MAG Silver Corp.

MAG Silver Corp.

October 18, 2006 18:32 ET

MAG Silver and Penoles Intersect More High Grade at Juanicipio-1,347 g/t Silver '43.3 Ounces' Over 8.05 Metres

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 18, 2006) - MAG Silver Corp. (TSX VENTURE:MAG) and Industrias Penoles S.A. de C.V. announce assay results from two veins intersected in the first hole of the definition drill program on the Valdecanas Vein discovery within the Juanicipio Joint Venture, Fresnillo District, Zacatecas State, Mexico.

Assay results from the Valdecanas Vein proper in Hole 17 returned 1,347 grams silver and 0.50 grams gold over 8.05 metres (7.0 metres true width). See table below for details.

A second vein, named the "Valdecanas Footwall Vein", was intercepted 53.9 metres down hole from the main Valdecanas Vein intercept reported above. This vein returned 683 grams tonne silver (21.9 ounces) over 5.10 metres (4.4 metres true width).

Hole # From To Width Silver Silver Gold Lead Zinc
metres Grams/T Ounces/T Grams/T % %
JI-06-17 625.2 636.25 8.05 1,347 43.3 0.50 1.31 2.69
Including 628.6 633.25 4.65 2,255 72.5 0.20 2.04 3.55

2nd VEIN 687.15 692.25 5.10 683 21.9 0.41 0.12 0.25

The hole lies on the same section as Holes 16 and 13 (see p/r dated January 23rd, 2006). The upper intercept is clearly the Valdecanas Vein, intersected 60 metres up-dip from the Hole 16 intercept reported earlier.

The Valdecanas Footwall Vein is a new discovery that had not been reached by previous drill holes in the area.

"These intersections confirm the excellent grade and width for the Valdecanas Vein discovery," said Dan MacInnis, President of MAG Silver. "The Valdecanas Footwall Vein adds considerably to the potential for multiple vein discoveries in the project area."

"The current 18 hole, 15,000 metre drill program will test the Valdecanas Vein for a minimum of 1,200 metres along strike," said David Giles, Exploration Manager for Penoles. "We have three drills operating on the Valdecanas Vein and its discovery is rapidly contributing to the expansion of one of the world's greatest silver districts."

Further results will be forthcoming over the next several months.

The Penoles/MAG Juanicipio Joint Venture, where Penoles is earning a 56% interest, lies 5 kilometres west of the principal production head-frame of the Fresnillo Mine, and 2.3 kilometres from its westernmost underground workings.

Quality Assurance and Control: The samples are shipped directly in security sealed bags to ALS-Chemex Laboratories preparation facility in Hermosillo, Sonora, Mexico (Certification ISO 9001). Samples shipped also include intermittent standards and blanks. Pulp samples pulps are subsequently shipped to ALS-Chemex Laboratories in North Vancouver, Canada for analysis. Two extra pulp samples are also prepared and are analyzed (in progress) by SGS Laboratories (Certification ISO 9001) and Inspectorate Laboratories (Certification ISO 9001) (or other recognized lab). The bulk reject is subsequently sent to CIDT (Center for Investigation and Technical Development) of Penoles in Monterrey, Mexico for metallurgical testing where a fourth assay for each sample is analyzed and a calculated head grade is received on the basis of a concentrate balance. The CIDT also does a full microscopic, XRF and XRD mineralogical analysis.

Qualified Person: 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 focussed 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.

About Penoles (

Industrias Penoles, S.A. de C.V. and its subsidiaries make up one of Mexico's largest industrial conglomerates. Since its founding in 1887, this group has been engaged in the sustainable exploitation of non-renewable natural resources. Penoles is an integral part of Grupo BAL, a private, diversified group made up of independent Mexican companies ranging from mining to insurance to retail. Penoles' productive operations are currently located in Mexico, where it operates the world's richest silver mine (Fresnillo), the world's fourth largest metallurgical complex in terms of the value of its production, and the largest sodium sulphate plant in the world. These operations make Penoles the world's largest producer of refined silver, metallic bismuth and sodium sulphate, and a leader in Latin America in refined gold, lead and zinc.

About MAG Silver Corp. (

MAG Silver is focused on district scale projects located within the Mexican Silver Belt. Our mission is to become one of the premier companies in the Silver Mining Industry. MAG is based in Vancouver, British Columbia, Canada and trades on the TSX-V under the symbol MAG.

On behalf of the Board of MAG SILVER CORP.

Dan MacInnis, President and CEO

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.

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.

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