SOURCE: MAG Silver Corp.

June 02, 2005 17:17 ET

MAG Silver Announces Drill Program to Test Silver Intersections at Guigui Property

VANCOUVER, BC -- (MARKET WIRE) -- June 2, 2005 -- MAG Silver Corporation (TSX-V: MAG) announces a diamond drill rig has been mobilized to their 4,553 ha Guigui property in the Santa Eulalia Mining District in Chihuahua State in north-central Mexico. The 2005 drill program will consist of 3 to 4 holes totalling approximately 2,000 metres designed to follow up on the intersections of extensive alteration, structure and mineralization encountered in MAG's 2004 program (c.f. 131 ppm Ag over 8.30m or 4.2 opt Ag over 27 feet) (See Press Release of April 30, 2004). The drill area is located about 1.2km south of Grupo Mexico's recently reopened San Antonio Mine and about 650m south of their nearest underground infrastructure. The target area lies within the San Antonio Graben (SAG), a prominent N-S structural feature that hosts and controls the mineralization at the San Antonio Mine. Drilling of two holes into the West Fault of the SAG last year by MAG Silver confirmed that San Antonio style mineralization and alteration extends into the Guigui property. Grupo Mexico is presently developing a new zone discovered in the footwall of this fault about 850m along-structure from MAG's target area.

MAG's 2004 intercepts are interpreted to be a high-level halo reflecting significant mineralization at depth, so the 2005 drilling will be focused along strike and to depth below these intersections. Mineralization in the San Antonio Mine is more laterally extensive when intersected below 1,250 metres elevation, so MAG intends to drill to and below this level in their current program. One hole is also planned to test the East Fault of the SAG because mineralization also occurs in this structure in the San Antonio Mine, and there are several old mines and prospects along it within the Guigui target area. Road and drill pad building have already been completed, and drilling should commence over the weekend.

The Guigui land package and exploration program in the Santa Eulalia Mining District are in keeping with MAG's commitment to district-scale exploration in districts with large-scale historic mining of high-grade silver ores. Santa Eulalia is the largest Carbonate Replacement Deposit in the world (50 million tonnes at 350 g/t Ag (11.3 opt), 8.2% lead and 7.8 % zinc). Historical silver production is over 500 million ounces in tandem with roughly 4 million tonnes each of lead and zinc. The San Antonio Mine in the district's East Camp accounts for almost 40% of the total production and has recently been reactivated. The West Camp of the district encompasses the largest manto and chimney system known, and MAG controls a large and highly prospective land package immediately to the south, where the intrusive-related source of this mineralization is believed to lie. MAG Silver continues to develop drill targets in this area.

Qualified Person and Quality Assurance and Control

Dr. Peter Megaw, Ph.D., C.P.G., has acted as the qualified person as defined in National Instrument 43-101 for this disclosure and supervised the preparation of the technical information in this release. Dr. Megaw has a Ph.D. in geology and more than 20 years of relevant experience focused on silver and gold mineralization, and exploration and drilling in Mexico. He is a certified Professional Geologist (CPG 10227) by the American Institute of Professional Geologists and an Arizona Registered geologist (ARG 21613). Dr. Megaw is not independent as he is a shareholder of MAG Silver Corporation and is a vendor of two projects, other than Juanicipio, whereby he may receive additional shares.

Readers are referred to the qualifying report dated November 19, 2002, by Pincock, Allen and Holt. Qualified person available at www.magsilver.com for background information on the projects.

About MAG Silver Corp.

MAG is a Silver exploration company focused on projects located within the Mexican Silver Belt. Our large land inventory is well positioned in mining districts with historical and ongoing large-scale, high-grade silver production. MAG's exploration efforts are engaged in the search for multi-million ounce silver deposits on a district scale. MAG's positions include the Fresnillo District (also hosts the largest silver mine in the world) where the company has an active joint venture with Industrias Penoles, the largest silver producer in the world. We are committed to discover silver deposits of size and grade that are able to withstand and overcome fluctuations in commodity prices. Our mission is to become one of the premier silver companies in the Silver Mining Industry. MAG is based in Vancouver, British Columbia, Canada and trades on the TSXV as MAG.

On behalf of the Board of
MAG SILVER CORP.
"Dan MacInnis"
President and CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.

Note to U.S. Investors: Investors are urged to consider closely the disclosure in our Form 20F, File No. 0-50437 available at our office: Suite 328-550 Burrard Street, Vancouver BC, Canada, V6C 2B5 or from the SEC: 1(800) SEC-0330.

Contact Information

  • For further information on behalf of MAG Silver Corp. contact:
    Gordon Neal
    VP Corp. Development

    Website: www.magsilver.com
    Phone: (604) 630-1399
    Toll free:(866) 630-1399
    Email: Email Contact
    Fax: (604) 484-4710