iShares Silver Trust (SLV) increased its physical bullion holdings by 30.69 tons on December 26, the highest level since the latter part of October.
The iShares Silver Trust fund is the largest ETF backed by silver in the world. They now have a total of 6,792.99 tons of bullion on hand, against the 6,762.3 tons they had on December 24.
Since the early part of December, silver tonnage held by the trust is up 1.5 percent or 106.24 tons.
Monday, December 29, 2008
Thursday, December 18, 2008
International Minerals -- 2008 Review and 2009 Business Plans
SCOTTSDALE, AZ, Dec 18, 2008 (MARKET WIRE via COMTEX) -- International Minerals Corporation (CA:IMZ) (SWX: IMZ) ("the Company") reports a calendar year-end summary of its corporate and project activities during 2008 and its business plans for calendar year 2009.
Corporate
-- The Company's share price, like that of most resource companies,
has not performed well in 2008 due primarily to prevailing adverse
market conditions not only in the natural resources sector but also
in the general financial market. IMZ's current share price is
essentially at the same level as five years ago.
-- Management believes that the Company's accomplishments of the past
year (especially at the Pallancata underground silver-gold mine in
Peru) combined with our future plans will remedy this situation and
IMZ's share price should recover in 2009 together with a likely
resurgence in metal prices.
-- In terms of financial health, the Company is in the enviable
position of having a strong balance sheet with cash and short-term
investments of over US$50 million at calendar 2008 year end, with
expected cash dividends commencing in late 2009 from the 40%-owned
Pallancata Mine.
-- In mid-October 2008, IMZ instituted a share repurchase program
because the Board believed that the market price of the Company did
not fully reflect the underlying value of the Company's business
and its future business prospects. An update on the share
repurchase program will be provided in the Company's second fiscal
quarter financial information for the period ending
December 31, 2008.
A brief update on the Company's key projects is provided below:
Pallancata Silver-Gold Mine, Peru
-- Owned 40% by IMZ and 60% by the mine operator, Hochschild
Mining plc.
-- Pallancata has become one of the success stories in the mining
industry in 2008 and is now the number-one primary silver mine
in Peru in terms of silver reserves.
-- Proven and probable reserve estimates in August 2008 were
approximately 80 million ounces of silver equivalent (using a
75:1 silver:gold ratio) contained within 5.8 million tonnes at
329 g/t silver and 1.2 g/t gold in proven and probable reserves.
See IMZ news release dated August 25, 2008 for further details.
-- Production (100% project basis):
- From start-up (September 2007) to September 30, 2008 almost
3 million ounces of silver and over 10,000 ounces of gold have
been produced.
- For calendar year 2008, production is expected to reach
approximately 4.5 million ounces of silver and 18,000 ounces
of gold.
- In 2009, Pallancata should become one of the top-10 largest
primary silver mines in the world, producing an expected 6 to
7 million ounces of silver annually.
-- Total cash costs, including the government royalty, are currently
under US$6.00 per ounce of silver net of by-product gold credits.
Currently, direct mine site costs (included in the US$6.00 cash
cost) are approximately US$3.15 per ounce (assuming only mining,
processing and mine G&A costs).
-- IMZ's net earnings from the Pallancata Mine to September 30, 2008
are approximately US$3.8 million.
-- Because all cash flow has been required for funding the aggressive
capital expansion program at the Pallancata Mine, to date there
have been no cash dividends distributed to the joint venture
partners. Cash dividends are expected to commence, however, in the
final quarter of calendar year 2009, dependent on metal prices and
ongoing capital requirements.
Rio Blanco and Gaby Gold Projects, Ecuador
-- It has been a difficult year for the mining/exploration sector in
Ecuador.
-- The market awaits the expiry of the mining mandate (that suspended
exploration and mining activities in April) and approval of the new
mining law in January 2009. Normalization of exploration/mining
activities likely will take several months longer while the detailed
regulations for the mining law are prepared and approved.
-- The negotiation of project-specific mining contracts (covering
issues such as income/windfall taxes and royalty payments) for the
more advanced projects (such as IMZ's Rio Blanco, Kinross' Fruta
del Norte, IAMGOLD's Quimsacocha and Corriente's Mirador projects)
are expected to take up to an additional six months to negotiate
with the government.
-- In calendar year 2009, IMZ does not expect to spend significant
funds in Ecuador at the Rio Blanco underground gold-silver project
and the Gaby open-pit gold project and has already reduced its
workforce accordingly. The Company is, however, maintaining its
significant in-country infrastructure and its commitment to
developing its Ecuadorian projects.
-- IMZ has previously completed much of the environmental permitting
process for the proposed development of a mining operation at Rio
Blanco. Final permitting approval is expected by the end of 2009,
with construction (subject to required additional financing)
starting in 2010.
-- In February 2008, the Company completed a preliminary feasibility
report at Gaby, which was not positive at US$650 per ounce gold
price but is currently being optimized for higher tonnage
production. Results of the optimization program will be announced
in the first quarter of 2009.
New Acquisitions
-- In the current market there are significant opportunities for IMZ
to acquire gold-silver companies and/or projects that are in or
near production at low acquisition costs that have not been seen
in the industry for the past 20 years. IMZ is well-positioned with
its cash resources and strong technical team to take advantage of
this situation.
-- IMZ's preference is to seek these opportunities in the Americas,
especially in South America in order to leverage off of IMZ's
considerable technical and corporate expertise from over 15 years
of exploration and development of projects in that region.
-- The Company has evaluated at least 25 companies/projects in 2008,
using its experienced acquisition team, and management is confident
that IMZ will achieve at least one major acquisition during the
coming year.
The technical information in this news release was reviewed by IMZ's Qualified Person, Nick Appleyard, Technical Manager.
Cautionary Statement:
Some of the statements contained in this release are "forward-looking statements" within the meaning of Canadian securities law requirements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding capital expansion costs and completion, drilling and development programs on the Company's projects, timing of commencement of production, completion of feasibility studies, obtaining of required environmental and production permits, and timing and amounts of future cash flows from operations. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of mineral resources and reserve; risks relating to project capital and production costs; risks relating to obtaining mining and environmental permits; mining and development risks; risk of commodity price fluctuations; political and regulatory risks; risks related to a new mining law in Ecuador, and other risks and uncertainties detailed in the Company's Renewal Annual Information Form for the year ended June 30, 2008, which is available at www.sedar.com under the Company's name. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For additional information, contact:
Wendy Yang
Tel: (303) 357-4863
Internet Site: http://www.intlminerals.com
SOURCE: International Minerals Corporation
http://www.intlminerals.com
Copyright 2008 Market Wire, All rights reserved.
Corporate
-- The Company's share price, like that of most resource companies,
has not performed well in 2008 due primarily to prevailing adverse
market conditions not only in the natural resources sector but also
in the general financial market. IMZ's current share price is
essentially at the same level as five years ago.
-- Management believes that the Company's accomplishments of the past
year (especially at the Pallancata underground silver-gold mine in
Peru) combined with our future plans will remedy this situation and
IMZ's share price should recover in 2009 together with a likely
resurgence in metal prices.
-- In terms of financial health, the Company is in the enviable
position of having a strong balance sheet with cash and short-term
investments of over US$50 million at calendar 2008 year end, with
expected cash dividends commencing in late 2009 from the 40%-owned
Pallancata Mine.
-- In mid-October 2008, IMZ instituted a share repurchase program
because the Board believed that the market price of the Company did
not fully reflect the underlying value of the Company's business
and its future business prospects. An update on the share
repurchase program will be provided in the Company's second fiscal
quarter financial information for the period ending
December 31, 2008.
A brief update on the Company's key projects is provided below:
Pallancata Silver-Gold Mine, Peru
-- Owned 40% by IMZ and 60% by the mine operator, Hochschild
Mining plc.
-- Pallancata has become one of the success stories in the mining
industry in 2008 and is now the number-one primary silver mine
in Peru in terms of silver reserves.
-- Proven and probable reserve estimates in August 2008 were
approximately 80 million ounces of silver equivalent (using a
75:1 silver:gold ratio) contained within 5.8 million tonnes at
329 g/t silver and 1.2 g/t gold in proven and probable reserves.
See IMZ news release dated August 25, 2008 for further details.
-- Production (100% project basis):
- From start-up (September 2007) to September 30, 2008 almost
3 million ounces of silver and over 10,000 ounces of gold have
been produced.
- For calendar year 2008, production is expected to reach
approximately 4.5 million ounces of silver and 18,000 ounces
of gold.
- In 2009, Pallancata should become one of the top-10 largest
primary silver mines in the world, producing an expected 6 to
7 million ounces of silver annually.
-- Total cash costs, including the government royalty, are currently
under US$6.00 per ounce of silver net of by-product gold credits.
Currently, direct mine site costs (included in the US$6.00 cash
cost) are approximately US$3.15 per ounce (assuming only mining,
processing and mine G&A costs).
-- IMZ's net earnings from the Pallancata Mine to September 30, 2008
are approximately US$3.8 million.
-- Because all cash flow has been required for funding the aggressive
capital expansion program at the Pallancata Mine, to date there
have been no cash dividends distributed to the joint venture
partners. Cash dividends are expected to commence, however, in the
final quarter of calendar year 2009, dependent on metal prices and
ongoing capital requirements.
Rio Blanco and Gaby Gold Projects, Ecuador
-- It has been a difficult year for the mining/exploration sector in
Ecuador.
-- The market awaits the expiry of the mining mandate (that suspended
exploration and mining activities in April) and approval of the new
mining law in January 2009. Normalization of exploration/mining
activities likely will take several months longer while the detailed
regulations for the mining law are prepared and approved.
-- The negotiation of project-specific mining contracts (covering
issues such as income/windfall taxes and royalty payments) for the
more advanced projects (such as IMZ's Rio Blanco, Kinross' Fruta
del Norte, IAMGOLD's Quimsacocha and Corriente's Mirador projects)
are expected to take up to an additional six months to negotiate
with the government.
-- In calendar year 2009, IMZ does not expect to spend significant
funds in Ecuador at the Rio Blanco underground gold-silver project
and the Gaby open-pit gold project and has already reduced its
workforce accordingly. The Company is, however, maintaining its
significant in-country infrastructure and its commitment to
developing its Ecuadorian projects.
-- IMZ has previously completed much of the environmental permitting
process for the proposed development of a mining operation at Rio
Blanco. Final permitting approval is expected by the end of 2009,
with construction (subject to required additional financing)
starting in 2010.
-- In February 2008, the Company completed a preliminary feasibility
report at Gaby, which was not positive at US$650 per ounce gold
price but is currently being optimized for higher tonnage
production. Results of the optimization program will be announced
in the first quarter of 2009.
