Magna Gold Corp. Enters Into Definitive Agreement to Acquire Los Muertos Silver Project in Sonora, Mexico - Seite 2

Figure 1.  Project location within the Sonora Mojave Mega Shear
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Prior Work

The Los Muertos project is ready for immediate RC drilling. The drill targets were generated by prior exploration work. Reconnaissance rock sampling over the properties returned values up to 388 ppm silver. A soil grid measuring 1km x 1.5km at a sample spacing of 50m x 100m returned clustered soil and rock silver anomalies (Figure 2). The project has been completely covered with an IP grid and the resulting resistivity and conductivity anomalies contribute importantly to the proposed drilling campaign.

Figure 2. Project map showing geochemical and partial geophysical grids.
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CEO Comment on Los Muertos Exploration Plan

Arturo Bonillas, President and Chief Executive Officer of Magna, notes that: “Los Muertos exactly fits into our 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. Los Muertos is drill-ready, and we plan to complete target confirmation and begin drilling as soon as possible. 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.

Terms of the Option Agreement
The terms of the option agreement (the “Transaction”) provide that Magna can earn a 100% undivided interest in the Los Muertos Project (Los Muertos concession and Los Muertos 1 concession) by paying an aggregate amount of USD$425,000 plus VAT in five annual installments commencing on the effective date of the Agreement, August 3^rd, 2020 (the “Effective Date”), and ending on the 48^th month from the Effective Date.

Qualified Person
James Baughman (P. Geo.), Consulting Geologist and a Qualified Person as defined by National Instrument 43-101 – Standard of Disclosure for mineral Projects, has reviewed scientific and technical information in this news release.

About Magna Gold Corp.
Magna Gold Corp. is a Canadian gold company engaged in operations, development, exploration and acquisitions in Mexico. Its primary asset is the producing San Francisco gold mine in Sonora, Mexico and exploration stage projects include San Judas, La Pima and Mercedes.