  Channel 1.0 716 8.52 303 0.02 1.76
  Grab - 1082A 2.81 818 26.63 8.22

 

Area Sample type Width (m) Sample # Gold
g/t
Silver g/t Copper % Lead
%
Noche Buena Channel 1.0 1007 0.76 80 1.36 0.06
  Channel 2.8 1081 0.42 67 0.43 0.03
  Channel 1.5 1114 0.37 25 0.03 0.91
               
               
Area Sample type Width (m) Sample # Gold
g/t
Silver g/t Copper % Lead
%
Mina de Oro Channel 2.0 253 3.74 33 0.23 0.03
  Channel 1.5 754 8.59 Pending lab results
  Channel 0.5 792 2.80 Pending lab results
  Channel 0.3 764 1.23 Pending lab results
           

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.

Figure 1:

 

Mercedes Property Simplified Geology Map and Selected Targets
Figure 2:

 

Drill Hole Location Map with Mineral Intercepts Projected to Surface
Figure 3:

 

Section NE 150
Figure 4:

 

Section NE 112.5

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