Market Overview

Venadas Vein Discovery Opens New Juanicipio Exploration Potential

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VANCOUVER, British Columbia, March 04, 2019 (GLOBE NEWSWIRE) -- MAG Silver Corp. (MAG: TSX / NYSE A) ("MAG" or the "Company") reports the discovery of the northeast ("NE") oriented ‘Venadas Vein" within the Minera Juanicipio Joint Venture Property (Fresnillo plc 56% / MAG 44%).

Figure 1
Plan map of the Fresnillo District showing the dominant SW oriented veins in contrast to the NE orientation of the Venadas Vein



Figure 2
Vertical longitudinal section of the Venadas Vein



Highlights:

  • New Venadas Vein discovery is the first ever mineralized vein in the Fresnillo district oriented at a high angle (NE) to the historically mined northwest ("NW") oriented veins.
  • Venadas intercepts lie at a very high-level in the vein zoning model, suggesting considerable depth potential.
  • Larger NE structures with intense surface alteration are known within the Juanicipio property and are now high priority exploration targets. None have ever been directly drilled.

The NE-oriented Venadas Vein was inferred from the alignment of fifteen previously unconnected intercepts (See Table 1, Figures 1 & 2) before being cut in an underground development working as a 1.1 metre ("m") wide vein, reporting 116 grams per tonne ("g/t") (3.4 ounces per ton ("opt")) silver, 3.16 g/t gold.  VEN-1, the first drill hole specifically designed to test the Venadas Vein, cut 3.0 m (drilling width) grading 392 g/t (11.5 opt) silver and 5.54 g/t gold. All intercepts contain negligible base metals and lie above 1,750 m elevation, with most significantly higher than the top of the Valdecañas Vein at 1850 m elevation. This indicates a very high-level overall position in the vein zoning model, suggesting that Venadas has considerable depth potential. 

Venadas is the first ever mineralized vein in the overall Fresnillo District oriented at a high angle to the historically mined NW oriented veins. Notably, other much larger NE structures with intense surface alteration are known farther afield within the Juanicipio property and are now priority exploration targets. None have ever been directly drilled.

"This is an entirely new and previously unrecognized vein trend that runs opposite to the expected NW-orientations shown by veins mined for nearly 500 years throughout the known parts of the Fresnillo District. The JV exploration team deserves great credit for puzzling it out" said Dr. Peter Megaw, MAG Silver's Chief Exploration Officer. "We think these may be very important controls on the overall mineralization system because the Valdecañas Vein gets wider and richer in gold where Venadas and its suspected brethren cross it. Most importantly, the cuts to date are all at high elevations, so we are eager to drill them at depth to see if they improve like Valdecañas".

Possible Significances

  • The recognition of NE-oriented veins different from the well-known NW-orientated veins of the Fresnillo District opens many exploration possibilities within the Juanicipio claim and the district as a whole. Similar NE structures with very strong alteration are known elsewhere within the Juanicipio claim and have seen only reconnaissance mapping: All now become priority exploration targets.
     
  • Most Venadas Vein intercepts to date lie above 1,850 m elevation. This is the depth of the top of the Valdecañas Vein where it splits up into thin, irregular silver and gold-rich veinlets with very low base metal values (See Figure 1). This matches the characteristics of the Venadas Vein seen so far (See Table 1), which suggests it should continue to improve in width and grade to depth for several hundred metres.
     
  • The Venadas Vein projects directly towards the overlap zone between the Valdecañas West and East Veins. This zone has the hallmarks of a major mineralizing-fluid upwelling zone and these intersecting structures may have created an ideal vertical channel for upwelling metal-laden fluids to rise quickly and spread laterally into the individual structures.
     
  • Two suspected similarly NE-oriented structures lie a few hundred metres on either side of the Venadas Vein and are also indicated by unconnected intercepts and extensive surface alteration. The structure to the southeast projects into a distinct vertical bulge in the Valdecañas Vein where gold values go up significantly. These targets should be ideal for drill confirmation from underground.
     
  • Cross-cutting 1.1 km southward from the Valdecañas Vein to the high-grade Juanicipio Vein might be significantly accelerated if development could follow mineralization along the route.  

Table 1: Assay Results – Venadas Vein Holes

HOLE-ID From
(m)
To
(m)
Length
(m)
TW(1)
(m)
Ag
(g/t)
Au
(g/t)
Pb
(%)
Zn
(%)
Cu
(%)
Elevation
(m)
37P 476.10 481.60 5.50 2.06 489 0.94 0.00 0.02 0.01 1917
Incl. 480.50 481.60 1.10 0.40 1485 1.15 0.01 0.02 0.00  
43P 523.55 527.70 4.15 1.43 491 2.69 0.01 0.02 0.02 1843
Incl. 526.05 527.70 1.65 0.57 965 6.39 0.01 0.02 0.01  
44P 594.85 597.50 2.65 0.75 121 0.44 0.01 0.04 0.00 1749
78P 583.90 584.90 1.00 0.47 3 0.77 0.00 0.01 0.01 1967
84P 693.60 694.55 0.95 0.55 654 4.02 0.00 0.01 0.00 1828
92P 863.85 865.15 1.30 0.82 73 0.03 0.00 0.00 0.00 1735
IE 485.70 486.80 1.10 0.47 5 0.02 0.00 0.01 0.00 1875
IF2 552.75 554.65 1.90 0.89 98 0.50 0.00 0.00 0.00 1802
IG 436.60 437.30 0.70 0.41 240 1.35 0.00 0.01 0.01 1935
JE 467.35 468.25 0.90 0.42 267 0.53 0.00 0.01 0.00 1916
KD 629.60 631.00 1.40 0.50 171 0.42 0.00 0.02 0.01 1809
M18 635.35 636.10 0.75 0.29 43 0.07 0.00 0.01 0.00 1723
M20-2 467.25 469.05 1.80 0.80 771 0.38 0.00 0.01 0.03 1931
M21 507.30 507.90 0.60 0.23 217 0.24 0.00 0.01 0.01 1896
P4 488.50 489.20 0.70 0.20 122 0.13 0.00 0.01 0.01 1828
RV-4 411.70 419.05 7.35 1.77 245 4.24 0.00 0.01 0.01 1961
Incl. 417.30 418.15 0.85 0.20 1160 25.10 0.00 0.01 0.04  
SA-2 202.00 203.55 1.55 0.62 410 0.26 0.00 0.01 0.03 1870
SA-3 209.15 209.95 0.80 0.74 806 5.32 0.00 0.01 0.01 1903
VEN-1 286.05 289.05 3.00 1.10 389 5.54 0.00 0.00 0.00
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