New Acquisitions
-- In the current market there are significant opportunities for IMZ
to acquire gold-silver companies and/or projects that are in or
near production at low acquisition costs that have not been seen
in the industry for the past 20 years. IMZ is well-positioned with
its cash resources and strong technical team to take advantage of
this situation.
-- IMZ's preference is to seek these opportunities in the Americas,
especially in South America in order to leverage off of IMZ's
considerable technical and corporate expertise from over 15 years
of exploration and development of projects in that region.
-- The Company has evaluated at least 25 companies/projects in 2008,
using its experienced acquisition team, and management is confident
that IMZ will achieve at least one major acquisition during the
coming year.
The technical information in this news release was reviewed by IMZ's Qualified Person, Nick Appleyard, Technical Manager.
Cautionary Statement:
Some of the statements contained in this release are "forward-looking statements" within the meaning of Canadian securities law requirements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding capital expansion costs and completion, drilling and development programs on the Company's projects, timing of commencement of production, completion of feasibility studies, obtaining of required environmental and production permits, and timing and amounts of future cash flows from operations. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of mineral resources and reserve; risks relating to project capital and production costs; risks relating to obtaining mining and environmental permits; mining and development risks; risk of commodity price fluctuations; political and regulatory risks; risks related to a new mining law in Ecuador, and other risks and uncertainties detailed in the Company's Renewal Annual Information Form for the year ended June 30, 2008, which is available at www.sedar.com under the Company's name. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For additional information, contact:
Wendy Yang
Tel: (303) 357-4863
Internet Site: http://www.intlminerals.com
SOURCE: International Minerals Corporation
http://www.intlminerals.com
Copyright 2008 Market Wire, All rights reserved.
Endeavour Silver Arranges CA$4 Million Special Warrant Private Placement
VANCOUVER, BRITISH COLUMBIA - Endeavour Silver Corp. (TSX: EDR)(NYSE ALTERNEXT US: EXK)(DBFrankfurt: EJD) announces that it has arranged a CA$4 million private placement financing of special warrants brokered by certain Canadian placement agencies. The agents have an oversubscription right to place up to an additional CA$1 million and the financing is expected to close no later than December 30, 2008, subject to TSX and regulatory approvals.
The private placement will consist of up to 3,080,000 special warrants priced at CA$1.30 per special warrant for gross proceeds of up to CA$4,004,000. Each special warrant is exchangeable for one common share and one half share purchase warrant. Each full share purchase warrant can be exercised to purchase an additional common share at an exercise price of CA$1.90 per share within a 5 year period from the earlier of the closing of the placement plus 60 days, or from the issuance of a final receipt for a prospectus to qualify the special warrants in all relevant Canadian jurisdictions.
The agents will receive a 6% cash fee and brokers' special warrants equal in number to 6% of the number of special warrants sold pursuant to the private placement. Each broker special warrant will be exchangeable for one broker warrant. Each broker warrant can be exercised to purchase an additional common share at CA$1.51 per share and will have the same expiry term as the share purchase warrants. The units will be subject to a four month plus one day hold period. Endeavour will use its commercially reasonable efforts to prepare and file a preliminary prospectus and final prospectus in the Canadian offering jurisdictions as soon as possible after the closing of the private placement, and seek to obtain receipts within, respectively, 45 days and 60 days after closing. If Endeavour has not filed and obtained receipts for a final Prospectus within 60 days of the date of the closing of the private placement, the placees will be entitled to receive 1.1 Common Shares (in lieu of 1 Common Share) and 0.55 Warrants (in lieu of 0.5 Warrants) on the exercise of each Special Warrant.
The net proceeds of the financing will be added to working capital to fund the Company's operating and capital plans at its two producing silver mines in Mexico and to provide additional capital for possible acquisitions in 2009.
The offered securities will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States or to, or for the account or benefit of, "U.S. persons", as such term is defined in Regulation S under the U.S. Securities Act absent registration or an applicable exemption from registration requirements.
This news release shall not constitute an offer to sell or an offer to buy the securities in any jurisdiction.
Endeavour Silver Corp. (TSX: EDR)(NYSE ALTERNEXT US: EXK)(DBFrankfurt: EJD) is a small-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. The expansion programs now underway at Endeavour's two operating mines, Guanacevi in Durango and the Guanajuato Project in State, coupled with the Company's aggressive acquisition and exploration programs in Mexico should enable Endeavour to join the ranks of mid-tier primary silver producers.
ENDEAVOUR SILVER CORP.
Bradford Cooke, Chairman and CEO
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements other than as required by applicable securities legislation. We seek safe harbour.
The TSX Exchange has neither approved nor disapproved the contents of this news release.
Contacts:
Endeavour Silver Corp.
Hugh Clarke
(604) 685-9775 or Toll Free: 1-877-685-9775
(604) 685-9744 (FAX)
Email: hugh@edrsilver.com
Website: www.edrsilver.com
The private placement will consist of up to 3,080,000 special warrants priced at CA$1.30 per special warrant for gross proceeds of up to CA$4,004,000. Each special warrant is exchangeable for one common share and one half share purchase warrant. Each full share purchase warrant can be exercised to purchase an additional common share at an exercise price of CA$1.90 per share within a 5 year period from the earlier of the closing of the placement plus 60 days, or from the issuance of a final receipt for a prospectus to qualify the special warrants in all relevant Canadian jurisdictions.
The agents will receive a 6% cash fee and brokers' special warrants equal in number to 6% of the number of special warrants sold pursuant to the private placement. Each broker special warrant will be exchangeable for one broker warrant. Each broker warrant can be exercised to purchase an additional common share at CA$1.51 per share and will have the same expiry term as the share purchase warrants. The units will be subject to a four month plus one day hold period. Endeavour will use its commercially reasonable efforts to prepare and file a preliminary prospectus and final prospectus in the Canadian offering jurisdictions as soon as possible after the closing of the private placement, and seek to obtain receipts within, respectively, 45 days and 60 days after closing. If Endeavour has not filed and obtained receipts for a final Prospectus within 60 days of the date of the closing of the private placement, the placees will be entitled to receive 1.1 Common Shares (in lieu of 1 Common Share) and 0.55 Warrants (in lieu of 0.5 Warrants) on the exercise of each Special Warrant.
The net proceeds of the financing will be added to working capital to fund the Company's operating and capital plans at its two producing silver mines in Mexico and to provide additional capital for possible acquisitions in 2009.
The offered securities will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States or to, or for the account or benefit of, "U.S. persons", as such term is defined in Regulation S under the U.S. Securities Act absent registration or an applicable exemption from registration requirements.
This news release shall not constitute an offer to sell or an offer to buy the securities in any jurisdiction.
Endeavour Silver Corp. (TSX: EDR)(NYSE ALTERNEXT US: EXK)(DBFrankfurt: EJD) is a small-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. The expansion programs now underway at Endeavour's two operating mines, Guanacevi in Durango and the Guanajuato Project in State, coupled with the Company's aggressive acquisition and exploration programs in Mexico should enable Endeavour to join the ranks of mid-tier primary silver producers.
ENDEAVOUR SILVER CORP.
Bradford Cooke, Chairman and CEO
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements other than as required by applicable securities legislation. We seek safe harbour.
The TSX Exchange has neither approved nor disapproved the contents of this news release.
Contacts:
Endeavour Silver Corp.
Hugh Clarke
(604) 685-9775 or Toll Free: 1-877-685-9775
(604) 685-9744 (FAX)
Email: hugh@edrsilver.com
Website: www.edrsilver.com
Apex Silver Provides an Update Regarding the Company's Restructuring and Financing Arrangements
Apex Silver Mines Limited (AMEX: SIL) today provided an update regarding the company's restructuring and financing arrangements.
Letter of Intent for Sale of San Cristobal to Sumitomo
As announced on November 14, 2008, Apex Silver Mines Limited ("Apex Silver") entered into a non-binding letter of intent with Sumitomo Corporation ("Sumitomo") providing for the sale of Apex's interest in the San Cristobal mine to Sumitomo for a cash purchase price of $22.5 million, payable at the closing of the sale. Apex Silver would continue to manage the mine following the sale. Apex Silver and Sumitomo are continuing to negotiate definitive documentation related to this transaction. Upon completion of the sale, the holders of the Apex Silver $290.0 million in convertible notes would be entitled, under the existing terms of the notes, to redeem the notes for cash. The non-binding letter of intent is subject to significant conditions, including the restructuring of the Apex Silver convertible notes in a voluntary reorganization under chapter 11 of the U.S. Bankruptcy Code.
Termination of Derivative Positions
Apex Silver, Sumitomo and Minera San Cristobal, S.A. ("MSC") have entered into agreements with BNP Paribas and Barlcays PLC for the termination of the derivative positions established as a requirement of the San Cristobal project financing arrangements. Apex Silver paid approximately $59.0 million, or 65% of the final net settlement amounts with respect to the derivative positions, and repaid Sumitomo $7.5 million in respect of 65% of funding previously provided by Sumitomo to MSC to settle certain derivative positions. Apex Silver made these payments from the $91.0 million previously deposited by Apex Silver as cash collateral for the benefit of the counterparties to the derivative positions. Apex Silver received the remaining cash collateral, totaling $24.5 million.
Project Finance Loans Acquired by Sumitomo
Sumitomo has acquired 90% of the San Cristobal project finance loans from the lenders at par plus accrued interest, together with the right to exercise remedies of the lenders against MSC, Apex Silver and other Apex Silver subsidiaries. As previously disclosed, Apex Silver anticipates that Sumitomo, as the current holder of the San Cristobal project finance loans and the rights to exercise remedies against MSC, will have the right to accelerate the indebtedness outstanding upon a default by MSC or Apex Silver and its affiliates including the circumstances described in Apex Silver's quarterly report on Form 10-Q, for the quarter ending September 30, 2008. As noted in that filing, Apex Silver does not have, and does not expect to have, sufficient cash to fully settle its share of the obligations if they were to become immediately due and payable and has reclassified such obligations as short-term in its consolidated balance sheets.
Amendment to Sumitomo Loan Agreement
Under the terms of the Amendment to the Loan Agreement dated August 11, 2008 with SC Minerals Aktiebolag, a subsidiary of Sumitomo ("SC Minerals"), SC Minerals has agreed to increase by $25.0 million the amount available for borrowing by MSC. SC Minerals is the 35% shareholder of MSC. The additional $25 million is to be used solely to fund MSC's operating expenses. The $25.0 million is in addition to the $125.0 previously borrowed pursuant to the original Loan Agreement and subsequent Amendments to the Loan Agreement. The additional loan amount may be borrowed by MSC at any time on or before December 31, 2008. Apex Silver expects that MSC will borrow the full Additional Loan Amount on December 22, 2008.
