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

TORONTO, Aug. 11, 2020 (GLOBE NEWSWIRE) -- Magna Gold Corp. (TSXV: MGR, OTCQB: MGLQF) ("Magna" or the "Company") is pleased to announce that it has entered into an option agreement with a private party to acquire a 100% undivided interest in the Los Muertos silver-gold project located in the municipality of La Colorada, Sonora, Mexico.

The Los Muertos silver-gold project is comprised of two claims, covering 1,756 hectares, (approximately 5km by 5km) which are  located near Federal Highway 16, 80km southeast of the state capital of Hermosillo,and 30km southeast and on-trend with Argonaut Gold Inc.’s La Colorada mine (Figure 1).

Highlights:

• Drill plan ready with coincident geochemical and IP targets.
• Structural orientations and alteration profiles same as at La Colorada mine.
• Exploration and drilling to commence immediately.
• Los Muertos is fully funded with cash and ongoing revenues from Magna’s producing San Francisco mine in Sonora.

Geology of La Colorado District

The Los Muertos project is in the Sonora-Mojave Megashear tectonic zone which runs approximately 700km northwesterly from Los Muertos to near Palm Springs, California,. The Sonora-Mojave Megashear contains numerous silver-gold deposits, including Magna’s producing San Francisco mine located 300km northwest of Los Muertos. The nearest current producer is Argonaut Gold’s La Colorada silver-gold mine, located 30km northwest of Magna’s Los Muertos project. (Figure 1.)

The regional geological drivers of silver-gold mineralization in the southern part of the Megashear are well established. Precambrian basement rocks form an eroded undersurface which is overlain by Ordovician, Permian, and Triassic sedimentary rocks. Importantly, the district contains complex hydrothermal signatures related to Cretaceous plutonic activity, later higher-level plutonic events, and finally, the development of a pervasive, mineralized mid-Tertiary vein system.

The La Colorada Gold District, which includes the Los Muertos area, is defined by hundreds of low sulphidation epithermal-vein type historic silver-gold deposits and showings which remain largely unexplored. Vein clusters at Los Muertos share a common orientation with the four main zones at the La Colorada mine, between 045° and 090°. Government geological maps indicate that the Los Muertos project’s immediate area is characterized by extreme silicification, hematization and argillic alteration, suggesting the potential for both extensive silver-gold veins systems, and coincident, pervasive disseminated mineralization in the host sedimentary and volcanic rocks.