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News

82 Richmond Street East

Toronto, Ontario, Canada M5C 1P1

FOR IMMEDIATE RELEASE

Magna Gold Drills 12.80 metres at 498.08 g/t Silver within 55.95 metres at 155.86 g/t Silver

starting 3 metres from Surface

Toronto, Ontario – March 8, 2022 – Magna Gold Corp. (TSXV: MGR, OTCQB: MGLQF) (“Magna” or the "Company"), is pleased to report results from its fully-funded resource definition drill campaign currently underway at its 100% owned Margarita silver project located in the state of Chihuahua, Mexico. The goal of the program is to define the extent of the vein hosted high-grade system at Margarita leading to the maiden resource expected to be released toward the end of the first quarter. This resource estimate will lead to the completion of the first ever preliminary economic assessment “PEA” shortly thereafter.

Results in this release are from the first 22 of 43 drill holes completed by the Company. All drill holes intersected significant near surface silver mineralization over significant widths. Based on the drill results the system appears to be much wider than previously interpreted and has multiple mineralized veins running parallel to the main Margarita vein, the most significant of which are the Caido and Juliana veins. The main mineralized zone ranges in thickness of around 2-12 m with the higher-grade zones maintaining an average true width of approximately 4.5 m. Mineralization has been confirmed along a strike length of 1,600 m and remains open in both directions. Prior to the current campaign, drilling was limited to 150 m from surface.  The 2021 program has successfully extended mineralization further to depth where it remains open.

In addition to the resource definition drilling a series of holes were drilled to test the extent of the system down to 400 m. Assay results from the deep drilling are pending, however based on our observations the system continues to remain strongly mineralized and open.

Highlights

 

 

Numbers are rounded and intervals represent down hole lengths and not true widths.

 

Magna Gold President and CEO, Arturo Bonillas commented: “Our drill program at Margarita has been a huge success with every drill hole returning high-grade values over significant widths. The drilling has exceeded our expectations, it now appears the system is wider, higher grade and closer to surface than what we thought going into the campaign. We look forward to producing our maiden resource later this quarter and PEA shortly thereafter

 

Figure 1: Margarita Project Plan view with drill highlights and collar locations

 

Figure 2: Long Section of Margarita System with >30 g/t Ag mineralized envelope in yellow and >90 g/t Ag mineralized envelope in violet

 

 

Figure 3: Margarita Project Claim Map

 

 

Technical Discussion

The Margarita project is located within the Sierra Madre Occidental (SMO) and it is formed by two volcanic sequences. The Lower Volcanic Group (LVG) is dominantly andesitic and dacitic composition displaying textural variation including flows and tuffs with medium to coarse grained porphyritic texture, vesicles and agglomerate horizons. The sequence generally contains manganese oxides in proximity to the main mineralized structure. The post-mineral cover unit is the Upper Volcanic Group (UVG) and is comprised dominantly of rhyolitic ignimbrites.

The mineralization at Margarita is characteristic of quartz-barite epithermal vein breccias of low to intermediate sulphidation. The quartz vein breccia shows multi-stage formation and exhibits bladed, crystalline, chalcedonic, crustiform, colloform, comb, banded and brecciated textures. This vein breccia is hosted within the above mentioned LVG. Iron and Mangnaese oxides are abundant and occasionally sulphides like pyrite, sulphosalts, galena and sphalerite less than 5% are observed. Silver appears to be associated with the Acanthite, however further work is being conducted to identify the mineral associations.  Strong silica alteration is observed proximal to the footwall and hanging wall of the Margarita structure and minor kaolinite-smectite alteration with calcite can also be found.

A total of five mineralized vein breccias have been recognized, these vary in thickness from a few centimeters to more than 12 m: Margarita, El Caido, Juliana, Fabiana and Marie are the major parallel vein structures, these trend from 130° to 150° and dip from -65° SW to sub-vetical. The system has a confirmed strike length of 1,600 m and remains open in all directions and to depth.

Table 1: Summary of Assay Results

 