If the full amount available under the amended Loan Agreement is fully drawn (including the Additional Loan Amount), no payments are made by MSC prior to maturity, and SC Minerals were to convert all amounts payable into MSC shares as of the maturity date, Apex Silver's indirect ownership interest in MSC would be reduced to approximately 40.5% (approximately 48.2% on conversion of principal only).
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the intention of Apex Silver to enter into a definitive agreement relating to the sale of Apex Silver's interest in the San Cristobal mine and the restructuring of Apex Silver's capital structure, the expected continuation of Apex Silver as a management services and exploration company, and MSC's anticipated borrowing from SC Minerals. These statements are subject to risks and uncertainties, including those relating to the ability of Apex Silver and Sumitomo to reach a definitive agreement on all terms of the sale, including terms relating to Apex Silver's management of the mine, the risk that creditors of Apex Silver or the mine will not agree to a restructuring on terms satisfactory to Sumitomo, and the risk that SC Minerals does not advance funds to MSC. The ability of Apex Silver to achieve the contemplated sale could also be affected by other factors, including those relating to its operations such as further decreases in metals prices, whether and to what extent the financial markets continue to experience significant volatility; and political unrest and uncertainty in Bolivia. Apex Silver assumes any obligation to update this information.
CONTACT:
Apex Silver Mines Corporation
Jerry W. Danni
(303) 839-5060
Sr. Vice President Corporate Affairs
Letter of Intent for Sale of San Cristobal to Sumitomo
As announced on November 14, 2008, Apex Silver Mines Limited ("Apex Silver") entered into a non-binding letter of intent with Sumitomo Corporation ("Sumitomo") providing for the sale of Apex's interest in the San Cristobal mine to Sumitomo for a cash purchase price of $22.5 million, payable at the closing of the sale. Apex Silver would continue to manage the mine following the sale. Apex Silver and Sumitomo are continuing to negotiate definitive documentation related to this transaction. Upon completion of the sale, the holders of the Apex Silver $290.0 million in convertible notes would be entitled, under the existing terms of the notes, to redeem the notes for cash. The non-binding letter of intent is subject to significant conditions, including the restructuring of the Apex Silver convertible notes in a voluntary reorganization under chapter 11 of the U.S. Bankruptcy Code.
Termination of Derivative Positions
Apex Silver, Sumitomo and Minera San Cristobal, S.A. ("MSC") have entered into agreements with BNP Paribas and Barlcays PLC for the termination of the derivative positions established as a requirement of the San Cristobal project financing arrangements. Apex Silver paid approximately $59.0 million, or 65% of the final net settlement amounts with respect to the derivative positions, and repaid Sumitomo $7.5 million in respect of 65% of funding previously provided by Sumitomo to MSC to settle certain derivative positions. Apex Silver made these payments from the $91.0 million previously deposited by Apex Silver as cash collateral for the benefit of the counterparties to the derivative positions. Apex Silver received the remaining cash collateral, totaling $24.5 million.
Project Finance Loans Acquired by Sumitomo
Sumitomo has acquired 90% of the San Cristobal project finance loans from the lenders at par plus accrued interest, together with the right to exercise remedies of the lenders against MSC, Apex Silver and other Apex Silver subsidiaries. As previously disclosed, Apex Silver anticipates that Sumitomo, as the current holder of the San Cristobal project finance loans and the rights to exercise remedies against MSC, will have the right to accelerate the indebtedness outstanding upon a default by MSC or Apex Silver and its affiliates including the circumstances described in Apex Silver's quarterly report on Form 10-Q, for the quarter ending September 30, 2008. As noted in that filing, Apex Silver does not have, and does not expect to have, sufficient cash to fully settle its share of the obligations if they were to become immediately due and payable and has reclassified such obligations as short-term in its consolidated balance sheets.
Amendment to Sumitomo Loan Agreement
Under the terms of the Amendment to the Loan Agreement dated August 11, 2008 with SC Minerals Aktiebolag, a subsidiary of Sumitomo ("SC Minerals"), SC Minerals has agreed to increase by $25.0 million the amount available for borrowing by MSC. SC Minerals is the 35% shareholder of MSC. The additional $25 million is to be used solely to fund MSC's operating expenses. The $25.0 million is in addition to the $125.0 previously borrowed pursuant to the original Loan Agreement and subsequent Amendments to the Loan Agreement. The additional loan amount may be borrowed by MSC at any time on or before December 31, 2008. Apex Silver expects that MSC will borrow the full Additional Loan Amount on December 22, 2008.
If the full amount available under the amended Loan Agreement is fully drawn (including the Additional Loan Amount), no payments are made by MSC prior to maturity, and SC Minerals were to convert all amounts payable into MSC shares as of the maturity date, Apex Silver's indirect ownership interest in MSC would be reduced to approximately 40.5% (approximately 48.2% on conversion of principal only).
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the intention of Apex Silver to enter into a definitive agreement relating to the sale of Apex Silver's interest in the San Cristobal mine and the restructuring of Apex Silver's capital structure, the expected continuation of Apex Silver as a management services and exploration company, and MSC's anticipated borrowing from SC Minerals. These statements are subject to risks and uncertainties, including those relating to the ability of Apex Silver and Sumitomo to reach a definitive agreement on all terms of the sale, including terms relating to Apex Silver's management of the mine, the risk that creditors of Apex Silver or the mine will not agree to a restructuring on terms satisfactory to Sumitomo, and the risk that SC Minerals does not advance funds to MSC. The ability of Apex Silver to achieve the contemplated sale could also be affected by other factors, including those relating to its operations such as further decreases in metals prices, whether and to what extent the financial markets continue to experience significant volatility; and political unrest and uncertainty in Bolivia. Apex Silver assumes any obligation to update this information.
CONTACT:
Apex Silver Mines Corporation
Jerry W. Danni
(303) 839-5060
Sr. Vice President Corporate Affairs
MAG Silver Provides Corporate Update
VANCOUVER, BRITISH COLUMBIA - MAG Silver Corp. (TSX: MAG)(NYSE-A: MVG) ("MAG") provides the following as an update to recent company activities.
MAG has approved an exploration budget of approximately CDN$17.0M for 2009. These monies are earmarked for the drilling of almost 30,000 metres on five MAG-owned properties in Mexico. Diamond drilling is expected to continue on the "Jose Manto" at Cinco de Mayo where MAG is outlining a new and potentially significant sulphide silver/lead/zinc carbonate replacement discovery. Drilling is also planned to commence in early 2009 at Sierra Ramirez/El Pavo, Lagartos SE and Salemex. Drilling at Juanicipio is expected to continue at roughly the same level as this year (25,000 metres). Relying on the same experienced team that discovered the Juanicipio Vein, MAG will aggressively continue to pursue high priority targets.
Presently MAG has two drills operating at Cinco de Mayo and one drill at each of Lagartos SE and Lorena. At Juanicipio, four drills in total are operating. Two drills are operating on the Valdecanas Vein completing the 100 metre by 100 metre grid pattern and two drills are operating on the Juanicipio Vein, located one kilometre south of the Valdecanas Vein. These holes are testing for deeper intersections on the western extension of the earlier high grade intercepts.
To the end of November approximately CDN$55.0M remains in the treasury.
Separately, MAG has informed Fresnillo plc that, without prejudice to any of MAG's rights and interests, MAG has created an independent committee that is proceeding to identify and retain an independent valuator to prepare a valuation of MAG as required under applicable securities legislation. Under these rules, the valuation will be prepared at Fresnillo's cost. MAG continues to evaluate a number of strategic alternatives and no action is required by shareholders at this time.
Qualified Person: Dan MacInnis, P.Geo., has acted as the qualified person as defined in National Instrument 43-101 for this disclosure and supervised and verified the preparation of the technical information in this release. Mr. MacInnis is not independent as he is the President, CEO and a director of MAG Silver Corp.
About MAG Silver Corp. (www.magsilver.com)
MAG 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 and its partner Fresnillo plc are delineating a significant new silver vein discovery on the Juanicipio Joint Venture in Zacatecas State, Mexico. MAG is based in Vancouver, British Columbia, Canada. Its common shares trade on the TSX under the symbol MAG and on NYSE-A under the symbol MVG.
On behalf of the Board of MAG SILVER CORP.
Dan MacInnis, President and CEO
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions, political risk, currency risk and capital cost inflation. In addition, forward-looking statements are subject to various risks, including that data is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment. The reader is referred to the Company's filings with the SEC and Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.
Cautionary Note to U.S. Investors: The U.S. Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "Inferred resources", that the SEC guidelines prohibit U.S. registered companies from including in their filings with the SEC.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and www.sec.gov/edgar/searchedgar/companysearch.html.
Neither the Toronto Stock Exchange nor the American Stock Exchange has reviewed or accepted responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Contacts:
MAG Silver Corp.
Gordon Neal
VP Corp. Development
(604) 630-1399 or Toll Free: 1-866-630-1399
(604) 484-4710 (FAX)
Email: info@magsilver.com
Website: www.magsilver.com
© MarketWire 2008
MAG has approved an exploration budget of approximately CDN$17.0M for 2009. These monies are earmarked for the drilling of almost 30,000 metres on five MAG-owned properties in Mexico. Diamond drilling is expected to continue on the "Jose Manto" at Cinco de Mayo where MAG is outlining a new and potentially significant sulphide silver/lead/zinc carbonate replacement discovery. Drilling is also planned to commence in early 2009 at Sierra Ramirez/El Pavo, Lagartos SE and Salemex. Drilling at Juanicipio is expected to continue at roughly the same level as this year (25,000 metres). Relying on the same experienced team that discovered the Juanicipio Vein, MAG will aggressively continue to pursue high priority targets.
Presently MAG has two drills operating at Cinco de Mayo and one drill at each of Lagartos SE and Lorena. At Juanicipio, four drills in total are operating. Two drills are operating on the Valdecanas Vein completing the 100 metre by 100 metre grid pattern and two drills are operating on the Juanicipio Vein, located one kilometre south of the Valdecanas Vein. These holes are testing for deeper intersections on the western extension of the earlier high grade intercepts.
To the end of November approximately CDN$55.0M remains in the treasury.
Separately, MAG has informed Fresnillo plc that, without prejudice to any of MAG's rights and interests, MAG has created an independent committee that is proceeding to identify and retain an independent valuator to prepare a valuation of MAG as required under applicable securities legislation. Under these rules, the valuation will be prepared at Fresnillo's cost. MAG continues to evaluate a number of strategic alternatives and no action is required by shareholders at this time.
Qualified Person: Dan MacInnis, P.Geo., has acted as the qualified person as defined in National Instrument 43-101 for this disclosure and supervised and verified the preparation of the technical information in this release. Mr. MacInnis is not independent as he is the President, CEO and a director of MAG Silver Corp.
