Hawkmoon Resources

Magna Gold Corp Intersects 1.61 Grams per Tonne Gold Over 21 Metres in Highly Oxidized Zone at Mercedes Project

TORONTO and NEW YORK, Nov. 14, 2019 (GLOBE NEWSWIRE) -- Magna Gold Corp (TSXV: MGR, OTCQB: MGLQF) (“Magna” or the "Corporation"), is pleased to report assay results on the final four RC holes of the Corporation’s Phase One Exploration Program at the Mercedes Project in Sonora, Mexico (“Mercedes”). Phase One Exploration Program totaled 21 Reverse Circulation drilling (2,723 m), and previous drilling results were released on October 17, 2019. Magna is now modelling the drill data and planning additional work program on Mercedes that will include IP geophysics, surface mapping, and soil sampling. The goal of the work is to prepare additional drill sites on the Mercedes property for drilling in 2020.

Drilling showed good continuity over 300 meters of strike length with the drilling open at depth and to the southwest. The table below shows multiple intercepts of plus one-gram gold assays.

Highlights:

  • Assay results La Lamosa Drilling
Table 1: Significant Intercepts
RC Hole No. Total
Length
From
(m)
To
(m)
Width
(m)
Au
g/t
Ag
g/t
AuEq
g/t
MER19-018 100.58 0.00 38.10 38.10 0.67 13.2 0.83
  Include 21.34 27.43 6.10 1.43 42.9 1.95
MER19-019 152.40 0.00 28.96 28.96 0.76 8.9 0.87
  Include 0.00 7.62 7.62 1.06 9.3 1.17
  Include 12.19 13.72 1.52 1.70 64.8 2.49
And   39.62 47.24 7.62 0.73 14.9 0.91
And   57.91 59.44 1.52 0.25 75.4 1.17
MER19-020 100.58 0.00 21.34 21.34 1.61 2.2 1.64
  Include 4.57 7.62 3.05 6.99 3.9 7.03
MER19-021 150.88 0.00 21.34 21.34 1.21 11.8 1.36
  Include 0.00 3.05 3.05 4.26 15.4 4.44
  Include 6.10 7.62 1.52 2.57 19.0 2.80
  Include 13.72 15.24 1.52 1.53 41.5 2.04
1The intervals reported in this table represent drill intercepts and insufficient data are available at this time to state the true thickness of the mineralized intervals. All gold values are uncut.

AuEq assays were calculated on USD$1400/ounce gold and USD$17/ounce silver price.

Table 2: Summary of 2019 Reverse Circulation Collars
HOLE_ID East
WGS84
Z12
North
WGS84
Z12
Elevation
(m)
AZ DIP Total
Depth (m)
MER19-001 687590 3143815 1330 110 -70 168
MER19-002 687589 3143815 1330 0 -90 152
MER19-003 687564 3143797 1331 140 -60 134
MER19-004 687618 3143791 1323 320 -80 131
MER19-005 687658 3143836 1340 0 -90 91
MER19-006 687659 3143837 1340 320 -50 91
MER19-007 687575 3143780 1324 320 -75 131
MER19-008 687576 3143780 1324 0 -90 140
MER19-009 687601 3143739 1294 0 -90 91
MER19-010 687546 3143718 1291 320 -60 101
MER19-011 687617 3143681 1255 320 -60 116
MER19-012 687567 3143663 1254 320 -60 152
MER19-013 687610 3143607 1221 320 -60 155
MER19-014 687586 3143712 1278 320 -60 162
MER19-015 687645 3143764 1299 320 -70 128
MER19-016 687665 3143897 1314 140 -45 113
MER19-017 687713 3143884 1306 235 -45 162
MER19-018 687524 3143705 1290 320 -60 101
MER19-019 687568 3143726 1291 320 -60 152
MER19-020 687557 3143751 1300 320 -60 101
MER19-021 687570 3143693 1275 320 -80 151
          Total (m) 2,723

President and CEO, Arturo Bonillas stated: “The final four holes of the 2019 drill program at Mercedes were successful in drilling multiple gold intercepts of significant width and grade. We are looking forward to continued drilling success in 2020.”

Exploration at Mercedes

Magna’s field work at Mercedes in an area of 2 x 2 km has defined prospects for study and possible drilling in 2020. A press release will be forthcoming with detailed information on the assay data from this work. Below are the areas and alteration of note;

La Lamosa East - projection of the La Lamosa mineralization 600 meters East, with subcrops of quartz tourmaline breccias and local vuggy quartz hosted in the granodioritic intrusive.
   
