TORONTO and NEW YORK, Nov. 28, 2019 (GLOBE NEWSWIRE) -- Magna Gold Corp. (TSXV: MGR, OTCQB: MGLQF) (“Magna” or the "Corporation") and its Board of Directors are pleased to provide this press release to update the progress at its Mercedes property in the State of Sonora, Mexico. This press release will provide an update on work on four areas: La Lamosa, Mina de Oro, Salto Colorado, and La Cueva/Noche Buena. The company has received assays from field work that will be disclosed and explained for their importance.
Geologic work at Mercedes has been a team effort of Magna geologists who have conducted geologic mapping over an area of 4 square kilometers, collected over 1300 rock samples, and managed the recently completed successful reverse circulation drilling program.
The team at Magna, which has extensive experience in mineral exploration in the State of Sonora, Mexico, includes Arturo Bonillas and Miguel Soto, who were key personnel in the development of the San Francisco Mine by Alio Gold Inc. (formerly, Timmins Gold Corp.). Magna is drawing upon this experience to develop the Mercedes property, as well as others in Sonora.
|La Lamosa -||Drilling at La Lamosa by Magna (see press release dated November 14, 2019) successfully confirmed oxide gold mineralization hosted in an altered andesite. The Corporation is contemplating a follow up drill program to test the southeast dip to the mineralization and to drill the extent of the zone to the north of La Lamosa hill. This second round of drilling at La Lamosa hill will be a follow up program that is expected to increase the oxide tonnage for the La Lamosa resource. A press release will be issued with a drill plan for the follow up drilling.|
|Mina de Oro -||Gold occurs at Mina de Oro on fractures in a silicified dacite intrusive rock. To date, Magna geologists have collected numerous rock samples defining a belt 330 m long and 150 m wide gold zone that is open to further mapping. Locally the silicification is very strong and is accompanied by sericite, disseminated pyrite and local tourmaline. Historic workings are present within this area, exploiting partially oxidized structurally complex sulfide bearing veins. 318 rock samples have been collected with 88 over 0.1 ppm Au and 11 over 1 ppm Au. The three highest chip samples assayed 1.2 m @ 8.6 g/t Au, 0.3 m @ 11.1 g/t Au and 1.2 m @ 63.2 g/t Au.|
The Mina de Oro area is a high-quality bulk mining target and Magna is designing a drill program for the area in 2020.
Below is a plan map of the geology of the Mina de Oro area and with two cross sections showing geology and alterations. A drill target is being considered for the south end of Section B-B’ targeting gold in the Rhyodacite unit.
Figure 1: Geology Map on the Mina de Oro Target.
Source: Magna Gold Corp
Figure 2: Cross Section A-A’
Source: Magna Gold Corp
Figure 3: Cross Section B-B’
Source: Magna Gold Corp
|Salto Colorado -||Salto Colorado is a rounded to sub-rounded intrusion that is matrix supported breccia 300 m long and 60 to 150 m in width in the contact with andesitic volcanic rocks and is composed of two lobes that extend out of the main body, the largest measuring 150 meters in length. 159 samples have been collected in this target, with the highest results in a small historic working that has returned up to 8.52 g/t gold, 460 g/t silver, 4.0% lead and 4.2% copper. 25 samples were over 0.1 ppm Au and 8 samples were over 1 ppm Au.|
|La Cueva/Noche Buena –||Noche Buena is a rounded to sub-rounded intrusion matrix supported breccia, 120 m long and 80 m wide, that has returned assays of 0.76 g/t gold, 80 g/t silver and more than 1% copper. Four contiguous chip samples on minor quartz veining returned 9 m @ 0.13 g/t gold, 10 g/t silver and 0.15% copper, including 3.8 m @ 0.195 g/t gold and 3 m @ 0.4% copper. Los Fierros is located to the west of west of Noche Buena and is a breccia elongated east-west 700 m by 100 m, with several breccias developed in granodiorite. In the Noche Buena & Los Fierros breccias 152 samples were collected with 11 samples assaying over 0.1 ppm Au. |
The La Cueva breccia is an angular clast supported breccia 300 m by 10 to 50 m. An eastern limb is a cliff tens of meters high, with a vertical wall towards the stream, is composed mostly by quartz, and only locally bears rock fragments and tourmaline and is stained green from copper minerals. 13 samples have been collected from La Cueva with 2 samples over 0.1 ppm Au and one samples over 1 ppm Au. Additional sampling is planned at La Cueva.
