Market Overview

Valdecañas Deep Zone Expanded and Significant New Hangingwall Vein Discovered

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VANCOUVER, British Columbia, March 04, 2019 (GLOBE NEWSWIRE) -- MAG Silver Corp. (MAG: TSX / NYSE A) ("MAG" or the "Company") reports results from a 48-hole (46,060 metre ("m")) diamond drilling program on the Juanicipio Joint Venture Property (Fresnillo plc 56% / MAG 44%) completed in late 2018.  The program was designed to expand and infill the wide, high-grade Deep Zone Mineral Resource estimate outlined in the Company's "2017 PEA" (See Press Release dated November 7, 2017).

Figure 1
Valdecañas Vein West Longitudinal Section



Figure 2
Valdecañas Vein East Longitudinal Section



Figure 3
Anticipada Vein Longitudinal Section



Figure 4
Pre-Anticipada Vein Longitudinal Section



Figure 5
Valdecañas Vein System Cross Section through Valdecañas East, Anticipada and Pre-Anticipada Veins.



Highlights - These latest drill results:

  • Extend and confirm continuity to depth of high-grade mineralization in the East and West Valdecañas Vein Deep Zones and in the Anticipada Vein; and
  • Coincidentally discovered the new Pre-Anticipada vein in the hangingwall above the system. 

Outstanding intercepts include:

DEEP ZONE WEST: Infill Hole P22: 11.6 metres (true width) grading 783 grams per tonne ("g/t") (22.9 ounces per ton ("opt")) silver, 2.57 g/t gold, 6.52% lead, 9.46% zinc, 0.32% copper.

DEEP ZONE EAST: Step-Out Hole P26: 6.3m (true width) grading 246 g/t (7.2 opt) silver, 1.78 g/t (capped) gold, 7.20% lead, 11.63% zinc, 0.40% copper.

ANTICIPADA VEIN: Infill Hole P24-1: 6.2 m (true width) grading 275 g/t (8 opt) silver, 4.02 g/t gold, 7.28% lead, 9.24% zinc and 0.30% copper.

NEW DISCOVERY — "PRE-ANTICIPADA VEIN": Step-out Hole P28: 3.2 m (estimated true width) grading 472 g/t (13.8 opt) silver, 0.31 g/t gold, 0.39% lead, 0.43% zinc and 0.03% copper.

Since the discovery of the Deep Zone as an extension at depth of the high-grade Bonanza Zone (see Press Release April 23, 2015), the Valdecañas Vein System has emerged as a multi-stage, high-grade vein swarm comprising the overlapping East and West Veins, the hangingwall Anticipada Vein, the newly discovered Pre-Anticipada Vein and several other splays (See table and figures below). Exploration drilling is ongoing, running concurrently with surface and underground mine development where first production in anticipated in H2-2020 (as reported by the operator February 26, 2019 - "Fresnillo announces full year 2018 preliminary results").

"The Valdecañas Vein System continues to astound us with its multiple high-grade silver and gold overprintings on the increasingly base-metal rich Deep Zone and its overall persistence; it having now been traced for over 1,100 metres beneath the top of the Bonanza Zone where our mine development is currently advancing nicely," said George Paspalas, President and CEO of MAG. "We are especially pleased with how each hole into the Valdecañas Vein East gives us a free shot on the way not only at the ever-expanding Anticipada Vein but also the fortuitously discovered Pre-Anticipada Vein. Because the drill spacing in the Deep Zone is still widely spaced, we expect the major impact on resources will be to the Inferred category, and that drilling off to Indicated may best be done in the future from underground." 

The latest holes include the deepest lateral intercepts to date on the Valdecañas Vein, with deep mineralization now traceable continuously over a strike length exceeding 2,000 m and up to 1,100 m vertically from the top of the Bonanza Zone. Vein widths range from approximately 2 m to over 29 m. Deep mineralization on the Valdecañas Veins remains open laterally for several hundred metres to the claim boundaries on both ends; to the east claim boundary for Anticipada; and Pre-Anticipada and to depth across all veins (see Figures 1 - 5).

Notably, the Valdecañas deep zones continue to demonstrate atypically high silver grades that MAG believes are ascribable to stacking or superimposition of later mineralization related to a deeper, fluctuating boiling zone, as well as the increasing copper grades normally expected in the "root zone" of an epithermal vein. Gold grades remain high and remarkably consistent from top to bottom. These phenomena, as interpreted, reflect proximity to a major mineralizing-fluid upwelling zone where multiple repeated pulses of mineralization combined to generate exceptionally high-grade polymetallic mineralization.