Mina de Oro - silicification and argillic alteration in felsic and intermediate volcanic rocks. To date Magna Gold geologists have collected numerous rock samples defining a belt 330 m long and 150 m wide in silicified/argillized andesite and rhyodacite.
   
Salto Colorado - mineralized quartz tourmaline breccia mapped over an area of 400 m by 150 m
   
Noche Buena - mineralized quartz tourmaline breccia form prominent ridges in an area of 900m by 800m. Potassic alteration was observed in granodiorite fragments within the quartz-tourmaline breccia

The Mercedes property is a target rich concession with characteristics of epithermal gold mineralization and porphyry copper mineralization. Gold, copper, lead and zinc are found in structures within the quartz tourmaline breccia – many historic workings on veins. La Lamosa gold mineralization is disseminated in strongly oxidized tourmaline breccia.

Mercedes Property

Mercedes is an exploration property prospective for structurally controlled high sulphidation type epithermal gold-silver mineralization. The property is located within the Sierra Madre Occidental province, a historically productive, regionally extensive Tertiary volcanic field which stretches from the United States /Mexico border to central Mexico. Mercedes is located toward the western edge of the province and is predominantly underlain by intrusive rocks, granodiorite-monzonite plutonic rocks and quartz feldspar porphyry dykes and stocks exposed by erosion of intermediate and felsic volcanics packages of the Lower and Upper Volcanic sequences. The thick volcanic sequences are characteristic of the region and form much of the Sierra Madre Occidental.

Outcrop in key areas of the property are strongly altered, brecciated intrusives and some propylitically altered volcanics. Zoned assemblages of silica, phyllic, argillic and distal propylitic alteration are recognized. The main prospect area “La Lamosa” is a prominent, highly oxidized red ridge, visible from the highway. Gold and silver are target commodities sought at Mercedes and the property exhibits textures and alteration consistent with high sulphidation epithermal mineralization.

High sulphidation epithermal deposits can be vein hosted or disseminated and are often high tonnage and low grade. Local examples include Alamos Gold’s Mulatos Deposit and Agnico Eagle’s La India Project roughly 40km NE of Mercedes.

QA/QC Program

Quality Assurance/Quality Control consists of the regular insertion of duplicates, blanks and certified reference standards into the sample stream. Check samples will be submitted to an umpire laboratory at the end of the drilling program. Samples are kept in a secure facility and transferred to Bureau Veritas in Hermosillo, Mexico in sealed containers on a weekly basis from the drill site by personnel of the Corporation. Personnel handling samples are using Corporation-approved protocols for all phases of chip logging, sample delineation, sample layout, and storage. Bureau Veritas is ISO 9001 certified. Bureau Veritas has a standard operating procedure (“SOP”) for all aspects of sample drop off, drying and preparation, digestion, instrument analysis, quality control assurance and computerized data reporting.

Qualified Person
James Baughman, Consulting Geologist and a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for mineral Projects, has approved the applicable contents of this news release.

About Magna Gold Corp

Magna Gold Corp is a mineral exploration company focused on acquiring, exploring and developing quality precious metals properties in Mexico. Primary strength of the Corporation is the team of highly experienced mining professionals with a proven track record of developing properties in Mexico from discovery to production on budget and on time.

Magna is a Mexico focused gold/silver exploration company that is committed to advancing its 100% owned highly prospective mineral properties located in Sonora. The Corporation’s shares trade on the TSXV under the trading symbol “MGR" and OTCQB under the trading symbol “MGLQF”.

Magna takes social license seriously and employs local community members and services in its operations. 

ON BEHALF OF THE BOARD OF DIRECTORS

Arturo Bonillas
President and CEO

For further information, please visit the Corporation’s SEDAR profile at www.sedar.com or the Corporation’s corporate website at www.magnagoldcorp.com.

For further information, please contact Magna Gold Corp. +52 (662) 310 0326, email This email address is being protected from spambots. You need JavaScript enabled to view it. or visit our website at www.magnagoldcorp.com

THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN ANY JURISDICTION, NOR SHALL THERE BE ANY OFFER, SALE, OR SOLICITATION OF SECURITIES IN ANY STATE IN THE UNITED STATES IN WHICH SUCH OFFER, SALE, OR SOLICITATION WOULD BE UNLAWFUL.

Cautionary Statements

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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 Corporation’s future plans, objectives or goals, including words to the effect that the Corporation 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 Corporation, the Corporation 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 Corporation’s objectives, goals or future plans, statements, exploration results, potential mineralization, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. 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, and those risks set out in the Corporation’s public documents filed on SEDAR. Although the Corporation 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 Corporation 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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