MAG Silver Corp. (MAG:TSX; MAG:NYSE.MKT) announced in a news release that results from the 48-hole, 46,060 meter (46,060m) diamond drill program at the Juanicipio project it co-owns with Fresnillo Plc (FRES:LSE) were positive and unearthed a new discovery.
The goal of the campaign was to expand and infill the Deep zone mineral resource estimate outlined in the preliminary economic assessment from 2017.
The drill results not only confirmed continuity of the high-grade mineralization to depth but also extended it in the East and West Valdecañas vein Deep zones. The Deep zone West intersected 11.6m grading 783 grams per ton (783 g/t) silver and 2.57 g/t gold in infill hole P22. The Deep zone East hit 6.3m grading 246 g/t silver and 1.78 g/t gold in stepout hole P26.
The findings did the same for the Anticipada vein. Highlight infill hole P24-1 showed 6.2m grading 275 g/t silver and 4.02 g/t gold.
Unexpectedly, the results revealed a vein not seen before, the Pre-Anticipada vein, located in the hanging wall above the geological system. There, stepout hole P28 showed 3.2m grading 472 g/t silver and 0.31 g/t gold.
All of the assays also included lead, zinc and copper.
"The Valdecañas vein system has emerged as a multistage, high-grade vein swarm comprising the overlapping East and West veins, the hanging wall Anticipada vein, the newly discovered Pre-Anticipada vein and several other splays," the release noted.
Due to these drill results and the fact the hole spacing in the Deep zone is wide, MAG expects the Inferred category of Juanicipio resources to be affected the most.
In a second news release issued the same day, MAG Silver announced the exploration team at Juanicipio discovered a new vein, called Venadas, which implies additional exploration potential there. The team members came upon it when they lined up 15 unconnected intercepts and subsequently confirmed it with drilling.
VEN-1, the first drill hole targeting the Venadas vein, cut 3m grading 392 g/t silver and 5.54 g/t gold. The base metals detected were negligible in quantity.
All intercepts are located higher than 1,750m of elevation, with most of them "significantly higher" than 1,850m elevation, where the top of the Valdecañas vein is located. This suggests the Venadas vein has considerable depth potential. "The cuts to date are all at high elevations, so we are eager to drill them at depth to see if they improve like Valdecañas," Chief Exploration Officer Dr. Peter Megaw said in the release.
Mineralization in the Venadas vein runs in a northeast direction and it is the first vein in the Fresnillo district to be oriented at a high angle to the historically mined northwest-running veins. Juanicipio is known to contain larger northeast-oriented structures, none of which has been explored to date. However, with the Venadas vein discovery, they have become and now are priority targets.
Exploration drilling continues at Juanicipio, as does development of the surface and underground mines.
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