One Devico directional drill is currently turning on the Valdecañas Vein, with two conventional rigs turning on other targets on the property; additional surface and underground rigs are expected on-site shortly.

Valdecañas Vein West
Eleven new intercepts on the Valdecañas Vein West are reported here (See Table 1 and Figure 1).  Three fall within the Deep Zone Mineral Resource estimate (see 2017 PEA) and reinforce those results. The best is P22, which cut 11.6 m (true width) grading 783 g/t (22.9 opt) silver, 2.57 g/t gold, 6.52% lead, 9.46% zinc, 0.32% copper in the heart of the Dilatant Zone (See Press Releases dated August 15, 2016 and February 14, 2017). Three more intercepts are high and confirm the upper limits of the mineralized envelope (See "Shallow Holes" discussion below). The remaining five intercepts are 100 m step-outs designed to extend the resource envelope, the best being Hole P21, the westernmost deep hole on the Valdecañas Vein West. P21 cut 9.8 m (true width) grading 84 g/t (2.5 opt) silver, 2.74 g/t gold, 2.95% lead, 1.89% zinc, 0.11% copper. At the eastern extreme of this zone, Hole D6-1 cut 3.8 m (true width) grading 359 g/t (10.5 opt) silver, 0.09 g/t gold, 0.96% lead, 2.31% zinc, 1.68% copper.  The Valdecañas West Deep Zone remains open to depth and laterally, especially to the southwest towards the claim boundary, which lies 200 - 300 m farther west.

Table 1

HOLE-ID From
(m)
To
(m)
Length
(m)
TW2
(m)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Cu
(%)
Vein1
D1-1 1120.05 1123.05 3.00 2.0 139 1.00 1.58 11.29 0.29 V1W
D1-2 1031.80 1066.00 34.20 23.1 77 0.84 3.25 5.84 0.09 V1W
incl. 1053.85 1066.00 12.15 8.2 171 2.19 7.78 11.50 0.20 V1W
and 1082.80 1095.40 12.60 8.5 190 1.33 2.07 4.67 0.26 FW
incl. 1083.95 1086.70 2.75 1.9 722 3.98 6.43 15.20 0.53 FW
and 1110.90 1111.65 0.75 0.5 1555 1.34 0.04 0.07 0.02 FW
D1-3 1108.90 1141.45 32.55 20.5 70 0.26 1.43 4.68 0.21 V1W
incl. 1121.35 1141.45 20.10 12.7 90 0.32 1.95 6.17 0.27 V1W
D1-4 1063.00 1077.90 14.90 11.3 159 0.50 1.27 4.49 0.17 V1W
incl. 1073.30 1077.90 4.60 3.5 404 1.34 1.00 5.58 0.16 V1W
D6-1 1019.90 1025.40 5.50 3.8 359 0.09 0.96 2.31 1.68 V1W
incl. 1019.90 1022.10 2.20 1.5 834 0.09 2.35 4.96 3.97 V1W
VM-10 290.06 292.11 2.05 2.0 307 0.85 0.02 0.02 0.00 V1W
P15-1 1311.70 1317.85 6.15 4.50 35 0.27 0.92 3.82 0.08 V1W
P21 1098.85 1111.65 12.80 9.8 84 2.74/2.743 2.95 1.89 0.11 V1W
incl. 1109.75 1111.65 1.90 1.45 204 12.63 9.25 3.96 0.17 V1W
P22 1000.00 1014.15 14.15 11.6 783 2.57 6.52 9.46 0.32 V1W
incl. 1003.45 1006.90 3.45 2.8 2524 3.46 6.08 4.36 0.25 V1W

1  V1W = Valdecañas Vein West; FW = Footwall intercept.
2  Estimated true widths were estimated from cross sections and core angles. 
3  One gold assay capped to 16 g/t from reported values of 16.05 g/t. This is consistent with previous press releases on the Juanicipio project.

Valdecañas Vein East
Twenty-four new intercepts reported here targeted the Valdecañas Vein East (See Table 2 and Figure 2).  Six fall within the boundary of the Deep Zone Mineral Resource estimate (see 2017 PEA) and reinforce those results. The best of these is Hole TIV, which cut 4.8 m (true width) grading 278 g/t (8.1 opt) silver, 1.78 g/t gold (capped), 4.88% lead, 10.48% zinc, and 1.20% copper.  Five more intercepts are high and confirm the upper limits of the mineralized envelope. (See "Shallow Holes" discussion below). The remaining thirteen intercepts we

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