MAG Silver Corp. | Company Profile

About The Company

MAG is a leading silver exploration and emerging development company in Mexico.

The high-grade silver discoveries at our Juanicipio property are helping transform the Fresnillo Trend, the world's oldest and most prolific silver district. Work with partner Fresnillo plc (56%), is defining a world-class mineral resource - key to next-generation production by the world's largest primary silver miner.

Early drill results from our 100%-owned Cinco de Mayo property indicates a significant new silver-lead-zinc discovery is in the making.

MAG wholly owns over 100 square miles of prospective ground throughout Mexico. With our successful geological modeling of both the epithermal vein systems of the Fresnillo Silver Trend and the carbonate replacement deposits (CRDs) in the Chihuahua Trough, MAG is a leader in the application of modern geoscience in the venerable Mexican Silver Belt.

The Projects

JUANICIPIO PROPERTY
MUNICIPIO FRESNILLO ZACATECAS, MEXICO

Juanicipio Project | Flagship Project

MAG's exploration team, headed by Dr. Peter Megaw of the consultant group Minera Cascabel / IMDEX, first identified the Juanicipio Property in the late 1990's. Prior to acquisition by MAG there were no silver, gold or base metal mineralization identified on the Juanicipio Property. It was the extensive advanced argillic alteration and silicification of the tertiary volcanic and volcaniclastic rocks, that implied mineralization at depth. Drilling by MAG Silver from 2003 to 2005 on this working geological model, intersected new high grade silver and gold veins within one of the oldest and most significant Silver Districts in the world.

This success quickly attracted the attention of Industrias Peñoles S.A. de C.V., the world's largest silver producer, to acquire an option to earn an interest in the property. Drilling by Peñoles in late 2005 subsequently discovered the Valdecañas Vein less than 5 kilometres from their main production headframe at Fresnillo.

MAG Silver's Juanicipio (almost 8,000 hectares) and Lagartos properties cover approximately 140,000 hectares in several large claim blocks along the "Fresnillo Trend" a regional structural corridor linking the famous Zacatecas, Fresnillo and Sombrerete-San Martin Silver Districts of Zacatecas, Mexico. Combined, these three districts have produced over 3.0 billion ounces of silver (representing 30% of Mexico's historic silver production) and include Fresnillo, which produced 33.5 million ounces of silver in 2007.

Valdecañas Vein Description

Valdecañas lies 2.5 kilometres southwest from the San Carlos Vein, which is Fresnillo plc's principal production vein and 2.5 kilometres northwest from the El Saucito Vein, which is currently undergoing preproduction development with construction of a 600 metre shaft and a 2,200 metre decline. Geologically and mineralogically the Valdecañas Vein has affinities to Fresnillo plc's Santo Niño Vein, at one time the principal production vein at Fresnillo. The Santo Niño produced over 250 million ounces of silver from a four kilometre strike length.

Drilling to date clearly demonstrates that Valdecañas is an epithermal vein typical of the Fresnillo District. However, the Valdecañas and the Juanicipio (discovered by MAG in 2003) veins contain significantly higher gold grades (2-4 grams gold per tonne) than the average veins (0.5 grams gold per tonne) in the principal production parts of the district.

Mineralization observed in drill core consists of precious metal rich, banded or brecciated quartz-pyrargyrite-acanthite-polybasite-galena-sphalerite veins. The Valdecañas Vein has undergone multiple mineralizing events as evidenced by various stages of brecciation and quartz sealing, local rhythmic microcrystalline quartzpyrargyrite banding and open-space cox-comb textures and vuggy silica. The vein exhibits the characteristic metal zoning of the principal veins at Fresnillo, observed as a change from silver and gold rich zones at the top to increased base metals in the deeper intersections. Notably, the gold rich mineralization cuts across the silver rich zones, which in turn cut earlier base-metal dominant stage indicating complex multi-stage mineralization combining stages seen separately in other parts of the district.

Overall, the precious metals rich zone is 350 metre high, which is typical of major producing veins in the district although it lies slightly lower in elevation than the comparable precious metal zones being mined elsewhere in the district. Within ten to twenty metres of the vein, the wall rocks are progressively pervasively silicified and cut by quartz veinlets carrying pyrite-sphalerite-galena sulphide minerals. Alteration in the volcanoclastic /sedimentary host rock farther away from the vein is characterized by weak pyritization, moderate clay alteration, and calcite veining.


Juanicipio Vein

The Juanicipio Vein, first intersected by MAG in 2003, is located about 1,100 metres south of Valdecañas and is the strongest indication of the existence of another significant vein set on the property. Plans for the future include drill testing and defining the Juanicipio Vein. Information from the Valdecañas drill program suggests that the Juanicipio Vein intersection occurs at the very top of the high grade silver/gold Bonanza Zone. Fresnillo also intersected this vein in 2005 almost 100 metres to the east but at an elevation now known to be well above the Bonanza Zone. The Juanicipio Vein is open at depth and along strike.

Success at Juanicipio will confirm our thesis that the Juanicipio property is host to an emerging vein field very much akin to the main district adjoining the property to the north and east.

A review of past drilling by the Joint Venture in the context of the Valdecañas Vein discovery has revived interest in Hole VP-02 drilled in 2006. This hole is located on the Juanicipio property 1,200 metres to the west of Valdecañas Vein section G. This reported a one-metre section of 7.70 g/t gold and 4.0 g/t silver, 700 metres below surface.

The presence of strong gold values in this intersection and its relative proximity to the Valdecañas Vein is considered highly significant, and the exploration program will examine this structure with drilling in the near future.

Minera Juanicipio S.A. DE C.V.

This new company was established in December 2007 to own and operate the Juanicipio Joint Venture, MAG having a direct 44% interest and Frenillo plc a direct 56% interest.

In 2007 the joint venture purchased more land west of the Valdecañas Vein discovery tied directly to the west of land purchased the previous year. The Joint Venture has uninterrupted covereage of 4.5 kilometres of the strike projection of the Valdecañas Vein from east to west.

Also in late 2007 the joint venture purchased over 2.5 kilometres of surface rights along the strike projection of the Juanicipio Vein, underscoring the importance the joint venture places on Juanicipio Vein.

For more detailed information about the projects and the company in general, please visit the website of MAG Silver!

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