About MAG Silver Corp. (www.magsilver.com)
MAG 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 and its partner Fresnillo plc are delineating a significant new silver vein discovery on the Juanicipio Joint Venture in Zacatecas State, Mexico. MAG is based in Vancouver, British Columbia, Canada. Its common shares trade on the TSX under the symbol MAG and on NYSE-A under the symbol MVG.
On behalf of the Board of MAG SILVER CORP.
Dan MacInnis, President and CEO
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts are forward looking statements, including statements that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions, political risk, currency risk and capital cost inflation. In addition, forward-looking statements are subject to various risks, including that data is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and investment. The reader is referred to the Company's filings with the SEC and Canadian securities regulators for disclosure regarding these and other risk factors. There is no certainty that any forward looking statement will come to pass and investors should not place undue reliance upon forward-looking statements.
Cautionary Note to U.S. Investors: The U.S. Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "Inferred resources", that the SEC guidelines prohibit U.S. registered companies from including in their filings with the SEC.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and www.sec.gov/edgar/searchedgar/companysearch.html.
Neither the Toronto Stock Exchange nor the American Stock Exchange has reviewed or accepted responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Contacts:
MAG Silver Corp.
Gordon Neal
VP Corp. Development
(604) 630-1399 or Toll Free: 1-866-630-1399
(604) 484-4710 (FAX)
Email: info@magsilver.com
Website: www.magsilver.com
© MarketWire 2008
Wednesday, December 17, 2008
Endeavour Silver Arranges CA$4 Million Special Warrant Private Placement
VANCOUVER, BRITISH COLUMBIA, Dec 17, 2008 (MARKET WIRE via COMTEX) -- Endeavour Silver Corp. (CA:EDR) (NYSE ALTERNEXT US: EXK) announces that it has arranged a CA$4 million private placement financing of special warrants brokered by certain Canadian placement agencies. The agents have an oversubscription right to place up to an additional CA$1 million and the financing is expected to close no later than December 30, 2008, subject to TSX and regulatory approvals.
The private placement will consist of up to 3,080,000 special warrants priced at CA$1.30 per special warrant for gross proceeds of up to CA$4,004,000. Each special warrant is exchangeable for one common share and one half share purchase warrant. Each full share purchase warrant can be exercised to purchase an additional common share at an exercise price of CA$1.90 per share within a 5 year period from the earlier of the closing of the placement plus 60 days, or from the issuance of a final receipt for a prospectus to qualify the special warrants in all relevant Canadian jurisdictions.
The agents will receive a 6% cash fee and brokers' special warrants equal in number to 6% of the number of special warrants sold pursuant to the private placement. Each broker special warrant will be exchangeable for one broker warrant. Each broker warrant can be exercised to purchase an additional common share at CA$1.51 per share and will have the same expiry term as the share purchase warrants. The units will be subject to a four month plus one day hold period. Endeavour will use its commercially reasonable efforts to prepare and file a preliminary prospectus and final prospectus in the Canadian offering jurisdictions as soon as possible after the closing of the private placement, and seek to obtain receipts within, respectively, 45 days and 60 days after closing. If Endeavour has not filed and obtained receipts for a final Prospectus within 60 days of the date of the closing of the private placement, the placees will be entitled to receive 1.1 Common Shares (in lieu of 1 Common Share) and 0.55 Warrants (in lieu of 0.5 Warrants) on the exercise of each Special Warrant.
The net proceeds of the financing will be added to working capital to fund the Company's operating and capital plans at its two producing silver mines in Mexico and to provide additional capital for possible acquisitions in 2009.
The offered securities will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States or to, or for the account or benefit of, "U.S. persons", as such term is defined in Regulation S under the U.S. Securities Act absent registration or an applicable exemption from registration requirements.
This news release shall not constitute an offer to sell or an offer to buy the securities in any jurisdiction.
Endeavour Silver Corp. (CA:EDR) (NYSE ALTERNEXT US: EXK) is a small-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. The expansion programs now underway at Endeavour's two operating mines, Guanacevi in Durango and the Guanajuato Project in State, coupled with the Company's aggressive acquisition and exploration programs in Mexico should enable Endeavour to join the ranks of mid-tier primary silver producers.
ENDEAVOUR SILVER CORP.
Bradford Cooke, Chairman and CEO
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies.
Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements other than as required by applicable securities legislation. We seek safe harbour.
The TSX Exchange has neither approved nor disapproved the contents of this news release.
Contacts:
Endeavour Silver Corp.
Hugh Clarke
(604) 685-9775 or Toll Free: 1-877-685-9775
(604) 685-9744 (FAX)
Email: hugh@edrsilver.com
Website: www.edrsilver.com
The private placement will consist of up to 3,080,000 special warrants priced at CA$1.30 per special warrant for gross proceeds of up to CA$4,004,000. Each special warrant is exchangeable for one common share and one half share purchase warrant. Each full share purchase warrant can be exercised to purchase an additional common share at an exercise price of CA$1.90 per share within a 5 year period from the earlier of the closing of the placement plus 60 days, or from the issuance of a final receipt for a prospectus to qualify the special warrants in all relevant Canadian jurisdictions.
The agents will receive a 6% cash fee and brokers' special warrants equal in number to 6% of the number of special warrants sold pursuant to the private placement. Each broker special warrant will be exchangeable for one broker warrant. Each broker warrant can be exercised to purchase an additional common share at CA$1.51 per share and will have the same expiry term as the share purchase warrants. The units will be subject to a four month plus one day hold period. Endeavour will use its commercially reasonable efforts to prepare and file a preliminary prospectus and final prospectus in the Canadian offering jurisdictions as soon as possible after the closing of the private placement, and seek to obtain receipts within, respectively, 45 days and 60 days after closing. If Endeavour has not filed and obtained receipts for a final Prospectus within 60 days of the date of the closing of the private placement, the placees will be entitled to receive 1.1 Common Shares (in lieu of 1 Common Share) and 0.55 Warrants (in lieu of 0.5 Warrants) on the exercise of each Special Warrant.
The net proceeds of the financing will be added to working capital to fund the Company's operating and capital plans at its two producing silver mines in Mexico and to provide additional capital for possible acquisitions in 2009.
The offered securities will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States or to, or for the account or benefit of, "U.S. persons", as such term is defined in Regulation S under the U.S. Securities Act absent registration or an applicable exemption from registration requirements.
This news release shall not constitute an offer to sell or an offer to buy the securities in any jurisdiction.
Endeavour Silver Corp. (CA:EDR) (NYSE ALTERNEXT US: EXK) is a small-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. The expansion programs now underway at Endeavour's two operating mines, Guanacevi in Durango and the Guanajuato Project in State, coupled with the Company's aggressive acquisition and exploration programs in Mexico should enable Endeavour to join the ranks of mid-tier primary silver producers.
ENDEAVOUR SILVER CORP.
Bradford Cooke, Chairman and CEO
CAUTIONARY DISCLAIMER - FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies.
Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements other than as required by applicable securities legislation. We seek safe harbour.
The TSX Exchange has neither approved nor disapproved the contents of this news release.
Contacts:
Endeavour Silver Corp.
Hugh Clarke
(604) 685-9775 or Toll Free: 1-877-685-9775
(604) 685-9744 (FAX)
Email: hugh@edrsilver.com
Website: www.edrsilver.com
Wednesday, December 10, 2008
MAG Silver Intersects More High Grade Silver/Lead/Zinc Mineralization at Cinco de Mayo
487 g/t (14.2 opt) silver, 8.97% lead and 16.45% zinc over 5.57 metres 236.6 g/t (6.9 opt) silver, 1.19 g/t gold, 2.23% lead and 13.35% zinc over 2.52 metres
VANCOUVER, BRITISH COLUMBIA, Dec 10, 2008 (MARKET WIRE via COMTEX) -- MAG Silver Corp. (CA:MAG) (NYSE-A: MVG) ("MAG") is pleased to announce assay and geological results from the ongoing drill program on its 100% owned Cinco de Mayo property in northern Chihuahua State, Mexico. Drilling is focused on establishing the district-scale extent, zoning and geological controls on mineralization in what is emerging as a large Carbonate Replacement system. Results from this announcement, combined with earlier drilling (Holes 22 through 54: see press releases dated May 12, 2008, July 8, 2008 and September 18, 2008), continue to demonstrate the expected transition from the massive sulphides of the Jose Manto to higher temperature silver-lead-zinc (gold) mineralization and alteration styles leading towards the system's source. This latest drilling significantly expands the areal extent of mineralization and includes several of the thickest mineralized intercepts to date at Cinco de Mayo.
Assays are reported in the table below for 23 diamond drill holes (CDM08-55 to CDM08-77). Seventeen (17) of these holes were targeted on and encountered mineralization in the Jose Manto and its extensions (Holes 08-55 to 58, 08-61 to 64, 08-66, 08-68, 08-70 and 08-72 to 77). The remaining six (6) holes targeted various gravity and induced potential and resistivity (IP/Res) geophysical targets with some success.
"We are very impressed with how the Cinco Project continues to unfold," said Dan MacInnis, President of MAG Silver. "We have hit good silver, lead and zinc grades in over 60 holes drilled along more than 2 kilometres of strike length in what is emerging as a classic example of the deposit type. Our exploration vectoring is working, with increasing gold grades suggesting we are successfully moving towards the center of the system."
The holes reported below were drilled primarily in the area within 1,500 metres of the main portion of the Jose Manto discovery zone (to view map please click here. http://media3.marketwire.com/docs/mag1210.jpg).
Diagrams can be found on the website www.magsilver.com.
Highlights and Discussion:
Hole 08-64 drilled on the Jose Manto, reports an excellent combination of width and grade returning 5.57 metres of 487 grams per tonne (g/t) (14.2 ounces per ton (opt)) silver, 8.97% lead and 16.45% zinc. This included an intermediate intercept of 0.68 metres of 1,065 g/t (31.1 opt) silver, 22.20% lead and 8.98% zinc.
Hole 08-66 was drilled 500 metres to the east of the discovery zone and had two significant intersections. The upper intercept lies within the Benavides Formation, which overlies the Finlay Formation, the principal limestone host for manto mineralization. This upper intersect reports 218 g/t (6.4 opt) silver, 4.44% lead and 5.45% zinc over 3.70 metres. The lower intercept occurs within the Finlay Formation and corresponds laterally to the Jose Manto. Results were 112 g/t (3.3 opt) silver, 3.66% lead, 9.94% zinc, and 0.72 g/t gold over 2.4 metres. This hole expands the silver/lead/zinc mineralization substantially to the east and opens up a new horizon of potential within the Benavides Formation. This requires further follow up.