Core Hole From  To  Interval  Au g/t Ag g/t Pb ppm Zn ppm Cu ppm
(m) (m) (m)
MAR-21-001 63.85 77.4 13.55 0.01 131.38 866.42 5,024.40 49.45
Including 67.8 70.75 2.95 0.04 460.18 3,626.10 20,256.78 185.4
MAR-21-002 23.4 70.2 46.8 0 138.65 1,315.24 6,815.12 40.31
Including 54.6 57.45 2.85 0.01 801.33 5,193.33 8,430.00 49.56
MAR-21-003 43 82.8 39.8 0.01 100.13 590.82 3,334.59 32.39
Including 54.6 57.45 2.35 0.06 530.53 693.14 2,527.44 46.28
MAR-21-004 24.95 57.5 32.55 0.01 113.05 340.23 1,109.23 19.35
Including 27 33 6 0.05 300.1 659.66 2,371.00 45.06
MAR-21-005 7 46.5 39.5 0 132.59 527.41 1,739.59 47.4
Including 20.15 22 1.85 0 540 193.5 3,940.00 172
Including 30.9 36 5.1 0 301.03 610.92 1,228.21 65.29
and 118 120 2 0.02 32.3 268 305 3.2
MAR-21-006 64.5 102.8 38.3 0.01 42.54 329.87 1,018.68 15.45
Including 100.8 102.8 2 0.2 151 812 2,860.00 73.6
and 122.4 124.4 2 0.17 35.6 1,690.00 1,805.00 5.9
MAR-21-007 69.35 108 38.65 0.02 112.5 1,981.84 4,743.21 43.45
Including 81.45 83.2 1.75 0.01 158 1,060.00 2,500.00 78.5
Including 103.5 106.4 2.9 0.15 153.79 5,585.17 18,824.13 201.97
MAR-21-008 64.5 84.5 20 0.02 54.77 332.11 728.27 4.5
Including 70.4 73.85 3.45 0.08 175.86 712.02 1,164.13 6.84
MAR-21-009 56.6 61.5 4.9 0 138.34 1,368.02 1,327.12 25.88
Including 58.1 60.3 2.2 0.01 280.5 2,701.00 2,263.00 30.55
and 164.1 170 5.9 0 27.16 960.58 231.08 22.92
MAR-21-010 87 92.9 5.9 0.02 127.63 587.79 1,546.35 59.38
Including 88.5 91.4 2.9 0.05 234.31 1,063.96 2,598.27 98.99
MAR-21-011 73.7 81 7.3 0 53.51 253.21 1,066.83 21.68
and 85.85 117 31.15 0.02 53.01 546.47 1,646.04 9.98
Including 103.3 105 1.7 0.11 227 1,845.00 7,240.00 34.4
MAR-21-012 13.5 19.44 5.94 0 20.41 40.84 459.98 7.78
and 40 61.5 21.5 0.01 91.08 392.36 1,682.71 29.97
Including 42 45 3 0.05 371 1,781.00 4,240.00 115.45
and 69 70.5 1.5 0.04 78.8 700 1,175.00 6.3
and 90 93 3 0 14.02 38.55 237.5 5.25
MAR-21-013 45 49.6 4.6 0 26.47 112.09 234.75 6.41
MAR-21-014 25.5 42 16.5 0 32.45 254.89 756.08 15.57
MAR-21-015 30 46.5 16.5 0 28.64 118.22 569.9 14.97
and 63 67.5 4.5 0 17.88 54.66 338 7.56
and 97.5 106.5 9 0.05 46.94 1,011.98 5,855.00 72.03
Including 102 105 3 0.15 108.35 2,607.50 13,900.00 191.6
and 131 135 4 0.04 25.9 790 1,405.00 35.52
MAR-21-016 78 97.5 19.5 0 35.99 763.53 1,617.92 13.85
Including 81 82.5 1.5 0.01 151 690 1,795.00 23.8
and 117 142.5 25.5 0.05 156.6 5,069.94 11,228.16 110.86
Including 117.9 121.8 3.9 0.31 821.52 23,647.69 56,410.25 550.76
MAR-21-017 88.5 120 31.5 0.01 79.91 1,673.07 4,461.11 50.15
Including 111 115.5 4.5 0.07 266 8,156.66 19,896.66 175.26
MAR-21-018 62.75 67.9 5.15 0 45.22 208.76 1,668.76 28.86
and 87 96.65 9.65 0 25.19 173.67 542.66 23.57
and 102.5 113.6 11.1 0 67.35 634.29 2,242.18 15.43
and 145.1 149.5 4.4 0.03 33.45 1,543.48 4,637.84 88.42
and 159.4 167.4 8 0 24.2 460.25 3,591.25 48.47
MAR-21-019 69 75 6 0 39.72 246.62 1,155.00 19.42
and 90 96 6 0 42.82 506 2,112.75 18.55
and 105 138.05 33.05 0.01 58.62 1,437.80 4,935.68 61.03
MAR-21-020 3 58.95 55.95 0 155.86 1,105.98 5,054.01 39.87
Including 34.15 46.95 12.8 0.03 498.08 3,976.33 15,867.73 129.18
MAR-21-021 27 31.25 4.25 0 32.36 158.03 530.16 25.66
and 55.15 60.3 5.15 0.01 119.33 709.75 1,357.03 26.06
MAR-22-022 78.7 97.9 19.2 0.06 127.24 1,004.96 3,158.81 40.73
Including 84.15 87.7 3.55 0.3 567.36 3,960.70 14,273.52 169.28
and 107.45 124 16.55 0.05 109.81 4,029.09 6,010.85 108.98
Including 112 115 3 0.18 440.33 16,036.67 18,513.33 245.66

