- Magna Gold (MGR) has signed an option agreement to acquire a 100 per cent interest in the Los Muertos silver-gold project in Sonora, Mexico
- Under the terms of the deal, the company will pay a total of approximately C$565,000 for the acquisition, paid out in five annual instalments
- The project consist of two claims over 1,756 hectares, 80 kilometres southeast of the state capital of Hermosillo
- The company intends to begin drilling at the Los Muertos Project as soon as possible
- Magna Gold (MGR) is currently down 7.59 per cent and is trading at $1.46 per share
Magna Gold (MGR) has signed an option agreement to acquire a 100 per cent interest in the Los Muertos silver-gold project in Mexico.
Located 30 kilometres southeast of Argonaut Gold’s La Colorado mine, the Los Muertos Project consists of two claims and covers a total land package of 1,756 hectares.
The project sits within the Sonora-Mojave Megashear tectonic zone, which hosts a number of silver and gold deposits, including Magna Gold’s producing San Francisco mine 300 kilometres to the northwest.
According to government geological maps, the immediate area surrounding the Los Muertos Project is characterised by significant silification, hematisation and argillic alteration, which suggest the potential for extensive silver and gold vein systems.
Pursuant to the option agreement, Magna Gold will pay a total of approximately C$565,000 to the vendors of the project, which will be paid out in five annual instalments beginning on August 3, 2020.
Arturo Bonillas, President and CEO of Magna Gold, said the Los Muertos Project exactly fits into the company’s exploration pipeline profile.
“We understand the regional and local geology, and we are excited with the potential of Los Muertos given the project’s easy access, demonstrated mineral showings, and good geophysics.
“Magna is in an excellent cash and cash-flow position due to its well performing San Francisco mine, also located in the Sonora-Mojave Megashear,” he added.
A number of drill targets at the project have already been generated through previous exploration work.
Los Muertos has also been completely covered with an induced polarisation grid, the resulting resistivity and conductivity anomalies have contributed significantly to a planned drilling campaign which Magna Gold hopes to begin as soon as possible.
Magna Gold (MGR) is down 7.59 per cent and is trading at $1.46 per share at 11:37am EDT.