Small Market Cap Firm Sets Gold Production Record in Mexico

Magna Gold Corp. (TSX-V: MGR)(OTC: MGLQF) — currently trading around C$1.00 per share — has exited Q2 with record monthly gold production of 5,398 ounces from its 100%-owned flagship San Francisco Mine, Sonora, Mexico. 

Additionally, the company has successfully lowered its strip ratio from 8:1 to a record 2.9:1 — a 68% improvement in terms of waste rock to ore. 

The company closed out Q2 with 11,713 ounces of gold production and 11,777 ounces sold at an average realized gold price of US$1,752 an ounce. That’s roughly US$20.6 million in quarterly gold sales for a company with a market cap of less than US$70 million. 

With full-year 2021 production guidance of ~60,000 gold ounces, we’re talking somewhere in the neighborhood of US$100 million in projected gross gold receipts for the year. And keep in mind that next year’s guidance is almost guaranteed to come in substantially higher since 2021 amounts to what’s essentially a ramp-up year for Magna. 

Magna president & CEO, Arturo Bonillas, commented via press release: 

"The end of Q2 marked a major milestone for the Magna Gold team. We achieved commercial production on schedule and had our highest production total in the month of June. We are seeing production ramp up every day and look to end the year producing ~7,500 oz Au per month. Figure 1 demonstrates just how far we have come as our strip ratio has been brought down to near life of mine averages and our production continues to steeply trend upwards. Magna Gold is in a phase of rapid expansion and advancement of our assets. Having said that our commitment to health and safety remains a priority, this evidenced by our unblemished ~3.5M man hours without a lost time incident. We look to continue our dedication to best practices as we are well on our way to become a mid tier producer."

Without a doubt, there’s a lot to look forward to as Magna continues to deliver on its stated objectives. In addition to the steady ramp-up of gold production, the company is continuing with resource expansion activities in and around the San Francisco Mine, which includes plans for follow-up drilling at a potential satellite open-pit deposit approximately four kilometers north of the mine.

Additionally, Magna is making preparations for ~10,000 meters of core drilling at its high-grade Margarita Silver Project in Chihuahua State, Mexico, where exploration activities are underway. Drilling will target the Margarita vein system at-depth and will include infill resource definition drilling along strike. 

Magna offers exposure to gold-silver via active production plus multiple exploration projects at varying stages of development in Mexico. For speculators, that means lots of news flow over the coming quarters in what looks to be a rising market for both gold and silver. 

You can also access our feature report on Magna Gold here.

Yours in profits,


Mike Fagan

Mike Fagan
Editor, Resource Stock Digest

Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.