 

Table 2: Hole Location, Depth and Orientation of Reported Drill Holes

 

HOLE

EAST 

NORTH  ELEVATION  LENGTH  Azimuth Dip
(WGS84) (WGS84) (m) (m)
MAR-21-001 351659.72 3058477.61 2098.68 132 50 -45
MAR-21-002 351763.31 3058387.66 2067.69 150 50 -50
MAR-21-003 351816.49 3058303.1 2056.57 231 50 -45
MAR-21-004 351631.72 3058539.29 2111.33 102 50 -45
MAR-21-005 351468.71 3058662.45 2110.87 132 50 -50
MAR-21-006 351360.26 3058718.61 2124.08 150 50 -50
MAR-21-007 351553.92 3058538.72 2092.35 150 50 -45
MAR-21-008 351388.33 3058746.71 2130.65 132 50 -50
MAR-21-009 351722.44 3058418.84 2082.2 201 50 -50
MAR-21-010 351118.74 3058914.95 2086.99 140 50 -50
MAR-21-011 351305.01 3058792.88 2134.44 123 50 -50
MAR-21-012 351438.18 3058683.42 2114.16 135 50 -50
MAR-21-013 351902.89 3058244.03 2076.78 151 50 -50
MAR-21-014 351089.06 3058998.21 2072.83 81 50 -50
MAR-21-015 351518.84 3058575.15 2091.47 153 50 -55
MAR-21-016 351747.42 3058310.19 2058.9 201 50 -50
MAR-21-017 351684.25 3058386.85 2079 201 50 -50
MAR-21-018 351572.72 3058488.17 2089.96 181 50 -60
MAR-21-019 351724.63 3058355.33 2069.02 182 50 -50
MAR-21-020 351808.78 3058367.29 2063 72 40 -65
MAR-21-021 351492.01 3058608.51 2099.42 102 35 -45
MAR-22-022 351778.37 3058269.54 2050.83 306 50 -45

 

QA/QC

Drill core and rock samples were shipped to ALS Global in Chihuahua, Chihuahua, Mexico and in North Vancouver, Canada for sample preparation and for analysis at the ALS laboratory in North Vancouver.  The ALS Chihuahua and North Vancouver facilities are ISO 9001 and ISO/IEC 17025 certified. Silver and base metals were analyzed using a four-acid digestion with an ICP finish and gold was assayed by 50-gram fire assay with atomic absorption ("AA") finish. Over limit analyses for silver were assayed by fire assay and gravimetric finish; over limit analysis for lead and zinc were re-assayed using an ore-grade four-acid digestion with AA finish.

Control samples comprising certified reference samples, duplicates and blank samples were systematically inserted into the sample stream and analyzed as part of the Company's quality assurance / quality control protocol.

About Magna Gold Corp.

Magna is a Mexico focused gold/silver production company engaged in acquiring, exploring, developing and operating quality precious metals properties in Mexico. It is committed to advancing its 100% owned flagship San Francisco Mine, Margarita Silver Project and other highly prospective mineral properties located in Sonora and in Chihuahua. The primary strength of the Company is the team of highly experienced mining professionals with a proven track record of developing properties in Mexico from discovery to production. Magna employs community members and services in its operations.

ON BEHALF OF THE BOARD OF DIRECTORS

Arturo Bonillas

President and CEO

For further information, please visit the Company’s SEDAR profile at www.sedar.com or the Company’s corporate website at www.magnagoldcorp.com or contact us at telephone +52 (662) 310 0326, email info@magnagoldcorp.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Qualified Person

James Baughman (P. Geo.), Consulting Geologist and a Qualified Person as defined by NI 43-101, has approved the scientific and technical information in this news release.

Cautionary Statements

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 Company’s future plans, objectives or goals, including words to the effect that the Company 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 “plans”. 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 Company, the Company 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 Company’s objectives, goals or future plans, exploration results, potential mineralization (including estimates of measured and indicated resources, inferred resources and probable reserves), exploration and mine development plans, production (including gold production expectations and guidance), processing and mining expectations (including statements regarding expansion and advancement of assets) and strip ratio trends and expectations. 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,  risks related to the effects of COVID-19 on the Company; and those risks set out in the Company’s public documents filed on SEDAR. Although the Company 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 Company 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.

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