Hole 08-70 returned the best thickness to date located almost 500 metres to the southwest of the discovery zone. This intercept returned three thick intersections (15.55, 7.19 and 6.92 metres) of significant mineralization between 420.85 to 465.00 metres (see table) that combine for a cumulative total of 29.66 metres (over total of 44.15 metres), which on a weighted average basis reports as 57 g/t (1.7 opt) silver, 1.20% lead and 3.95% zinc. The upper 15.5 metre intercept grades 56 g/t (1.7 opt) silver, 1.50% lead and 4.35% zinc, including a 0.84 metre zone grading 350 g/t (10.2 opt) silver, 11.45% lead and 13.10% zinc. The increased thickness in this area may be related to proximity to the northeast trending Leones Fault, which is being tested as a feeder.
Hole 08-56 collared 800 metres to the east of the discovery zone, also cut multiple mantos of which the best returned 115 g/t (3.4 opt) silver, 2.54% lead and 1.16% zinc over 3.99 metres. A higher grade section within returned 406 g/t (11.8 opt) silver, 9.40% lead and 3.9% zinc over 0.99 metres. The lower manto lies deeper in the Finlay formation and cut a 2.52 metre section that carried 236.6 g/t (6.9 opt) silver, 2.23% lead, 13.35% zinc, and 1.19 g/t gold, including a 0.88 metre zone grading 555 g/t (16.2 opt) silver, 5.71% lead, 10.30% zinc and 3.35 g/t gold.
Holes 08-56, 66, 73, 76 and 77, as well as Holes 08-44 and 48 reported previously, were drilled along the intersection between the northeast-trending Leones Fault and the complex northwest-trending fault that controls the northeastern flank of the Jose Manto. These holes encountered several features indicative of a nearer source environment including: 1) Significant amounts of garnet-pyroxene skarn that locally carries scheelite (reflected by tungsten assays from 0.03-0.14% W); 2) Gold values in the 1 to 3 g/t range; and 3) distinctive felsite dikes with mineralized and silicified marginal breccias and sericite alteration. The skarn, mineralization and felsites appear to "flare" to the southwest along the Leones Fault and drilling is currently focused on tracing these features in that direction.
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---
Hole From: To: Interval Silver Silver Lead Zinc Gold
ID metres metres metres g/t opt % % g/t
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CM08-55 493.28 495.54 2.26 111.9 3.3 1.68 7.19 0.39
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Including 494.90 495.54 0.64 247.0 7.2 4.13 10.20 0.48
--------------------------------------------------------------------------
CM08-56 452.80 454.57 1.77 107.8 3.1 2.28 2.22 0.05
--------------------------------------------------------------------------
505.37 507.49 2.12 31.5 0.9 0.47 12.88 0.05
--------------------------------------------------------------------------
510.64 516.91 6.27 41.4 1.2 0.81 7.02 0.02
--------------------------------------------------------------------------
668.24 672.23 3.99 115.6 3.4 2.54 1.16 0.32
--------------------------------------------------------------------------
Including 668.24 669.23 0.99 406.0 11.8 9.40 3.90 1.15
--------------------------------------------------------------------------
771.86 781.00 9.14 11.8 0.3 0.03 6.82 0.02
--------------------------------------------------------------------------
807.36 809.88 2.52 236.6 6.9 2.23 13.35 1.19
--------------------------------------------------------------------------
Including 809.00 809.88 0.88 555.0 16.2 5.71 10.30 3.35
--------------------------------------------------------------------------
814.34 818.80 4.46 55.3 1.6 1.81 2.75 0.01
--------------------------------------------------------------------------
Including 814.34 816.70 2.36 97.2 2.8 3.41 3.22 0.02
--------------------------------------------------------------------------
CM08-57 344.08 345.88 1.80 165.0 4.8 3.07 6.92 0.11
--------------------------------------------------------------------------
350.25 351.05 0.80 97.0 2.8 4.44 18.00 0.01
--------------------------------------------------------------------------
CM08-58 318.04 319.30 1.26 50.4 1.5 2.94 3.32 0.01
--------------------------------------------------------------------------
348.97 350.61 1.64 63.4 1.8 2.61 2.44 0.01
--------------------------------------------------------------------------
Including 348.97 349.33 0.36 119.0 3.5 4.53 4.28 0.01
--------------------------------------------------------------------------
355.44 356.50 1.06 78.6 2.3 1.35 2.49 0.02
--------------------------------------------------------------------------
CM08-59 No Significant Intercepts
--------------------------------------------------------------------------
CM08-60 No Significant Intercepts
--------------------------------------------------------------------------
CM08-61 370.15 371.20 1.05 206.0 6.0 9.46 7.15 0.03
--------------------------------------------------------------------------
382.10 384.70 2.60 12.9 0.4 0.07 0.59 0.01
--------------------------------------------------------------------------
CM08-62 456.59 457.04 0.45 486.0 14.2 10.85 15.20 0.05
--------------------------------------------------------------------------
513.19 513.80 0.61 113.9 3.3 2.57 1.62 0.02
--------------------------------------------------------------------------
520.44 521.49 1.05 266.7 7.8 6.67 4.52 0.04
--------------------------------------------------------------------------
Including 521.03 521.49 0.46 586.0 17.1 14.50 6.78 0.05
--------------------------------------------------------------------------
CM08-63 488.98 489.28 0.30 228.0 6.6 4.57 5.94 0.16
--------------------------------------------------------------------------
CM08-64A 459.87 465.44 5.57 487.7 14.2 8.97 16.45 0.23
--------------------------------------------------------------------------
Including 459.87 460.87 1.00 820.0 23.9 16.55 22.20 0.52
--------------------------------------------------------------------------including 463.70 465.44 1.74 673.3 19.6 10.73 15.69 0.05
--------------------------------------------------------------------------
Including 463.70 464.38 0.68 1,065.0 31.1 22.20 8.98 0.08
--------------------------------------------------------------------------
470.25 472.76 2.51 81.8 2.4 2.22 6.50 0.01
--------------------------------------------------------------------------
537.91 539.58 1.67 361.0 10.5 9.22 7.87 0.04
--------------------------------------------------------------------------
Including 538.84 539.58 0.74 606.0 17.7 16.45 12.30 0.06
--------------------------------------------------------------------------
CM08-65 No Significant Intercepts
--------------------------------------------------------------------------
CM08-66 365.35 369.05 3.70 218.2 6.4 4.44 5.45 0.13
--------------------------------------------------------------------------
Including 366.36 367.76 1.40 475.0 13.9 9.59 12.05 0.27
--------------------------------------------------------------------------
577.30 579.70 2.40 112.0 3.3 3.66 9.94 0.72
--------------------------------------------------------------------------
Including 577.30 577.80 0.50 103.0 3.0 3.33 17.00 1.07
--------------------------------------------------------------------------
Including 578.13 579.12 0.99 171.0 5.0 5.26 11.20 0.92
--------------------------------------------------------------------------
645.02 646.75 1.73 36.7 1.1 0.09 14.79 0.03
--------------------------------------------------------------------------
CM08-67 No Significant Intercepts
--------------------------------------------------------------------------
CM08-68 No Significant Intercepts
--------------------------------------------------------------------------
CM08-69 No Significant Intercepts
--------------------------------------------------------------------------
CM08-70 420.85 436.40 15.55 56.6 1.7 1.50 4.35 0.08
--------------------------------------------------------------------------
Including 421.24 422.08 0.84 350.0 10.2 11.45 13.10 0.13
--------------------------------------------------------------------------
444.14 451.33 7.19 55.6 1.6 1.05 3.98 0.04
--------------------------------------------------------------------------
Including 446.91 448.20 1.29 105.0 3.1 1.59 4.24 0.08
--------------------------------------------------------------------------
458.10 465.02 6.92 62.6 1.8 0.67 3.02 0.06
--------------------------------------------------------------------------
Including 461.67 462.85 1.18 137.0 4.0 1.59 8.82 0.08
--------------------------------------------------------------------------
CM08-71 No Significant Intercepts
--------------------------------------------------------------------------
CM08-72 356.34 362.71 6.37 106.3 3.1 3.72 3.59 0.01
--------------------------------------------------------------------------
Including 356.34 358.56 2.22 275.5 8.0 9.49 9.20 0.01
--------------------------------------------------------------------------
CM08-73 393.89 395.34 1.45 26.0 0.8 4.61 3.58 0.40
--------------------------------------------------------------------------
632.13 632.45 0.32 183.0 5.3 5.29 7.27 0.04
--------------------------------------------------------------------------
683.37 684.40 1.03 41.1 1.2 1.6 1.54 1.38
--------------------------------------------------------------------------
CM08-74 386.53 388.00 1.47 108.0 3.1 1.92 10.65 0.03
--------------------------------------------------------------------------
CM08-75 337.73 338.41 0.68 459.0 13.4 15.9 11.85 0.09
--------------------------------------------------------------------------
CM08-76 371.88 372.13 0.25 361.0 10.5 12.65 18.1 0.09
--------------------------------------------------------------------------
CM08-77 493.28 509.28 16.00 20.9 0.6 0.51 3.03 0.04
--------------------------------------------------------------------------
Including 493.28 500.97 7.69 14.6 0.4 0.31 2.75 0.05
--------------------------------------------------------------------------
Inlcuding 506.40 508.50 2.10 52.0 1.5 1.19 9.81 0.07
--------------------------------------------------------------------------
526.41 528.34 1.93 106.3 3.1 1.49 5.51 0.08
--------------------------------------------------------------------------
603.13 603.29 0.16 150.0 4.4 4.34 7.37 0.07
--------------------------------------------------------------------------
About Cinco de Mayo
Cinco de Mayo is a 15,000 hectare property straddling the same regionally-mappable structure that contains the largest Carbonate Replacement Deposits (CRDs) in Chihuahua. Exploration is guided by MAG's CRD exploration model and an airborne magnetic survey that revealed a number of prominent linear anomalies and prominent magnetic lows that are being systematically drilled. The zoned mineralization encountered to date lies along a very strong northwest-trending magnetic anomaly that runs over 3,000 metres from the discovery zone to the southeast to previously reported sulphide intercepts and historic workings (see press release of February 19, 2007). This trend is intersected by northeast trending structures that traverse the range, carry high-temperature alteration and point towards a large regional magnetic anomaly that underlies extensive jasperoids. The drill program will continue to systematically offset the manto style mineralization intersected in previous drilling while simultaneously testing the regional magnetic anomaly and numerous other geophysical anomalies developed by MAG elsewhere in the district.
This early stage property is held 100% by MAG and is one of six other district scale projects operated by MAG.
