Magna Gold : NI 43 -101 Technical Report Initial Mineral Resource Estimate – Margarita Silver Project

MAGNA GOLD CORP.

NI 43-101 TECHNICAL REPORT

INITIAL MINERAL RESOURCE ESTIMATE

FOR THE

MARGARITA SILVER PROJECT

CHIHUAHUA, MÉXICO

Report Date: May 24, 2022

Effective Date: April 8, 2022

Richard M. Gowans, P.Eng.

William J. Lewis, P.Geo.

Chitrali Sarkar, M.Sc., P.Geo.

Rodrigo Calles-Montijo, CPG

Ing. Alan J. San Martin, MAusIMM (CP)

900 390 Bay Street, Toronto, Ontario, Canada M5H 2Y2

[phone] | www.micon-international.com

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		Table of Contents
1.0	SUMMARY		1
1.1	GENERAL		1
1.2	PROPERTY LOCATION, DESCRIPTION AND OWNERSHIP	2
1.3	ACCESSIBILITY, CLIMATE, PHYSIOGRAPHY, LOCAL RESOURCES AND INFRASTRUCTURE	....... 3
	1.3.1	Accessibility		3
	1.3.2	Climate and Vegetation		3
	1.3.3	Physiography		3
	1.3.4	Local Resources		3
	1.3.5	Infrastructure		4
1.4	HISTORY		4
	1.4.1	General Exploration History		4
	1.4.2	Sable Exploration and Drilling Program	5
1.5	GEOLOGICAL SETTING AND MINERALIZATION	5
	1.5.1	Regional Geology		5
	1.5.2	Local and Property Geology		6
	1.5.3	Mineralization		7
1.6	MAGNA EXPLORATION PROGRAMS		7
	1.6.1	Geophysics Survey		7
	1.6.2	Surface Trenching and Detailed Mapping	8
	1.6.3	Diamond Drilling Campaign		8
1.7	METALLURGICAL TESTING		8
1.8	MINERAL RESOURCE ESTIMATE FOR THE MARGARITA PROJECT	9
	1.8.1	Methodology, Database and Other Modelling Parameters	9
	1.8.2	Data Analysis		10
	1.8.3	Mineral Resource Estimate		11
	1.8.4	Mineral Resource Validation		14
	1.8.5	Mineral Resource Sensitivity Analysis	14
1.9	CONCLUSIONS AND RECOMMENDATIONS	16
	1.9.1	Conclusions		16
	1.9.2	Exploration Budget and Other Expenditures	17
	1.9.3	Further Recommendations		18
2.0	INTRODUCTION		20
2.1	TERMS AND REFERENCE		20
2.2	DISCUSSIONS, MEETINGS, SITE VISITS AND QUALIFIED PERSONS	21
2.3	SOURCES OF INFORMATION		22
2.4	UNITS OF MEASUREMENT AND ABBREVIATIONS	22
2.5	PREVIOUS TECHNICAL REPORTS		25
Margarita Silver Project	i	May 24, 2022

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3.0	RELIANCE ON OTHER EXPERTS	26
4.0	PROPERTY DESCRIPTION AND LOCATION	27
4.1	GENERAL DESCRIPTION AND LOCATION	27
4.2	OWNERSHIP, LAND TENURE AND PROPERTY AGREEMENTS	28
	4.2.1	Acquisition Summary	28
4.3	MINING RIGHTS IN MÉXICO	30
	4.3.1	Legal Framework	30
	4.3.2	Fees, Royalties and Taxes	31
4.4	PERMITTING, ENVIRONMENTAL AND SURFACE RIGHTS	33
	4.4.1	Permitting	33
	4.4.2	Environmental	33
	4.4.3	Surface Rights	33
4.5	QP COMMENTS MARGARITA PROJECT	33