The quartz tourmaline breccias at Mercedes are zoned. Breccias at 1,300 meters in elevation at Salto Colorado are angular intrusion breccia matrix supported with drusy quartz. At 1,280 meters, the drusy quartz grades into quartz tourmaline matrix with rounded intrusion breccia and prominent lead silver veins. Noche Buena is at 1,000 meters in elevation and is a rounded intrusion breccia with a matrix of quartz tourmaline. Veins at Noche Buena are gold, silver, & copper. La Cueva is at 980 meters in elevation and is an angular intrusion breccia that is quartz clast supported. Gold mineralization occurs in a stockwork in the angular quartz breccia.
The company believes there is a possible bulk target at La Cueva in the stockwork of the quartz breccias bounded by moderate to strong phyllic alteration.
The Figure below shows the zoning pattern that has been observed on the Mercedes property. Figure 4 shows the location Salto Colorado, Noche Buena, and La Cueva at Mercedes.
Figure 4: Stylized Sketch of Mercedes Breccia
Source: Magna Gold Corp
President and CEO, Arturo Bonillas stated: “Our geologic team headed up by Miguel Soto has made great strides in mapping and sampling our Mercedes property. Exciting drill targets have been delineated and Magna is moving forward on planning an IP geophysics program to be followed by drilling in 2020.”
Figure 5: Mineral Targets at Mercedes Property
Source: Google Satellite Photo
Assay Results of Chips Rocks Samples on Mercedes Targets Above 0.50 g/t Au
|Au g/t||Ag g/t||Cu_%||Pb_%||Zn g/t|
|Mina Vieja-Mina de Oro||Chip Channel||1.2||63.20||31.5||0.00||0.08||44|
|Mina Vieja-Mina de Oro||Chip Channel||0.3||11.10||4.8||0.03||0.01||41|
|Mina Vieja-Mina de Oro||Chip||1.2||10.60||558.0||0.21||4.00||1411|
|La Lamosa||Chip Channel||1.4||8.80||3.8||0.00||0.01||2|
|Mina Vieja-Mina de Oro||Chip Channel||1.2||8.59||713.0||6.90||4.00||2876|
|La Lamosa||Chip Channel||2.0||8.54||8.5||0.00||0.02||10|
|Salto Colorado||Chip Channel||1.0||8.53||303.0||0.02||1.76||5|
|La Lamosa||Chip Channel||1.9||5.97||40.8||0.00||0.24||2|
|La Lamosa||Chip Channel||1.9||4.61||100.0||0.02||1.70||3|
|La Lamosa||Chip Channel||1.9||4.15||34.5||0.00||0.22||2|
|La Lamosa||Chip Channel||1.7||4.10||114.0||0.01||0.55||17|
|Mina Vieja-Mina de Oro||Chip Channel||2.0||3.74||32.9||0.23||0.03||525|
|La Lamosa||Chip Channel||2.0||3.73||100.0||0.01||0.98||5|
|La Lamosa||Chip Channel||2.8||3.29||62.7||0.00||0.15||4|
|La Lamosa||Chip Channel||2.0||3.08||100.0||0.05||3.45||4|
|Mina Vieja-Mina de Oro||Chip Channel||1.0||3.01||0.9||0.00||0.00||40|
|La Lamosa||Chip Channel||2.0||2.82||13.4||0.00||0.06||2|
|Mina Vieja-Mina de Oro||Chip Channel||2.5||2.80||48.5||0.01||0.47||314|
|La Lamosa||Chip Channel||2.0||2.64||72.3||0.00||0.10||4|
|La Lamosa||Chip Channel||4.5||2.44||79.5||0.00||0.02||2|
|Salto Colorado||Chip Channel||-||2.39||460.0||4.21||4.00||1650|
|La Lamosa||Chip Channel||2.8||2.26||11.8||0.00||0.05||2|
|La Lamosa||Chip Channel||1.9||2.25||66.4||0.00||0.50||6|
|La Lamosa||Chip Channel||1.9||2.20||35.9||0.00||0.03||4|
|La Lamosa||Chip Channel||2.0||2.15||2.1||0.00||0.01||6|
|La Lamosa||Chip Channel||2.0||2.14||41.7||0.00||0.16||1|
|La Cueva||Chip Channel||4.0||1.96||Pending Lab Results|
|Mina Vieja-Mina de Oro||Chip Channel||1.3||1.95||50.8||0.00||0.11||34|
|La Lamosa||Chip Channel||2.0||1.93||100.0||0.01||0.67||4|
|La Lamosa||Chip Channel||1.0||1.92||1.6||0.00||0.02||5|