Cinco de Mayo Exploration
MAG's exploration has defined major NW and NE structural and stratigraphic controls on silver-lead-zinc (gold) sulphide mineralization and our ability to test the system with large drilling step outs is testimony to the widespread nature and potential size of this carbonate replacement (CRD) system. Recent drilling results reveal coherent zoning developed for over 2 kilometres along the principal northwest Jose Manto structural corridor: from massive silver-lead-zinc sulphide mantos to silver-gold-lead-zinc mineralized tungsten (scheelite) bearing skarn. The strongest skarn is associated with felsite dikes that show distinctive brecciation, silicification and sericitization and are overall very similar to mineralization-related felsites in major CRDs throughout the region. Mineralization also appears to thicken along this trend, as does the number of individual mantos and the number of carbonate units that are mineralized. This zoning is precisely what is predicted by MAG's CRD exploration model and provides strong exploration vectoring. MAG's focus remains to determine the overall extent of the CRD system, so on-going exploration will attempt to track this zoning towards the system source with a combination of drilling and geophysics.
The skarn and felsite intercepts appear to cluster around the intersection of the northwest structural corridor with the strong northeast-trending Leones Fault that cuts across the limestones of the Sierra Santa Lucia to the southwest. The Leones Fault is locally marked by strong marble and other high-temperature alteration styles indicating gradually increasing proximity to an intrusive heat source. Drilling is currently underway on both ends of this structure. On the east side to determine the geometry of the felsite dikes and associated mineralization and alteration, and on the west side of the range to determine if the large magnetic anomaly shown on Mexican government regional geophysical maps marks a major magmatic center.
Quality Assurance and Control: The Company has in place a quality control program to ensure best practices in sampling and analysis. Samples were collected by employees of consulting firm Minera Cascabel S.A. de C.V. on behalf of MAG Silver Corp. The surface rock samples are shipped directly in security sealed bags to ALS-Chemex Laboratories preparation facilities in Hermosillo, Sonora or Chihuahua City (Certification ISO 9001). Sample pulps are shipped from there to ALS-Chemex Laboratories in North Vancouver, Canada for analysis. All samples were assayed for gold by standard fire assay-ICP finish with a 50 gram charge. Gold values in excess of 3.00 g/t were re-analyzed by fire assay with gravimetric finish for greater accuracy. Silver, zinc, copper and lead values in excess of 100 ppm, 1%, 1% and 1% respectively are also repeated by fire assay.
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 Director and Shareholder of MAG and is the vendor of this project, whereby he may receive additional shares. Dr. Megaw is satisfied that the results are verified based on an inspection of the core, a review of the sampling procedures, the credentials of the professionals completing the work and the visual nature of the silver and base metal sulphides within a district where he is familiar with the style and continuity of mineralization. About MAG Silver Corp. ( www.magsilver.com)
MAG 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 and its partner Fresnillo plc are delineating a significant new silver vein discovery on the Juanicipio Joint Venture in Zacatecas State, Mexico. MAG is based in Vancouver, British Columbia, Canada. Its common shares trade on the TSX under the symbol MAG and on NYSE-A under the symbol MVG.
On behalf of the Board of MAG SILVER CORP.
Dan MacInnis, President and CEO
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments that MAG expects, are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and http://www.sec.gov/edgar/searchedgar/companysearch.html.
Neither the Toronto Stock Exchange nor the American Stock Exchange has reviewed or accepted responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Contacts:
MAG Silver Corp.
Gordon Neal
VP Corp. Development
(604) 630-1399 or Toll Free: 1-866-630-1399
(604) 484-4710 (FAX)
Email: info@magsilver.com
Website: www.magsilver.com
SOURCE: MAG Silver Corp.
mailto:info@magsilver.com
http://www.magsilver.com
Copyright 2008 Market Wire, All rights reserved
VANCOUVER, BRITISH COLUMBIA, Dec 10, 2008 (MARKET WIRE via COMTEX) -- MAG Silver Corp. (CA:MAG) (NYSE-A: MVG) ("MAG") is pleased to announce assay and geological results from the ongoing drill program on its 100% owned Cinco de Mayo property in northern Chihuahua State, Mexico. Drilling is focused on establishing the district-scale extent, zoning and geological controls on mineralization in what is emerging as a large Carbonate Replacement system. Results from this announcement, combined with earlier drilling (Holes 22 through 54: see press releases dated May 12, 2008, July 8, 2008 and September 18, 2008), continue to demonstrate the expected transition from the massive sulphides of the Jose Manto to higher temperature silver-lead-zinc (gold) mineralization and alteration styles leading towards the system's source. This latest drilling significantly expands the areal extent of mineralization and includes several of the thickest mineralized intercepts to date at Cinco de Mayo.
Assays are reported in the table below for 23 diamond drill holes (CDM08-55 to CDM08-77). Seventeen (17) of these holes were targeted on and encountered mineralization in the Jose Manto and its extensions (Holes 08-55 to 58, 08-61 to 64, 08-66, 08-68, 08-70 and 08-72 to 77). The remaining six (6) holes targeted various gravity and induced potential and resistivity (IP/Res) geophysical targets with some success.
"We are very impressed with how the Cinco Project continues to unfold," said Dan MacInnis, President of MAG Silver. "We have hit good silver, lead and zinc grades in over 60 holes drilled along more than 2 kilometres of strike length in what is emerging as a classic example of the deposit type. Our exploration vectoring is working, with increasing gold grades suggesting we are successfully moving towards the center of the system."
The holes reported below were drilled primarily in the area within 1,500 metres of the main portion of the Jose Manto discovery zone (to view map please click here. http://media3.marketwire.com/docs/mag1210.jpg).
Diagrams can be found on the website www.magsilver.com.
Highlights and Discussion:
Hole 08-64 drilled on the Jose Manto, reports an excellent combination of width and grade returning 5.57 metres of 487 grams per tonne (g/t) (14.2 ounces per ton (opt)) silver, 8.97% lead and 16.45% zinc. This included an intermediate intercept of 0.68 metres of 1,065 g/t (31.1 opt) silver, 22.20% lead and 8.98% zinc.
Hole 08-66 was drilled 500 metres to the east of the discovery zone and had two significant intersections. The upper intercept lies within the Benavides Formation, which overlies the Finlay Formation, the principal limestone host for manto mineralization. This upper intersect reports 218 g/t (6.4 opt) silver, 4.44% lead and 5.45% zinc over 3.70 metres. The lower intercept occurs within the Finlay Formation and corresponds laterally to the Jose Manto. Results were 112 g/t (3.3 opt) silver, 3.66% lead, 9.94% zinc, and 0.72 g/t gold over 2.4 metres. This hole expands the silver/lead/zinc mineralization substantially to the east and opens up a new horizon of potential within the Benavides Formation. This requires further follow up.
Hole 08-70 returned the best thickness to date located almost 500 metres to the southwest of the discovery zone. This intercept returned three thick intersections (15.55, 7.19 and 6.92 metres) of significant mineralization between 420.85 to 465.00 metres (see table) that combine for a cumulative total of 29.66 metres (over total of 44.15 metres), which on a weighted average basis reports as 57 g/t (1.7 opt) silver, 1.20% lead and 3.95% zinc. The upper 15.5 metre intercept grades 56 g/t (1.7 opt) silver, 1.50% lead and 4.35% zinc, including a 0.84 metre zone grading 350 g/t (10.2 opt) silver, 11.45% lead and 13.10% zinc. The increased thickness in this area may be related to proximity to the northeast trending Leones Fault, which is being tested as a feeder.
Hole 08-56 collared 800 metres to the east of the discovery zone, also cut multiple mantos of which the best returned 115 g/t (3.4 opt) silver, 2.54% lead and 1.16% zinc over 3.99 metres. A higher grade section within returned 406 g/t (11.8 opt) silver, 9.40% lead and 3.9% zinc over 0.99 metres. The lower manto lies deeper in the Finlay formation and cut a 2.52 metre section that carried 236.6 g/t (6.9 opt) silver, 2.23% lead, 13.35% zinc, and 1.19 g/t gold, including a 0.88 metre zone grading 555 g/t (16.2 opt) silver, 5.71% lead, 10.30% zinc and 3.35 g/t gold.
Holes 08-56, 66, 73, 76 and 77, as well as Holes 08-44 and 48 reported previously, were drilled along the intersection between the northeast-trending Leones Fault and the complex northwest-trending fault that controls the northeastern flank of the Jose Manto. These holes encountered several features indicative of a nearer source environment including: 1) Significant amounts of garnet-pyroxene skarn that locally carries scheelite (reflected by tungsten assays from 0.03-0.14% W); 2) Gold values in the 1 to 3 g/t range; and 3) distinctive felsite dikes with mineralized and silicified marginal breccias and sericite alteration. The skarn, mineralization and felsites appear to "flare" to the southwest along the Leones Fault and drilling is currently focused on tracing these features in that direction.
