Mike Fagan,
Editor
May 18, 2021
by Mike Fagan
Magna Gold Corp. (TSX-V: MGR)(OTC: MGLQF) — currently trading just above C$1 per share — is officially kicking off its 2021 exploration-drilling campaign across its suite of 100%-owned gold-silver projects in Sonora and Chihuahua States, Mexico — all backed by a C$10 million financing from Delbrook Capital, a founding shareholder of Magna.
This renewed focus on exploration comes as the company continues to deliver at its flagship San Francisco Gold Mine in Sonora, Mexico, which will produce 55,000 to 65,000 ounces of gold this year.
Magna president & CEO, Arturo Bonillas — whom you’ll be hearing more from in a moment — commented via press release:
"This financing will allow us to categorically advance on some of the most interesting exploration gold and silver properties that the Company has acquired in the last year. Now that the San Francisco Mine is reaching full-scale production, we plan to focus on bringing value to stakeholders by increasing the Company's geological and mineral resources via intense drilling and exploration."
Here’s a quick breakdown of the planned 2021 exploration program:
Margarita Silver Project: 10,000 meters of core drilling for expansion exploration at-depth of the Margarita vein system and infill resource definition along strike.
Mercedes Gold Project: 1,500 meters of core drilling and 10,000 meters of RC drilling for expansion and infill on the La Lamosa target to convert and expand the current Inferred geological resource into the M&I category.
San Judas Gold Project: 5,000 meters of RC drilling and 1,000 meters of core drilling on four different targets within the property.
Veta Tierra Gold Project: 2,000 meters of RC drilling to follow up on 2014 discovery hole: 1.3 grams per tonne (g/t) gold over 34 meters including 3.2 g/t gold over 22 meters.
La Pima Silver Project: 3,000 meters of RC drilling to test the down-dip extension of discovery holes on four different areas and test new gold anomalies to the north.
Los Muertos Silver-Gold Project: Carry out extensive field work to further define drill targets; vein clusters at Los Muertos share a common orientation with the four main zones at Argonaut's La Colorada mine.
With the drills set to turn on a fully-funded, multi-property drilling and exploration campaign — plus the recent ramp-up to full-scale production at the San Francisco Gold Mine — Magna promises to be one of the more active juniors in the precious metals space over the next few quarters.
And keep in mind also that the San Francisco Gold Mine boasts a projected 8-year mine-life, which means substantial free cash flow generation for Magna for years to come with which to advance the deposit, explore and develop its other properties, and potentially acquire more. Stay tuned as it’s shaping up to be an exciting year for this exceptionally well-run junior.
Our own Gerardo Del Real of Junior Resource Monthly sat down with CEO, Arturo Bonillas, for an in-depth discussion on all-things Magna Gold. Enjoy! CLICK HERE TO LISTEN. Transcript is also available.
Also, click here for our feature-length report on Magna Gold.
Yours in profits,
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.