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY.34

5.1		ACCESSIBILITY	34
5.2		CLIMATE AND VEGETATION	35
5.3		PHYSIOGRAPHY	35
5.4		LOCAL RESOURCES	36
5.5		INFRASTRUCTURE	36
6.0	HISTORY	37
6.1		GENERAL EXPLORATION HISTORY	37
6.2		SABLE EXPLORATION PROGRAM	37
6.3		SABLE DRILLING PROGRAM	42
6.4		HISTORICAL MINERAL RESOURCE ESTIMATES	45
6.5		HISTORICAL PRODUCTION	45
7.0	GEOLOGICAL SETTING AND MINERALIZATION	50
7.1		REGIONAL GEOLOGY	50
7.2		LOCAL AND PROPERTY GEOLOGY	51
7.2.1	Andesites	51
7.2.2	Volcanic Sandstones and Conglomerates	52
7.2.3	Rhyolitic Sequence	52
7.3		MINERALIZATION	53
7.3.1	Margarita Vein	53
7.3.2	El Caido Veins	54
7.3.3	The Juliana Vein	55
7.3.4	The Fabiana Vein	55
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7.3.5	The Marie Vein		55
7.4	ALTERATION		55
8.0	DEPOSIT TYPES		57
9.0	EXPLORATION		62
9.1	GENERAL EXPLORATION PROGRAM NOTES	62
9.2	MAGNA EXPLORATION PROGRAMS		62
9.2.1	Topographic Survey		62
9.2.2	Geophysics Survey		63
9.2.3	Surface Trenching and Detailed Mapping	65
9.3	MICON QP COMMENTS		69
10.0	DRILLING		70
10.1	GENERAL DRILLING PROGRAM NOTES	70
10.2	MAGNA DRILLING PROGRAM (2021	2022)	72
10.3	MICON QP COMMENTS		74
11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY	75
11.1	SABLE 2018 - 2019 SAMPLE PREPARATION, ANALYSES AND SECURITY PROCEDURES	.......... 75
11.1.1	Sable Sampling Procedures		75
11.1.2	Sable Sample Security		76
11.1.3	Sable Sample Preparation		76
11.1.4	Sable Sample Analysis		76
11.2	2020 - 2021 MAGNA SAMPLE PREPARATION, ANALYSES AND SECURITY	77
11.2.1	Magna Surface Sampling		77
11.2.2	Magna Drill Core Sampling		78
11.2.3	Magna Sample Security and Preparation	78
11.3	QUALITY ASSURANCE / QUALITY CONTROL	79
11.3.1	Sable Drill Campaign 2018 - 2019	79
11.3.2	Magna Exploration QA/QC Procedures 2020-2021	80
11.4	MICON QP COMMENTS		88
12.0	DATA VERIFICATION		90
12.1	GENERAL		90
12.2	SITE VISIT		90
12.3	DATABASE REVIEW		98
12.4	MICON QP COMMENTS		98
13.0 MINERAL PROCESSING AND METALLURGICAL TESTING	99
13.1	HISTORICAL SABLE METALLURGICAL TESTWORK	99
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13.2	MAGNA METALLURGICAL TESTWORK	99
13.2.1	Mineralogical Studies	100
13.2.2	LTM Preliminary Metallurgical Testing (2022)	102
13.3	METALLURGICAL LABORATORY ACCREDITATIONS	104
13.3.1	SGS Lakefield Laboratory, Ontario, Canada	104

13.3.2 Laboratorio Tecnológico de Metalurgia LTM S.A. de C.V. (LTM), Hermosillo, México . 104

13.3.3	Bureau Veritas Metallurgical Laboratory, Richmond, Canada	104
13.4	CONCLUSIONS AND RECOMMENDATIONS	104
14.0	MINERAL RESOURCE ESTIMATES	106
14.1	INTRODUCTION	106
14.2	CIM MINERAL RESOURCE DEFINITIONS AND CLASSIFICATIONS	107
14.3	CIM ESTIMATION OF MINERAL RESOURCES BEST PRACTICES GUIDELINES	109
14.4	MARGARITA PROJECT MINERAL RESOURCE DATABASE AND WIREFRAMES	109
14.4.1	Methodology	109
14.4.2	Database	110
14.4.3	Supporting Data	110
14.4.4	General Statistics	110
14.4.5	Three-Dimensional Modelling	111
14.4.6	Data Analysis	112
14.4.7	Variography	114
14.4.8	Continuity and Trends	114
14.5	MINERAL RESOURCE ESTIMATION	117
14.5.1	Block Model	117
14.5.2	Search Strategy and Interpolation	117
14.5.3	Rock Density Data	120
14.5.4	Prospects for Economic Extraction	120
14.5.5	Mineral Resource Classification	120
14.6	MINERAL RESOURCE STATEMENT	121
14.7	MINERAL RESOURCE VALIDATION	123
14.7.1	Visual Check	123
14.7.2	Swath Plots	123
14.8	MINERAL RESOURCE SENSITIVITY ANALYSIS	123
14.9	RESPONSIBILITY FOR MINERAL RESOURCE ESTIMATION	123
15.0	MINERAL RESERVE ESTIMATES	129
16.0	MINING METHODS	129
17.0	RECOVERY METHODS	129
Margarita Silver Project	iv	May 24, 2022