-----------------------------------------------------------------------
---
Hole From: To: Interval Silver Silver Lead Zinc Gold
ID metres metres metres g/t opt % % g/t
--------------------------------------------------------------------------
CM08-55 493.28 495.54 2.26 111.9 3.3 1.68 7.19 0.39
--------------------------------------------------------------------------
Including 494.90 495.54 0.64 247.0 7.2 4.13 10.20 0.48
--------------------------------------------------------------------------
CM08-56 452.80 454.57 1.77 107.8 3.1 2.28 2.22 0.05
--------------------------------------------------------------------------
505.37 507.49 2.12 31.5 0.9 0.47 12.88 0.05
--------------------------------------------------------------------------
510.64 516.91 6.27 41.4 1.2 0.81 7.02 0.02
--------------------------------------------------------------------------
668.24 672.23 3.99 115.6 3.4 2.54 1.16 0.32
--------------------------------------------------------------------------
Including 668.24 669.23 0.99 406.0 11.8 9.40 3.90 1.15
--------------------------------------------------------------------------
771.86 781.00 9.14 11.8 0.3 0.03 6.82 0.02
--------------------------------------------------------------------------
807.36 809.88 2.52 236.6 6.9 2.23 13.35 1.19
--------------------------------------------------------------------------
Including 809.00 809.88 0.88 555.0 16.2 5.71 10.30 3.35
--------------------------------------------------------------------------
814.34 818.80 4.46 55.3 1.6 1.81 2.75 0.01
--------------------------------------------------------------------------
Including 814.34 816.70 2.36 97.2 2.8 3.41 3.22 0.02
--------------------------------------------------------------------------
CM08-57 344.08 345.88 1.80 165.0 4.8 3.07 6.92 0.11
--------------------------------------------------------------------------
350.25 351.05 0.80 97.0 2.8 4.44 18.00 0.01
--------------------------------------------------------------------------
CM08-58 318.04 319.30 1.26 50.4 1.5 2.94 3.32 0.01
--------------------------------------------------------------------------
348.97 350.61 1.64 63.4 1.8 2.61 2.44 0.01
--------------------------------------------------------------------------
Including 348.97 349.33 0.36 119.0 3.5 4.53 4.28 0.01
--------------------------------------------------------------------------
355.44 356.50 1.06 78.6 2.3 1.35 2.49 0.02
--------------------------------------------------------------------------
CM08-59 No Significant Intercepts
--------------------------------------------------------------------------
CM08-60 No Significant Intercepts
--------------------------------------------------------------------------
CM08-61 370.15 371.20 1.05 206.0 6.0 9.46 7.15 0.03
--------------------------------------------------------------------------
382.10 384.70 2.60 12.9 0.4 0.07 0.59 0.01
--------------------------------------------------------------------------
CM08-62 456.59 457.04 0.45 486.0 14.2 10.85 15.20 0.05
--------------------------------------------------------------------------
513.19 513.80 0.61 113.9 3.3 2.57 1.62 0.02
--------------------------------------------------------------------------
520.44 521.49 1.05 266.7 7.8 6.67 4.52 0.04
--------------------------------------------------------------------------
Including 521.03 521.49 0.46 586.0 17.1 14.50 6.78 0.05
--------------------------------------------------------------------------
CM08-63 488.98 489.28 0.30 228.0 6.6 4.57 5.94 0.16
--------------------------------------------------------------------------
CM08-64A 459.87 465.44 5.57 487.7 14.2 8.97 16.45 0.23
--------------------------------------------------------------------------
Including 459.87 460.87 1.00 820.0 23.9 16.55 22.20 0.52
--------------------------------------------------------------------------including 463.70 465.44 1.74 673.3 19.6 10.73 15.69 0.05
--------------------------------------------------------------------------
Including 463.70 464.38 0.68 1,065.0 31.1 22.20 8.98 0.08
--------------------------------------------------------------------------
470.25 472.76 2.51 81.8 2.4 2.22 6.50 0.01
--------------------------------------------------------------------------
537.91 539.58 1.67 361.0 10.5 9.22 7.87 0.04
--------------------------------------------------------------------------
Including 538.84 539.58 0.74 606.0 17.7 16.45 12.30 0.06
--------------------------------------------------------------------------
CM08-65 No Significant Intercepts
--------------------------------------------------------------------------
CM08-66 365.35 369.05 3.70 218.2 6.4 4.44 5.45 0.13
--------------------------------------------------------------------------
Including 366.36 367.76 1.40 475.0 13.9 9.59 12.05 0.27
--------------------------------------------------------------------------
577.30 579.70 2.40 112.0 3.3 3.66 9.94 0.72
--------------------------------------------------------------------------
Including 577.30 577.80 0.50 103.0 3.0 3.33 17.00 1.07
--------------------------------------------------------------------------
Including 578.13 579.12 0.99 171.0 5.0 5.26 11.20 0.92
--------------------------------------------------------------------------
645.02 646.75 1.73 36.7 1.1 0.09 14.79 0.03
--------------------------------------------------------------------------
CM08-67 No Significant Intercepts
--------------------------------------------------------------------------
CM08-68 No Significant Intercepts
--------------------------------------------------------------------------
CM08-69 No Significant Intercepts
--------------------------------------------------------------------------
CM08-70 420.85 436.40 15.55 56.6 1.7 1.50 4.35 0.08
--------------------------------------------------------------------------
Including 421.24 422.08 0.84 350.0 10.2 11.45 13.10 0.13
--------------------------------------------------------------------------
444.14 451.33 7.19 55.6 1.6 1.05 3.98 0.04
--------------------------------------------------------------------------
Including 446.91 448.20 1.29 105.0 3.1 1.59 4.24 0.08
--------------------------------------------------------------------------
458.10 465.02 6.92 62.6 1.8 0.67 3.02 0.06
--------------------------------------------------------------------------
Including 461.67 462.85 1.18 137.0 4.0 1.59 8.82 0.08
--------------------------------------------------------------------------
CM08-71 No Significant Intercepts
--------------------------------------------------------------------------
CM08-72 356.34 362.71 6.37 106.3 3.1 3.72 3.59 0.01
--------------------------------------------------------------------------
Including 356.34 358.56 2.22 275.5 8.0 9.49 9.20 0.01
--------------------------------------------------------------------------
CM08-73 393.89 395.34 1.45 26.0 0.8 4.61 3.58 0.40
--------------------------------------------------------------------------
632.13 632.45 0.32 183.0 5.3 5.29 7.27 0.04
--------------------------------------------------------------------------
683.37 684.40 1.03 41.1 1.2 1.6 1.54 1.38
--------------------------------------------------------------------------
CM08-74 386.53 388.00 1.47 108.0 3.1 1.92 10.65 0.03
--------------------------------------------------------------------------
CM08-75 337.73 338.41 0.68 459.0 13.4 15.9 11.85 0.09
--------------------------------------------------------------------------
CM08-76 371.88 372.13 0.25 361.0 10.5 12.65 18.1 0.09
--------------------------------------------------------------------------
CM08-77 493.28 509.28 16.00 20.9 0.6 0.51 3.03 0.04
--------------------------------------------------------------------------
Including 493.28 500.97 7.69 14.6 0.4 0.31 2.75 0.05
--------------------------------------------------------------------------
Inlcuding 506.40 508.50 2.10 52.0 1.5 1.19 9.81 0.07
--------------------------------------------------------------------------
526.41 528.34 1.93 106.3 3.1 1.49 5.51 0.08
--------------------------------------------------------------------------
603.13 603.29 0.16 150.0 4.4 4.34 7.37 0.07
--------------------------------------------------------------------------
About Cinco de Mayo
Cinco de Mayo is a 15,000 hectare property straddling the same regionally-mappable structure that contains the largest Carbonate Replacement Deposits (CRDs) in Chihuahua. Exploration is guided by MAG's CRD exploration model and an airborne magnetic survey that revealed a number of prominent linear anomalies and prominent magnetic lows that are being systematically drilled. The zoned mineralization encountered to date lies along a very strong northwest-trending magnetic anomaly that runs over 3,000 metres from the discovery zone to the southeast to previously reported sulphide intercepts and historic workings (see press release of February 19, 2007). This trend is intersected by northeast trending structures that traverse the range, carry high-temperature alteration and point towards a large regional magnetic anomaly that underlies extensive jasperoids. The drill program will continue to systematically offset the manto style mineralization intersected in previous drilling while simultaneously testing the regional magnetic anomaly and numerous other geophysical anomalies developed by MAG elsewhere in the district.
This early stage property is held 100% by MAG and is one of six other district scale projects operated by MAG.
Cinco de Mayo Exploration
MAG's exploration has defined major NW and NE structural and stratigraphic controls on silver-lead-zinc (gold) sulphide mineralization and our ability to test the system with large drilling step outs is testimony to the widespread nature and potential size of this carbonate replacement (CRD) system. Recent drilling results reveal coherent zoning developed for over 2 kilometres along the principal northwest Jose Manto structural corridor: from massive silver-lead-zinc sulphide mantos to silver-gold-lead-zinc mineralized tungsten (scheelite) bearing skarn. The strongest skarn is associated with felsite dikes that show distinctive brecciation, silicification and sericitization and are overall very similar to mineralization-related felsites in major CRDs throughout the region. Mineralization also appears to thicken along this trend, as does the number of individual mantos and the number of carbonate units that are mineralized. This zoning is precisely what is predicted by MAG's CRD exploration model and provides strong exploration vectoring. MAG's focus remains to determine the overall extent of the CRD system, so on-going exploration will attempt to track this zoning towards the system source with a combination of drilling and geophysics.
The skarn and felsite intercepts appear to cluster around the intersection of the northwest structural corridor with the strong northeast-trending Leones Fault that cuts across the limestones of the Sierra Santa Lucia to the southwest. The Leones Fault is locally marked by strong marble and other high-temperature alteration styles indicating gradually increasing proximity to an intrusive heat source. Drilling is currently underway on both ends of this structure. On the east side to determine the geometry of the felsite dikes and associated mineralization and alteration, and on the west side of the range to determine if the large magnetic anomaly shown on Mexican government regional geophysical maps marks a major magmatic center.
Quality Assurance and Control: The Company has in place a quality control program to ensure best practices in sampling and analysis. Samples were collected by employees of consulting firm Minera Cascabel S.A. de C.V. on behalf of MAG Silver Corp. The surface rock samples are shipped directly in security sealed bags to ALS-Chemex Laboratories preparation facilities in Hermosillo, Sonora or Chihuahua City (Certification ISO 9001). Sample pulps are shipped from there to ALS-Chemex Laboratories in North Vancouver, Canada for analysis. All samples were assayed for gold by standard fire assay-ICP finish with a 50 gram charge. Gold values in excess of 3.00 g/t were re-analyzed by fire assay with gravimetric finish for greater accuracy. Silver, zinc, copper and lead values in excess of 100 ppm, 1%, 1% and 1% respectively are also repeated by fire assay.
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 Director and Shareholder of MAG and is the vendor of this project, whereby he may receive additional shares. Dr. Megaw is satisfied that the results are verified based on an inspection of the core, a review of the sampling procedures, the credentials of the professionals completing the work and the visual nature of the silver and base metal sulphides within a district where he is familiar with the style and continuity of mineralization. About MAG Silver Corp. ( www.magsilver.com)
MAG 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 and its partner Fresnillo plc are delineating a significant new silver vein discovery on the Juanicipio Joint Venture in Zacatecas State, Mexico. MAG is based in Vancouver, British Columbia, Canada. Its common shares trade on the TSX under the symbol MAG and on NYSE-A under the symbol MVG.
On behalf of the Board of MAG SILVER CORP.
Dan MacInnis, President and CEO
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the US Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts that address future mineral production, reserve potential, exploration drilling, exploitation activities and events or developments that MAG expects, are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although MAG believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include changes in commodities prices, changes in mineral production performance, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
Please Note: Investors are urged to consider closely the disclosures in MAG's annual and quarterly reports and other public filings, accessible through the Internet at www.sedar.com and http://www.sec.gov/edgar/searchedgar/companysearch.html.
Neither the Toronto Stock Exchange nor the American Stock Exchange has reviewed or accepted responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
Contacts:
MAG Silver Corp.
Gordon Neal
VP Corp. Development
(604) 630-1399 or Toll Free: 1-866-630-1399
(604) 484-4710 (FAX)
Email: info@magsilver.com
Website: www.magsilver.com
SOURCE: MAG Silver Corp.
mailto:info@magsilver.com
http://www.magsilver.com
Copyright 2008 Market Wire, All rights reserved
Tuesday, December 9, 2008
Silver Wheaton Announces Adoption of Shareholder Rights Plan
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/08/08 -- Silver Wheaton Corp. (TSX: SLW)(NYSE: SLW) announced today that its board of directors has approved the adoption of a shareholder rights plan (the "Rights Plan"), effective December 8, 2008.