|Salto Colorado||Chip Channel||1.5||1.89||0.3||0.00||0.00||2|
|La Lamosa||Chip Channel||0.9||1.74||37.4||0.00||0.01||4|
|La Lamosa||Chip Channel||2.0||1.70||5.0||0.00||0.01||5|
|La Lamosa||Chip Channel||2.2||1.68||75.0||0.00||0.22||2|
|La Lamosa||Chip Channel||2.05||1.54||46.1||0.00||0.08||2|
|La Lamosa||Chip Channel||2.0||1.47||66.0||0.01||0.40||3|
|La Lamosa||Chip Channel||2.0||1.46||4.4||0.00||0.01||2|
|La Lamosa||Chip Channel||3.0||1.45||1.9||0.00||0.02||3|
|Salto Colorado||Chip Channel||1.5||1.44||30.5||0.00||0.03||7|
|La Lamosa||Chip Channel||2.0||1.42||2.0||0.01||0.00||12|
|Salto Colorado||Chip Channel||1.0||1.38||66.1||0.12||0.12||52|
|La Lamosa||Chip Channel||2.0||1.36||38.8||0.00||0.53||4|
|La Lamosa||Chip Channel||2.0||1.34||10.6||0.00||0.02||5|
|La Lamosa||Chip Channel||1.5||1.32||12.3||0.00||0.01||4|
|La Lamosa||Chip Channel||2.0||1.29||11.4||0.01||0.01||33|
|La Lamosa||Chip Channel||2.3||1.29||3.0||0.00||0.04||3|
|Salto Colorado||Chip Channel||-||1.25||3.2||0.01||0.01||9|
|La Lamosa||Chip Channel||2.2||1.25||7.5||0.00||0.04||5|
|Mina Vieja-Mina de Oro||Chip Channel||0.3||1.23||0.7||0.01||0.00||12|
|La Lamosa||Chip Channel||2.2||1.22||59.2||0.02||1.28||3|
|La Lamosa||Chip Channel||2.0||1.21||12.3||0.00||0.01||2|
|La Lamosa||Chip Channel||1.0||1.21||91.7||0.00||0.05||1|
|La Lamosa||Chip Channel||1.8||1.20||3.7||0.00||0.02||2|
|La Lamosa||Chip Channel||1.5||1.19||18.0||0.00||0.01||1|
|Salto Colorado||Chip Channel||2.0||1.18||389.0||2.65||3.90||744|
|La Lamosa||Chip Channel||2.5||1.14||1.0||0.00||0.11||2|
|La Lamosa||Chip Channel||2.0||1.10||2.3||0.01||0.02||19|
|Mina Vieja-Mina de Oro||Chip||2.6||1.07||19.3||0.01||0.20||73|
|Mina Vieja-Mina de Oro||Chip||2.0||1.03||14.7||0.01||0.59||200|
|La Lamosa||Chip Channel||2.2||1.03||65.2||0.00||0.59||4|
|La Lamosa||Chip Channel||2.2||1.01||9.8||0.00||0.03||1|
|La Lamosa||Chip Channel||2.1||0.98||2.9||0.01||0.01||12|
|La Lamosa||Chip Channel||3.0||0.97||20.2||0.00||0.01||1|
|La Lamosa||Chip Channel||2.0||0.96||5.1||0.04||0.01||4|
|La Lamosa||Chip Channel||1.5||0.96||3.3||0.00||0.00||7|
|Mina Vieja-Mina de Oro||Chip Channel||1.0||0.96||6.1||0.03||0.09||1026|
|La Lamosa||Chip Channel||2.0||0.95||3.7||0.06||0.01||68|
|Mina Vieja-Mina de Oro||Chip Channel||1.2||0.94||7.7||0.01||0.46||44|
|La Lamosa||Chip Channel||3.0||0.94||6.3||0.00||0.03||2|
|La Lamosa||Chip Channel||2.0||0.93||1.2||0.00||0.01||5|
|La Lamosa||Chip Channel||1.2||0.88||22.1||0.00||0.09||1|
|La Lamosa||Chip Channel||2.0||0.88||5.4||0.03||0.00||3|
|Mina Vieja-Mina de Oro||Chip Channel||0.4||0.87||13.5||0.07||0.12||720|
|La Lamosa||Chip Channel||2.0||0.85||1.0||0.00||0.01||6|
|La Lamosa||Chip Channel||2.2||0.84||16.6||0.00||0.10||2|
|La Lamosa||Chip Channel||1.5||0.84||2.5||0.00||0.01||1|
|La Lamosa||Chip Channel||1.5||0.82||29.2||0.01||0.29||12|
|La Lamosa||Chip Channel||1.1||0.82||23.4||0.01||0.36||5|
|La Lamosa||Chip Channel||1.9||0.82||2.4||0.00||0.03||10|
|La Lamosa||Chip Channel||1.1||0.81||7.5||0.00||0.07||11|
|La Lamosa||Chip Channel||1.1||0.81||63.5||0.01||0.38||4|
|La Lamosa||Chip Channel||2.0||0.81||17.8||0.00||0.12||2|
|La Lamosa||Chip Channel||2.0||0.80||2.7||0.00||0.04||5|
|La Lamosa||Chip Channel||2.0||0.80||3.7||0.00||0.08||1|
|Salto Colorado||Chip Channel||1.8||0.77||0.7||0.01||0.01||13|
|La Lamosa||Chip Channel||2.0||0.77||6.1||0.00||0.02||7|
|Mina Vieja-Mina de Oro||Chip Channel||1.6||0.76||3.0||0.01||0.03||25|
