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Phase I exploration, focused on following the silver-rich
“Deer Trail has been on my exploration radar since 1982, as it displays the most important characteristics of a large Porphyry-related CRD system. Consolidating the property lets us apply our integrated exploration model and apply new technology to the search for the entire suite of mineralization styles that we expect to occur on the property,” said Dr.
“Utah is a new jurisdiction for MAG and we are very pleased with the outpouring of positive support for the
Fall 2020 Phase I Drill Program
A fully permitted 6,500-meter Phase I surface drilling program is set to start in early
- Determining the depth to the thick section of high-potential limestone host formations known regionally to lie just below the comparatively unfavorable host rocks of the
Deer Trail mine. - Trace the identified steeply-dipping feeder structures to depth into these limestones.
- Locate massive sulfide mineralization controlled by the above and possibly detectable seismically.
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About
The Deer Trail CRD was intermittently mined for high-grade silver, gold, lead, zinc and copper sulfides until 1985 when the mine closed leaving faces in massive sulfide.
The Agreement (all dollars referenced in US dollars):
MAG executed an Agreement, effective
The combined property package comes with decades of information generated through prior exploration programs focused on the historic
- Presence of high silver grades (>400 g/t): Drill and underground sampling results, confirmed visually and by resampling, support published production records for the
Deer Trail Mine of about 250,000 tons grading 3-42 g/t (0.1-1.35 oz/t) Gold, 350-465 g/t (11-15 oz/t) Silver, 3-5% Lead, 1-12% Zinc; and 0.6% Copper (See Beatty, et al., Economic Geology, vol. 81, 1986 p. 1932-1952). - Location on a deep-penetrating regional-scale fault that hosts major CRD-family deposits:
Deer Trail lies directly on the Tushar Fault splay of the regional Wasatch Fault system that separates the Colorado Plateau andGreat Basin geological provinces. This fault system hosts the giantBingham Canyon Porphyry Copper-skarn CRD District 225 km to the north and several important CRD’s including Tintic andPark City, Utah andPioche, Nevada to the north and south respectively. New age dating by MAG indicates intrusions and alteration on theDeer Trail property are 28-31Ma in age, which placesDeer Trail within the 27-36 Ma range of the abovementioned deposits. - Location at the top of a thick section of favorable host rocks: Mineralization in the historic
Deer Trail mine occurs as textbook high-grade silver-gold-lead-zinc-copper mantos (sheet or ribbon-like sulfide bodies) that selectively replaced irregular thin limestone beds sparsely interbedded with sandstone and shale. Throughout the surrounding region, massive limestone units hundreds of meters thick that are expected to be much more favorable hosts for large-scale CRD mineralization occur beneath this relatively unfavorable stratigraphic sequence. Many of the largest CRD systems in the Western US (Leadville -Gilman,Colorado and Magma-Resolution andBisbee, Arizona ) occur in stratigraphically equivalent massive limestone formations. This potentially favorable limestone sequence is estimated to lie less than 200 meters vertically below the deepest historicalDeer Trail mine drill holes. - An identifiable plumbing network: The historic mine cuts a number of “feeder” faults that channeled mineralizing fluids from depth into the thin replaced limestone beds, and “bleeder” faults that channeled spent mineralizing fluids into the fringes of the system. This plumbing network has been mapped in detail throughout the mine and modeled in combination with information from historic underground drilling in order to project the feeder structures to depth into the more favorable inferred limestones.
MAG’s two-fold exploration strategy works both ends against the middle.
- The first focus, already well advanced, is to project the geometry of the feeder structures of the known CRD mineralization to depth into the inferred underlying thick and clean limestone host rocks to seek larger scale silver-rich massive sulfide replacements and potentially mineralized skarn. A deep-looking underground 2-D seismic survey (proven to work through a successful trial survey) is planned for
September 2020 and should help map out the favorable host rocks at depth, trace the major mineralization feeder structures and possibly directly detect massive sulfide mineralization. Phase I drilling is slated to start in EarlyOctober 2020 to test this end of the deposit spectrum. - The second focus is exploration for the intrusive “source” of the system. This is important not only because it may be an economic Porphyry Copper/Molybdenum deposit in its own right, but because it helps define an exploration corridor carrying continuous mineralization from the porphyry through mineralized skarn to the inferred extensive high-grade replacement mineralization of Focus #1 above. Exploration for a mineralized Porphyry between the
Deer Trail Mine andAlunite Ridge has been intermittently pursued since the 1960s and includes a few widely spaced deep drill holes. Previously, none of these were thought to have hit Porphyry-style mineralization, but while relogging historic drill core MAG geologists recognized unsampled quartz-molybdenite veins up to 30 centimetres wide that grade up to 2.9% Molybdenum within a broad zone of pervasively sericite-altered volcano-sedimentary rocks. This style and intensity of mineralization and alteration is characteristic of what would be expected in or near a productive Porphyry intrusion. Surface mapping and sampling over this area and other suspected porphyry alteration zones are in progress. Results will be combined with existing geophysics and the few historic drill holes targeting these areas to improve understanding of these centres and guide Phase II drilling.
Qualified Persons: Dr.
About
Neither the
This release includes certain statements that may be deemed to be “forward-looking statements” within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions; the use of the net proceeds from the private placement is subject to change; political risk, currency risk and capital cost inflation. In addition, forward-looking statements are subject to various risks, including that data is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment. The reader is referred to the MAG Silver’s filings with the
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and www.sec.gov
LEI: 254900LGL904N7F3EL14
For further information on behalf ofMAG Silver Corp. ContactMichael J. Curlook , VP Investor Relations and Communications Phone: (604) 630-1399 Toll Free: (866) 630-1399 Website: www.magsilver.com Email: info@magsilver.com
Source:
2020 GlobeNewswire, Inc., source