The purpose of the Rights Plan is to provide shareholders and the board of directors with adequate time to consider and evaluate any unsolicited take-over bid made for Silver Wheaton's common shares, provide the board of directors with adequate time to identify, develop and negotiate value-enhancing alternatives, and encourage the fair treatment of shareholders in connection with any take-over bid made for Silver Wheaton's common shares. The Rights Plan is intended to prevent any person from acquiring beneficial ownership of more than 20% of the outstanding common shares of Silver Wheaton while the board of directors' process is ongoing, or from entering into arrangements or relationships that have a similar effect. The Rights Plan remains subject to acceptance by the Toronto Stock Exchange and ratification by Silver Wheaton's shareholders at its next annual meeting of shareholders expected to be held in May 2009. If ratified by the shareholders, the Rights Plan will continue in force until the end of Silver Wheaton's third meeting of shareholders after such ratification. Silver Wheaton is not aware of any specific take-over bid for Silver Wheaton that has been made or is contemplated.
In order to implement the Rights Plan, the board of directors has authorized the issuance of the rights to holders of its common shares at the rate of one right for each common share outstanding. The rights will automatically attach to the common shares and no further action will be required by shareholders.
Pursuant to the terms of the Rights Plan, any bid that meets certain criteria intended to protect the interests of all shareholders will be deemed to be a "permitted bid" and will not trigger the Rights Plan. These criteria require, among other things, that the bid be made by way of a take-over bid circular to all holders of voting shares other than the offeror under the bid, and remain open for acceptance by shareholders for at least 60 days. In the event a take-over bid does not meet the permitted bid requirements of the Rights Plan, the rights issued under the plan will entitle shareholders, other than any shareholder or shareholders involved in the take-over bid, to purchase additional common shares of Silver Wheaton at a significant discount to the market price.
A copy of the Rights Plan will be filed on SEDAR at www.sedar.com and made available on Silver Wheaton's website upon acceptance by the Toronto Stock Exchange.
Silver Wheaton is the largest public mining company with 100% of its operating revenue from silver production.
The purpose of the Rights Plan is to provide shareholders and the board of directors with adequate time to consider and evaluate any unsolicited take-over bid made for Silver Wheaton's common shares, provide the board of directors with adequate time to identify, develop and negotiate value-enhancing alternatives, and encourage the fair treatment of shareholders in connection with any take-over bid made for Silver Wheaton's common shares. The Rights Plan is intended to prevent any person from acquiring beneficial ownership of more than 20% of the outstanding common shares of Silver Wheaton while the board of directors' process is ongoing, or from entering into arrangements or relationships that have a similar effect. The Rights Plan remains subject to acceptance by the Toronto Stock Exchange and ratification by Silver Wheaton's shareholders at its next annual meeting of shareholders expected to be held in May 2009. If ratified by the shareholders, the Rights Plan will continue in force until the end of Silver Wheaton's third meeting of shareholders after such ratification. Silver Wheaton is not aware of any specific take-over bid for Silver Wheaton that has been made or is contemplated.
In order to implement the Rights Plan, the board of directors has authorized the issuance of the rights to holders of its common shares at the rate of one right for each common share outstanding. The rights will automatically attach to the common shares and no further action will be required by shareholders.
Pursuant to the terms of the Rights Plan, any bid that meets certain criteria intended to protect the interests of all shareholders will be deemed to be a "permitted bid" and will not trigger the Rights Plan. These criteria require, among other things, that the bid be made by way of a take-over bid circular to all holders of voting shares other than the offeror under the bid, and remain open for acceptance by shareholders for at least 60 days. In the event a take-over bid does not meet the permitted bid requirements of the Rights Plan, the rights issued under the plan will entitle shareholders, other than any shareholder or shareholders involved in the take-over bid, to purchase additional common shares of Silver Wheaton at a significant discount to the market price.
A copy of the Rights Plan will be filed on SEDAR at www.sedar.com and made available on Silver Wheaton's website upon acceptance by the Toronto Stock Exchange.
Silver Wheaton is the largest public mining company with 100% of its operating revenue from silver production.
Thursday, December 4, 2008
Silver Falcon Mining, Inc. (SFMI) Meets Objectives of 2008 Business Plan
NEW YORK, NY, Dec 04, 2008 (MARKET WIRE via COMTEX) -- Silver Falcon Mining, Inc. (PINKSHEETS: SFMI) looks back at its 2008 business plan agreed to by its Board of Directors in late 2007.
The SFMI Board of Directors approved a business plan which called for the following objectives to be met within the 2008 calendar year:
-- Build and start up, 100 tons per day precious metal processing mill
within a 50 miles radius of War Eagle Mountain.
-- Bring previously mined ore (tailings) as needed, from the mountain to
the plant, for a six month production of Gold and Silver.
-- Re-open one of the mine shafts on the property and prepare it for
further activity; in accordance with the Company's operating contract with
GoldCorp Holdings, Inc.
-- Mandate the officers of the company to file documents with the United
States Securities and Exchange Commission, in order to become fully
reporting and provide financial transparency.
SFMI's Management reports that it has fulfilled all aspects of its aforementioned 2008 business plan.
Having purchased and installed state of the art milling equipment, SFMI goes into operation by the end of this year, processing approximately one hundred tons of ore per day.
The Company transported ore, from atop War Eagle Mountain to its Melba, ID mill. The Company reports enough mill-feed tonnage available to last until mid-year 2009. Ore transport operations will resume, in the spring, providing additional mill-feed for 12 months of continuous production.
SFMI's mining engineers opened the "Belle Peck" adit, thus giving access to the "Poorman" complex of gold and silver veins. This secured access gives our personnel, the year round ability to conduct the geological and mining steps necessary to start underground operations in the spring of 2009.
The Company, in October 2008, acquired the "Sinker Tunnel," which is situated at a lower elevation on the mountain and allows us easy year round access. This tunnel structure allows engineers, miners and geologist further internal access to SFMI's underground minerals contained above and around the tunnel. Two more "Deep-Shaft" mines were included in this purchase, as well as, 4 mill sites.
At the beginning of the year, the property owned by GoldCorp Holdings, Co, covered approximately 172 acres. In 2008, it filed mineral claims at the Bureau of Land Management to an additional 1,400 acres on War Eagle Mountain, giving it almost complete mineral rights to the area. Under SFMI's long-term contract with GoldCorp Holdings, Co., SFMI's geologist/ mining engineers began a mapping operation of this total acreage which will result in a current picture of the underlying value of the numerous precious metal veins and determine the best access routes for future development.
Management retained the services of an independent auditor, who is going through an exhaustive financial audit of the company's affairs. A registration statement filing, under the USSEC 1933 Act, will be submitted with the exchange commission upon the audit's completion.
Mr. Pierre Quilliam, President of Silver Falcon Mining, Inc., said "We had an ambitious plan and carried it out successfully thanks to the selfless dedication of our employees and contractors. We hired competency in the various disciplines needed to carry out our successful mining program, now and in future years. This past performance should make it easier to get Board of Directors approval for the 2009 operations plan. "
About SFMI:
Silver Falcon Mining, Inc., is an exploration and development Company specializing in high-grade Gold and Silver mining properties in North America. Its primary operations at War Eagle Mountain, Owyhee County, ID is a Gold and Silver rich property, where it has the developmental and operating rights to (14) deep-shaft mines covering the Mountains' primary epithermal ore producing veins.
Further Information contact Rich Kaiser, Investor Relations, YES INTERNATIONAL 800-631-8127; www.silverfalconmining.com.
Silver Falcon Mining cautions that statements made in this press release constitute forward-looking statements, and not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made.
CONTACT:
YES INTERNATIONAL
800-631-8127
SOURCE: Silver Falcon Mining
Copyright 2008 Market Wire, All rights reserved.
The SFMI Board of Directors approved a business plan which called for the following objectives to be met within the 2008 calendar year:
-- Build and start up, 100 tons per day precious metal processing mill
within a 50 miles radius of War Eagle Mountain.
-- Bring previously mined ore (tailings) as needed, from the mountain to
the plant, for a six month production of Gold and Silver.
-- Re-open one of the mine shafts on the property and prepare it for
further activity; in accordance with the Company's operating contract with
GoldCorp Holdings, Inc.
-- Mandate the officers of the company to file documents with the United
States Securities and Exchange Commission, in order to become fully
reporting and provide financial transparency.
SFMI's Management reports that it has fulfilled all aspects of its aforementioned 2008 business plan.
Having purchased and installed state of the art milling equipment, SFMI goes into operation by the end of this year, processing approximately one hundred tons of ore per day.
The Company transported ore, from atop War Eagle Mountain to its Melba, ID mill. The Company reports enough mill-feed tonnage available to last until mid-year 2009. Ore transport operations will resume, in the spring, providing additional mill-feed for 12 months of continuous production.
SFMI's mining engineers opened the "Belle Peck" adit, thus giving access to the "Poorman" complex of gold and silver veins. This secured access gives our personnel, the year round ability to conduct the geological and mining steps necessary to start underground operations in the spring of 2009.
The Company, in October 2008, acquired the "Sinker Tunnel," which is situated at a lower elevation on the mountain and allows us easy year round access. This tunnel structure allows engineers, miners and geologist further internal access to SFMI's underground minerals contained above and around the tunnel. Two more "Deep-Shaft" mines were included in this purchase, as well as, 4 mill sites.
At the beginning of the year, the property owned by GoldCorp Holdings, Co, covered approximately 172 acres. In 2008, it filed mineral claims at the Bureau of Land Management to an additional 1,400 acres on War Eagle Mountain, giving it almost complete mineral rights to the area. Under SFMI's long-term contract with GoldCorp Holdings, Co., SFMI's geologist/ mining engineers began a mapping operation of this total acreage which will result in a current picture of the underlying value of the numerous precious metal veins and determine the best access routes for future development.
Management retained the services of an independent auditor, who is going through an exhaustive financial audit of the company's affairs. A registration statement filing, under the USSEC 1933 Act, will be submitted with the exchange commission upon the audit's completion.
Mr. Pierre Quilliam, President of Silver Falcon Mining, Inc., said "We had an ambitious plan and carried it out successfully thanks to the selfless dedication of our employees and contractors. We hired competency in the various disciplines needed to carry out our successful mining program, now and in future years. This past performance should make it easier to get Board of Directors approval for the 2009 operations plan. "
About SFMI:
Silver Falcon Mining, Inc., is an exploration and development Company specializing in high-grade Gold and Silver mining properties in North America. Its primary operations at War Eagle Mountain, Owyhee County, ID is a Gold and Silver rich property, where it has the developmental and operating rights to (14) deep-shaft mines covering the Mountains' primary epithermal ore producing veins.
Further Information contact Rich Kaiser, Investor Relations, YES INTERNATIONAL 800-631-8127; www.silverfalconmining.com.
Silver Falcon Mining cautions that statements made in this press release constitute forward-looking statements, and not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made.
CONTACT:
YES INTERNATIONAL
800-631-8127
SOURCE: Silver Falcon Mining
Copyright 2008 Market Wire, All rights reserved.
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