Vancouver A recently closed $6.5-million financing will provide funds for Mag Silver (MAG-V) to advance various silver projects in Mexico, including the Batopilas project in the western Sierra Madres of Chihuahua State. The company’s goal is to become one of the premier companies in the silver-mining industry.
Mag Silver owns 100% of the Batopilas project after consolidating historic properties that collectively have produced almost 300 million oz. silver until the Mexican Revolution of 1912 brought production to a halt. The company’s 4,500-hectare project covers 98% of the district, which has seen little or no exploration for more than 90 years.
The company began drilling Batopilas in late fall of 2005, and now plans an accelerated drill program for 2006. Drilling is testing previously identified geophysical conductors that are believed to be related to “responsive” silver-rich lenses along major structures, and near-surface occurrences of native silver and calcite.
Mag Silver is awaiting drilling results from its Juanicipio project in the Fresnillo district, a joint-venture with Industrias Penoles, the world’s largest silver producer.
Earlier this fall, Mag Silver reported results from the first two holes of a drill program aimed at confirming its 2003 vein discovery, where drilling returned 2 metres of 630 grams silver and 10.8 grams gold per tonne. The first hole of the fall program returned a 0.3-metre section of 234 grams silver, plus minor gold and zinc. The second returned no significant values. Assays from the subsequent 8-hole, 8,000-metre program are expected to be in hand in early 2006.
Mag Silver has focused its land-acquisition and exploration efforts within the Mexican Silver Belt, which trends through several western Mexican states. The company’s land package covers historic silver mines and districts that have seen little modern-day exploration.
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