Mag drills in Zecatecas state

Vancouver — Mag Silver (MAG-V), formerly Mega Capital Investments, will perform 3,500 metres of drilling on the Juanicipio silver project in Mexico’s Zecatecas state.

The newly minted junior is targeting six structures along strike from producing mines.

Juanicipio is only 5 km from Industrias Peoles’ Fresnillo mine, which produces 12% of the world’s silver. These properties are in a district which, since 1560, has produced an estimated 1 billion oz. silver.

The Juanicipio project was last worked by Idaho-based Sunshine Mining & Refining (ssmre-o) in 2000. Mag believes there’s a good chance that veins similar to those at Fresnillo, or actual extensions of the Fresnillo veins, strike on to the concession.

Mag has options to earn 100% interests in three Mexican properties: Juanicipio, Don Fippi and Guigui.

The junior has 17.6 million shares outstanding and 1.8 million shares that are subject to escrow.