|La Lamosa||Chip Channel||1.4||0.76||8.6||0.00||0.07||2|
|Noche Buena-Los Fierros||Chip Channel||1.0||0.76||79.9||1.36||0.06||1249|
|La Lamosa||Chip Channel||3.0||0.73||7.5||0.01||0.07||9|
|Mina Vieja-Mina de Oro||Chip||2.0||0.73||7.5||0.01||0.38||191|
|La Lamosa||Chip Channel||1.2||0.73||6.8||0.00||0.03||1|
|La Lamosa||Chip Channel||2.3||0.73||5.7||0.00||0.02||1|
|La Lamosa||Chip Channel||2.5||0.69||122.0||0.01||0.22||10|
|La Lamosa||Chip Channel||2.0||0.68||2.1||0.00||0.02||2|
|La Lamosa||Chip Channel||2.0||0.68||1.8||0.00||0.02||2|
|La Lamosa||Chip Channel||1.5||0.67||5.1||0.00||0.01||10|
|La Lamosa||Chip Channel||2.5||0.67||5.5||0.00||0.09||2|
|La Lamosa||Chip Channel||2.0||0.66||6.4||0.00||0.11||4|
|La Lamosa||Chip Channel||2.0||0.65||5.9||0.00||0.01||3|
|Mina Vieja-Mina de Oro||Chip Channel||1.3||0.65||1.2||0.00||0.00||31|
|Mina Vieja-Mina de Oro||Chip||2.4||0.63||20.4||0.02||1.25||74|
|La Lamosa||Chip Channel||1.5||0.63||32.4||0.00||0.21||1|
|Mina Vieja-Mina de Oro||Chip Channel||2.0||0.63||0.2||0.01||0.00||31|
|Mina Vieja-Mina de Oro||Chip Channel||2.0||0.62||6.0||0.00||0.05||76|
|Mina Vieja-Mina de Oro||Chip Channel||1.5||0.62||0.5||0.00||0.00||4|
|La Lamosa||Chip Channel||2.0||0.62||7.5||0.01||0.01||2|
|Mina Vieja-Mina de Oro||Chip Channel||2.8||0.62||1.3||0.00||0.03||20|
|La Lamosa||Chip Channel||1.8||0.61||13.8||0.00||0.06||1|
|La Lamosa||Chip Channel||2.0||0.61||5.4||0.01||0.09||4|
|La Lamosa||Chip Channel||2.5||0.61||24.3||0.00||0.17||3|
|La Lamosa||Chip Channel||2.0||0.60||37.8||0.00||0.16||1|
|La Lamosa||Chip Channel||2.0||0.58||1.3||0.00||0.00||1|
|Mina Vieja-Mina de Oro||Dump||-||0.58||9.1||0.08||0.07||608|
|La Lamosa||Chip Channel||1.9||0.58||3.1||0.00||0.03||9|
|Mina Vieja-Mina de Oro||Chip Channel||1.5||0.58||12.6||0.01||0.37||283|
|Mina Vieja-Mina de Oro||Chip Channel||1.4||0.57||41.0||0.00||0.19||21|
|La Lamosa||Chip Channel||1.7||0.57||10.2||0.00||0.05||3|
|La Lamosa||Chip Channel||2.0||0.55||0.5||0.01||0.00||11|
|La Lamosa||Chip Channel||2.5||0.55||3.5||0.00||0.04||5|
|La Lamosa||Chip Channel||1.5||0.54||6.0||0.00||0.01||5|
|Mina Vieja-Mina de Oro||Chip Channel||1.5||0.53||0.2||0.01||0.01||26|
|Mina Vieja-Mina de Oro||Chip Channel||1.3||0.51||10.2||0.00||0.50||155|
|La Lamosa||Chip Channel||2.0||0.50||3.2||0.00||0.12||1|
|La Lamosa||Chip Channel||2.0||0.50||0.8||0.03||0.00||14|
Mercedes is an exploration property prospective for structurally controlled high sulphidation type epithermal gold-silver mineralization. The property is located within the Sierra Madre Occidental province, a historically productive, regionally extensive Tertiary volcanic field which stretches from the United States/Mexico border to central Mexico. Mercedes is located toward the western edge of the province and is predominantly underlain by intrusive rocks, granodiorite-monzonite plutonic rocks and quartz feldspar porphyry dykes and stocks exposed by erosion of intermediate and felsic volcanics packages of the Lower and Upper Volcanic sequences. The thick volcanic sequences are characteristic of the region and form much of the Sierra Madre Occidental.
Outcrop in key areas of the property are strongly altered, brecciated intrusives and some propylitically altered volcanics. Zoned assemblages of silica, phyllic, argillic and distal propylitic alteration are recognized. The main prospect area “La Lamosa” is a prominent, highly oxidized red ridge, visible from the highway. Gold and silver are target commodities sought at Mercedes and the property exhibits textures and alteration consistent with high sulphidation epithermal mineralization.
