TORONTO, June 29, 2021 /CNW/ - Magna Gold Corp. (TSXV:
MGR), (OTCQB: MGLQF) ("Magna" or the "Company") is pleased to
announce it has achieved full-scale and steady state commercial
production at its 100% owned flagship San Francisco Mine, located
in Sonora, Mexico. Commercial
production was achieved on schedule on June
1, 2021, as outlined in the Company's press release dated
April 13, 2021. Furthermore, the
Company is on track to achieve and reiterates its earlier stated
2021 guidance of 55,000 – 65,000 oz of gold ("Au") production.
In the first half of the year, the Company completed the
necessary pre-stripping and substantially lowered the mine strip
ratio from ~8:1 to ~3:1, which is continuing to trend downwards
towards the life of mine ("LOM") average of 2.5:1. Moving forward,
the Company anticipates further decreases to the strip ratio and
increased recovery rates which will lead to cost improvements.
At San Francisco, the Company
anticipates a production run rate of ~6,000 Au oz/month in Q3 and
looks to exit the year at a run rate of ~7,500 Au oz/month.
Highlights
- Completed all necessary pre-stripping to achieve 2.9:1 strip
ratio at full-scale commercial operations, which is expected to
trend downwards through LOM.
- Completed construction of new leach pads and began stacking
fresh ore at a steady-state rate of 900 metric tons per
hour.
- Optimized grind size and leach kinetics improving recovery
rates to ~70% with further improvements anticipated over the
LOM.
- Continues commitment to health and safety, achieving over
3.5 million man-hours without a lost-time incident.
Arturo Bonillas, President and
CEO of Magna stated: "We are all extremely proud of the Magna team
for achieving this tremendous milestone on schedule. Achieving
full-scale commercial production in such a short period of time is
a testament to the hard work and quality of our Mexico-based operations team and as a company,
we have demonstrated our ability to execute on all our target
deliverables. Production numbers are trending upwards
month-to-month, and we anticipate exiting the year producing ~7,500
Au oz/month. We are continuing our systematic exploration efforts
as we look to grow the Company into a mid-tier producer."
About Magna Gold Corp
Magna is a Mexico focused gold/silver production company
focused on acquiring, exploring, developing and operating quality
precious metals properties in Mexico. It is committed to advancing its 100%
owned flagship San Francisco Mine and other highly prospective
mineral properties located in Sonora and in Chihuahua. The primary strength
of the Company is the team of highly experienced mining
professionals with a proven track record of developing properties
in Mexico from discovery to
production. Magna employs community members and services in its
operations.
As of August 8, 2020 (NI 43-101 F1
Technical Report Pre-feasibility study for the San Francisco Gold
Project), San Francisco operations are estimated to have
measured and indicated resources of 99,700,000 tonnes @ 0.446g/t Au
containing 1,430,000 ounces of gold, and inferred resources of
11,374,000 tonnes @ 0.446 g/t containing 171,000 ounces of gold.
The total proven and probable reserves is 47,629,000 tonnes @ 0.495
g/t Au containing 758,000 ounces of gold. Mineral resources are
inclusive of mineral reserves. Mineral resources that are not
mineral reserves do not have demonstrated economic
viability.
ON BEHALF OF THE BOARD OF DIRECTORS
Arturo Bonillas
President and CEO
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Qualified Person
James
Baughman (P. Geo.), Consulting Geologist and a Qualified
Person as defined by NI 43-101, has approved the scientific and
technical information in this news release.
Cautionary Statements
This News Release includes certain "forward-looking
statements" which are not comprised of historical facts.
Forward-looking statements include estimates and statements that
describe the Company's future plans, objectives or goals, including
words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be
identified by such terms as "believes", "anticipates", "expects",
"estimates", "may", "could", "would", "will", or "plan". Since
forward-looking statements are based on assumptions and address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Although these statements are
based on information currently available to the Company, the
Company provides no assurance that actual results will meet
management's expectations. Risks, uncertainties and other factors
involved with forward-looking information could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward-looking information in this news release
includes, but is not limited to, the Company's objectives, goals or
future plans, statements, exploration results, potential
mineralization, exploration and mine development plans, production
guidance and production estimates, strip ratio trends, anticipated
recovery and production rates and processing and mining
expectations. Factors that could cause actual results to differ
materially from such forward-looking information include, but are
not limited to failure to identify mineral resources, failure to
convert estimated mineral resources to reserves, the inability to
complete a feasibility study which recommends a production
decision, the preliminary nature of metallurgical test results,
delays in obtaining or failures to obtain required governmental,
environmental or other project approvals, political risks,
uncertainties relating to the availability and costs of financing
needed in the future, changes in equity markets, inflation, changes
in exchange rates, fluctuations in commodity prices, delays in the
development of projects, capital, operating and reclamation
costs varying significantly from estimates and the other risks
involved in the mineral exploration and development industry,
risks related to the effects of COVID-19 on the
Company; and those risks set out in the Company's public
documents filed on SEDAR. Although the Company believes that the
assumptions and factors used in preparing the
forward-looking information in this news release are reasonable,
undue reliance should not be placed on such information, which only
applies as of the date of this news release, and no assurance can
be given that such events will occur in the disclosed time frames
or at all. The Company disclaims any intention or obligation to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, other than
as required by law.
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SOURCE Magna Gold Corp.