TORONTO, Oct. 14, 2021 /PRNewswire/ - Magna Gold Corp. (TSXV: MGR) (OTCQB: MGLQF) ("Magna" or the "Company"), is pleased to report Q3 2021 production of 19,102 oz gold at an estimated cash cost of $1,134, from its San Francisco Mine in Sonora, Mexico. This represents a quarter over quarter production increase of 63%. Additionally, the strip ratio during the quarter was 2.62 which continues to trend towards the life of mine average of 2.5. Gold sold during the quarter was 18,276 ounces at an average realized gold price of $1,776 per ounce (1). The Company has produced 40,600 ounces of gold through the third quarter, its first complete quarter operating at full-scale commercial production. The Company reiterates full year gold production guidance of 55,000 to 65,000 ounces.
TABLE 1: Q3 2021 OPERATIONAL HIGHLIGHTS
Three months ended
Ore mined (dry kt)
Ore mined grade (g/t Au)
Waste mined (kt)
Total mined (kt)
Avg. total mined (t/d)
CRUSHING AND PROCESSING
Ore processed (kt) - From open pit
Ore processed grade (g/t Au) - From open pit
Ore processed (kt) - All sources
Ore processed grade (g/t Au) - All sources
Gold placed on pads (ozs) - All sources
Gold ounces produced (ozs)
Silver ounces produced (ozs)
Gold ounces sold (ozs)
Silver ounces sold (ozs)
Realized gold price (USD)
Magna plans to release its full third quarter 2021 financial and operational results on or around November 29, 2021. Operating metrics will be reported with the quarterly results.
Arturo Bonillas, President & CEO of Magna, stated:
"I am beyond pleased with all the progress the team has made. During the month of August 2021, the San Francisco Mine produced ~7,000 oz of gold. Having been involved with the mine since its inception, I can confirm that August 2021 ranks amongst the best months in the history of the mine. Q3 2021 was the first full quarter of commercial production since Magna acquired the mine and the team continues to optimize and improve operations daily. As production continues to ramp up, we look to exit the year with monthly production of >7,000 oz/month."
Realized gold price for Q3 2021 includes gains and losses on derivatives.
Margarita Silver Project
Magna has obtained all necessary exploration permits to advance the project. Exploration teams have been mobilized to site and the previously announced drill campaign is well underway. The Company is currently on schedule to release a maiden resource estimate and PEA by the end of Q1 2022.
Other Corporate Updates
The Company would also like to report that it has received final TSX approval for its previously announced debentures. Subsequent to the quarter Magna also fulfilled its financial obligations to Argonaut Gold Ltd. (TSX:AR) by remitting its final payment on October 6, 2021.
About Magna Gold Corp
Magna is a Mexico focused gold/silver production company engaged in 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.
Based on the NI-43-101 technical report "Pre-Feasibility study for the San Francisco Gold Project, Sonora, Mexico" prepared by Micon, dated August 8, 2020, 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
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.
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.
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 "plans". 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, exploration results, potential mineralization (including estimates of measured and indicated resources, inferred resources and probable reserves), exploration and mine development plans, production (including gold production expectations and guidance and expectations of becoming a mid-tier producer), processing and mining expectations (including statements regarding expansion and advancement of assets) and strip ratio trends and 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.