High sulphidation epithermal deposits can be vein hosted or disseminated and are often high tonnage and low grade. Local examples include Alamos Gold Inc.’s Mulatos Deposit and Agnico Eagle Mines Limited’s La India Project roughly 40km NE of Mercedes.
Quality Assurance/Quality Control consists of the regular insertion of duplicates, blanks and certified reference standards into the sample stream. Check samples will be submitted to an umpire laboratory at the end of the drilling program. Samples are kept in a secure facility and transferred to Bureau Veritas in Hermosillo, Mexico in sealed containers on a weekly basis from the drill site by Corporation personnel. Personnel handling samples are using Corporation-approved protocols for all phases of chip logging, sample delineation, sample layout, and storage. Bureau Veritas is ISO 9001 certified. Bureau Veritas has a standard operating procedure (“SOP”) for all aspects of sample drop off, drying and preparation, digestion, instrument analysis, quality control assurance and computerized data reporting.
James Baughman, Consulting Geologist and a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for mineral Projects, has approved the applicable contents of this news release.
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.
Magna is a Mexico focused gold/silver exploration company that is committed to advancing its 100% owned highly prospective mineral properties located in the State of Sonora, Mexico. The Corporation’s shares trade on the TSXV under the trading symbol “MGR" and OTCQB under the trading symbol “MGLQF”.
Magna takes social license seriously and employ local community members and services in its operations.
ON BEHALF OF THE BOARD OF DIRECTORS
President and CEO
For further information, please visit the Corporation’s SEDAR profile at www.sedar.com or the Corporation’s corporate website at www.magnagoldcorp.com.
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 includes certain “forward-looking statements” which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Corporation’s future plans, objectives or goals, including words to the effect that the Corporation or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Corporation, the Corporation provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information 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, but is not limited to, the Corporation’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, 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 failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the inability to complete a feasibility study which recommends a production decision, the preliminary nature of metallurgical test results, 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, capital, operating and reclamation costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Corporation’s public documents filed on SEDAR. Although the Corporation believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, 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, whether as a result of new information, future events or otherwise, other than as required by law.